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Discuss: Ethical issues p. 159.

Discuss: Ethical issues p. 159.

Discuss: Ethical issues p. 159


Question #5.

Rhonda Kallman founded a company that produces ‘-t1oonshot 69, a caffeinated beer. Each bottle of beer contains about twice as much caffeine as a can of Pepsi. In 2011, Ms. Kallman, along with three other manufactur­ers, was served with a cease-and-desist notice from the, FDA to remove the caffeine from her beer or stop selling the product. Ms. Kallman has said that what the FDA is doing is like Prohibition 2010 and that it has no authority to regulate the sale or production of alcohol. ‘. She also indicates that Moonshot 69 is not an energy drink like those that are subject to FDA regulation. She says that agencies should regulate and not ban products. What information could you share with Ms. Kallman that would help determine what the FDA is trying to accomplish?

Question #7.

Hooked on Phonics is a reading program that departs from the current educational reading phi­losophy of “whole-language learning.” The program emphasizes the more traditional reading process of having children sound out letters and combinations of letters. The Federal Trade Commission (FTC) filed a false advertising complaint against Gateway Educational Products, Inc., the owner of the Hooked on Phonics Program. FTC claims that gateways television claims that those with reading disabilities would be helped “quickly and easily” and that Hooked on Phonics could “teach reading in a home setting without additional assistance” were mislead­ing. Gateway does not feel the claims are false, but it does not want to have bad publicity. What advice can you give Gateway on handling the FTC charges?

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