Facts: In late August 2011, Natasha Hawkins (plaintiff) applied for a second life insurance policy on her 19-year-old son, Khalil Wallace, from Globe Life Insurance Company. After Globe received Ms. Hawkins’s enrollment form and premium payment but before Globe formally approved the policy, Khalil was murdered. Globe refused to pay the policy proceeds, and Ms. Hawkins filed suit.

Judicial Opinion:

SCHNEIDER, Magistrate Judge Globe mailed plaintiff an advertisement for life insurance protection. The materials included these materials:

Pamphlet 1

First-day coverage

No waiting period

Buy direct by mail

Choose $5,000, $10,000, $20,000, $30,000 or $50,000 coverage

$1.00 for $50,000

No medical exam—just answer a few health questions

Pamphlet 2

Start a Life Insurance Policy for Only $1 Letter

No Waiting Period (2x)

Buy Direct by Mail (2x)

$1.00 Starts Up To $50,000 Life Insurance Coverage

Globe gives you life insurance coverage that costs only $1.00 to start!

There’s no medical exam . . . just answer a few Yes/No health questions

You buy directly through the mail

Answer A Few Yes/No Health Questions (2x) Enrollment Form/Application

No waiting period.

$1 Buys Up to $50,000

$1 Buys $50,000—Direct by Mail

You can choose from $5,000, $10,000, $20,000, $30,000 or even $50,000 life insurance coverage

There is no medical exam—just a few Yes/No health questions.

Globe’s enrollment form contains Question 2.b. This question asks whether in the past three years Khalil “had or been treated for . . . drug or alcohol abuse.” Plaintiff was aware her son was previously arrested and charged with multiple drug offenses. Subsequent to one of Khalil’s arrests, plaintiff arranged for Khalil to attend a few counseling sessions with a general therapist. However, plaintiff denied any knowledge of what her son discussed with his therapist. She also denied any knowledge that her son used drugs. Plaintiff testified that despite her son’s troubled past she did not believe he abused drugs. She noted that her son was an athlete and never showed symptoms of drug abuse.

After plaintiff mailed the enrollment form, Khalil was charged on September 2, 2011 with possession of marijuana. Plaintiff learned about this arrest within a few days but did not inform Globe.

Plaintiff’s application was subject to a “Quality Assurance” (QA) follow-up call. Globe attempted to telephone plaintiff 21 times and sent two letters to verify the truth of the statements on her enrollment form.

On September 20, 2011, plaintiff’s son disappeared into a van with unidentified individuals. On September 22, 2011 plaintiff was informed that her son was last seen two days prior and that his cell phone was found in Philadelphia. The same day plaintiff filed a missing persons report with the state police. Despite these events, plaintiff testified she was not concerned for her son’s safety following his disappearance because he would often be away from home for periods of more than two weeks at a time. Additionally, plaintiff testified that when she filed the missing per- sons report the police believed her son had run off to avoid charges from his recent arrest.

On September 28, 2011, plaintiff called Globe to complete the QA. During the call, . . . [t]he Globe representative asked plaintiff whether the proposed insured had a history of drug or alcohol abuse. Plaintiff again denied any knowledge that her son had a history of drug or alcohol abuse or treatment and affirmed that her answers were true to the best of her knowledge.

Following the QA call, Globe formally approved plaintiff’s policy on October 1, 2011. On October 6, 2011, six days after the policy was issued, Khalil Wallace’s body was found. The cause of death was determined to be multiple gunshot wounds inflicted on September 20, 2011, the day Khalil went missing. Plaintiff called Globe to report her son’s death on October 24, 2011 and submitted her claim for payment on February 6, 2012. On February 21, 2012 Globe advised it was investigating the claim. Following an exchange of letters between Globe and plaintiff, on July 6, 2012, Globe advised that it was voiding its policy because plaintiff misrepresented material facts during the application process.

Plaintiff argues the solicitation materials she received from Globe along with the fact that she answered “No” to all of the health-related questions led her to believe that she received interim coverage when Globe received her application materials on September 9, 2011.

Recognizing that the language of insurance con- tracts is often the result of technical semantic constructions and unequal bargaining power, New Jersey courts interpret insurance policies to give effect to the reasonable expectations of an objectively reasonable policyholder. As a result, courts resolve ambiguities in insurance contracts against the insurer.

The Court finds Globe’s promotional documents are ambiguous and should be interpreted to meet the reasonable expectations of an objectively reasonable applicant.

Globe’s pamphlet expressly states that Globe is offering “First-day coverage”. [T]he statement is easily read to indicate that interim coverage begins immediately. Directly underneath “First-day coverage” are the representations that applicants can “Buy direct by mail” with “No waiting period.” These statements read together indicate that an applicant can submit an application by mail and receive immediate interim coverage.

The pamphlet further states that if the applicant’s responses to the application show good health, coverage begins after the application is approved. Here, plaintiff answered “No” to all of the health-related questions in the application. Thus, it was her reason- able belief that since she answered that the insured was in “good health,” interim coverage applied.

The large and bolded font emphasize that plaintiff was reasonable in expecting interim coverage even before her policy was formally approved. The body of Globe’s letter also states that $1.00 “starts” up “coverage”. Although the letter later states in non-bolded text that the policy will be mailed once the application is “approved,” Globe still fails to qualify what that entails. Further, even if a reasonable applicant understood that “approval” included an underwriting process, it does not eliminate the impression that interim coverage exists while the application is processed.

Globe’s letter also states that “Your FULL protection starts the first day your policy is issued. There is no waiting period.” These sentences create ambiguity because Globe states that full protection starts when the policy is issued, but simultaneously promises no waiting period. Thus, the impression is created that policy issuance and coverage is immediate. Globe would have a better argument if instead of its ambiguous language it would have stated, “Your coverage starts only IF your policy is approved by Globe after receipt and review of your completed application”, and if it omitted the promise of “first-day coverage” and “no waiting period.”

Globe’s font sizes and text locations further plain- tiff’s impression that she received interim coverage. Representations concerning immediate coverage such as “$1.00 Starts Up to $50,000 Life Insurance Cover- age” and “No waiting period” appear in bold and large font while the “approval” language, which Globe emphasizes in support of its argument, appears in the authorization in much smaller font.

New Jersey courts “depart from the literal text and interpret [a policy] in accordance with the insured’s understanding, even when that understanding contradicts the insurer’s intent, if the text appears overly technical or contains hidden pitfalls, cannot be under- stood without employing subtle or legalistic distinctions, is obscured by fine print, or requires strenuous study to comprehend.”

Besides the ambiguity in Globe’s solicitation materials there was another good reason for plaintiff to objectively believe she had interim coverage. This belief is supported by considerable New Jersey precedent. . . . “[T]he very acceptance of the premium in advance tends naturally towards the understanding of immediate coverage though it be temporary and terminable.”

Globe received plaintiff’s application materials on September 9, 2011 and deposited the premium check on September 12, 2011. For the reasons described above, this initiated interim coverage on Khalil’s life as of September 9 or 12, 2011. Accordingly, plaintiff had interim coverage when Khalil died on September 20, 2011.

The law draws a distinction between misrepresentations made in response to an insurance company’s objective and subjective questions. If the question is objective, even an innocent misrepresentation can warrant rescission and constitutes equitable fraud. Courts are more lenient when the question is subjective.

The application question at issue: “In the past 3 years, has the Proposed Insured had or been treated for . . . drug or alcohol abuse[?]” Plaintiff answered this question “No.” Globe asserts that because plain- tiff was aware that her son was arrested for drug-related crimes and attended general therapy she should have answered the question in the affirmative. The Court disagrees. The problem with Globe’s argument is that it did not ask the right question. Globe did not ask if Khalil was ever arrested. Nor did it ask if Khalil ever possessed or distributed drugs, or was accused of same. Globe’s question only asks if Khalil had or was treated for drug abuse. Globe has failed to point to any evidence that this occurred. [T]he Court finds that Globe has not satisfied its burden of showing that plaintiff misrepresented any answers on her application.

Relatedly, plaintiff did not have a duty to inform Globe about her son’s September 2, 2011 arrest for marijuana possession. Again, Globe never inquired whether the insured had a criminal history on the insurance application. Additionally, that fact that Khalil’s arrest is not material is evidenced by the fact that Globe did not ask plaintiff any questions during the September 28, 2011 QA call which would have required her to inform Globe about the arrest.

Globe’s motion for summary judgment is denied.

Case Questions:

1. What were the problems with Globe’s marketing materials?

2. Develop a timeline for the events from the time of the policy mailer. Why are Khalil’s arrest and previous counseling not required to be disclosed?

3. Describe how Globe should have asked its questions.

Multiple Choice: Circle the most correct answer (20 questions, 1 mark each)

1) When we talk about predictability being a major element of law, we mean that

a. although the law is predictable, the outcome of a given dispute between people is not.

b. people should be more likely to be able to predict when they can circumvent a law.

c. the law itself is not predictable, only the cases that are decided.

d. by using common sense, the decision of any court can be determined in advance.

e. people should be able to find out where they stand and how to act with reasonable certainty.

2) Gurpreet Singh is employed by Nikhil’s Groceries. Arun, the owner of Arun's Groceries approaches Gurpreet and convinces Gurpreet to leave Nikhil's Groceries and work for Arun's Groceries. Nikhil's Groceries may sue Arun's Groceries for

a. breach of employer–employee contract.

b. breach of employee contract.

c. interference with employee affairs.

d. breach of contract.

e. inducing breach of contract.

3) The role of tort law is to

a. compensate victims for harm suffered from the activities of others.

b. assist judges by providing rules to determine how much money to pay victims of crime.

c. punish wrongdoers in the same way that criminal law punishes criminals.

d. determine who caused a motor vehicle accident.

e. impose strict rules to prevent the commission of crimes.

4) In a lawsuit against a professional for a breach of duty of care, a prudent plaintiff should

a. sue in contract for breach of contract for failure to properly perform services.

b. sue in tort for breach of fiduciary duty.

c. sue in tort for negligence arising from a breach of duty of care.

d. sue in tort for negligence arising from a breach of duty of care and in contract for breach of contract for failure to properly perform services.

e. sue in contract for negligence arising from a breach of duty of care and sue for breach of fiduciary duty.

5) The contractual requirement of ‘consideration’ provides that

a. the contract must be given careful consideration before it is entered into.

b. the offeror must pay cash for the offeree's promise to perform an act.

c. an offeree must pay cash for the offeror's promise to perform an act.

d. each party must give something of value in exchange.

e. what is exchanged by the parties must be of equal value.

6) Jaspreet Singh buys a second-hand car from Amit, who is not a retail seller. The province in which the sale takes place does not require that the car be certified. After two months, Jaspreet finds that the car requires substantial repairs. In this case,

a. there is a breach of the implied condition of fitness for purpose.

b. there is a breach of the implied condition of merchantable quality.

c. there is a fundamental breach of contract.

d. there is a breach of the implied warranties under the Sale of Goods Act

e. the maxim caveat emptor applies.

7) Contracts between parties of unequal bargaining power that are unfairly advantageous to the powerful parties have long been considered

a. bilateral contracts and void.

b. unilateral contracts and voidable.

c. unconscionable contracts and voidable.

d. non est factum (a written agreement is invalid because the defendant was mistaken about its character when signing it).

e. contrary to the Criminal Code of Canada.

8) Capacity to contract means

a. the ability to make an offer or accept an offer.

b. the competence to enter into a legally binding contract.

c. the ability to pay damages in the event of a breach of contract.

d. the ability to make a promise.

e. the ability to comprehend the terms of a contract.

9) The difference between a negligent misrepresentation and a fraudulent misrepresentation is that

a. a fraudulent misrepresentation requires only a breach of duty of care and skill, while a negligent misrepresentation requires at least some guilty knowledge or willful disregard of the falsity of information provided.

b. a negligent misrepresentation requires only a breach of duty of care and skill, while a fraudulent misrepresentation requires at least some guilty knowledge or willful disregard of the falsity of information provided.

c. there is no practical difference between a fraudulent misrepresentation and a negligent misrepresentation

d. a fraudulent misrepresentation does not require guilty knowledge or willful disregard of the falsity of information provided, while a negligent misrepresentation does.

e. negligent misrepresentation doesn’t exist.

10) We need to have law because it

a. regulates individuals’ interactions with one another.

b. gives the government the power to act for the benefit of society in general.

c. provides an element of certainty in determining contractual and property rights.

d. protects persons, property, and society, and prohibits conduct that society believes is harmful.

e. all of the above.

11) When we say that the law is linked to moral and ethical standards, we mean that

a. the law is based on ethics.

b. ethical behaviour is generally considered to be a higher standard.

c. ethics and morality are one and the same.

d. the fundamental truths that give rise to the law include ethics and morality.

e. the moral and ethical values of a society as a whole shape the development of the law.

12) Law is derived from a variety of sources. These include the constitution, legislation, and

a. the Supreme Court of Canada and subordinate legislation.

b. court decisions handed down by judges.

c. statements made by ministers and administrative rulings.

d. media reports and other news.

e. the cabinet.

13) When two or more parties have a legal dispute, often the cheapest form of resolving the dispute is by

a. litigation in the court.

b. mediation.

c. arbitration.

d. an out of court settlement.

e. none of the above.

14) Which one of the following is just cause for dismissal?

a. absenteeism twice in the last year

b. habitual negligence or incompetence

c. tardiness once in the last two years

d. no work to do

e. refusal to work in an unsafe work environment

15) Jaspreet Singh had worked for his employer for 15 years when he was terminated without notice or pay in lieu of notice. He filed a lawsuit for wrongful dismissal as he felt there was no just cause for the termination, although he did believe there had been a plot to get rid of him. Which of the following is correct?

a. In the absence of just cause, Jaspreet would likely be entitled to reasonable pay in lieu of notice, but no punitive damages unless the employer had committed some tort related to Jaspreet.

b. In the absence of just cause, Jaspreet would likely be entitled to reasonable pay in lieu of notice and punitive damages as he was fired without just cause.

c. In the absence of just cause, Jaspreet would likely be entitled to reasonable pay in lieu of notice and punitive damages due to the employer's malicious and outrageous act.

d. Jaspreet should have filed his lawsuit as a case of constructive dismissal in order to win punitive and aggravated damages.

e. Even if there was no just cause, Jaspreet likely would not be entitled to any compensation as he did not suffer actual psychological harm as a result of losing his job.

16) Which of the following statements more accurately describes an employee rather than an independent contractor?

a. The person provides his or her own tools.

b. The person determines his or her own work schedule.

c. The person is an essential part of an employer's organization.

d. The person has a high level of financial risk.

e. The person is free to represent others in the same business.

17) Which of the following statements with regard to the characteristics of civil and criminal actions is true?

a. The person who begins a civil action is usually called the prosecutor.

b. A civil action is a private action; that is, a person or persons sue another or others usually for the purpose of being compensated for injury or loss suffered.

c. If a person is convicted of a criminal offence, he or she cannot also be sued in a civil action by the victim.

d. In a criminal case, an individual person is taking the action against the accused.

e. The prosecutor must prove his or her case based "upon a balance of probabilities."

18) With regard to the relationship between the judiciary (courts) and the legislatures, which of the following is true?

a. Common law overrides case law on the same point.

b. The courts have no authority to affect a statute once it has been passed by our elected representatives in the federal Parliament.

c. A provincial statute could be struck down by the courts for being contrary to the Charter of Rights and Freedoms.

d. The courts have no power to declare a provincial statute to be void; only federal statutes can be struck down by the courts.

e. The courts cannot affect the meaning of the statute through subsequent interpretation.

19) Which of the following is an ingredient necessary to form a contract?

a. exemption clauses

b. fairness

c. privity

d. capacity

5. assignment

20) With regard to the process of a civil law suit, which of the following is true?

a. The plaintiff must prove his or her case on the balance of probabilities, not beyond a reasonable doubt.

b. The statement of claim is a document registered by the plaintiff that contains a summary of the allegations that support the cause of action.

c. Any admission by the defendant at the examination for discovery can be used against him or her by the plaintiff at trial.

d. A counterclaim is an action by the defendant back against the plaintiff.

e. All of the above

True or False: Circle the correct reply (a or b) (10 questions, 1 mark each)

21) In any jurisdiction of Canada, such as Ontario, the rule is that the decision of a higher court is binding on a lower court.

a. True

b. False

22) Where a party inadvertently uses the wrong words in stating the terms of a contract, and another party enters into the contract, the court may set aside the contract if a reasonable bystander would conclude that the party had made a mistake.

a. True

b. False

23) If one party breaches a condition of a contract, the other party will generally be entitled to repudiate the contract.

a. True

b. False

24) When an offer is proposed to an interested party, the form of acceptance does not matter even if a preferred method of communication is stipulated within the offer.

a. True

b. False

25) Where a party inadvertently uses the wrong words in stating the terms of a contract, and another party enters into the contract, the court may set aside the contract if a reasonable bystander would conclude that the party had made a mistake.

a. True

b. False

26) If one party breaches a condition of a contract, the other party will generally be entitled to repudiate the contract.

a. True

b. False

27) A void contract is one that is deemed in law to have never been created.

a. True

b. False

28) When an employee is dismissed for just cause, he or she is not entitled to reasonable notice or pay in lieu of notice.

a. True

b. False

29) The primary purpose of tort law is to punish wrongdoers.

a. True

b. False

30) An employer is responsible for only those torts committed by an employee that take place while the employee is doing what he was employed to do.

a. True

b. False

I. You are the Auditor for Winter Valley. You have noticed that the town is recording all transactions in the General Fund. The town has not established any other funds although they have the following activities:

● They are constructing a new City Hall

● They are paying interest and principal on Winter Haven Municipal bonds

● The have established a $3,000,000 endowment fund to fund the maintenance of the town library into perpetuity.

● They have passed a gasoline tax surcharge to fund the planting of flower beds on the sides of central highway.

Required: Prepare a one to two page memo explaining the following:

1. The reasons governments must establish funds.

2. The accounting method and measurement focus used by the governmental funds.

3. The purpose of the General fund 4. An explanation of the additional funds which need to be established to more accurately account for the activities of Winter Valley to assure appropriate accounting and budgetary control.

● II. Write a one page critical analysis of the following article:

Chicago’s Murder Problem By FORD FESSENDEN and HAEYOUN PARK MAY 27, 2016 Chicago police officers at a crime scene in Greater Grand Crossing, one of the city’s most violent neighborhoods, where a 13-year-old boy was shot in both legs in April. There was a time when it looked as if Chicago would follow New York and Los Angeles into a kind of sustained peace. Then progress stalled in 2004, and the city has been through some harrowing years leading up to another alarming spike in homicides this year. \ Already embroiled in a crisis over race and police conduct, Chicago now faces a 62 percent increase in homicides. Through mid-May, 216 people have been killed. Shootings also are up 60 percent. So what’s going on in Chicago? It’s complicated, but a comparison with New York is a good place to start. Both cities began the 1990s with historically high homicide rates; both have diverse populations, including large numbers of blacks, Hispanics and whites, and a wide range of economic fortune as well. Chicago has about the same population as Brooklyn, but a year’s worth of homicides in the two places shows an astonishing difference in the toll. Guns Are a Key Difference People who know both cities say there are some significant differences in policing, especially around the issue of guns. The homicide rate in Chicago is just a little higher than in New York when guns aren’t involved. But when it comes to shootings, both fatal and not, Chicago stands out, suggesting a level of armed interaction that isn’t happening in New York. Chicago has a reputation for strict gun laws, and gun rights advocates often point to it as proof that gun regulation doesn’t reduce violence. But its laws aren’t what they used to be: Federal courts struck down its ban on handgun ownership in 2010, and its ban on gun sales in 2014. And a New York Times analysis showed guns were easily available from nearby jurisdictions, especially Indiana. About This Project And Chicago is more lenient about illegal handguns than New York, prescribing a one-year minimum for possession versus three and a half years in New York. An attempt to match the New York law in 2013 was rejected by the Illinois legislature out of concern for skyrocketing incarceration rates for young black men. New York also hired a lot more police officers in response to the crime of the 1990s, and, during its stop-and-frisk era of the 2000s, steeply increased gun enforcement. Recent studies, including one that looked at increased police presence in London after a terrorist attack, have suggested more police might mean less crime, said Jens Ludwig, the director of Crime Lab at the University of Chicago, which studies crime in both Chicago and New York. Chicago’s Police Department, overwhelmed, can respond only to the most serious problems, leaving citizens to feel responsible for their own security, he said. “Everyone has to establish deterrence on a retail basis,” he said. “People carry guns in public because other people are carrying guns. It’s literally an arms race, a vicious cycle. There are lots of indications that New York City, by taking guns more seriously and hiring more officers, has gotten a lot of guns off the streets, creating a virtuous cycle.” Gang Wars in Chicago Drive Much of Its Violence In Chicago, gang disputes are clearly a big part of homicides, said John Hagedorn, a professor at the University of Illinois at Chicago who studies Chicago gangs. “But these are not the same kind of disputes as before – they’re more localized disputes.” Many of Chicago’s gangs have fractured, leading to more violence, said Arthur Lurigio, a criminology professor at Loyola University Chicago. While Latino gangs have remained more hierarchical, black gangs have splintered into small, disparate factions, whose disputes are less over territory and profits, and more over personal insults or shames, often fueled by social media, he said. “Young people are making a lot of indirect threats toward cliques and rival gangs that are being interpreted as being threatening,” said Desmond Patton, a professor at Columbia University who has studied violence on social media. “Tagging is the conversation starter that could lead to someone getting a gun.” In addition to making threats, individuals at times post their location on social media to prove to rivals that they’re tough, he said. In one well-known instance, Gakirah Barnes, a Chicago gang member who was rumored to have killed or shot up to 20 rival gang members, referenced an address she frequented on Twitter. In the tweet, provided by Dr. Patton, Ms. Barnes says “Lz,” which has multiple meanings in Chicago gang cultures, including living life, at address number 6347. Later that day, she was shot and killed near the address. Tweet from Gakirah Barnes’s account Gangs figure in many homicides in New York as well, but recent polls by The New York Times suggest that the gang problem may be worse in Chicago. Although there were differences in the way the polls were conducted, blacks and Hispanics in Chicago expressed significantly less hope than their counterparts in New York that their children would escape gang life. New York City Dr. Hagedorn also points out that though the city also has a lot of Latino gang members, Chicago’s violence is much higher among African-Americans. Three quarters of all homicide offenders and victims are black, he said. “The shootings today are more spontaneous over day-to-day humiliations of youthful African-Americans,” he said. Crime Persists in Chicago’s Most Segregated Neighborhoods Whether exacerbated by gangs or guns, though, Chicago’s killings are happening on familiar turf: Its poor, extremely segregated neighborhoods on the South and West Sides. And many say that is Chicago’s real violence issue. “Where do gangs come from? They tend to take root in the very same neighborhoods that drive these other problems,” said Robert J. Sampson, a professor at Harvard and the author of “Great American City: Chicago and the Enduring Neighborhood Effect.” “You can’t divorce the gang problem from the problem of deep concentrations of poverty.” “What predicts violent crime rates is concentrated poverty and neighborhood disadvantage, and what determines concentrated poverty is high levels of black segregation combined with high levels of black poverty,” said Douglas S. Massey, a sociology professor at Princeton University. In Chicago, homicide rates correspond with segregation. While many areas have few or no killings, the South and West Sides are on par with the world’s most dangerous countries, like Brazil and Venezuela, and have been for many years. STATEN ISLAND But segregation in New York is nothing like in Chicago: The perfectly isolated neighborhood – where every man, woman and child is the same race – is rare in New York. Less than one percent of the population lives in such areas, and most of them are white. In Chicago, 12 percent of the black population is in a census block group that is 100 percent black. Racially segregated minority neighborhoods have a long history of multiple adversities, such as poverty, joblessness, environmental toxins and inadequate housing, Professor Sampson said. In these places, people tend to be more cynical about the law and distrust police, “heightening the risk that conflictual encounters will erupt in violence.” “The major underlying causes of crime are similar across cities, but the intensity of the connection between social ills and violence seems to be more persistent in Chicago,” Professor Sampson said. “You don’t get that kind of extensive social and economic segregation in many other cities.” Sources: nyc.gov; City of Chicago Data Portal; Andrew Beveridge, socialexplorer.com; ​Federal Bureau of Investigation; Los Angeles Police Department; Bureau of Justice Statistics; New York Times/Kaiser Family Foundation Chicago poll; NYT-Siena NY poll. Write a one page critical analysis of the preceding article.

1.As a manager, you may find the constant pressure to produce praise exhausting.

a.When that happens, it is permissible to hold off until you are fully refreshed

b.When that happens, praise appears “forced” and disingenuous

c.You should never praise employees more frequently than the amount of praise that you receive

d.But remember that however unimportant these compliments seem to you, they’re fulfilling a genuinely vital psychological need in your employees

2.By giving the employee the opportunity to explain what’s going on, you’re communicating that

a.you see them as a person. Your employee probably feels very vulnerable in these moments, and they need to believe that you want to treat them fairly and care about how they perceive the situation

b.you will accept excuses

c.you acknowledge that you are out of touch with your team

d.you conjure up the worst fears of a Theory X manager

  

3.According to Fuller and Shikaloff, employees are more engaged if

a.they are sufficiently (financially) rewarded for their work

b.they are better educated

c.they work for a manager who is working at least as much as they are

d.management will just get out of their way so they can get their work done

4.The more a manager knows about the people who work for them,

a.the less confident the manager will be in the employee’s work potential

b.the more intrusive they will become in the employee’s personal life

c.the more he/she will be able to control/manipulate the employee

d.the more they’ll be able to motivate them, coach them, and help them grow

5.High performers typically

a.place a high value on their own development and see it as a sign that your company is a good place to build a career

b.avoid working for a company without a robust training program

c.find ways to build additional skillsets in the people they work with

d.are demanding (in terms of higher pay/greater benefits)

6.Fuller and Shikaloff have consistently found that larger manager networks correlate with

a.greater employee turnover

b.higher pay levels
c.the creation of a “good ole boy” network

d.a number of different positive business outcomes

7.Frederick Herzberg, a psychologist who studied employees’ motivation, argued that
a.a manager can effectively incentivize employee development through additional pay

b.different employees respond to different incentives, thereby making it impossible to find a common approach

c.money is a less powerful motivator than opportunities to learn, advance in their responsibilities, and be recognized for their achievements

d.an employee who does not take the lead in defining and pursuing incentives for professional growth is an employee who will flame out quickly

8.Once maximizers have made a choice, they are likely to

a.push ahead with their decision, accepting it as the best possible approach

b.find ways to quickly validate their decision

c.apply their new-found approach to an array of business concerns

d.second guess themselves and wonder whether they could have made a better choice. They are more prone to making social comparisons in order to gauge the optimality of their decisions

9.When you delegate, you should see your role as

a.a micromanager

b.a monitor and a coach

c.hedgehog

d.an enabler

10.Behavioral economist Herbert Simon argued that
a.the goal of utility maximization, as formulated by rational choice theory, is nearly impossible to achieve in real life

b.slackers come up for reasons why they can’t maximize

c.the higher the education, the greater the maximization

d.prospective employees should be tested to determine how well they maximize

11.Many managers make the following mistake:

a.Making an employee’s personal happiness the highest priority produces optimal work outcomes

b.They assume that the personal happiness of their employees conflicts with the needs of the business, and that they must choose between the two

c.An employee who brings his/her personal interests to the workplace obviously has their priorities mixed up

d.They try to juggle the personal interests of all employees with the business’ interests, satisfying neither in the end

12.Delegation of duties

a.gives you more time to focus on activities that require your unique skills and level of authority

b.sends a clear signal to employees exactly who is in control

c.gives you more time with friends and family

d.is discouraged because it makes subordinates less dependent on you

13.Compared to strategic planning, opera­tional planning

a.takes less time
b.Is more specific, less comprehensive, done at a lower level, in­volves the relative allocation of small amounts of resources, is often repetitive in nature and covers a short time span (i.e., one year or less)

c.begins in the C-suite and filters its way down

d.begins on the floor and filters its way up

14.Paul Hersey says situational leadership

a.requires that employees see a consistent approach to problems by managers

b.isn’t different strokes for different folks. It’s different strokes for the same folks, depending upon what it is you’re trying to get done and what their performance readiness is

c.leaves managers open to the accusation of favoritism among employees

d.effectively leaves the employees in charge of the business. (It is Theory Y run amuck.)

15.According to Robinson’s study, engaging in strategic planning alone

a.was not found to have such a direct link to high performance

b.was more valuable than engaging in operational planning alone

c.resulted in higher performance over the long term

d.is something that produces intangible benefits difficult to measure

  

16.A common tactic to diffuse the awkwardness in the feedback process is to:

a.delegate the responsibility to someone who is not personally invested in the outcomes

b.break the feedback into many digestible bits and dole it out over a succession of days

c.do it over lunch
d.open with praise, move to criticism, close with praise

17.Operational planning refers to:

a.the process leading to the development of short range goals, action plans and procedures to guide the handling of day to day operations

b.a global understanding of a desired endpoint for the organization

c.determination of the firm's mission, its principal strategies, and the key goals these elements are intended to accomplish

d.the oversight required to identify/pursue leading-edge technology

18.According to Robinson’s research, businesspeople generally thought that operational plan­ning was

a.less important than strategic planning

b.equally important with strategic planning

c.more important to the success of their firm than strategic planning

d.is sector-specific (it is important in certain business sectors, but not in others)

19..A satisficer is

a.agonizes over making a less-than-perfect decision

b.is immune to the criticism that he/she lazy

c.less likely to experience regret, even if a better option presents itself after a decision has already been made

d.someone who stalls out very quickly in their professional careers

20.Satisficers are individuals who

a.quickly come up with excuses about why they can’t do their best

b.are pleased to settle for a good enough option, not necessarily the very best outcome in all respects

c.have a lower appreciation for quality than do maximizers

d.place speed over quality

21.The best time to give feedback, whether positive or constructive, is

a.after the dust has settled

b.at the end of the workday

c.in the moment

d.right before the employee goes on vacation

22.A good manager praises personally and often, but

a.not in front of the employee’s fellow employees out of concern for creating envy

b.usually includes it with a mention of perceived employee deficiencies

c.they make sure their accolades are as specific as possible, tailored to their own self-perceptions

d.are cautious not to do it until an employee has “achieved tenure.”

  

23.According to Herbert Simon, to make “best” choices

a.listen to your gut feelings, don’t worry about getting the very best all the time, and evaluate each outcome on its own merits rather than against others

b.find a mentor who is also a maximizer

c.go back to school and take a class in statistical analysis

d.create a large network of associates who can provide important feedback

24.The "high" operational planners experienced

a.higher sales and perceived performance, but ones that were not justified by the work and expense of operational planning

b.lower sales and perceived performance than those who prioritized strategic planning over operational planning

c.a temporary boost in productivity that tails off quickly

d.significantly higher sales per employee and significantly higher levels of perceived perfor­mance than did the firms that did not engage in "high" planning levels across each functional area

25.A good manager should

a.avoid monitoring the work-life balance of his/her employees, as they will quickly get overwhelmed with the personal problems of employees

b.check in frequently to make sure work isn’t disrupting important life functions like health, family, and leisure.

c.create/enforce rules for employees about achieving the right work-life balance
d.should avoid discussing with employees the importance of a healthy work-life balance for fear of appearing to be hypocritical

Flight Plan Consulting, Inc.

Cost of Capital and Firm Valuation Project

The Company background

Bill Gibson began Flight Plan Consulting, Inc. (FPC) in 1990. The company offered very specialized consulting services to corporate flight departments, i.e., to those companies that have their own planes for purposes of executive transportation. This consultancy focused on the cost versus benefit considerations of the acquisition and use of corporate aircraft. Bill Gibson was ideally suited for this line of work; he was both a commercial pilot and had held an adjunct position as a finance professor in a university near his home. His company had its first and only public offering of stock in 1995; at that time revenue had reached $5 million, and the employee headcount was up to ten. In the twelve years since the company's inception, sales, earnings and the company's fine reputation have increased steadily. The company's financial information, and selected capital market and industry data and information are provided in Table 1.

A major contributor to the company's good fortunes is a particular area of concern taking place in many corporate flight departments around the United States. This concern is known as “fractional ownership” versus full ownership of corporate aircraft. Gibson, while not a corporate pilot, understood well the costs, benefits, concerns and industry dynamics of corporate flight departments and the companies that supplied the aircraft. This knowledge and breadth of understanding formed the basis for his consulting company.

Fractional ownership, in its simplest terms, is when several companies, usually three or four, share the ownership of a corporate aircraft. For example, a company that wishes to buy fractional ownership will buy or lease a 1/5 interest in an airplane. Such an arrangement would allow for approximately 160 hours per year of usage. The total cost would depend upon the type of aircraft chosen. The fractional purchaser or lessee would also have access to aircraft crew, maintenance and everything else needed to complete the operation of a corporate aircraft.

The interest in fractional ownership has several origins, the most prominent of which is the corporate “downsizing” and “rightsizing” of the decade of the 1990's. The closing of a corporate flight department could possibly mean a significant reduction in total corporate overhead expenses. Moreover, fractional ownership may be more “flexible” in the manner in which the services are customized for each individual fractional owner. A rule of thumb among consultants was if the aircraft will be needed between 100 and 350 hours per year, fractional ownership would likely be the best option. [1]

Within that environment, FPC has become a major source of consulting services for firms that are moving from having an in-house flight department to fractional ownership, or are considering corporate aircraft acquisition for the first time. The operations of FPC involved Gibson or one of his five consultants working with the client to determine the most efficient manner in which to acquire the use of a corporate aircraft. The consulting relationships were always quite involved and of long duration. A consultant's reputation, however, depended upon the word-of-mouth goodwill of each client.

In the last year or so, Gibson had considered expanding by acquisition. There were several smaller consultancies in the same line of business as FPC. Gibson, after extensive discussions with his investment bank, had decided to focus upon two firms. Either one of those two would permit him immediately to acquire clients in Canada or Germany. The more pronounced international reach was exactly what FPC's strategic plan called for. While the company had done business in both Canada and parts of Western Europe for several years, the companies being considered for acquisition had very positive reputations in their respective locations.

Cost of Capital

Gibson believed that long-term capital from external sources would be needed to finance the acquisition. He believed FPC's common stock to be valued fairly at present. He also believed that the company's excellent bond rating would make a debt issue feasible.

Although the company’s board of directors was made up of successful and knowledgeable people from a variety of backgrounds, not all of them were intimately familiar with finance; it was, therefore, essential to answer any questions they had with authority. The firm’s investment in any asset, including other companies, was a result of the strategic plan, which the board had helped to develop and had certainly approved. The cost of capital issue was a very necessary tool in the implementation of that plan. The economic worth of any investment made by FPC would be measured against the firm’s cost of money, its opportunity cost, its cost of capital; terms that Gibson knew were interchangeable. At this crucial stage of the company’s development, he wanted his board to be “conversational” with those terms.

Gibson decided that he had better provide some specific and detailed information to his board concerning the company's cost of capital and its relation to the valuation process. In order to move the process along, Gibson decided to hand over the task of preparing a draft of “Cost of Capital and Acquisition Plans Memo”, as it had come to be called, to Kay Biddle. Biddle was a summer intern employed in FPC's controller's office. She was an MBA student and planned to graduate at the end of the fall semester with a concentration in finance. To construct her memo Biddle wondered how she, in relatively few words, could best show the interrelationship among the firm’s capital structure, the yield on the firm’s debt, and the rate of return on the firm’s equity. All of that information would be a starting point for her explanation.

Acquisition Plans

The board, Gibson believed, also needed to consider the effect of the impending acquisition upon the firm’s sales and net income after-tax. The purpose of the acquisition is to increase sales and income and to diversify the firm in terms of its geographic market. That is a key element in the long-term success of specialized consulting firms in FPC’s line of business.

FPC identified two possible target companies to acquire:

Maple Aviation, a fast-growing company with clients in major Canadian cities, such as Vancouver, Toronto, and Montreal.

Das Flugzeug, an established consulting company providing services to clients in Berlin, Frankfurt, and Munich.

Gibson asked Biddle to calculate the firm values of the above-mentioned targets and include the details in the memorandum. FPC's financial staff had spent considerable time analyzing the target companies’ current and historical financial statements. The analysis helped to determine the level of free cash flows after possible acquisition. The future expected free cash flows are the net cash flows available to the firm's investors after all investment in fixed assets and working capital have been made. The expected free cash flows from Maple Aviation and Das Flugzeug are listed in Table 2 and Table 3, respectively. All values are in US dollars. The last step of firm value calculation is to discount the cash flows at the weighted average cost of capital. The valuation process would help FPC justify the fair costs to acquire the target companies.

Table 1: Selected Firm, Industry, and Capital Market Data

FPC, Inc. issued 10-year $1,000-par bonds five years ago. They carried a coupon rate of 6%. The coupons were paid annually. Currently the bond is selling for $883.40. The firm’s stock price has risen to $21.50 recently. It was $10 when issued. The firm’s return on equity (ROE) is 20%, and its dividend payout ratio is 40%. It just paid $1 annual dividend recently. The dividend is expected to grow at a constant rate. Assume the firm is in the 30% (combined) tax bracket. Many specialized consulting firms have a long-term debt to total asset ratio of approximately 40 percent on average. It is considered to be the optimal debt to value ratio.

Table 2: Free Cash Flows (Thousands of US Dollars) of Maple Aviation

Year	1	2	3	4 and thereafter
Free Cash Flows ('000s of US$)	320.00	400.00	480.00	Grow at a constant rate of 6%

Table 3: Free Cash Flows (Thousands of Euros) of Das Flugzeug

Year	1	2	3 and thereafter
Free Cash Flow ('000s of US$)	550.00	720.00	910.00 each year indefinitely

Your task:

Suppose you are Kay Biddle and you will prepare the memorandum. You have to structure your memorandum around the following items:

Describe the company's core business and the market it serves.

Discuss the role of a corporate board of directors. To whom is the board responsible?

Why are capital market data and information useful when a firm is considering its cost of capital?

Calculate and present FPC's weighted average cost of capital.

Calculate and present the valuation of the two target companies to acquire.

Quantitatively discuss the comparison of the two targets.

In general, describe the effect upon the cost of capital of changes in capital market conditions such as an increase in interest rates, or a decline in stock prices.

Discuss how various factors may affect the cash flow estimates and FPC's project evaluation.

Note:

The format of the report is memorandum addressing to the board of directors. The body of your memorandum must not exceed 6 single-sided letter-size pages of typed 12-point-font double-spaced characters. You may include tables and figures in an appendix and reference them in the body of the report. If you make any assumptions or use information from external sources, state or cite them clearly. Writing and analysis should be performed by each student individually.

[1] The other options are, for less than 100 hours per year, use a charter service; for usage over 350 hours per year, operate an in-house flight department.

Breadmaking 101: pricing for profits Journal of Critical Incidents "Cost and prices, time for the numbers. What should I do?" A few weeks ago Karen Faulkner finalized the purchase of a bakery which specialized in bread. The prior owner had decided to sell the business because it lacked profitability. There were plenty of customers which suggested to Karen that the problem was with costs or pricing. The last price increase on any of the products was in 2002, ten years ago. Karen thought she could turn things around and would start by repricing her products. "This isn't a hobby, it's a business and if I don't get this right, there won't be a store." Karen was overwhelmed, but she decided to start by repricing the signature product--the honey wheat loaf. "I'll start with the honey wheat loaf; it will be a 'pricing beta test'." Notes and numbers were spread out on the table so that Karen could figure out costs and margins. Once she estimated cost, the difficult decision would be to decide on a price. A loaf of honey wheat still sold for $5.25. If the price needed to increase, what was the best price? What price would cover costs and keep customers buying loaves? Was it better to raise prices incrementally or all at once to avoid sticker shock? The Ingredients Karen was a graduate of a local college of business. She put her degree to use in a variety of ventures. Karen had owned a business in the past inspecting homes. She was comfortable owning and running a business and thought a better pricing strategy could turn the bakery around. The bakery was located in a medium-sized community with a stable economy supported by employment at the local university. The bakery was located downtown and served a lunch crowd from the nearby high school and businesses. The building was next to a small plaza where customers could sit outside for lunch. There were also tables at the front of the bakery. The atmosphere was friendly and the scent of baking bread filled the shop. The bread store was well known and liked in the community. It was perceived as selling healthy, high-quality foods; it sold a premium product. Schools visited on field trips and the free samples drew visitors. If asked to describe her customers, Karen said, "I think of them as shoppers like me; aware of quality and willing to pay a little more for something healthy with no preservatives." The Mix Karen knew she had to price the bread based on what the market would pay, but she also knew she needed to make sure the price was high enough to sustain her business. It made sense to her to use a spreadsheet to estimate costs and contribution margins. "Time to do the numbers." Karen decided to estimate the cost of goods sold and contribution margin for both 2002 and 2012. She made a list of the ingredients in her loaf and their costs as of 2002. Honey, wheat, salt, yeast, and water were the bread's ingredients. It seemed simple but it wasn't. One batch of bread that made 48 loaves and required 56 pounds of wheat, 12 pounds of honey, 0.4 pounds of salt and three pounds of yeast. In 2002, honey was $1.32 a pound, salt $4.15 a pound, yeast $1.64 a pound, and wheat was $0.17 a pound. It cost $8.50 an hour for labor. Were there other costs she needed to include: packaging and overhead? Prices had risen significantly for everything except yeast in the ten years between 2002 and 2012. Honey was now $4.02 a pound, salt $7.47 a pound, yeast was $0.98 per pound and wheat was $0.30 per pound. Wages hadn't changed at $8.50 per hour. A batch of bread needed a half hour of labor to mix the batter. While employees needed to be around when the bread rose and baked, employees usually did other work during this time and she decided to allocate only 0.5 hours labor per batch of bread. The variable costs could and did change over time, but their variability made it difficult to forecast their values in the future. Karen wondered how or even if she should somehow incorporate this uncertainty into her calculations and decision. She had seen how commodity prices had changed significantly in just the few weeks since she bought the bakery. Karen did not include fixed costs in her calculation. She had bought the business, not the building so there was monthly rent, not a mortgage. Water wasn't included in the cost structure, but without it there wouldn't be bread. Should part of the water bill be allocated to the loaves? And what about insurance, taxes, and other fixed costs? Were they part of the cost? Business theory stated that fixed costs should not be included in pricing decisions (Stiving, 2010), yet many business allocated fixed costs to product lines in their pricing decisions (Shim & Sudit, 1995). Since Karen had not collected fixed cost information she decided to ignore them and focus on variable costs. And then there was pricing. Covering costs was critical but what would customers be willing to pay? If Karen raised prices how would customers react? Should she increase all at once or a little? Should the price cover costs now or anticipated costs for the next couple of years so the change could be "one and done?" The Rise Pricing seemed like more of an art than a science. What did competitors charge? The loaves on grocery store shelves looked industrial, tasted bland, and shipped by truck from a factory. A grocery store field trip yielded a wide variety of prices and products. Over the last few years, grocery stores started selling artisan and other kinds of loaves that looked like what she was selling in her store. Focusing on honey wheat, Karen found loaves at a couple of stores that looked like her loaves and sold for $5.25 or more a loaf. Those loaves seldom went on sale, but sometimes were put in the day-old section of stores. The difference was the ingredient list. What exactly were some of the ingredients on the label? In the grocery store, the typical bread loaf was something she thought of as factory-made. Those loaves often went on sale. The price was $4.10 for higher quality brands, but they often sold at a discount of $2 a loaf. The texture and taste was inferior to her product, but she knew some customers wouldn't notice the difference and cared more about price. She decided those were not the customers she wanted to target. Convenience and price were their focus. There was another bakery in town, but it made and sold rolls and didn't sell bread. Since it didn't make products similar to her loaves she didn't think she had to worry about competition from it. Karen thought her product was a premium loaf, made by her bakers and sold while it was still oven fresh. Her bread was baked fresh and without preservatives, a quality product. Many customers realized the premium qualities of her bread and often commented on the texture and taste. Her customer base seemed less concerned about price and more concerned about quality. They could see the loaves in the back of the store, talk to the bakers and better yet, smell the scent of freshly baked. In short, customers were willing to pay a premium for a higher quality product. Yet, Karen wondered if they would find alternatives if she raised her price. In a Canadian study the price elasticity for bread was -0.43 (Pomboza & Mbaga, 2007) suggesting that a one percent increase in price would lower demand by 0.43%. While this resulted in fewer loaves sold, it also resulted in higher profits for the store if Karen raised her price. Karen did not have information on whether customers would substitute inferior grocery bread for her higher quality bread if she raised her price. It was simply an unknown. Karen's research convinced her that she had a unique product. Competing on price seemed like a bad idea. But if she baked it and priced it for profits, would they buy? The Loaf Now that Karen had calculated the numbers and had researched her competition it was time to decide on a price. There were many ways to start. She could estimate the mark up from the cost of goods sold and the margin percent based on 2002. Then she could use those percentages along with the 2012 commodity prices to estimate a 2012 price. Or Karen could estimate costs and multiply that number by some multiple like 2X or 3X to determine the price. Some bakeries priced goods this way. Karen wondered, "Would focusing on profit margins be a better strategy?" Even then she struggled with what to do about the volatility of commodity prices. Should a model incorporate that uncertainty and, if so, how? Were there other pricing strategies? Should she use a markup from the competition? What if her numbers showed a big price increase was needed? How would her customers react? Did she need to change the price in stages and test the reaction or would it be better to do it all at once? What about the future? If she was increasing prices anyway, should there be a margin for the possible changes in commodity prices? This was much harder than the homework problems she solved in college while earning her business degree and the stakes were higher. This decision could make or break her business and its future. This was bread making 101. Karen knew the price change was just the beginning. Standing in the store and monitoring sales was important not only to keep the personal connection her customers valued, but also to hear and review in real time how sales changed as the price increased.

Is Social Security an Entitlement?

Background

Alan Simpson, Senator from Wyoming, Co-chair of Obama’s deficit commission, called senior citizens “the Greediest Generation” as he compared Social Security to a Milk cow with 310 million teats”. The following is a response1 from a unknown fellow in Montana:

_________________________________________________________________

“1. As a career politician, you have been on the public dole for FIFTY YEARS…

2. I have been paying Social Security taxes for 48 YEARS (since I was 15 years old. I am now 63)…

3. My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud…

4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to age 67. NOW, you and your shill commission is proposing to move the goalposts YET AGAIN…

5. I, and millions of other Americans, have been paying into Medicare from Day One, and now you morons propose to change the rules of the game. Why? Because you idiots mismanaged other parts of the economy to such an extent that you need to steal money from Medicare to pay the bills…

6. I, and millions of other Americans, have been paying income taxes our entire lives, and now you propose to increase our taxes yet again. Why? Because you incompetent bastards spent our money so profligately that you just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay of YOUR debt…

To add insult to injury, you label us “greedy” for calling “bullshit” on your incompetence. Well, Captain Bullshit, I have a few questions for YOU…

1. How much money have you earned from the American taxpayers during your pathetic 50-year political career?

2. At what age did you retire from your pathetic political career, and how much are you receiving in annual retirement benefits from the American taxpayers?

3. How much do you pay for YOUR government provided health insurance?

4. What cuts in YOUR retirement and health care benefits are you proposing in your disgusting deficit reduction proposal, or, as usual, have you exempted yourself and your political cronies?

It is you, Captain Bullshit, and your political co-conspirators who are “greedy”. It is you and they who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for what? Votes. That’s right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You know it, we know it, and you know that we know it.

And you can take that to the bank, you miserable son of a bitch.

Always say what you mean !! Always mean what you say !! NEVER COMPROMISE ……… “____________________________________________-

The above letter makes many claims but offers no numbers to help us to decide who is right. Below is a more substantive angry email I received that attempts to quantitatively “expose” the “Social Security Scam”.

____________________________E-Mail___________________________________-

Remember, not only did you contribute to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only $30K over your working life, that's close to $220,500.

If you calculate the future value of $4,500 per year (yours & your employer's contribution) at a simple 5% (less than what the govt. pays on the money that it borrows), after 49 years of working you'd have $892,919.98.

If you took out only 3% per year, you'd receive $26,787.60 per year and it would last better than 30 years (until you're 95 if you retire at age 65) and that's with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you'd have a lifetime income of $2,976.40 per month.

Washington has pulled off a bigger Ponzi scheme than Bernie Madoff.

Entitlement?? NOT!!! I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn't make my benefits some kind of charity or handout!!

Congressional benefits ---- free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that's welfare, and they have the nerve to call my social security retirement entitlements?

They call SS and Medicare an entitlement even though most of us have been paying for it all our working lives and now when it's time for us to collect, the government is running out of money. Why did the government borrow from it in the first place? Imagine if the *GOVERNMENT* gave 'US' the same support they give to other countries.

Sad isn't it?

99% of people won't have the guts to forward this.

I'm one of the 1% -- I Just Did.

Discussion

The above email asserts that any claim that Social Security pays retired people who worked all their adult lives more than their contributions to the system actually merit, is bogus. Their mathematical argument in support of this assertion is as follows:

1) The combined contribution to Social Security by workers and their employers is about 15% of before tax income.

2) If a worker averaged as little as $30K per year in his working life, the combined contribution to the Social Security system on his behalf would be about $4,500 per year (i.e. 3,000*.15) and $220,500 after 49 years of work.

3) The future value of $4,500 per year after 49 years at an interest rate of 5% per year (less than what the govt. pays on the money that it borrows) is $892,919.98.

4) $892,919.98 distributed at the rate of 3% per year, $26,787.60 (i.e. 892,919.98*.03) would last more than 30 years (until 95 if you retire at age 65) without interest paid on the on the final amount on deposit!

Assignment

Your group has been hired by the AARP to write a report that looks into the merit of the above analysis. Your report should:

1) Address the mathematical consistency of the assertions made in steps 1) through 4). If you find any inconsistencies please state and explain them.

2) One member of the AARP group reaching out to you recently retired at age 65 after 40 years of work where he averaged roughly $30,000 per year. His Social Security Taxable Income is given in Table 1 on the next page. Using the assumptions about Social Security made in the email analysis, calculate the current value of his Social Security Contributions and whether it can support 30 years of annual Social Security Income of $26,787.60 (without interest paid on the current amount of deposit). If not,

a) Explain the difference between this portfolio and the one in the above analysis.

b) Assuming a 5% return on current monies in the Social Security Account and a 30 year payout period, how much annual payout could this portfolio support?

3) Look up how much Social Security would actually pay each of the 2 people described above.

4) Based on all of the above, what is your conclusion as to the merits of calling Social Security and entitlement.

5) The above email claims a 15% combined contribution to Social Security by both employee and employer and 5% yearly interest rate on money in the fund.. Check to see whether these numbers are historically correct. If not, using the correct values recalculate the numbers for the AARP member in Table 1.

6) Based on current interest rates, is an assumption of 5% on Social Security funds realistic? If not, recalculate using what you consider to be a realistic interest rate.

In the concluding section of your report, based on all of your analysis and fact finding, state yo

Table 1

Social Security

Year Salary

1972 $ 4,121.40

1973 $ 4,680.00

1974 $ 5,400.00

1975 $ 6,480.00

1976 $ 7,920.00

1977 $ 8,069.40

1978 $ 9,180.00

1979 $ 9,900.00

1980 $ 10,620.00

1981 $ 13,740.00

1982 $ 15,540.00

1983 $ 17,075.40

1984 $ 19,440.00

1985 $ 21,420.00

1986 $ 22,680.00

1987 $ 23,760.00

1988 $ 25,200.00

1989 $ 26,280.00

1990 $ 27,000.00

1991 $ 28,800.00

1992 $ 30,780.00

1993 $ 32,040.00

1994 $ 33,300.00

1995 $ 34,560.00

1996 $ 36,360.00

1997 $ 36,720.00

1998 $ 37,620.00

1999 $ 39,240.00

2000 $ 41,040.00

2001 $ 43,560.00

2002 $ 45,720.00

2003 $ 48,240.00

2004 $ 50,940.00

2005 $ 52,200.00

2006 $ 52,740.00

2007 $ 54,000.00

2008 $ 56,520.00

2009 $ 58,500.00

2010 $ 61,200.00

2011 $ 64,080.00

Why might some economists argue that plentiful commodities (natural resources & minerals) might be an economic drag overall? What is your view, as for example regarding Russian oil and other such examples? discus through the article....

Raw materials need not undermine the countries that export them

THE LAMP POSTS in Kliptown, South Africa, do not all stand up straight. One lists awkwardly, laden with cables carrying stolen electricity to a squatters' settlement nearby. Many families in this suburb of Soweto, a formerly black township in greater Johannesburg, are still crammed into makeshift housing. When it is hot outside, the temperature inside is "times two", says one resident, who shares six rooms with 20 others. And when it turns cold, the chill inside is also "times two".

On the other side of the railway tracks the government is investing heavily in Walter Sisulu Square, where in 1955 the African National Congress (ANC) and its allies adopted the Freedom Charter, a statement of principles for a post-apartheid nation. The charter's commitments, written in stone on a monument in the square, include demolishing slums and building well-lit suburbs. They also include transferring ownership of the mineral wealth beneath the soil to the people. The contrast between what the charter says and what the slum itself reveals tells you how broken the system is, says one squatter.

The resources beneath South Africa's soil, including iron ore, precious metals and coal, ought to be an unmitigated blessing. Johannesburg, the city of gold, owes its existence to these riches. Its landscape is still dotted with piles of sandy residue, or "tailings", from mining and quarrying. The industry accounts for over 20% of South Africa's exports and employs over 450,000 people. But it also adds to the volatility of South Africa's economy and the pugnacity of its politics.

Mining and quarrying shrank by 4.7% in 2016, then rebounded, growing by 4.3% year-on-year in the first half of 2017. This improvement partly reflects stronger growth in China, which consumes almost half of the world's coal, 30% of its gold jewellery and over 40% of its steel. But the industry's economic prospects remain hostage to its political fortunes.

Like any industry, mining must offer sufficiently rewarding pay and profits to attract the capital and labour it requires. Unlike other industries, however, mining tends to generate excess returns or "rents" on top of that. Bosses, workers and politicians are then tempted to squabble over the division of those rents, sometimes to the detriment of the sector as a whole. This kind of economic volatility and political bitterness are two of the more troublesome "tailings" from resource wealth, not only in South Africa but in many emerging markets. In 11 of the 24 countries in MSCI's benchmark equity index, resource rents exceeded 5% of GDP between 2011 and 2015. That qualified them as "resource-rich", according to the World Bank. The rents of all 24 members taken together also amounted to about 5% of their combined GDP.

Many of these resource-rich economies have gone through a twin-peaked or "M-shaped" cycle since the mid-2000s. Their commodities sector (as a proportion of GDP) peaked on the eve of the financial crisis in 2007, plunged, then rebounded between 2008 and 2011 and faltered again after 2014. The first drop reflected a collapse in demand following the global financial crisis. The second one was more complicated. A slowdown in Chinese commodity purchases played a part, especially in the case of coal and construction-related resources such as iron ore. But in the case of oil, a rise in supply (and projected supply) was more important. The boom in tight oil and shale production in America prompted OPEC, the oil exporters' cartel, to pump more crude to defend its market share. Cheap energy, in turn, cut the cost of agricultural production and dampened demand for biofuels, leading to lower prices for grains and soyabeans.

It is not easy to cope with a commodity cycle of this magnitude, driven by a boom in demand in the world's second-biggest economy, then a supply boom in the biggest. In the face of these global forces, emerging economies can resemble the squatter's house in Kliptown: their economies run twice as hot when commodity markets warm up, and twice as cold when the temperature drops. But although resource-rich economies cannot entirely escape the ups and downs of global commodity cycles, they can do a lot to moderate them. By containing the upturns, they can cushion the downturns. The key to this lies not in the mining industry itself, but in a country's central bank and finance ministry. Resource-rich economies need equally resourceful macroeconomic policies.

One of the best examples is Chile. Its fiscal rule curbs government spending when the copper price exceeds its long-term trend, as judged by an independent committee of experts. During good times, fiscal restraint makes room for mining to boom without unduly squeezing the rest of the economy. During bad times, it leaves scope for fiscal easing to offset the damage.

Chile's fiscal benchmarks were better calibrated than the rule Russia introduced in 2008 (and overhauled in 2013). Rather than allow an independent committee to estimate the long-term oil price, Russia used a backward-looking average. According to the IMF, that resulted in a benchmark oil price of $85 a barrel in 2016 when prices had already fallen to $42.

Russia was forced to abandon its fiscal rule in 2015. By then the country's central bank had also given up trying to defend the rouble, allowing it to fall in line with the price of crude. At the time Russia's devaluation was humiliating. But a cheaper exchange rate can be a godsend for an oil exporter when the price of crude drops. Russia's diminished currency kept the rouble value of oil revenues steady. And by boosting Russia's competitiveness, it helped to offset the damage that lower oil prices inflicted on the country's trade balance. Unemployment is now lower than it was in 2013, when oil prices were around $100 a barrel.

Having survived the M-shaped commodity cycle, resource-rich emerging markets can hope for an easier script in the years ahead. China's growth has stopped slowing and OPEC production has stopped rising. The cartel decided in November 2016 to cut production by over 3% to 32.5m barrels per day (a decision matched by restraint from 11 other oil producers, including Russia). America, meanwhile, has become an "unwitting swing producer" of oil, in the words of the Economist Intelligence Unit, a sister company of The Economist. When crude prices drop below $45 a barrel, shale producers withdraw, pushing the price back up. When prices rise above $56, America's nimble operators invest in new rigs, pushing the price back down. So another bout of commodity-price volatility should not scupper the emerging-market recovery.

The economic instability and political division sometimes associated with natural resources have caused some economists to think of them as a curse, not a blessing. In a seminal paper published in 1995, Jeffrey Sachs and Andrew Warner, two economists then both at Harvard, found that economies dependent on resource exports grew more slowly than others not so blessed.

But economic thinking on this issue is also prone to division and swings in sentiment. Several researchers have questioned whether the resource curse is real or just a statistical illusion. The seminal Sachs-Warner study, they say, may be marred by reverse causality: rather than resource dependence leading to slow growth, it could be the other way around. This is because the two authors calculate resource exports as a proportion of GDP, so anything that lowers GDP will mechanically increase resource dependence by their measure, creating the illusion of a causal link from resources to growth.

Economists may have missed the blessings of natural resources because they were looking in the wrong place. Oil, gold, copper and other endowments may add to the level of GDP but not its growth rate. Imagine, for example, a $100bn economy growing at 1% a year. Suppose it suddenly discovers a big platinum deposit, which yields a steady additional income of $100bn, year in, year out. That would double the country's GDP to about $200bn, much to the benefit of its people. But it would also halve the country's growth rate, because now half of this $200bn economy is growing at 1% and the other half not at all.

Graham Davis of the Colorado School of Mines calls this phenomenon "resource drag". In South Africa the mining and quarrying industry has been growing more slowly than the economy as a whole since 1980, dragging down South Africa's overall GDP growth by about 0.4 percentage points. But having both the resources and the drag is still better than having neither.

Patricio Meller of CIEPLAN, a Chilean think-tank, reckons that economists have been biased against natural resources ever since Adam Smith, who witnessed impressive advances in pin-making but comparative stasis in agriculture. Even in Smith's day that was a mistake, says Mr Meller. After all, Britain's industrial revolution owed a lot to coal-mining.

Mr Meller sees the natural resources in his country as a platform for technological innovation. Many of the lorries that serve Chile's mining industry, for example, are remotely controlled by people sitting in an office in Santiago, over 1,000km away. Indeed, the combination of technologies--big data, end-to-end sensors, analytics--now being applied to advanced manufacturing could also be applied to mining and agriculture.

The application of new technologies to commodities may alleviate whatever curses natural resources can bring. But their application to manufacturing industry is raising a different fear in labour-rich emerging markets. As industrial machines become more sophisticated, will they increasingly replace industrial workers? And if fewer jobs are on offer in metal-bashing and clothes-making, who will employ them?

Block quote: Economists have questioned whether the "resource curse" is real. Rather than resource dependence leading to slow growth, it could be the other way around

PLEASE READ AND ANSWER QUESTIONS

Global View: International Privacy Laws

Today’s online world, including the increasing use of the cloud to store data on remote third-party servers, offers unprecedented opportunities for the global storage and transfer of personal information. To address the risks associated with the unregulated exchange of personal information, many jurisdictions around the world have enacted privacy laws, regulations, and rules dealing with data collection, processing, storage, disclosure, and use. Although definitions of the term privacy vary, common elements include freedom or protection of individuals and sometimes groups from unauthorized or unwanted intrusion into, or observation of, their personal information and from violation of the integrity of this information.

The type of protection, as well as the speed, level of completeness, and depth of regulation and implementation, varies from country to country. Increasingly, countries have addressed the cross-border transfer of personal information and taken steps to prevent the circumvention of existing national laws governing the storage, processing, and disclosure of information through the “off-shoring” of these activities. Accordingly, when multinational companies do business outside their home country, including offering products or services on the Internet, and collect personal information from residents of a foreign country, they are likely to fall under the privacy laws and regulations in that country.

The following is a brief overview of privacy laws and regulations in several key jurisdictions.

European Union

The European Union (EU) Data Protection Directive (Directive 95/46/EC), adopted in 1995, requires its Member States to safeguard the privacy of personal data by

(1)

giving notice to individuals about how their information will be used;

(2)

offering a choice when disclosing information to third parties (with opt-in consent required for sensitive information);

(3)

maintaining the security of personal information;

(4)

ensuring that the data are reliable, accurate, and current; and

(5)

giving individuals access to examine, correct, and delete information about themselves.

Because each EU Member State had to incorporate the provisions of the Data Protection Directive into national law for them to be binding, there is some variation in the privacy laws among the states.

The EU adopted the General Data Protection Regulation (GDPR) in 2016. It will enter into full force across all Member States on May 25, 2018. The GDPR will replace Directive 95/46/EC and affect organizations based within the EU, as well as foreign organizations doing business there. Although the GDPR is intended to make it easier for multinational entities operating across the EU to comply with data protection law, certain aspects of the regulation permit Member States to enact their own legislation, so inconsistencies in application may exist.

An important principle of both the Data Protection Directive and the GDPR is that personal information generally should not be collected unless the collection is

(1)

proportional (meaning adequate and not excessive relative to its purpose),

(2)

transparent (meaning that the affected individual must be informed as to the circumstances of the collection and consent to it), and

(3)

for a legitimate purpose.

The GDPR will make it easier for individuals to access and control their own data, including information on how their data are processed; make it easier to transfer personal data between service providers; clarify the “right to be forgotten,” which allows an individual to require that certain personal data be deleted (the subject of the “Inside Story” in Chapter 24); and, under certain circumstances, require notification when data have been hacked (e.g., if the breach is likely to result in a “high risk” to the data subject). Additionally, a data subject’s consent to process personal data must be “as easy to withdraw as to give.” In the case of “sensitive data,” consent must be explicit.

By modernizing and unifying the rules, cutting red tape, and reinforcing consumer trust, the GDPR will help businesses reap the benefits of the “Digital Single Market.” The legislation will create a “one-stop-shop” so that businesses can deal with only one privacy supervisory authority, making it less costly to do business in the EU; require companies based abroad to apply the same rules as EU-based firms when offering services inside the EU; provide for a “risk-based approach” to incorporating the rules; and require firms to build in data protection safeguards when developing products and services in the beginning stages of development (so-called data protection by design).

The GDPR broadened the definition of personal and sensitive data to include political opinions, religious and philosophical beliefs, health and sex life, and genetic and biometric data. The regulation applies both to data controllers (the entities determining how and why personal data are processed) in the EU and to data processors (the entities that process the personal data on behalf of data controllers) in the EU. The GDPR also applies to controllers and processors outside of the EU whose processing activities involve offering goods or services to EU data subjects or monitoring these subjects’ behavior within the EU.Penalties for breaching the GDPR can be significant.

Unlike the Data Protection Directive, the GDPR does not require a company that processes personal information (“personal data”) to register or notify data protection supervisory authorities before it starts collecting personal information. Instead, data controllers are required to maintain appropriate records to evidence compliance with the GDPR. Personal information may be transferred into third countries (countries outside the EU) only if the third country provides an adequate level of protection for the information.

Although the United States is not regarded as providing adequate protection, the EU and the United States adopted the EU-U.S. Privacy Shield in 2016 to permit the transfer of personal information from any EU member state to the United States under certain circumstances. The EU-U.S. Privacy Shield requires U.S. companies to ensure that individuals’ digital information, “from social media posts and search queries to information about workers’ pensions and payroll,” is not misused. Companies must adhere to seven principles: notice; choice; accountability for onward transfer; security; data integrity and purpose limitation; access; and recourse, enforcement, and liability, all as determined by self-assessment or assessment of a third party, with recertification required each year. The rules apply to all companies regardless of whether they are social media platforms, pharmaceutical companies, or industrial conglomerates subject to the jurisdiction of the FTC or the U.S Department of Transportation. In addition, the agreement requires the United States to provide an annual guarantee that its intelligence agencies will not have “indiscriminate access” to Europeans’ digital data when these data are sent to the United States. The agreement enables about $260 billion of trade in digital services, with nearly 2,000 companies (including Facebook, Google, and Microsoft) relying on the EU-U.S. Privacy Shield to store data about EU citizens on U.S. servers. A separate Swiss-U.S. Privacy Shield became effective in April 2017 and covers data transfers from Switzerland.

In January 2017, the European Commission proposed a revision to the ePrivacy Directive that aims to reinforce the right to privacy and control of data for European citizens. (Directive 2002/58/EC, referred to as the ePrivacy Directive, protects the privacy of communications over public electronic networks.) The revision would require messaging, email, and voice service providers to guarantee the “confidentiality of conversations and metadata around the time, place and other factors of those conversations.” The rules would prohibit service providers, such as Facebook Messenger, Google, WhatsApp, Skype, and others, from listening to, tapping, intercepting, scanning, or storing communications without users’ consent (except for certain “critical” functions); require “explicit consent” before data could be used for advertising; and eliminate consent requirements for cookies that do not affect privacy (“privacy intrusive” cookies would still require consent). As with the GDPR, the fines for noncompliance would be significant. The proposed rule was designed to close the “perceived regulation gap between traditional telecom[] companies and predominantly US-based internet communications companies” and to also allow telecom companies to use certain metadata—for example, the length and location of calls—to provide more services and earn more revenue. Although one EU regulator asserted that the proposed regulation is balanced because it gives consumers a high level of protection while also permitting businesses to innovate, others have stated that the EU is “on the verge of a regulation overload,” as this proposal follows shortly after the adoption of the GDPR.Further, an industry spokesperson representing Google and other companies argued that the proposed revision risks “incoherence and confusion” because the GDPR requires one approach to safeguarding privacy and ePrivacy calls for another approach.

Exercise:

Read Global View article on international privacy laws [pages 247-249 of textbook.]

Note especially the European Union General Data Protection Regulation [GDPR] which entered into force on May 25, 2018. Note that the EU approach to data privacy is that the data is a digital asset of the owner and that organizations seeking to use your data must secure your affirmative consent and that the consent needs to be proportionate, transparent and for a legitimate purpose, including the right to be forgotten. The regulation applies to organizations outside the EU to the extent that they handle the data of EU nationals.

You are the Chief Privacy Officer of Facebook. Facebook accumulates and analyzes the data of persons accessing its service [even if open on your computer when doing other activities.] Facebook then sells advertising to third parties based on the data. Facebook currently considers your accession to their service as consent for the collection and use of your data. Facebook currently benefits from increased use. This is called a network effect. 'Network effect' is a phenomenon whereby a product or service gains additional value as more people use it.

Write a one [1] paragraph response in Word format and post to the Course Discussion Board:

If data is a digital asset owned by the individual, do individuals in the EU have the right to charge Facebook for each use of the individual's data? If so, what impact will this have on the market value of Facebook's stock

**Only need the bold answered

In Java, implement the Athlete, Swimmer, Runner, and AthleteRoster classes below. Each class must be in separate file. Draw an UML diagram with the inheritance relationship of the classes.

1. The Athlete class
a. All class variables of the Athlete class must be private.

b.is a class with a single constructor: Athlete(String lName, String fName, int birthYear, int birthMonth, int birthDay, char gender). All arguments of the constructor should be stored as class variables. There should only be getter methods for first and last name variables. There should be no getters or setters for birthYear, birthMonth, birthDay.

c. Getter and setter methods for the gender of the athlete. The method setGender accepts a character and store it as a class variable. Characters 'm', 'M' denotes male, 'f' or 'F' denotes male or female. Any other char will be treated as undeclared. The method getGender return either the word "male" or "female" or “undeclared”.

4. The method computeAge() takes no arguments and returns the athletes computed age (as of today's date) as a string of the form "X years, Y months and Z days". Hint: Use the LocalDate and Period classes.

   i. e.g. "21 years, 2 months and 3 days". ii. e.g. "21 years and 3 days".

   iii. e.g. "21 years and 2 months". iv. e.g. "21 years".

   v. e.g. "2 months and 3 days".

5. The method public long daysSinceBirth() takes no arguments and returns a long which is the number of days since the athlete’s date of birth to the current day. Hint: Use the LocalDate and ChronoUnit classes.

6. The toString method returns a string comprised of the results ofgetFname, getLName and computeAge. E.g.

   i. “Bunny Bugs is 19 years and 1 day old”

7. The equals method returns true if the name and date of birth of this athlete and the compared other athlete are the same, otherwise return false.

2. The Swimmer class
a. All class variables of the Swimmer class must be private.

2. inherits from the Athlete class and has a single constructor,

   Swimmer(String lName, String fName, int birthYear, int birthMonth, int birthDay, char gender, String team). There should be a class variable for team. There should be a getter method for team.

3. The Swimmer class stores swim events for the swimmer. There should be a class variable for events. A swimmer participates in one or more of these events. The addEvent method is oveloadedand either adds a single event for the swimmer public boolean addEvent(String singleEvent) or adds a group of events for the swimmer public boolean addEvent(ArrayList multiEvents). Each event is of type String. Duplicate events are not stored and return false if duplicate found.

4. There should be a getter method that returns the class variable events.

5. The overridden toString method returns a string comprised of the concatenation of the parent’s toString return plus " and is a swimmer for team: XXXXX in the following events: YYYYY; ZZZZZZ." E.g.

   i. “Missy Franklin is 24 years and 4 months old and is a swimmer for team: Colorado Stars. She participates in the following events: [100m freestyle, 100m backstroke, 50m backstroke]”

3. The Runner class
a. All class variables of the Runner class must be private.

2. inherits from the Athlete class and has a single constructor,

   Runner(String lName, String fName, int birthYear, int birthMonth, int birthDay, char gender, String country). There should be a class variable for country. There should be a getter method for country.

3. The Runner class stores race events for the runner. There should be a class variable for events. Each event is a Distance. The list of valid events is given below:
   M100, M200, M400, M3000, M5000, M10000. A runner participates inone or more of these events. The addEvent method is oveloadedand either adds a single event for the runner public boolean addEvent(String singleEvent) or adds a group of events for the runner public boolean addEvent(ArrayList multiEvents). Each event is of type String. Duplicate events are not stored and return false if duplicate found.

4. There should be a getter method that returns the class variable events.

5. The toString method returns a String in the form: " AAA BBBB is XX years, YY months and ZZ days. He is a citizen of CCCCCCC and is a DDDDDDDD who participates in these events: [MJ00, MK00, ML00]”. If she does not participate in M3000 or M5000 or M10000 then she is a sprinter. If she does not participate in M100 or M200 or M400 then she is a long-distance runner. Otherwise she is a super athlete. E.g.

   i. “Bunny Bugs is 19 years and 1 day old. His is a citizen of USA and is a long-distance runner who participates in these events: [M10000]”

4. The AthleteRoster class
a. All class variables of the AthleteRoster class must be private.

2. Does not inherits from the Athlete class. The AthleteRoster class has a single constructor, AthleteRoster(String semster, int year). There should be class variables for semester and year. There should be getter methods for semester and year.

3. The AthleteRoster class has only one method for adding Athlete to the roster, by using the boolean addAthlete(Athlete a)method. The method returns true if the athlete was added successfully, it returns false if the athlete object already exists in the roster and therefore was not added.

4. Your AthleteRoster class will have only one class level data structure, an ArrayList, for storing athlete objects.

5. The String allAthletesOrderedByLastName() method returns a string object with of all the names of the athletes (Swimmers, Runners, etc.) in ascending order of last names(a-z).

6. The String allAthletesOrderedByAge() method returns a string object with of all the names of the athletes (Swimmers, Runners, etc.) in descending order of age(100-0).

7. The String allRunnersOrderedByNumberOfEvents() method returns a string object with of all the names of the Runners only in ascending order of number of events they participate in (0-100).

Here is the driver:

import java.util.ArrayList;
import java.util.Arrays;

public class AthleteDriver {
   public static void main(String args[]) {

       //Check Athlete Class
       Athlete a1 = new Athlete("Daffy","Duck", 2000, 9, 7,'j'); System.out.println("Gender is "+a1.getGender());//undeclared
       a1.setGender('F');
       System.out.println("Gender is "+a1.getGender());//female
       a1.setGender('m');
       System.out.println("Gender is "+a1.getGender());//male
       System.out.println("ComputeAge method says "+a1.computeAge());
       System.out.println("First name is : "+a1.getFname()); //Daffy
       System.out.println("DaysSinceBirth method says "+a1.daysSinceBirth()+" days"); System.out.println("Last name is : "+a1.getLname()); //Duck
       System.out.println("Output of our toString correct?: \n"+a1);
       System.out.println("=======================================\n");

       //Check Runner Class
       Runner r5 = new Runner("Bugs","Bunny", 2000, 9, 8, 'm',"USA");
       System.out.println("Did we add M10000 successfully?: "+r5.addEvent("M10000")); //true
       System.out.println("Did we unsucessfully try to add M10000 again?: "+r5.addEvent("m10000")); //false
       ArrayList<String> temp = new ArrayList<String>(Arrays.asList("M100", "M3000"));
   System.out.println("Did we successfully add mutiple events?: "+r5.addEvent(temp));//true
       System.out.println("Did we unsucessfully try to add mutiple events?: "+r5.addEvent(temp));//false
       System.out.println("How many events does Bugs participate in?: "+r5.getEvents().size());//3
       System.out.println("Gender is "+r5.getGender());//male
       System.out.println("Output of our toString correct?: \n"+r5);
       System.out.println("=======================================\n");

       //Check Swimmer Class
       Swimmer s1 = new Swimmer("Franklin", "Missy", 1995, 5, 10, 'F', "Colorado Stars");
       System.out.println("Did we add 100m backstoke successfully?: "+s1.addEvent("100m backstoke")); //true
       System.out.println("Did we unsucessfully try to add 100m backstoke again?: " +s1.addEvent("100M Backstoke")); //false
       temp = new ArrayList<String>(Arrays.asList( "200m backstoke","200m freestyle"));
       System.out.println("Did we successfully add mutiple events?: "+s1.addEvent(temp));//true
       System.out.println("Did we unsucessfully try to add mutiple events?: "+s1.addEvent(temp));//false
       System.out.println("How many events does s1 participate in?: "+s1.getEvents().size());//4 System.out.println("Gender is "+s1.getGender());//female
       System.out.println("Output of our toString correct?: \n"+s1);
       System.out.println("=======================================\n");

       //Check AthleteRoster
       Swimmer s2 = new Swimmer("Ruele", "Naomi", 1997, 1, 13, 'F',"Florida International University");
   //   s2.addEvent(newArrayList<String>(Arrays.asList("100m backstoke","50m backstoke","100m freestyle")));

   //   Runner r1 = new Runner("Bolt", "Usain", 1986, 8, 21, 'M',"Jamaica");
//       r1.addEvent("M100"); r1.addEvent("M200");

   //   Runner r2 = new Runner("Griffith", "Florence", 1959, 12, 21, 'F',"United States of America"); r2.addEvent("M100"); r2.addEvent("M200");
   //   r2.addEvent("M400"); r2.addEvent("M10000"); r2.addEvent("M3000");
   //   r2.addEvent("M5000");

   //   AthleteRoster ar = new AthleteRoster("Fall",2019);
   //   ar.addAthlete(a1);
   //   ar.addAthlete(s1);
   //   ar.addAthlete(r1);
   //   ar.addAthlete(r2);
   //   ar.addAthlete(s2);
   //   ar.addAthlete(r5);
   //   System.out.println(ar.allRunnersOrderedByNumberOfEvents());
       System.out.println("=======================================\n");

   //   System.out.println(ar.allAthletesOrderedByAge());
       System.out.println("=======================================\n");

   //   System.out.println(ar.allAthletesOrderedByLastName());
       System.out.println("=======================================\n");

   }

}

Complete the code before the due date. Submission of the completed eclipse project is via github link posted on the class page. Add your UML drawing to the github repo. ________________________________________________________________________ Example output:

__________Example from AthleteDriver shown below

Gender is undeclared
Gender is female
Gender is male
ComputeAge method says 19 years and 4 days
First name is : Duck

DaysSinceBirth method says 6943 days Last name is : Daffy
Output of our toString correct?:
Duck Daffy is 19 years and 4 days old =======================================

Did we add M10000 successfully?: true
Did we unsuccessfully try to add M10000 again?: false
Did we successfully add multiple events?: true
Did we unsuccessfully try to add multiple events?: false
How many events does Bugs participate in?: 3
Gender is male
Output of our toString correct?:
Bunny Bugs is 19 years and 3 days old. His is a citizen of USA and is a super athlete who participates in these events: [M10000, M100, M3000] =======================================