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Mini-Case Since He Was Five Years Old, Rhett Tenna Struggled with with Poor

Question 329

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Mini-Case
Since he was five years old, Rhett Tenna struggled with poor eyesight. He suffered through all the names that went along with wearing eyeglasses for most of his young life. Rhett eventually switched from traditional eyeglasses to contact lens, but he always wondered why glasses were considered to be "ugly" and not fashionable. After graduation from college, Rhett set out on a lifelong goal: to make eye wear synonymous with high fashion. He opened a specialty store called "The Eyes Have It." His marketing plan was to remove the social stigma of wearing glasses, and replace it with a sense of flair and high fashion. From the day he opened his first store, Rhett's plan met with resounding success. Today, "The Eyes Have It" has grown from that single outlet to a medium-sized company with dozens of stores located in six states, and a manufacturing plant that turns out designer frames.
A recent internal audit, however, suggested a problem that Rhett had not anticipated. The study indicated that the U.S. market is just about saturated and growth of "The Eyes Have It" stores will be very limited. The audit concerned Rhett until he recognized an untapped market existed overseas. If people all over the world have the same problem, the global market opportunities are fantastic! All in favor of going global say: "The Eyes Have It"!
-Recently, Rhett contracted with Lon Ruise, a popular U.S. movie star to market his high-end sunglass line. Shortly after Rhett's company beginning selling the line, he heard that you could buy very good replicas in Malaysia. Which of the following statements describes a course of action that Rhett can take:


A) Unfortunately, there are no consistent international laws among nations. While the WTO has made attempts to mediate trade disputes, progress is spotty. There is little that Rhett can do at this time.
B) Rhett should expect the U.S. government, through its WTO membership to contact the Malaysian government, which will immediately put a stop to the counterfeiting action.
C) This grievous action falls under the Foreign Corrupt Practices Act of 1978. Upon making contact with the Federal Trade Commission, the Malaysian distribution will be curtailed.
D) Rhett should hire an investigator to find the company producing and selling the look-like product and offer a payment if the firm is willing to stay out of the market.

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