Memorandum
******************************************************************************
To: Professor Tormey
From: Kristen Judge
Date: November 23, 2008
Re: Unit 5 Written Assignment
The facts in the case of IM Bibe are as follows. Mr. Bibe is a 32 year old marketing executive who works for a computer chip company. Mr. Bibe has a bachelor’s degree in business administration with an emphasis in accounting. He also has a master’s degree in marketing. He began working for his current employer right after he received his master’s degree. Mr. Bibe started out as a marketing assistant and has moved up over the last several years to many different marketing positions.
Mr. Bibe and three of his co-workers left the office last Friday around 12:30 for lunch. They
planned to celebrate the fact that they had reached their sales and marketing goals for last year. This entitled each of them to a $150,000 bonus. This is the third year in a row that they have reached their goal. Mr. Bibe and two of the co-workers were drinking wine during lunch. The third co-worker, Owen Lotts, only drank water. After drinking two bottles of wine Mr. Lotts began to tell Mr. Bibe about his coffee shop that he wanted to sell. Mr. Lotts knew that Mr. Bibe was looking for a small business to purchase. Mr. Lotts told Mr. Bibe that with the last two bonus checks he could buy the coffee shop. Mr. Lotts said the coffee shop was worth more than the $300,000 asking price. Mr. Bibe said he was not interested right now.
Mr. Lotts then ordered a third bottle of wine for the group. While the other co-workers were drinking it he went to his car. He returned with some books he said were his business records. Mr. Lotts again told Mr. Bibe how great a deal the coffee shop was, and that he consistently made over $30,000 per year profit on the shop. Mr. Bibe finally said to put the offer in writing. Mr. Lotts then walked up to the bar and returned with a...