GREEN MOVE Department of Business Law and Ethics Sawyer Business School Suffolk University THE COMPANY Green Move is a startup company that focuses on environmentally friendly and sustainable transportation products. Its three founders and current shareholders, Robert, Lewis, and Viktor attended the same MBA program in Boston. Robert and Lewis were high school friends from an affluent Boston suburb while Viktor grew up in Russia. The three agreed that their collective mindset could best be described as â€œcompetitive with a conscience.â€ They support the fundamentals of capitalism and agree that the free market operates to the benefit of society. Robert serves as the CEO of Green Move and Viktor serves as the Chief Technology Officer while Lewis has moved on to other opportunities. All three serve on Green Moveâ€™s board of directors along with two other corporate officers and two outside investors. The seven directors along with the other corporate officers and several of Robertâ€™s relatives who invested heavily in Green Move own all of the stock. Much of the startup funding, however, was the result of a $15 million government loan at zero percent interest as part of an Investing in Green Technology initiative. Green Move is incorporated in Delaware and maintains a corporate office in Boston. The last year has been very exciting at Green Move and the perceived value of its shares has increased steadily. In fact, there are rumors that that Green Move will soon go public. This is due largely to the much anticipated launch of the Zero Pedal; a solar powered bicycle that includes a small throttle and brake system. Green Move recently received a patent on the technology enabling the use of a small solar panel that propels the bike at speeds close to 15 m.p.h. The popularity of the Zero Pedal has been limited to the northeastern part of the United States mostly due to â€œword of mouthâ€ advertising throughout area colleges and universities. PART A – YOUR EMPLOYMENT AT GREEN MOVE You graduated six months ago from a Boston MBA program. You earned your degree part time in the evenings so that you could continue your work as an advertising assistant at a prestigious Boston firm. You are thankful that your firm financed a large portion of your degree and that you were able to support your spouse and young child while attending classes. Green Move was one of several marketing positions for which you interviewed. You were attracted to Green Move because it struck you as â€œyoung and energeticâ€ with the potential for tremendous growth. The interview consisted of a single meeting with the three founders who explained that your primary objective would be to expand the sales of the Zero Pedal to the southwestern part of the United States. It was explained that your success at Green Move would be measured exclusively on the expansion of the Zero Pedal into this new market. Your modest salary would be supplemented with stock options in Green Move in proportion to the product expansion. You learned during the interview that Green Move was replacing a â€œbad fitâ€ employee whose departure was â€œmutually agreed uponâ€ after only six months. You gladly accepted the position with a handshake and agreed to complete the necessary tax forms to begin work in two weeks. The only documentation you received was a stock option agreement. You never received any employment training, instruction, or manuals. Three months have passed since you started at Green Move and you have made several friends including Doug, a product engineer on the development of the Zero Pedal. Much to your surprise, Doug has explained in confidence his concern regarding the operation of the Zero Pedal in warm climates. He claims that the bike accelerates dangerously after the solar panels have been exposed to temperatures exceeding 100 degrees Fahrenheit for four consecutive hours. Appare
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