USING A LEGAL DATABASE TO DESCRIBE THE LEGAL ENVIRONMENT OF MARKETING (AND BUSINESS) Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 113 USING A LEGAL DATABASE TO DESCRIBE THE LEGAL ENVIRONMENT OF MARKETING (AND BUSINESS) Fred W. Morgan, Wayne State University Karl A. Boedecker, University of San Francisco ABSTRACT The use of Lexis, a computerized legal database, is suggested and described for classroom in this paper. Several examples of the application of Lexis in different marketing classes are provided. Specific Lexis-generated PC screens will be presented to demonstrate the use of Lexis for understanding the legal environment of business. INTRODUCTION To refer to the legal environment when instructing marketing students is to allude to an amorphous concept that. almost everyone recognizes, but few really understand. Most marketing activities are influenced by legal developments and trends; hence. textbook authors are increasingly formulating materials about legal guidelines. For example, in Principles of Marketing by Kotler and Armstrong (1989), more than 50 references to the legal environment appear in the Subject Index, and nine of the 23 chapters contain discussions of legal topics. In Sales Management: Analysis and Decision-Making by Ingram and LaForge (1989), 40+ index references to the law accompany related discussions in six of 16 chapters. Thus, marketing instructors must (1) improve their own backgrounds regarding the legal climate so they can (2) discuss and explain the implications of the legal environment within the classroom. The focus of this paper is to assist educators with both of these requirements with emphasis on the latter: creating lecture. discussion, and experiential materials which further students’ understanding of the legal dimension of marketing topics. In addition, a secondary goal is to provide students with an interesting perspective about the legal environment. Without the proper encouragement, students may see the law as a collection of rules and regulations they have been forced to memorize for other classes ORGANIZATION OF LEGAL DATABASES The two most popular legal data retrieval systems are Lexis (1985) and Westlaw (1985). Both databases contain the texts of published judicial decisions for both federal and state courts at all levels (trial and appellate) . Access is also available to several specialized reference encyclopedias, most of the major legal journals, the Congressional Record, federal and state laws and regulations, plus other specialized materials. While subtle differences between the two networks do exist, these do not affect their use as described here. Thus, only the Lexis system will be discussed. Lexis is organized into four levels, libraries, files, documents and segments (going from broadest to narrowest in scope). A library contains all materials in a particular ressearch area and is subdivided into several files, which contain several documents (composed of various segments). For example, a complete listing and sample descriptions of Lexis libraries appear in Exhibit 1. A partial listing of files within the General Federal Library, along with a sample file description is presented in Exhibit 2. Exhibit 3 includes a listing of the files with the law Review file. Federal library, along with a sample file description is presented in Exhibit 2. Exhibit 3 in includes a listing of the files with the Law Review file. Information retrieval using Lexis is similar to the processes utilized to search for material with any typical database found in university libraries. The appropriate search phrases must be formulated in order to find relevant information. Search phrases which are too general will product too many documents to examine, while too restrictive phrases will result in the omission of important documents. With Lexis, the researcher (faculty member or student) can streamline the process by knowing in advance the library and files in which relevant information is likely to appear. For example, if the topic involves federal law, the Genfed library would be the starting point, not the Stares library. If the topic relates Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 114 to improper salesperson behavior within :the state or Michigan, the Michigan (MICH) library, containing both federal and state cases tried in Michigan, would be the focal point. Thus, Lexis involves two primary decision areas: the choice of search phrase(s) and the selection of libraries and files in which to search. Lexis is quite user friendly in terms of formulating search phrases. Key words (1 to 20 characters) can be combined in various ways, according to rules governing the use of character and connector terms. These are described in Exhibit 4. Words and character and connector: terms can be grouped using parentheses as they are used in algebraic computations. SAMPLE LEXIS RESEARCH PROJECTS We use Lexis to prepare classroom materials in two ways: to develop statistics to describe the significance of legal issues and to locate examples of the impact of law on marketing behavior. Each of these uses for Lexis is illustrated. Punitive Damages for Outrageous Marketing Behavior The application of punitive damages for particularly offensive bus- inessperson behavior has been discussed extensively in the popular press in the past couple of years (Wall Street Journal 1989a,g) . A subset of this issue is the appropriateness of punitive damages when Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 115 Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 116 the unacceptable behavior involves the intentional marketing of faulty products. How serious is this problem? How often are marketers sued when the damages claim involve a punitive request? To prepare to discuss these questions with students in a marketing strategy. we collected the data shown in Table 1: Clearly for marketers, punitive damages is a growing issue, perhaps worthy of greater discussion and analysis. A: least the trend suggests that marketers are increasingly exposed to punitive damages claims. Alternatively, aggregate data from Lexis imply that the frequency of the punitive damages problem is perhaps not too important. Using the search phrase “product liability or strict liability or negligence,” one finds 3,061 federal and 6,435 state cases reported for 1983. From Table I we note that only 130 reported cases in 1988 involved marketers in product liability litigation with punitive damages claims. Thus, only 1.37% of the cases for 1988 (l30/(3,061+h, 435)) involved punitive damages. Survey Research In a discussion of the importance of survey research, a student once suggested that courts would have little use for survey results because such information would be “hearsay,” one person’s statement about another person’s statement--generally inadmissible testimony. Our experiences suggested otherwise, but we had no concrete data to back up our impressions. We immediately assigned this student the task of verifying his contention, The eventual search phrase was “(consumer or opinion)(poll or survey) for both Genfed and States libraries, Between 1900 and 1979, survey research was discussed in 159 federal and 109 state reported cases. From 1980 through 8/1/89, survey research was considered in 282 federal and 158 state cases. Thus, the use of such research has clearly increased in the last decade. To follow up on this topic, several students located specific cases in which survey evidence was presented in great detail (Harlequin v. Gulf & Western 1980; Keith s’. Volpe 1988; Saliba v. Indiana 1985; Trump v. Caesars World 1986: U-Haul v. Jartran 1984; NFL v New Jersey Giants 1986: Miller V. Anheuser-Busch 1987; Quality Inns s’. McDonald’s 1988). The discussion resulting from these cases was quite useful and resulted in our looking into issues which we would not have investigated had we not located these cases. For example, courts have different views, as compared with survey researchers, regarding certain research procedures. Courts rely very heavily on face validity for assessing adequacy of sample size. Courts view probing questions to gather additional information very suspiciously--seeing them as leading questions. Salesperson Misstatements To investigate the incidence of unethical and dishonest by salespersons, we assigned a student group the task of searching Lexis for cases on this topic. Their first task was to determine the search words and phrases, which would uncover important litigation. The initial choices were various forms for salesperson, including salesman, saleswoman, salespeople, sales agent, manufacturer agent, and manufacturer representative, But without associating salesperson with some forms of wrongdoing such as negligence, cases were found in which the salesperson played a minor or merely; was mentioned in passing. Eventually, after reading several cases, the students utilized some of the connectors noted in Exhibit 4 and developed several complex search phrases. Based on the student’s initial work, we reconducted their search and formulated the problem as presented in Table 2. While students cannot he expected to generate such detailed findings, they can begin the search process. Table 2 and its outdated predecessors) has served as a very useful discussion vehicle in several sales management sections, APPLICATION CF LEXIS TO OTHER BUSINESS DISCIPLINES Lexis is by no means limited to marketing problems. An instructor with a labor relations class can easily develop assignments based on employment discrimination cases. Lexis contains an enormous tax-related case section, providing many opportunities for accountants or attorneys to select materials. Naturally business law professors already have found Lexis very helpful. CONCLUSION The examples and data can he brought to class to bolster lecture material. We have also assigned students the task of searching Lexis armed with the appropriate search phrases, and at other times we have asked them to develop the search phrases themselves before query- Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 117 ing Lexis, Generally, it is desirable to supply the search phrases because students usually lack familiarity with legal terminology, making it difficult for them to determine which search phrases would be best. Another approach is to provide alternative search phrases which will yield different numbers of located documents, Students should then be asked to describe the outcomes are different, perhaps even determining which search phrase is ‘most useful,” Such an exercise forces students to think through the nature of the problem being researched, generally resulting in their understanding the problem in greater depth. REFERENCES Carpetland U.S.A. v. Payne (1989), No. 49A02-8810-CV 376, slip op. (lnd. Ct. App., April 10). Dunn. Appraisal V. Honeywell Information Systems, Inc. (1982), 687 F. 2d 877 (6th Cir.). Harlequin Enterprises Ltd. v. Gulf & Western Corp. (1980). 503 F.Supp 647 (S.D. N.Y.). In re First Commodity Corp. of Boston (1987), 119 F.R.D. 301 (D. Mass.), Ingram, Thomas N. and Raymond W. LaForge (1989). Sales Management: Analysis and Decision-Making Chicago: Dryden Press, Keith v. Volpe (1988), 858 F.2d 467 (9th Cir.), 618 F.Supp. 1132 (D. Cal.). Kotler, Philip and Gary Armstrong (1989), Principles of Marketing 4th ed.,, Eng]ewood Cliffs, NJ: Prentice Hall. Leigh Furniture and Carper Co. v. Isom (1982), 657 P.2d 293 (Utah). Lexis (1985), LEXIS for Law Students, Dayton, OH: Mead Data Central, Lindemann v. Eli Lilly & Co. (1987), 816 F.2d 199 (5th Cir. Miller Brewing Co. v. Anheuser-Busch Inc. (1987), 676 F.Supp. 1436 (ED. Wis.). NFL Properties, Inc, v, New Jersey Giants, Inc. (1986), 637 F.Supp. 507 (D. N.J.). Quality Inns International. Inc. v. McDonald’s Corp. (1988) 695 F.Supp. 198 (D. Mv.). Developments In Business Simulation & Experiential Exercises, Volume 17, 1990 118 Saliba v. State of Indiana (1985), 475 N.E.2d 1181 (Ind. App.). Scott v, Mid Carolina Homes, Inc. (1987), 293 S.C. 191, 359 S.E, 2d 291 (S.C. App.). Stevens v. Parke, Davis & Co. (1973), 9 Cal.3d 51, 507 P.2d 653, 107 Cal. Rptr. 45. 94 A.L.R.3d 1059. Systems Operations, Inc. v. Scientific Games Development Corp. (1976), 414 F.Supp. 750 (D. N.J.). Testing Systems v. Magnaflux Corp. (1966), 251 F.Supp. 286 (ED. Pa.). Trump v. Caesars World, Inc. (1986), 645 F.Supp. 1015 (D, N.J.). U-Haul International, Inc. v. Jartran, Inc. (1984), 601 F.Supp. 1140 (D. Ariz.), 522 F.Supp. 1238 (D. Ariz. 198].). Wall Street Journal (1989a), ‘Commander Aircraft Plots Strategy to Manage Liability,” (July 13), B2. __________ (1989b), ‘Delta’s Decision to Take Blame for Crash May Cut Exposure to Any Litigation Loss,’ (July 21) B5 ___________ (1989c), ‘Justices Express Skepticism on Bid to Limit Damages,” (April 19), Bll. ___________ (1989d), “Pittsburgh Paper Sues Insurer to Pay Punitive Damages,” (July 13), B6. __________ (1989e), “Right Turn: California High Court Makes Mark on Law by Limiting Damages, (July 11), Al. ___________ (1989f), “Test of Time Supports Punitive Damages,” (May 5), A15. ___________ (1989g), Trial Strategies Often Focus on Rival. Damages Theories,’ (May 12), B3. Westlaw (1985), WESTLAW for Law Students, 2d ed., St. Paul, MN: West Publishing. Table of Contents Volume 17, 1990 The Impact of Decision Support Systems on the Effectiveness of Small Group Decisions - Revisited The Relationship Between Financial Performance and Other Measures of Learning on a Simulation Exercise Use and Effectiveness of an Analogy-Based Expert System Suggestions for Computerized Business Authors Dealing with Power: An Experiential Exercise Using Movie and Personal Diary Analysis Techniques A Model for Developing Student Skills and Assessing Outcomes Through Outdoor Training Computer-Aided Exercises Versus Workbook Exercises as Learning Facilitator in the Principles of Marketing Course An Exposition of Guilford's Si Model as a Means of Diagnosing and Generating Pedagogical Strategies in Collegiate Business Education Formal Planning and Simulation Team Performance: A Cross Sectional Approach Cases: Real Organizations in Real Time in the Classroom An Empirical Investigation of the Internal Validity of Marketing Simulation Game An Empirical Evaluation of the Pedagogical Value of Playing a Simulation Game in a Principles of Marketing Course Factors Affecting Effective Teaching of Strategic Planning: Some Preliminary Evidence An Experiential Exercise for Learning About the Relationship Between Organizational Form & the Project Management Process Accounting Communication Skills can be Taught in the Auditing Course Modeling Cost Functions in Computerized Business Simulation: An Application of Duality Theory and Sheppard's Lemma A Life Cycle Analysis of Decision Making for a Strategic Management Team What's the Problem? A Dynamic Model for Teaching Problem Solving Skills Experientially International Currency Fluctuations: Money$im, A Simulation Superstores: A Specialized Retailing Simulation Within a Specialized Marketing Curriculum Factors Affecting Student Perceptions of Learning in a Business Policy Game VC + EL = VL The Name Game: An Experiential Exercise in Intergroup Relations The Effects of Experiential Accounting Work Experience on Student Performance in Intermediate Accounting Courses The Results of Using the Experiential Activity Group Performance Evaluation in a Business Policy Setting Using a Legal Database to Describe the Legal Environment of Marketing (and Business) Matching Environmental Uncertainty and Organizational Configuration An Instructional Computer Simulation of Tampering in QC Executive Evaluation of Student Learning in the Looking Glass Simulation Group Personality Composition and Total Enterprise Simulation Performance An Expert System for Selecting Analytical Techniques for Analyzing Marketing Research Data Effects of Cognitive Styles on Responses in an In-Basket Simulation A Psychometric Analysis of Kolb's Revised Learning Style-Inventory Selecting and Developing Experiential Exercises Using Movies Application of a Real-World Strategic Management Model in the Classroom Demand Equations which Include Product Attributes Consumption as the Objective in Computer-Scored Total Enterprise Simulations The Effects of Decision Format and Evaluation on Simulation Performance, Decision Time, and Team Cohesion The Effects of Computer Related Assignments on Student Performance in Business Administration The Money Game: A Dynamic Simulation Including Random Shocks for Money and Banking Courses Methods for Evaluating Performance on Business Simulations: A Survey The Effects of Synergogy on the Policy Course: Significant Improvements in Student Learning and Teacher Evaluation Conditions and Outcomes of Trust in a Two-Person Bargaining Exercise Bankgame Enhancing Computer Business Simulation with the Use of VGA Graphics An Experiential Approach to Entrepreneurship An Advanced Simulation Method (ASM) for Multiple Objective Problems The Influence of Experiential learning Techniques on Student Recognition of Non-Primary Learning Styles Negotiating Mergers and Acquisitions: A Cocktail Napkin Approach Identification of Unintended Effects in Experiential Laboratory Exercises An Experimental Comparison of Paper and Pencil and Computer Aided Decision Support Tools Porting a Simulation from the IBM World to the Macintosh World A Transaction Cost Analysis of Experiential Learning The Development of Experiential Exercises for Courses in Entrepreneurship and Small Business Management The Assessment Center as and Experiential Classroom Exercise Pricing Strategy Algorithms for Playing Business Simulations Organizational Structures for International Operations: An Experiential Activity Simulation Emphasis in the Business School Capstone Course An Integrated Approach to Computerizing the Business Curriculum Cross-Cultural Business Negotiations Exercise Organizational Socialization and Gender Differences in Students at Work Understanding Student Work Experience: A Content-Analytic Approach Introducing Executive MBA Programs with Management Games An Analysis of Improvement in Business Decision Outcome with Sequential Use of Two Simulation Games Teaching Business Policy Utilizing Mass Lecture and Individual Case Labs Potholes Along the Road to Evaluating Learning Outcomes: The Case of Outdoor Management Training Experiential Learning for Interior Design Students: Using CADD, Lotus 1-2-3, and Wordperfect Cognitive Learning Using a Computer-Based, Qualitative Interactive Business Simulation Sex Discrimination: Does the Woman get the Job or Does the Best Man Win? A Search for Visual Aids to Support Experiential Learning Through the 1990's An Experimental Analysis fo the Effectiveness of Student Role-Playing in Sales Training How to Have Students Learn from their Term Projects Self-Evaluation Exercise (SEE): An Assessment of Class Contribution A Study of the Influence of Team Formation on Attitudes and Performance in Management Games A Hardware Based CIM Simulation Laboratory Model Test Substance Abuse in Organizations Micro Computer Training Models Teaching Forecasting, Cash Budgeting and Inventory Model Building Using SBTools A Comparison of the Effects of Experiential Learning Activities and Traditional Lecture Classes An Adjunct Writing Instruction Assistant, The Computer; With an Illustration Classroom Software for ABC Analysis Utilizing Information Processing Technology to Enhance the Business Policy Simulation Experience Progressive Cases Realistic Job Previews Vs. Traditional Job Previews: Experiencing the Differences and Understanding the Consequences Investment Analysis Using the Pragmatic Multiplier Approach A Computer Simulation Interface for Competitive and Firm Analysis Self-Assessment of Ethical Decision Making Predispositions Preparing Managers for Overseas Assignments An Inquiry into Japanese Marketing: Workshop on Teaching Japanese Marketing The Performance Appraisal Feedback Interview: A Role Play for Human Resources Management Teaching Counselor Selling techniques Using Experiential Techniques to Teach International Topics International Management Simulation Gaming: Current Status and Future Developments A Realism Comparison of Simulation Technologies/Methodologies A Time-Efficient Game to Illustrate Concepts Taught in Management Courses and Management Development Programs Teaching the Management of Technology The Concept of Face and the Applicability of Experiential Exercises in an Oriental Culture's