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Part II:  Essay (40 Points)

In these uncertain times "vision" is called for, especially on the part of business leaders.  Simple Simon, a recent graduate of the North Carolina State University, College of Management, decided that he would establish a security firm that specialized in protection of physical assets of businesses as well as protection from threats that appear in cyberspace.  

Simple offered the following services to clients:

For companies that occasionally came into possession of a lot of cash, Simple sent bodyguards who were trained in the martial arts and who were licensed by the State of North Carolina to carry concealed weapons.  

For companies that were the target of computer hackers, Simple offered considerable computer expertise in warding off attempts by hackers to either sabotage the computer systems of client companies or attempt by hackers to penetrate company defenses and discover their trade secrets.

Simple also offered domain name protection by promising to represent clients  that were victimized by cybersquatters who posted names similar to the names of celebrities or the trademarked names of business clients.

Simple established his own web site, Securex.com and conducted most of his business via the Internet.  Most of Simple's clients contacted him online and all contracts were signed and agreed to online with the aid of email and occasional phone conversations.  In each of the contracts that Simple had with his clients, all disputes were to be resolved by arbitrators from the American Arbitration Association (AAA).  

In the wake of the New York City and Washington D.C. terrorist attacks in September 11, Simple began advertising from his web site that all of his employees were American citizens and none were of Middle Eastern origin.  Securex.com experienced a tremendous upsurge in business and Simple was hard pressed to meet customer demand.  

Although the business response to Simple's advertising was very positive from some in the business community, Muhammad Rachman, president of the local Arab-American League in North Carolina, was incensed and demanded that Simple stop his racist advertising.  Instead, Simple published emails that he received from Muhammad on his web site as proof that he "would not back down to the enemies of American democracy."  Muhammad contacted several news organizations and Governor Easley of North Carolina to protest Securex.com's blatant appeals to race and religion.  Muhammad also filed a civil rights claim, based on the 1964 Civil Rights Act, against Simple and Securex.com claiming, in the complaint, that even though no Arab-American had ever applied for a job with Securex.com, it was obvious that they were not welcome and would not be hired.  Simple filed a motion to dismiss.  

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