The Montana Movie Theater Company Case Study
The Montana Movie Theatre Company (Montana) operates movie theaters in 15 different towns throughout Western Montana, including in Missoula, a city of 60,000 people with a major State University. Missoula, Montana, owns and operates five different movie theaters with a total of 38 screens. Montana operates the only theater in Missoula, and the theatres are within a 30-mile radius of Missoula. Montana charges $6 for matinee movie times and $8.50 for evening movies. These prices are about 10% higher than the prices charged around most of the rest of the state. There are no discount ticket prices of any type for senior citizens, students, or any other group. Most movie theatres around the rest of the state offer some, if not all, special individual or group discounts.
Several other movie theatre companies have sought to build movie theaters in Missoula over the last 10 years. Each of these efforts has failed. In addition, Montana has actively lobbied city authorities to keep out any other movie theater companies.
Present answers to the following questions using PowerPoint slides.
- What are the business and the associated legal issues with Montana’s operations?
- Is there a possible case of monopoly here under Federal law? If so, describe the reasons for the possible case and be specific based upon the information you are provided in the case. If not, describe why you believe there is no possible case.
- During discovery in a lawsuit situation, what type, if any, of accounting records should you request if you were engaged by the lawyer for Montana to defend Montana in a monopoly-related lawsuit? If you were engaged by a competitor of Montana to sue Montana in a monopoly-related lawsuit?
- What other information would you need as a Forensic Accountant involved in this type of situation defending Montana in a monopoly-related lawsuit? Suing Montana in a monopoly-related lawsuit?
- What are the services that a Forensic Accountant, as an expert witness, might be asked to provide in a dispute involving the above scenario defending Montana? Or suing Montana?
Requirements:
- Submit your responses to the questions in five to seven slides, not counting the title and reference pages, which you must include. Ensure you include voiceover or speaker notes to provide detailed responses.
- Use terms, evidence, and concepts from class readings, including professional business language.
- Cite at least 3 sources for this assignment, outside of the textbook.
