MGSC05H3 Lecture : MGTC45-Lecture 3
Document Summary
The government said they would not regulate tobacco as drugs until 2009, the companies agreed to pay up billions of dollars in return. The initial errors of estimating the total costs, created a more favourable situation (the 368 billion dollars is much less than 386 billion dollars: made both side happier on both sides. The deal did fall apart, because the deal was negotiated with the ag and the federal government still had to approve it. The feds thought the tobacco companies have done too well. Newt gingrich, people who wanted a deal too badly, knew that it was good for them. Sometimes when the other side is too enthusiastically involved, they might be getting a better deal than you originally have thought. Congress did not approve the tobacco deal, instead made its own deal. Would place no cap on class action lawsuit, applied tax on each packet sold, asked for 500 billion instead of 368 billion.
