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1. The administrators of Kent Company's pension plan decided to use the pension plan assets to purchase the company's stock to help defend the company against a hostile takeover by PWS Co.; the administrators were major shareholders of Kent Co. The takeover attempt was eventually defeated, and Kent Co. was then taken over by a "white knight", West Co. The takeover by West generated a substantial profit to the pension plan fund and to the administrators through the sale of their shares of stock in Kent to West. After the takeover was completed, the Secretary of Labor brought a suit against the administrators for breach of their fiduciary duties under ERISA; the administrators argue that the fund suffered no loss, and actually made a substantial gain. Have the administrators breached their fiduciary duties under ERISA?
2. The Secretary of Labor brought suit against Tama Packing for alleged violations of FLSA's overtime regulations because of its failure to pay overtime pay to employees working as "live-weight scalers" and "cold weight scalers". Tama claims that the employees are exempt as administrative employees. The employees are responsible for weighing and recording the weight of the animals brought in for slaughter (live weight scalers) and the weight of the processed meat (cold weight scalers).
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