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The University of Manitoba Asper School of Business GMGT 2120, A01 - BUSINESS / GOVERNMENT RELATIONS COURSE OUTLINE Fall 2013 Instructor: Howard R. Harmatz Office: Drake 468 Phone: 474-6408 Email: [email protected] Fax: 474-7545 Office hours: Office hours: Monday, Wednesday, Thursday 5:15 - 6:00 p.m., or by appointment To book office hour time: http://harmatz.youcanbook.me/ Course Objectives What you are expected to know already: o General principles of microeconomics as usually covered in the first half year of a traditional principles of economics course such as ECON 1200. o Basic critical reading and English writing skills. o Current newspaper coverage of Canadian business, economic, and political events and an awareness of global political economic issues. What you will need to learn: o The economic consequences of political actions using the industrial organization paradigm. o How political decisions are made in a democracy. o How interest group politics operate. o The role of misleading information in public affairs. o Formal structure of the Canadian government and a conception of the operational structure. Why you need to know these things: o As a member of business community you will be affected by current and changed tax policies, regulatory policies, and international commitments. o As a potential member of the leadership community, you will be affecting these policies. o Understanding the politics and economics of regulation and other forms of governmental intervention is critical in forming strategy at the level of the firm or interest group. The purpose of this course is to introduce the complex interrelationships between business and government in Canada. The bi-directional influences are explored. A pragmatic, (positive not

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The University of Manitoba Asper School of Business

GMGT 2120, A01 - BUSINESS / GOVERNMENT RELATIONS

COURSE OUTLINE Fall 2013

Instructor: Howard R. Harmatz

Office: Drake 468 Phone: 474-6408

Email: [email protected] Fax: 474-7545

Office hours:

Office hours: Monday, Wednesday, Thursday 5:15 - 6:00 p.m., or by appointment

To book office hour time: http://harmatz.youcanbook.me/

Course Objectives What you are expected to know already:

o General principles of microeconomics as usually covered in the first half year of a traditional principles of economics course such as ECON 1200.

o Basic critical reading and English writing skills. o Current newspaper coverage of Canadian business, economic, and political

events and an awareness of global political economic issues.

What you will need to learn:

o The economic consequences of political actions using the industrial organization paradigm.

o How political decisions are made in a democracy. o How interest group politics operate. o The role of misleading information in public affairs. o Formal structure of the Canadian government and a conception of the

operational structure. Why you need to know these things:

o As a member of business community you will be affected by current and changed tax policies, regulatory policies, and international commitments.

o As a potential member of the leadership community, you will be affecting these policies.

o Understanding the politics and economics of regulation and other forms of governmental intervention is critical in forming strategy at the level of the firm or interest group.

The purpose of this course is to introduce the complex interrelationships between business and government in Canada. The bi-directional influences are explored. A pragmatic, (positive not

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normative), political science framework provides the framework from which salient aspects of the economic, political and societal environments will be covered in this short course. The political analysis is founded on the starting point of self-interest, as were the microeconomic models encountered in principles of economics. Manipulation of information by all actors in the economy and the political entity is assumed. Strategies are formed with incomplete information. The interactions of strategies and exogenous events produce performance outcomes. The resulting institutional and policy outcomes are discussed and evaluated. In other words, we focus on the human behaviors and rhetoric that lead to interest group dynamics, lobbying and other avenues of political influence and their economic implications, important for Canada and other democratic countries.

As this is a policy course, the complex nature of strategic actions in an uncertain and risky environment is also addressed. The course commences with an exploration of analysis of poor information as a necessary prerequisite for strategic planning. The core analytical models used are neo-classical microeconomic analysis and public choice. Thus, it is imperative that students be responsible for reviewing microeconomic theory as part of the required Principles of Economics course and gaining an appreciation of its extension into political science, i.e. public choice. Students are expected to know or quickly grasp the basic institutional aspects of Canadian Democracy.

Unlike many lower level university courses, this course does not emphasize a body of information. The focus is on analysis and strategic decision making. Since decision making often involves others, the role of rhetoric is addressed and students are encouraged to discuss issues in class and on Desire2learn. We will also open up a few discussion links for issues to be discussed. Feel free to engage in critical discussions. While an opinion piece might initiate a discussion, we hope that subsequent postings add critical analyses that serve to sharpen thinking . Participation in class can be supplemented by Desire2learn postings, where essays or critical responses to essays count for participation points. Attendance in all classes is required. (Often, students need to be away. That may be the right personal choice, but there is a loss within this academic program.) Each student will track attendance and participation and submit own record keeping on the attached form (APPENDIX A). (You should be aware that the University Calendar allows for prohibiting a student from writing a final exam in a course where attendance has not been satisfactory.) Missing four classes will result in a loss of all participation points. Missing six classes will result in debarment from the course examination.

Recording and video-records of classes The instructor(s) and/or the University hold copyright over the course materials, presentations and lectures which form part of this course. No audio or video recording of lectures or presentations is allowed without permission. Course materials (both paper and digital) are for the student’s private study and research, and are not to be reproduced, distributed, or posted online without permission. If you have a disability and require audio or video recordings, or materials in alternative formats, please make arrangements through Student Accessibility Services. Electronics in Classes Electronic devices may be used judiciously. If you are using a computer for note taking, please sit in the back rows as the illumination from screens is distracting to people sitting behind you. Cell phones should be off or kept muted. Text messaging is not acceptable or respectful behavior.

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Evaluation:

There is a mid-term (25 points), 5 reading comprehension and analysis assignments1 (3 points apiece); 15-22 page paper (25 points); Participation (10 points); and a final (25 points).

Tentative Schedule

Item Points Read the course outline!

Sept 20 A1 due 5

Sept 24 MT 1, Part 1 closed book, Multiple Choice questions from

microeconomics 30 minutes

Part 2 open book, 1 essay

7

7

Oct 11 A2 due 5

Oct 15 MT 2, Part 1 closed book, Multiple Choice questions on The

Canadian Regime

Part 2, 1 essay

5

7

Oct 25 A3 due 5

Nov 12 Paper due 25

Final Exam, date to be determined by Registrar’s Office 25

Participation 10

Total points 100

All readings are required. This course will have about 1000 pages of reading altogether. Additional current materials (current clippings) will be distributed through d2l and in class. Students are expected to read at least one national or international newspaper a day.

Your reading assignments will be submitted to Desire2learn, using a drop box directly. Your paper will be submitted to Desire2learn in pdf format. Your work may be mechanically evaluated as well as manually assessed for language (grammar, spelling, etc.) and originality. All standards of academic integrity apply.

Late short assignments will not be accepted unless accompanied by medical or other documentation. Term paper will be reduced by 20 points each day or part thereof late.

The texts are:

David P. Baron, Business and Its Environment, 6th Edition (2009). Pearson Custom Printing.

Patrick Malcolmson & Richard Myers, The Canadian Regime; an introduction to parliamentary government in Canada, 5th Edition (2012) University of Toronto Press.

1 The short reading comprehension assignments will be available at least 48 hours before the due time. These have

an information literacy focus and are intended to stimulate analysis of news stories and give practice to writing skills

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All other materials will be on d2l. This is a course concerned with ideas. We expect all students to read and think, but not to commit the material to memory. In practice, no real boss or client will ever insist that you work without research materials. The primary objective of the quizzes is to determine whether or not the material was read and understood. If you read the material ahead of class, your questions about what was not clear can be addressed in class. We will ask students on the written part of the mid-term and on the whole of the final to explain or analyse simply something from the massive amount of material (and of course, you may bring your books, handouts, copies and hand written notes with you. Only part of the mid-term is closed book. (The focus of this test is knowledge expected to have been carried forward from the microeconomics half of a basic economics course and on Canadian government as covered in the Dawson, Dawson & Ward readings for this course. The second part, open book, will be two essays.

We want students to understand working under uncertainty (as distinct from risk) and the problems of group decision making, two very separate and distinct problems underlying modern complex societies. The paper will be an analysis of the roles of government and the private sector with respect to policy induced issues as evident in a particular industry of your choice, given the constraints of the assignment. Other readings will be added as they become available for all students. Any additions will be noted by a message sent to the mailing list.

The instructor uses the Socratic method, the ancient and honourable technique where students are questioned on what they see to test the robustness of the student’s conceptual framework. Students should expect to work in class and not take notes. This is not a class wherein wisdom or data is broadcast from the podium and students are expected to absorb and repeat. It is a good thing when this process leads to the discovery of error. Students should not feel the pressure to be right. The pressure is on participating.

There are three very important goals of a sound undergraduate education. One is to make students aware of their prejudices and become doubtful about all ideas being held. An educated person rarely asserts anything more strongly than with a qualified maybe. Two, is the development of analytical techniques. These techniques are independent of a discipline.2 Three, what many students see as content.

As a personal apology to students, I must point out that individual feedback is more limited than desirable. Marker support is equalized across courses based on so much for registered student without much regard whether the work is written or multiple choice questions (MCQ). It is important for students to try to express their ideas in writing. It is a good idea that one should get their peers to go through the paper with them expressing every doubt that can be raised. Your permitted aids include language proof reading and the critical raising of questions that need to be addressed before the paper is submitted. Students might make good use of the Academic Learning Centre (ALC) on campus. They can be reached via email and offer assistance in writing strategies.

2 Question: Why do we speak of disciplines and not subjects?

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Sometimes two half sessions will boost a student’s skill set enormously. This works with first year students and PhD students. Please look at the following: http://umanitoba.ca/student/academiclearning/ The reference librarians in our library and other reference librarians across campus are there to help as well.

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Tentative Schedule

Readings: To be read before: (the operational word is before.)

Sept 10 Baron, Chapter 1 “Market and Nonmarket Environments”

Sept 12 Gordon Bigelow,”Let there be Markets” http://harpers.org/archive/2005/05/0080538

Thomas Frank, “Lie Down for America, ”Harper’s Magazine , April 2004

Sept 17 Baron, Chapter 2 “Integrated Strategies”

Hans Christian Andersen, “The Emperor’s New Clothes” http://www.andersen.sdu.dk/vaerk/hersholt/TheEmperorsNewClothes_e.html

Sept 24 Baron, Chapter 3 “The News Media and Nonmarket Issues”

Frankfurt, Harry, “On Bullshit” http://athens.indymedia.org/local/webcast/uploads/frankfurt__harry_-_on_bullshit.pdf

Oct 1 Baron, Chapter 4 “Private Politics” Baron, Chapter 5 “Crises Management”

Oct 3 Malcolmson & Myers, pp. 35-76; 95-210

Oct 10 From The Choice of Governing Instrument: “Introduction”, “The Perspectives of the Principal Actors in the Decision-Making Process”, and “The Choice of Governing Instrument: The Calculus of Decision” in David P. Baron, Business and Its Environment, 6th Edition (2009). Pearson Custom Printing.

Oct 15 From The Choice of Governing Instrument “Regulation” in David P. Baron, Business and Its Environment, 6th Edition (2009). Pearson Custom Printing. G. Bruce Doern, “Regulation on the Run: The Transformation of the CRTC as a Regulatory Institution,” Canadian Public Administration Vol 40 (3) Autumn 1997, pp. 516 – 538. )

Oct 22 Baron, Chapter 6 “Nonmarket Analysis for Business”

Oct 24 Baron, Chapter 7“Nonmarket Strategies for Government Arenas”

Baron, Chapter 8 “Implementing Nonmarket Strategies in Government Arenas”

Nov 5 Baron, Chapter 18 “The Political Economy of International Trade Policy”

Nov 19 Baron, Chapter 12 “Law and Markets”

Nov 26 Baron, Chapter 13 “ Information Industries and Nonmarket Issues”

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University Email Policy Effective September 1, 2013, the U of M will only use your university email account for official communications, including messages from your instructors, department or faculty, academic advisors, and other administrative offices. If you have not already been doing so, please send all emails from your UofM email account. Remember to include your full name, student number and faculty in all correspondence. For more information visit: http://umanitoba.ca/registrar/e-mail_policy Deferred Exams For all students who have been approved by their faculty office to have a deferred exam: Effective September 2005, the Department of Business Administration has instituted a policy which provides ONE DATE ONLY for students who have deferred their final exams. The deferred final exam date has been pre-set for Friday, January 17, 2014 at 1:00 p.m., the room is to be determined. This does not apply to take home final exams. Please refer to University of Manitoba’s Policy 1305 – Exam Regulations (http://umanitoba.ca/admin/governance/governing_documents/academic/454.htm) or the Undergraduate Program Office for rules and regulations concerning deferred exams. Unclaimed Assignments Pursuant to the FIPPA Review Committee’s approved recommendations as of August 15, 2007, all unclaimed student assignments will become the property of the faculty and will be subject to destruction six months after the completion of any given academic term.

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Appendix A To be printed out and submitted last in class

Print Name_____________________________________Section_

How many days did you miss class_____?

How many substantive analytical postings (insightful essays, not four sentence comments!) did you place on Desire2learn ____?

Compared with others, would you place your speaking in class in the top 20%, top 40% middle or bottom 30% What did you contribute to the learning of others?

Signature________________________

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Appendix B

TERM PAPER (15-21 pages of text, double spaced 12 pitch font) & references. Use APA style *Learning goals include your ability to integrate, management strategy, politics, and economics and effectively communicate your work. You must focus on Canadian political processes and Canadian industries.

1. Develop a thesis statement. a. Sketch out your argument so that you can support your thesis statement. b. What criticisms of your argument can you anticipate? Imbed your defense

within the essay. 2. Rewrite the paper for logical flow. 3. Proof and rewrite the paper for language and grammar. 4. Make sure that all ideas and facts are cited. APA (6th ed.) is the required reference

style. 5. Make sure that all phrases, sentences, and paragraphs that use the words of others are

set off with quotation marks or if paraphrasing include the citation as appropriate. 6. Make sure your pages are numbered and you have a reference page. (See for help a

good style guide or, using the following link, information on citing and formatting. (For this assignment, do not produce an abstract!) http://cufts.lib.umanitoba.ca/node/1232

You may want to look at: http://www.markville.ss.yrdsb.edu.on.ca/politics/arg_essay.html Since we know about the topic on which you are writing, get as close to zero as possible in descriptive material, especially in the introduction. The question is how do political processes impact an industry and alter that industry’s impact (performance) on society. Does the democratic political process appear to make the industry that you are examining work better, and what does better mean? Look at the current negotiations on international trade agreements involving Canada. Look at a Canadian industry that has a particular stake in the outcomes of at least one of those trade negotiations. Narrow your choice of industry by choosing a product or service and its close substitutes. What political support has been sought? Explain the forces encouraging the desired support and forces resisting the support. Identify the organized and possibly organized groups concerned (stakeholders). Be guided by your reading of Baron’s text including the sections from The Choice of Governing Instrument. What market and non-market strategies do you see these groups deploying or possibly deploying? Analyse and discuss the role of political and cooperative behaviours in conjunction with market-based behaviours. How do the different players concerns and strategies interact with one another? What outcomes are likely and why? Discuss your analysis of the interactions. Evaluate the performance outcomes.

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Do not have descriptive material in your paper. If you think description is necessary, this should be done in a footnote. The paper should be analytical examining strategies, tactics, and relationships in political economic space. Your intended audience is a well read instructor who does not want historical background or other background material. Concentrate on the activities, strategies, and outcomes within the policy community. Your task is to apply political and economic analysis to this policy area. You will demonstrate knowledge of analytical concepts and tools. You will use the basic industrial organization paradigm and extend it with your insights into political processes. (Descriptive materials might be interesting to you or necessary for your thoughts to develop, but are not relevant for having your ability to analyse, discuss, and evaluate within political economy assessed.) Papers will be submitted without title pages, double sided printing is acceptable, without binders, prefaced only by a title on the front page that is also the statement of academic integrity, the back side being the marking rubric in your course outline. Look at the criteria the marker will use and be guided accordingly. Students are encouraged to use the Academic Learning Centre. Several ½ hour appointments can be made (no more than two within a week) to develop your writing. If you are not familiar with the resource, follow the following link: http://umanitoba.ca/student/academiclearning/ . Students are also urged to visit Ganga or Lois, our Cohen Library reference librarians. Late term papers will be penalized 20 points per day or part thereof. The papers will be assessed on the following criteria:

Presentation skills including language arts, grammar, use of APA, and flow.

Identification of the policy community, their objectives and tools.

Analysis and discussion of the non-market strategies and tactics used by interest groups.

The economic analysis of the non-market behaviours.

An evaluation of the total impact (performance) of the industry and the impact of non-market behaviours.

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Appendix C

Brian Katz Prize Each year I am charged with selecting the best papers from each section taught in this course and submit them anonymously to the Katz family (after obtaining nominated students’ permission). From that group, the chosen paper will be awarded the prize, both the honour and a cash award.

An endowment gift has been given to the Asper School to award to the student who has written the best f paper in Business/Government Relations each year. This award has been created by a gift from the Katz family to memorialize Brian Jeffrey Katz (May 26, 1947 - June 14, 2005) who was a brilliant educator, with legendary wisdom and patience. Not only in the classroom but also, in the office, at home or on the news, he was able to explain even the most complex concepts to anyone with a question. His patient, gentle, caring and understanding personality, combined with his love for teaching touched the lives of so many.

The Katz family has elected to set up this award in order to continue the legacy he started, as an instructor of Public Policy, specifically, in the course he taught between 1971 and 1979: Government and Enterprise. He believed this class to be important, as it challenged students to examine public concerns while gaining a better understanding of the political and economic elements that affect these complex topics.

Brian Katz was a man, who above all else cherished his family. His wife Adrienne was the love of his life, and his children Pamela, Patricia, and Stacey, were his pride and joy. Family, above all else was his top priority in life, and he prided himself on building a home that overflowed with love and generosity.

Mr. Katz understood each student for the individual they were. His accepting nature made his students, colleagues, and at times strangers, feel as though they too were one of his children, or a part of his family. In school and work, he taught to always try your best, to strive for excellence, and to stand up for the little guy. He taught to take pride in your work, ask the challenging questions, and always stand by your convictions. He instilled in his family, and students alike, a personal strength, and an impenetrable sense of right and wrong. It was his unwavering support, ability to differentiate right and wrong, and encouragement of others to make the right decision, which made him stand out as an individual.

Even years after Mr. Katz had ended the formal part of his teaching career, and he established himself as one of Winnipeg’s leading financial planners, the teacher in him never faded. He continued to teach various classes to help people to understand their finances, and the basics of the financial markets, as well as publishing an educational newsletter, Dollars and Sense, as well as educating the general population through informative discussions in print, radio, and television media.

As a recipient of the Golden Shovel Award (a student voted award, honouring one faculty member each year,) it was Mr. Brian Katz's buoyant spirit and passion for living life to its fullest that truly set him apart. He had tremendous insight, a way with words and a quick-witted humour that mesmerized. He loved to talk, and teach, and could go on about any subject ranging from business and public policy to ancient Roman civilization and world travel. His infectious enthusiasm inspired so many, and it is hoped that through this award he can continue to live on and inspire future generations to ask the challenging questions, and love to learn, as he had.

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Academic Integrity It is critical to the reputation of the Faculty of Management and of our degrees, that everyone associated with our faculty behave with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. Specifically, acts of academic dishonesty include, but are not limited to: - using the exact words of a published or unpublished author without quotation marks and

without referencing the source of these words - duplicating a table, graph or diagram, in whole or in part, without referencing the source - paraphrasing the conceptual framework, research design, interpretation, or any other ideas of

another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation) without referencing the source

- copying the answers of another student in any test, examination, or take-home assignment - providing answers to another student in any test, examination, or take-home assignment - taking any unauthorized materials into an examination or term test (crib notes) - impersonating another student or allowing another person to impersonate oneself for the

purpose of submitting academic work or writing any test or examination - stealing or mutilating library materials - accessing test prior to the time and date of the sitting - changing name or answer(s) on a test after that test has been graded and returned - submitting the same paper or portions thereof for more than one assignment, without

discussions with the instructors involved Group Projects and Group Work Many courses in the Faculty of Management require group projects. Students should be aware that group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature of group projects, all group members should exercise special care to ensure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to a specific individual(s). Some courses, while not requiring group projects, encourage students to work together in groups (or at least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue as it relates to academic integrity with their instructor to avoid violating this policy. In the Faculty of Management, all suspected cases of academic dishonesty are passed to the Dean's office in order to ensure consistency of treatment.

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Academic Integrity

Purpose: Students seem to have little understanding about academic integrity and therefore I want to explain three separate reasons why it is important and what constitutes the spirit of academic integrity going beyond the sheet attached to every course outline in this faculty.

(1) Ideas and expression of ideas are public goods in the economic sense of the term: Once produced the cost of reproducing approaches zero, there is no crowding out; and the costs of excluding use are prohibitive. The moral “payment” owed to creators is a clear acknowledgement. This simple act is the coin of the realm in the intellectual world. The creators do not always ask for pecuniary rewards but require their due respect. Not to give credit is disrespectful. This aspect of academic integrity has been given the least expression by my peers in this institution, but is the most important in my judgement. If you want respect, you must give respect.

(2) The students from a professional faculty expect to be taken at their word when they begin their careers, if not beforehand. When are you to be believed? If we have reasonable doubt now concerning your character as one who does not deserve respect, should we not continue to doubt your integrity in the future? If you fail in your moral duty to those who provide ideas and expression of ideas, you fail as a moral individual who can be trusted. Professional bodies are judged by the minimum standards set for members, while trying to use the best achievements of members to establish a public image. Professional students should be expected to act well when not being closely monitored.

(3) The aspect of fraud, claiming credit for the work of others is per se unacceptable. But, if this forces the staff to play a game of cops and robbers with students, all we can be certain of is how these students operate when being closely watched. To the extent the policing of such fraud is left to the limited resources of the staff, the assurance to third parties such as putative employers is limited and qualified.

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University of Manitoba

I.H. Asper School of Business

MEDICAL ABSENTEEISM FORM

STUDENT IDENTIFICATION: (PLEASE PRINT CLEARLY)

_____________________ _______________ ___________ _______________________________ Last Name First Name Middle Initial U of M Student Identification Number _________________________________ ________________________________________ Course # Instructor Name ________________________________ _______________________________ Student’s Signature Date

TO BE COMPLETED BY THE ATTENDING PHYSICIAN: (after the above section is completed) (PLEASE PRINT CLEARLY)

___________________________________ _________________________________ ___________ Physician’s Last Name Physician’s First Name Middle Initial __________________________________ _________________________________ ___________ Street Address City, Province Postal Code ________________________ ________________________ Telephone Number Fax Number

To the attention of the physician: Your evaluation of the student’s condition is being used for the purpose of determining whether or not the student has a valid reason to miss an important exam or assignment. Your professional evaluation is necessary to ensure that only valid cases are excused.

I certify that the nature of the student’s condition is severe enough to prevent the student from taking an exam or completing an assignment. If requested, my associates or I will verify for the above named instructor/administrator that this information is accurate.

The student’s condition will likely span the following dates: ______________________________ until _______________________________ (Indicate start date) (Indicate end date) ______________________________ ______________________________ Physician’s Signature Date

NOTES TO PHYSICIAN:

Please make a note in the student/patient’s file indicating that the student has given the above named instructor/administrator permission to verify with you, your staff, or your colleagues, that the information contained on this form is correct. Thank you for your professional evaluation of this student’s condition.

PLEASE ATTACH THIS FORM TO YOUR REGULAR OFFICE STATIONERY THAT INDICATES THE STUDENT VISITED YOUR OFFICE.

NOTES TO STUDENT:

The use of this form is at the option of the student. However, in order to obtain an excused absence for an assignment or exam the student must obtain a doctor’s certification that the student’s condition is severe enough to prevent the student from taking the exam or completing the assignment.

It is NOT SUFFICIENT to provide a note that only indicates the student visited the doctor’s office.