Business Law Case Discussion Questions

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BUSINESS LAW DISCUSSION QUESTIONS 10

BusinessLaw Case Discussion Questions

BusinessLaw Case Discussion Questions

PARTA

QuestionA 1

Inthe case of the mechanical fault of Zero Pedal, I would raise theissue with the relevant authorities. For the sake of fairness, I willseek the side of the story from the officials at Green Move toascertain the sincerity of Doug’s allegations. If the responsiblemanager dismisses my query, I will request that he shows me proof ofa taken to show that the product does not accelerate dangerously at100 degrees. The pressures in the quest are that I could lose my newjob just like my predecessor who tried to question the safety of theproduct.

Forthe particular case, the problem-solving model I shall employ isethics. I will look at the whole scenario from the lens of a just asociety. In such cases, rationality does not apply because thecompany would argue that few places in the USA ever get to thattemperature. However, what if climate change drives temperaturesthere one day or a buyer uses it in the Arizona desert? Human life istoo precious to gamble it with the atmospheric temperature. Using theethics model, I will recommend that the company give a warning thatriders should not use the product at 100 degrees or more.

QuestionA 2

Iwould not pay or recommend that the company pay the extortion fee of$5000 as stipulated by one greedy sports store. Instead, I willrecommend that the company use other means to publicize the productsuch that in the end, they said sports store will be the one beggingGreen Move to supply it with the solar bicycles. I believe that agood product should market itself instead of bribing someone else toplace it on his or her shelf. That to me comes off as cheating and itcontravenes the ideals of ethical business practices.

Therequest is not illegal, but it is unethical. It is true that somebusinesses give incentives to stores in order for them to stock theirproducts but then that do not include money. The relevantconsiderations in this case is that if businesses kept doing thesame, then stores would end up with products whose producers havebribed, their quality notwithstanding. The practice would alsomotivate some business owners to pay stores in order for them not tostock a competitor’s product. It is therefore not ethical for GreenMove to pay the money because such a practice is unethical.

QuestionA 3

GreenMove should apply the cost/benefit analysis. When dealing with thesafety of humans, cost/benefit analysis is necessary. Green Moveshould do it because it is the right thing to do. Businesses shouldnot do everything just for the money sometimes, socialresponsibility goes a long way to prove the credibility of abusiness. In this sense, a business should be socially responsiblewithout considering the associated cost of correcting the defect. Ifall that businesses cared for was the money and not the safety of itsclients, then trading in drugs would be ethical as well.

Therisks of ignoring the problem are immense and could be lifethreatening to the budding business. Apart from being unethical, thebusiness risks facing a law suit in the event that someone is hurt bythe dangerous acceleration of zero pedal when temperatures are high.If the former employees of Green Move leak the information to themedia, the end could be scandalous. Among the many ways of solvingproblems, wishing them away is not on the list. It is thereforeprudent that Green Move acts now lest the whole issue blows up in itsface some years later.

PARTB

QuestionB 1

Robertshould inquire whether the allegations of the blogger are true. If hefinds that they are true, he should then ask the management of SolarGroup if they truly contravened the argument they held regarding theworking conditions of the company. He should then contract theservices of another manufacturer who has respect for human rights. Ibelieve that in a country as big as Bangladesh, Robert would not missa solar manufacturer who is a little keen on human rights. The pricemay be a little higher, but then it is worth it since it is thereputation of the company that is at stake.

Theinterests of Green Move and the employees of Solar Group are at stakeafter this revelation. If the allegations are true, Green Move willhave to find another manufacturer who is reliable and offers goodprices as Solar Power does. In addition, if the blogger goes aheadwith the exposé, it would tremendously hurt the image of Green Move.On the other hand, the employees of Solar Group might lose their jobsif Green Move decides to take its business somewhere else. The highrate of unemployment in Bangladesh may condemn some of the employeesof Solar Group to long periods of unemployment.

QuestionB 2

Robertshould do a research on the best working conditions in Bangladeshbefore he can ask Solar Group to change. Contrary to popular belief,some employees in developing countries care less about workingconditions as long as they get paid. They have grown to getaccustomed to these poor working conditions because their country hasnot set standards that are at par with those in the USA. It wouldtherefore be impractical if Robert threatened to take his businesselsewhere if Solar Group did not improve the working conditions ofits plant.

ForRobert to determine the appropriate standards of employment and wagesin Bangladesh, he should compare those of Solar Group with theBangladeshi government requirements. Owing to developing economy ofBangladesh, it would be naïve to expect same wages for workers inBangladesh and those in the USA. Imposing a minimum wage of $10 perhour in Bangladesh would drive most businesses to bankruptcy. In thisregard, Robert should consider the living standards in Bangladesh andcompare them with the wages offered at Solar Group in order todetermine whether employees can survive at such a salary.

QuestionB 3

Theblog will taint the image of Green Move. If the blogger publishesGreen Move’s story in Bangladesh, the results might taint itsimage. A few years back when Americans discovered that Apple hadcontracted the services of a Chinese manufacturer who was abusinghuman rights, there was massive public outcry. Some activists went tothe extent of rallying people to boycott Apple products. The samecould happen to Green Move if the story comes out. It is thereforeimportant that Robert sort out the issue of the blogger before itgoes public and taints the image of Green Move. If he addresses thesituation, the blogger will have no need to publish the information.

Alternatively,if the blogger goes ahead to publish the information, it may turn outto be free publicity for the budding company. Just like in the Applecase, its directors came forward and said that they did not know thattheir manufacturer in China was abusing the rights of his workers. Inaddition, Apple set up a commission to investigate the issue and comeup with recommendations. Robert could also come forward to explainthat he never knew of the working conditions at Solar Group. He wouldthen go ahead to say that he has terminated his association with thecompany due to the human rights abuse.

PARTC

QuestionC.1

Viktorshould provide a bid on the property lease because it is a tenancyagreement that is a significant business decision. Property lease istypically a legally binding agreement that ultimately affects theoverall value of the business. Victor is thus obligated to offering acompetitive bid that is sustainable to Green Move Company. This bidwill include the rent as well as outgoing fees that the business willbe committing itself financially. In addition, the property leaseagreement will also dictate the expected period of businessoperations. However, as noted, Viktor has emotional attachments toestablishing new business premise in Russia and should therefore seeklegal advice in order to give the bid proper attention.

Onthe other hand, Viktor should ignore the second envelope marked“facilitation” addressed to the property manager. This is becausebowing to the implied suggestions on the envelope would be committingunethical business activity. That is unidentified and non-existencebusiness document that does not contain any information regardingbusiness operations or agreements. In addition, there is a suggestionfrom the property manager that such an activity is a bribe meant tospeed up business processes.

Priorto entering into any business agreement, Viktor should observe a listof ethical and legal considerations. Amongst the important facts toconsider is to verify that the lease document has the particularspace as indicated in the lease agreement. In addition, Viktor shouldcheck the lease agreement to ensure that it contains the period thatis agreed upon. Finally, it is important to check and verify that thelease agreement contains all the stipulated terms as well asconditions that are applicable to that particular lease agreement.This is because such an agreement will demand that the leaseagreement be subject to all the under laid terms and conditions thatboth the tenant and landlord will abide by.

Inaddition, there are certain legal items that Viktor is supposed toverify in the lease agreement before making any business deals. Thefirst major item to check is the availability of any extraobligations such as repairs in the space under lease. The agreementshould reflect the agreement that is made between the company and theproperty manager. All subsequent costs on the space that is under thelease agreement should be clearly explained in detail to avoid anyunnecessary financial obligations that may arise due to any type ofexpenses. Such costs include insurance expenses that Green MoveCompany may fail to comply with. The lease agreement should explainin detail any obligations on the part of Green Move agreement duringexpiration or termination of the lease agreement. This is typicallyreferred to as restoration obligations that should reflect theagreement between the two parties involved.

QuestionC. 2

GreenMove should expand its operations in Russia because it is part ofbusiness growth. Since its inception, Green Move Company has beengrowing steadily and there is a need exploring new market. Inaddition, Viktor noted a need to create employment opportunities inhis country of origin. One of the foremost roles that any businessplays in the society is creating employment opportunities to the manypopulations who are unemployed or underemployed. However, Green MoveCompany should observe and practice business ethics by offeringsalaries and wages that match levels of education as well as skillsand knowledge.

QuestionD. 1

Amongstthe organizational contributing issues to ethical and legal breachesat Green Move Company is lack of code of ethics. This is a crucialcode that guides all professional activities undertaken by allbusiness employees. Such a code includes specific responsibilities,role and consequences to any kind violations. In addition, Green MoveCompany lacks an investigating process that is normally responsibleat handling any unethical or illegal reporting. The company shouldhave an established code of conduct signed by every employee aftercareful review and agreeing to uphold the contents.

QuestionD. 2

Theresidual risks associated with legal and ethical breaches at GreenMove Company include the suspension or revoking of the leaseagreement. In addition, the company may face such heavier penaltiessuch as legal fines for ethical breaches. However, it is evident thatViktor paid an illegal facilitation fee to the property manager.Therefore, he risks losing membership to the organization as well ashis valuable credential. Good credentials are important factors thatall employers look for during the processes of hiring new prospectiveemployees. It is therefore an important possession that all employeesshould strive to keep as it ensures that their careers remain safe.However, such an attribute can be lost through involvement in illegaland unethical activities. When this happens, an individual may not becharged for criminal activities, but will also find it difficultgetting new potential employment opportunities.

QuestionD. 3

Theboard of directors is tasked at establishing a code of conduct whichshould be observed and upheld by every employee working at Green MoveCompany. Additionally, there is a great need of explaining the typeof model behavior that every employee should practice. Such modelbehaviors include disclosing any conflict of interests where employeeactions and decisions should be based on the best interests of thecompany. In case of any decision that suggests an ethical problem,the board of directors should offer an alternative solution.

Inaddition, the board of directors may continually stress theimportance of ethical approaches when dealing in the business. Thereis a need of cultivating a positive approach where all employees arefree to express their reasons why they find particular approachesmore ethical than others. In this regard, Green Move Company shouldestablish a conducive environment where employees can freely exchangedifferent perspectives of handling business matters. However, theboard is more tasked at ensuring that there is proper documentationof important business matters. This can be done through writingmemos, emails or notes regarding all disclosures on all types ofconflicts. This may also include suggestions or concerns regardingany existing or potential ethical problems.

QuestionD.4

The government role in fixing Green Move Company’s problemrevolves around quality check. It is tasked with ensuring that thecompany has in fact observed all legal procedures while establishingor expanding its business operations. The government has theresponsibility of ensuring that Green Move Company offers safe andright products to the consumers. There is a need of having anestablished sustainable goal that benefits both the company and thesociety, such as the right kind of products and also employmentopportunities with fair wages and salaries.

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