Potential Ethical and Legal Issues Case Study Order Instructions: Please read below for information concerning assignment. Support responses with examples and use APA formatting in the paper.
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This assignment is worth 250 points!! Please follow all instructions listed within an assignment. The course readings for weeks 1~5 within the course must be used. See above for log-in information.
Assignment 2: Legal Issues Case Study Part II
Read the scenario and the questions that follow. Identify the legal issue(s) and apply legal concepts and possible arguments for each question. Prepare a solution for each question using laws, cases, examples and/or other relevant materials. At the end of the paper, identify potential ethical issues and propose a solution for each issue. Support your answers with information from the textbook and at least two outside scholarly sources. By Tuesday, May 10, 2016, prepare a 7 to 9-page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Properly cite all sources using APA format.
This assignment requires an application of the concepts learned in Weeks 1 – 5 and is worth significantly more than previous assignments.
Marcus is a second-year law student working as an intern for the largest law firm in Chicago, Illinois. The senior attorney introduced Marcus to a new client, Kay Roc, the founder of the famous fast food chain, McWilliams. As the owner of this large organization, Roc is looking to your firm to handle all of her legal needs.
Marcus learns the following information from his meeting with Roc and her staff.
• McWilliams recently hired a former high-ranking official from the Food and Drug Administration (FDA) to help improve the image of McWilliam’s products and ensure compliance with state and federal government regulations. Roc is concerned about a recently proposed rule that will require McWilliams to obtain additional permits and result in more frequent inspections by the FDA. The agency published the rule in the Federal Register last week. These new permits will create more work and expense for Roc. The former FDA employee indicated that he knows people at the FDA who might be able to make the proposed rule disappear in exchange for contributions to the new food safety training facility in Atlanta, Georgia.
• McWilliams is being sued by two customers.
o Hal Coker is suing McWilliams for negligence and deceptive trade practices claiming the fast food chain does not adequately inform the public of the dangers to their health and eating the food can lead to health problems.
o Keith and Kathy Allison were having dinner with their two daughters at a McWilliams in Detroit when the couple started to argue. The argument escalated and Keith shouted that he was going to kill his wife. When Keith stormed outside, Kathy dialed 911 and asked the manager to help them. The manager said he could not get involved in domestic disputes. Kathy and her daughters hid in the restroom; however, Mr. Allison returned with a gun, which he used to shoot Kathy and his two daughters before Detroit police shot killed him. Kathy died at the scene, and the two daughters were seriously injured. A wrongful death lawsuit filed against McWilliams on behalf of the girls.
• McWilliams is famous for its golden MW logo and mascot, McBurger. Roc wants to ensure the McWilliams logo and mascot are protected from use by others without permission. Roc reminds you that this protection should extend use in the United States and in other countries. She also asks you if it would be possible to sue a competitor, McDonald’s, for their use of one golden arch logo, similar to McWilliams.
• Eric Roc, Kay Roc’s son, had no interest in working for McWilliams after graduating from college and passing the CPA exam. Eric applied for a position as an accountant with Bean & Counter, LLC. an accounting firm specializing in assisting small businesses in Atlanta, Georgia. On November 28, the firm offered Eric a 12-month employment contract with the yearly salary of $75,000 starting on January 1. The contract contained the following provisions.
o Eric could not be terminated during the the12-month term of employment unless he committed an illegal act.
o Any disputes would be resolved using a mediator selected by the accounting firm.
o Eric would not be permitted to work for any accounting firm within a 100-mile radius of Atlanta for two years after leaving the firm.
• Eric accepted the job and signed the contract the same day, November 28. Eric decided to keep the news secret until he returned from his two-week vacation in Hawaii. On November 30, Roc offered to give Bean & Counter her company’s entire accounting business if the firm hired Eric. The firm accepted. When Eric told his mother the news about getting the job on November 28, Roc refused to transfer any accounting work to Bean & Counter. The accounting firm filed a suit against Roc, citing the parties had a contract. When Eric showed up for work on January 1, the firm informed him that they no longer needed his services. One week later, Eric found another job with Cooke & Books, a firm specializing in providing auditing services for restaurants and businesses in the food industry. The office was located in downtown Atlanta, just two blocks from Bean & Counter.
• Drew Scott, the director in the real estate division of McWilliams, met with Jed Turner about purchasing a large tract of land owned by Turner in Oak Brook, Illinois, a suburb of Chicago. Scott knew the company planned to bulldoze the acreage to create Burger University, a state of the art training facility. Scott judged Turner to be 85 or 90 years old. During the meeting, Scott noticed several brochures about Alzheimer’s and assisted living facilities, as well as several prescription bottles sitting on the table. After discussing the good old days for several hours, Scott and Turner agreed on the sale of the land for $400,000. Since Scott brought a blank copy of a contract with him, he helped Turner complete the paperwork and both parties signed. Unbeknownst to either party, the purchase price was written as $40,000. On the day before the closing, Scott called Turner to remind him of the location of their meeting to sign the remaining documents. Confused, Turner said he didn’t know anything about selling that land and he had no intention of selling his land to some dimwitted young whippersnapper who tried to cheat him.
Based on the scenario, create a 7 to 9-page Microsoft Word document. In addition, the document should address the following and any others issues you may discover:
• Describe the steps in the administrative process from the agency’s and the citizen’s perspective when a government agency proposes a rule or regulation. What would you recommend Roc do in response to the FDA’s proposed rule?
• Should Roc make a contribution to the food safety training facility? Why or why not? Please provide a legal basis for your decision.
• Discuss the legal issues of the lawsuit between Hal Coker and McWilliams. Determine which party will win and provide support for your decision.
• Discuss the legal issues of the lawsuit between the Allison children and McWilliams. Determine which party will win and provide legal support for your decision.
• Are the MW logo and mascot, McBurger, considered intellectual property? If yes, what type? If not, why not? Are there any issues with protecting the logo or mascot in the U.S. and in foreign countries? Does McWilliams have a case against McDonald’s over the use of the golden arches?
• What is the status of the employment contract between Eric and Bean & Counter?
• Will the non-compete provision be enforceable? Why or why not?
• What is the status of the agreement between Roc and Bean & Counter?
• Does Scott, on behalf of McWilliams, have a valid contract with Turner? What are the basic requirements for contract formation? What defects in the contract formation process may have occurred?
Submission Details
Based on the different situations described in the scenario, create a 7 to 9-page Microsoft Word document.
Support your answers with appropriate research, reasoning, cases, laws, and other relevant examples.
Submit the paper in APA format and properly cite sources on a separate page using APA.
Potential Ethical and Legal Issues Case Study Sample Answer
Legal Issues Case Study Part II
Steps to be followed in the Administrative Processes
There are laws that may not be directly found in the constitution but have the same effect as any other law of the land. Most of these are rules and regulations produced by federal agencies ensure that all laws formulated are in tandem with the constitution. Several important steps take effect when any government administrative agency proposes new rules. The first step involves enacting of given legislation. During this process, specific issues being addressed are incorporated. The second step involves the provision of a notice of proposed rulemaking. This stage will involve input from public members and another stakeholder who will be directly or indirectly affected by the new changes. Any new data or review acquired through the new process is released to the public. The third step involves publishing the new rule and regulation in the federal registry (McKendrick, 2014). The language used should be easier for all parties to comprehend.
A justification and analysis on why the law is being implemented are also taken into consideration and printed together with the law. The response of members of the public is also included in the whole process. Once the proposed rule or regulation has been published, a public comment period begins for approximately 30 to 180 days (McKendrick, 2014). All views provided by the members of the public are given a listening ear. In normal circumstances, the proposed rule becomes the final rule with very slight modifications. The agency may publish a second draft containing the proposed changes or modifications that have been added by different members of the public. The rules and regulations are then codified in the agencies law. A judicial review process follows especially when there are parties who feel that all obligations required in the rule have not been fulfilled. The rule does not immediately become effective. A grace period is allowed to ensure that the public complies with the new regulations.
Some rules may even take years before they fully become functional (McKendrick, 2014). In the above case, the law is already functional and thus Roc should ensure they adhere to the government new policy. Food safety training is an important component of any organization or business under this sector. Ethically, it would be wrong for the new officers who previously worked with FDA to use back door means that may imply that the company has met all requirements since this would not effectively mean that its employees received training on issues related to food training. Therefore, it is important for Roc to make important strides related to training its employees on issues relating to food training.
Lawsuit Legal issues between McWilliams and Hal Coker
McWilliams is more likely to win the case. All people who enter the restaurant enter through their own volition. The restaurant does not in any way have any obligation under law to describe whether the foods being provided are healthy or unhealthy. For any restaurant to be operating under the current law, it must have been granted permission relating to the type of service being offered. In other words, McWilliams was provided with a license after the regulatory board that checks foods being produced in different food stores found it to be under the accepted principles. Hal Coker could have won the case if either the food that was being consumed was found to cause food poisoning or if McWilliams was forcefully forcing people to eat their food. Since both factors do not exist, McWilliams has legitimate reasons to continue operating (McKendrick, 2014). Ethically, it may be wrong for McWilliams to be operating while providing people with foods that are not necessarily healthy for a certain amount of money. It would be wrong to be providing a certain amount of money for a service that is not to the required standards.
Lawsuit legal issues between McWilliams and Allison children
An act of commission and omission occurred in McWilliams. The act itself resulted in the loss of life or murder. The main question that will be addressed in the above case will be whether there could be something that could have been done to avert the disaster that led to injuries to Mrs. Allison and her two daughters. McWilliams are more likely to lose the case in two counts. First, they never provided assistance to Mrs. Allison despite numerous requests concerning the behavior of Mr. Allison. Specifically, the manager was asked to provide assistance and stop Mr. Allison. The Manager claimed that their internal laws did not allow them to intervene in family issues. By dissociating themselves from a criminal act that happened in their setting, they would be charged with an act of omission. This is because they had been provided with relevant information concerning the actions of Mr. Allison. Secondly, the crime took place in their settings. McWilliams is responsible for all actions that occur in the setting. If they had taken necessary measures or if the crime was accidental the case would have been quite different. The third aspect involves rules and regulations being followed by the company. The constitution supersedes any other laws present and will always come first in all cases (McKendrick, 2014). In the above case, the company failed to adhere to the rules set by the Constitution and more specific laws that related to the right to live. By observing their laws instead of those that govern the land, they were gravely violating it. Ethically, the actions of the manager were not ethical since life was lost at the expense of companies rules and instructions.
Logos and Mascots
The McWilliams Logo and Mascot are considered to be part of intellectual property. All items classified under intellectual property are copyrighted or patented. This would effectively mean that no other company is supposed in any way to copy the product used by another company. Therefore, it would be true to state that logos act in a similar way to a patent. A patent can only identify with one party. Some mascots may be considered to represent the face of a company. Similarly, it represents one organization or company. In the United States, Logos and other forms of mascots are protected by laws governing intellectual property (Bently & Sherman, 2014). Outside the United States, different laws may be applied depending on their constitutions. There are different laws that regulate intellectual properties at the international level. McWilliams has a case against McDonald’s since it has utilized its logos in their business. In the business world, logos define different business. McDonald’s logo indicates that in one way or another they are affiliated with McWilliams. Therefore, it is more likely for loyal customers who go to McWilliams to end up in McDonald’s. Thus, the logos can act to profit McDonald’s at the expense of Mc Williams. The same logo is being used by McDonald’s to advertise without permission from the required parties and would, therefore, be in violation of the intellectual property acts because no permission was granted by McWilliams.
What is the status of the employment contract between Eric and Bean & Counter?
The contract that existed between the two parties had three key components. The first agreement was that Eric could not be terminated for the first twelve months in the company unless it was proved that there were illegal actions from Eric parts. The second part of the contract addressed methods that were used to solve any form of conflict between the parties. The agreed method was the use of mediating with the mediator coming from the company. The last part restricted Eric from working for any individuals across a hundred yards. Eric observed all of the above factors. However, the company violated all terms of the agreement after a row with Eric father that led to the termination of the contract with Eric. As a result, Eric was fired before the first twelve months that they had agreed on. Additionally, mediation was never used to address all issues relating to the company (Friedman, 2011). Therefore, all the terms of the contract became null and void even before Eric began working for the company. Ethically, it is wrong to use another company’s image to earn more money or income without seeking any form of permission from them. It becomes worse if the company using the logo is a rival in the same market since it creates a different image for people who go to the above companies.
Enforcing Non-compete Provision
The non- compete provisions are not enforceable in the above case. Eric was fired from the company even before any formal work had begun. Therefore, Eric never in any way obtained information on how the company is run or other important methods that the company has used since time immemorial to gain competitive advantage. Eric would not be in violation of any of requirement that required that the next job be more than a hundred yards away. If Eric were fired from the company in a more legal manner, it would have been legal to obtain another job near a competitor (McKendrick, 2014). However, since the company violated the terms of the agreement, then there was no contract between the two parties. Ethically, it would be wrong for the non-compete principle to be implemented knowing quite well that that company was the one at fault in dismissing Eric from the company without any legitimate claim.
Agreement between Bean & Counter and Roc?
There is no agreement between Roc and Bean & Counter due to some principal issues that Eric was going to be employed by the company. When signing any form of agreement, the parties present are supposed to act in good faith and inform different parties of all the clauses. The main part that Bean and Coulter never informed Roc was that Eric already had an agreement with the other party. It, therefore, meant that there was no need to discuss terms that related to Eric. Instead, they could have opted to discuss other issues that would have brought the two businesses together (McKendrick, 2014). The main agreement was that Eric was to be hired by the company before any contract took effect. Since the company violated their agreement and never informed parties of all the required conditions and steps taken about Eric’s employment, it became impossible for the contract to remain valid.
Contracts Formation
Scott has a contract with McWilliams. Since Scot was negotiating a contract for the company, it is accurate to state that Scot was working on behalf of the company. If the contract had been based on personal issues, then the case would have been different, and the company would have never been liable. Any valid contract has three important elements. The first element is the offer that is made to two different groups (Friedman, 2011). An invitation to treat is first offered before an offer is made. In this case, the invitation to treat revolved around the likelihood that certain Turner would agree to sell the land that had been earmarked for demolition (McKendrick, 2014). Scout makes an irresistible offer to Turner. The offer involves the sale of a piece of land for a certain amount of money. The second element of any contract is accepted. Once the above parties agree in principle on the offer made they are deemed to have accepted the terms of the contract, and therefore the contract becomes valid. The last aspect is a consideration which involved a certain amount of money (Friedman, 2011). In this case, it had been equated as $400,000. If all the above elements are fulfilled, then a contract is deemed to have met all the required terms. Some defects are noted in the above agreement. The first is the considerable amount that is supposed to be signed by two parties (Friedman, 2011). The amount has been quoted wrongly. Though Scott notes the mistake, no attempt is made to correct the above mistake. The second element that misses is the way the invitation to treat is offered. Scout attempts to identify the illness that an individual is suffering before issuing the contract
Potential Ethical and Legal Issues Case Study References
Bently, L., & Sherman, B. (2014). Intellectual property law. Oxford University Press, USA.
Friedman, L. M. (2011). Contract law in America: a social and economic case study. Quid Pro Books.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK)
