The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 5, Problem 1BS
Summary Introduction

Case summary: A person JT is the owner of a commercial bakery which produces a variety of goods. The person JT was required to conduct a test on the food products for contamination at his plant. He did not present the results to the U.S Drug and Food Administration Officials as he was not required to do so. He asked his employees to repeatedly conduct the test until it comes out negative. The products with salmonella contamination were sent for sale to retailers. Five persons who consumed the bakery products were taken ill and one even died of infection.

To explain : The selling of products which tested positive for salmonella contamination was ethical.

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Business Ethics. Jason Trevor owns a commercial bakery in Blakely. Georgia. that produces a variety of goods sold in grocery stores. Trevor is required by law to perform internal tests on food produced at his plant to check for contamination. On three occasions, the tests of food products containing peanut butter were positive for salmonella contamination. Trevor was not required to report the results to U.S. Food and Drug Administration officials, however, so he did not. Instead. Trevor instructed his employees to simply repeat the tests until the results were negative. Meanwhile, the products that had originally tested positive for salmonella were eventually shipped out to retailers.Five people who ate Trevor's baked goods that year became seriously ill, and one person died from a salmonella infection. Even though Trevor's conduct was legal, was it unethical for him to sell goods that had once tested positive for salmonella? Why or why not? (See Business Ethics.)
Spotlight on Dress Code Policies—DiscriminationBased on Gender. Burlington Coat FactoryWarehouse, Inc., had a dress code that required malesalesclerks to wear business attire consisting of slacks,shirt, and a necktie. Female salesclerks, by contrast,were required to wear a smock so that customers could readilyidentify them. Karen O’Donnell and other female employeesrefused to wear smocks. Instead they reported to work in businessattire and were suspended. After numerous suspensions, thefemale employees were fired for violating Burlington’s dress codepolicy. All other conditions of employment, including salary,hours, and benefits, were the same for female and male employees. Was the dress code policy discriminatory? Why or why not?[O’Donnell v. Burlington Coat Factory Warehouse, Inc., 656 F.Supp.263 (S.D. Ohio 1987)] (See Title VII of the Civil Rights Act.)
James Stilton is the chief executive officer (CEO) of RightLiving, Inc., a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors. To RightLiving pays the terminally ill patients a percentage of the future death benefit (usually 65 percent) and then sells the policies to investors for 85 percent of the value of the future benefit. The patients receive the cash to use for medical and other expenses. The investors are “guaranteed” a positive return on their investment, and RightLiving profits on the difference between the purchase and sale prices. Stilton is aware that some sick patients might obtain insurance policies through fraud (by not revealing the illness on the insurance application). Insurance companies that discover this will cancel the policy and refuse to pay.Stilton believes that most of the policies he has purchased are legitimate, but he knows that some probably are not. Using the information presented in…
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