Business Law Case Solution & Answer

Business Law Case Solution

Question 1

The rule of law, in generally, assumes that laws’ creation, enforcement and the relationships between their application, are autonomic and self-regulated processes. The rule of law also implies that no one is considered above the law, even the law makers and highly placed officials of the society come under the law. Even the government officials are subject to laws in the same way as normal citizens. It states that each and every person has the right to enjoy equal privileges under the law and no one will be able to get sanction from the practiced laws. These rules must be made by the governing officials in order to maintain consistency and equivalency into the laws andtheir implication, without any preference for status, class or the power over the disputing parties.

As a part of our daily lives, we don’t like to be ruled by anyone, but to live in a society we must adhere to some rules and laws made by the government authorities for the public and the overall societal welfare. For instance, we have traffic rules, smoking rules in public, food safety laws etc. These laws are aimed at protecting the whole society and generating a larger good for the whole community. Such laws do not aim at personally binding someone.

In situations, where an act of any individual is harming others, and wherever such action is not applicable under the law, then we can use the rule of law to guide others. For instance, if there is an as ethnic patient in a park, and there comes a smoker in public; then we can tell him not to smoke, as there is warning placed by the government authorities for not smoking in public places. Even it is our moral obligation to tell people not to do such acts, which can harm any individual or the society, e.g. throwing garbage on roads can causing pollution, and asking people to not do it as it is not allowed under the law,is our moral obligation.

But in certain situations, it is also a moral obligation to refrain from imposing the rule of law over others, especially when doing so leads to a potential harm for yourself and for your business, peers or even family. It is because people get aggressive very easily as they don’t like someone telling them what to do or what not do. So it is better to avoid such acts or if possible just report anonymously to the government authorities, which is another mean of fulfilling the moral obligation.

Question 2

Corporations refer to the legal entities, which get registered as a person under the Securities and Exchange Commission. These are actual the legal entities, with a distinct and separate nature from their owners. The corporation holds-different rights as the citizens or individual persons. For instance: the corporations are allowed to enter into the contracts; corporations can sue or can be sued.These are allowed to hire employees, pay taxes and own taxes just like a person. Even the corporations are sometimes referred as legal persons.

The misconception related to a corporation’s nature had resulted into a most important case between the United Citizens and the FEC (Federal Exchange Commission).The First Amendment Rights had prohibited the government from imposing restriction on the corporations regarding their independent expenditures an also revealed that the corporations are actually the association of citizens, which are independent legal entities with distinction form their stockholders.

Just like the citizens; the corporations have the right to put up their investments in generating a public concern, but as mentioned in law; the corporations must refrain from publicizing the content related to elections or with a political matter, which was the case with the United Citizens, as it documented Hilary Clinton in a 90 minute video.

The corporations possess the rights as person and these are actually an association of person, so they can be sued or fined by the government authorities for violating the country’s law just like a normal person. The governments have the power to exercise their power over the association of citizens as the government works for the whole nation, and declaring corporations as persons does not make them law makers, rather they are subjected to imposed restriction by the government authorities.

Question 3

Stella Liebeck was a 79 year old woman, who got Macdonald’s coffee spilled over her legs, which caused third degree burns between her legs, genitals and the back. The coffee spillover resulted in high degree burns and caused Stella severe pain and financial cost of $2000 approximately. As Stella approached McDonalds for claiming the harm caused by the hot coffee;McDonalds did not agree to pay more than just $800, as a result of which Stella filed a lawsuit.

The McDonalds’ coffee is prepared at extremely high temperature of 180-190 degrees Fahrenheit, which is much greater than a normal coffee temperature: 140-145 degrees Fahrenheit. McDonalds had a clear understanding of the potential damage of its hot coffee, but it did nothing to maintain the product safety standards, and 700 similar cases were reported in the past. Stella demanded a total of $100000 for the punitive damages and the pain caused by the hot coffee, but the Court settled the amount for $640,000, by claiming that Stella was 20% at fault and the required amount is three times greater than the damage caused.

The justice was served in the case, as Stella won the case, though the amount received was less than required, but the court’s decision was fair in case of Stella. From the conclusion, it can be also inferred that the court just focused on the outcome of single case and it didn’t focus at the future hot coffee spillovers. McDonalds still prepares its coffee at exceptionally high temperature with product safety standards. The court must have imposed restrictions over high temperatures or McDonalds must have been instructed to keep its customers safe from the product that tended to cause possible damage to customers’ well-being in case of an accident………………………

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