Legal & Ethical Scenarios

This assignment is a continuation of the project started in Week 3. Read the scenarios and the questions that follow. Select any four (4) scenarios andthe recommendations section, Scenario 8. Identify and analyze the legal issue(s).  Apply legal concepts and make potential arguments as directed using laws, cases, examples, and/or other relevant materials.  Consider using short headings (consult APA materials) to separate the topics.  Summarize the facts; do not copy the scenarios into the paper. Support your answers with information from the textbook and at least four scholarly sources other than the text and course lectures.  Sources must reference U.S. law.  By the due date assigned, prepare a 4 to 7 page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority.  Do not exceed the page length by more than two pages

Scenario 1: Accident or Arson

Peter Pablo , a shift supervisor in the distribution center, worked for Jabil Circuits for six years.   Peter is experienced in operating all of the machinery.  One day when Peter was upset with his boss, he did not turn off the package laminator, a machine used to seal packaging in plastic to reduce damage in transportation.  The machine overheated, caught fire and part of the warehouse burned to the ground, resulting in over a million dollars in damage to the building and contents. 

Peter shows up to the remains of what was once his promising career   A slight smile forms as he realizes this whole incident is his fault for intentionally leaving on the laminator.   Peter calls his manager to tell him that the warehouse burned to the ground and he doesn’t know what caused the fire.  Fire marshals investigated and found out that the reason for the fire was the laminator was left on and either malfunctioned or overheated.

• Should Peter Pablo be found guilty of arson in this scenario?  Explain arguments for and against Peter Pablo. 

Scenario 2:  Contracts – Formation and Breach

As the purchasing manager, Russ looks for deals on office supplies and equipment.  An office supply company offered to sell Jabil six new industrial copy machines and four packaging machines for $15,000.  Russ thought the offer presented a great opportunity to replace the old equipment with new equipment.  Russ and the seller entered into an oral contract whereby Russ would pay the seller $15,000 cash on delivery to Jabil’s distribution center in St. Petersburg, Florida.  In the meantime, Russ lined up installers for the equipment.  When time came for delivery of the goods, the seller said that half of the copy machines  and packaging equipment had been sold to another company, but 3 copy machines and 2 packaging machines would be delivered.  

• What rights does Russ have related to the oral contract for the equipment?  Is the seller in breach of contract?  Discuss why or why not.

Scenario 3: Contracts and Capacity

Chet Gaines, the director in the real estate division of Jabil, met with Mack Smith about purchasing a large tract of land owned by Smith in Clearwater Florida.  Gaines knew the company planned to clear the property to create a new distribution center. Gaines judged Smith to be 80 to 85 years old.  During the meeting, Gaines noticed several brochures about dementia and assisted living facilities, as well as several prescription bottles sitting on the table.  After discussing the good old days for several hours, Gaines and Smith agreed on the sale of the land for $500,000.  Since Gaines brought a blank copy of a contract with him, he helped Smith complete the paperwork and both parties signed.  Unbeknownst to either party, the purchase price was written as $50,000.  On the day before the closing, Gaines called Smith to remind him of the location of their meeting to sign the remaining documents.  Confused, Smith said he didn’t know anything about selling that land and he had no intention of selling his land to some young shyster who was still wet behind his ears and was trying to cheat him.

• What are the basic requirements for contract formation? 
• What defects in the contract formation process may have occurred?
• Does Gaines, on behalf of Jabil, have a valid contract with Smith?

Scenario 4: Intellectual Property

Jabil manufactures and sells electronics  in the United States and in foreign countries. It owns the federally registered Jabil trademark and has registered this trademark in Mexico as well. Juan Sanchez is a Mexican citizen residing in Tampa Florida, with business offices there. Jabil believed that Sanchez was in the business of selling counterfeit Jabil parts in Mexican border towns, such as Tijuana, Mexico. The company sought an injunction in a federal district court in Florida ordering Sanchez to cease his counterfeiting activity and to refrain from destroying certain documents. It also asked the court to freeze Sanchez’s  assets pending the outcome of a Lanham Act lawsuit. Sanchez contended that a U.S. district court has no jurisdiction or authority to enter the injunction for the activities allegedly occurring in Mexico. 

Analyze the arguments for Jabil and Sanchez.  Determine the outcome and support your selection.

Scenario 5:  Contracts

Joy Martin was a nurse at Morton Plant Hospital when she was approached by Teresa Dawson, who was in charge of human resources at a competing medical facility, Bayfront Hospital. Dawson offered Martin a substantial raise to leave Morton Plant to work for Bayfront.  When Martin’s boss heard about the offer, he told her, “If you agree to stay with Morton Plant for at three years, I promise that next year you will receive a promotion with a 10% raise.”  Martin turned down Dawson’s offer and stayed with Morton Plant.  Eight months later, Martin was dismissed when Morton Plant was acquired by Bayfront.  Martin sued for breach of contract.

• Can Martin enforce her boss’s promise?
• What theory or theories would Martin use?
• Provide arguments for both sides, determine which party wins and provide support for your decision.

Scenario 6:  Antitrust

Jabil Circuits sold electronic parts to manufacturers and distributors.  Jabil established quantity discount rates that were published on the company’s customer portal and provided by mail once per year to all buyers.  A 25% discount was given to buyers purchasing more than 50 container loads in a calendar year.  Only three buyers out of approximately 150 customers purchased  50 or more containers; therefore, only three companies received the best discount.  A significant number of customers complained that the purchasing requirements were set too high and resulted in price discrimination.

• Evaluate whether violations of price discrimination laws occurred.

Scenario 7: T orts and Negligence

Ronnie was injured when a van driven by Toby slammed into Ronnie’s car.  The van belonged to Jabil and Toby was authorized to drive the van to and from work.   Toby was killed in the accident. The results of the investigation showed that Toby was traveling at a high rate of speed and his blood alcohol content exceeded the legal limit.  Ronnie sued Jabil Circuit and Toby’s estate for gross negligence and asked for compensatory and punitive damages.

• Will Ronnie recover?  Why or why not?
• If Ronnie recovers, which party/parties will be responsible?  Provide examples, laws or other relevant information to support your answer.

Scenario 8:  Recommendations

Conclude your paper by identifying and discussing ethical issues and providing recommendations for Jabil Circuit to help prevent future occurrences of legal  and ethical issues you addressed.    Be specific in your recommendations.