It is Business Law, question no. 2

Case description

You have just been hired by Widget Corporation and,unfortunately, this company has just had a

suit filed against it in Texas. The President of WidgetCorporation, your new boss, is going to

hire an attorney to litigate the case, but wants to firstunderstand the potential issues of the

case. He has asked you to evaluate the situation and write areport identifying and discussing

both the procedural law and the substantive law issues thecompany will face. He also wants to

act in an ethical manner no matter what the legal results are,so he has also asked you to

include your own personal assessment of the ethical way toproceed in handling the case.

Widget Corporation, which manufactures and distributes widgets,is located in California and

incorporated in Delaware. Widget Corporation received an orderfor widgets from a customer in

Texas. Because it did not have any employees in Texas, WidgetCorporation subcontracted a

local handyman, Lyle, to deliver and install widgets for theTexas customer. As part of the

contract for services, Widget Corporation provided Lyle withspecific instructions as to how the

widgets needed to be installed. The contract was signed byWidget Corporation and by Lyle.

On the day of installation, the Texas customer inspected andaccepted the delivery of the

widgets from Lyle. The Texas customer then instructed Lyle toproceed with the installation. Lyle

proceeded to install widgets. He installed nearly all of thewidgets to spec, but then realized he

was running late for his son’s soccer game. He quickly installedthe last widget, but could not

get the bolts to tighten to spec. Since he was in a rush, he didnot realize the last widget was the

wrong widget. He gave up and rushed out the door to his son’sgame. One week later, an

employee of the Texas customer was injured by the last widgetLyle installed. The Texas

customer has now filed a suit for $70,000 against WidgetCorporation and the president of

Widget Corporation in Texas federal court for the injurysustained by its employee.

Course Project

Question no.:

Have four sheets memo on the ethical aspects of thecase. What actions Widget Corporation should take to behave in anethical manner and why you think this is the most ethical way toproceed. And other actions that Widget Corporation could take andbut they are less ethical.