The Hot Coffee Lawsuit

 A Brief Intro of The Hot Coffee Lawsuit

The hot coffee lawsuit was a highly publicized 1994 product liability lawsuit in the United States against McDonald's. In 1992, the 79-year-old Stella Liebeck bought a cup of takeout coffee at a McDonald’s drive-thru and spilled it on her lap. The coffee was not just hot, but dangerously hot. McDonald’s corporate policy was to serve it at a temperature that could cause serious burns in seconds. Liebeck was hospitalized for eight days while undergoing skin grafting, followed by two years of medical treatment. During this period, Liebeck lost 20 pounds and suffered permanent disfigurement after the incident. She sued McDonald’s and a jury awarded her nearly $3 million in punitive damages for the burns she suffered. 

What Was The Basis of Her Claim Against McDonald's? 

Liebeck hired Texas attorney Reed Morgan to file suit in the U.S. District Court for the District of New Mexico accusing McDonald's of the negligence of selling coffee that was unreasonably dangerous and defectively manufactured. Liebeck sought to settle with McDonald's for the payment to cover her actual and anticipated expenses. Her past medical expenses and her daughter's loss of income. Assumption of risk is that a defense in which the plaintiff is barred from recovery because the plaintiff voluntarily and knowingly assumed known risks which are used by McDonald's in this case to support its argument.

Was the alleged tort intentional, negligent, or strict liability? 

It is obviously not an intentional case since it is impossible for McDonald's to intentionally hurt its customers. Therefore, the question is, is it a negligent or strict liability? If you are the lawyer hired by Stella Liebeck, you must review the definition of each to find the best solution to succeed. 

To prove it is negligence, you have to prove the defendant owed a duty, breached that duty, the conduct caused the result, and the damage is legally recognizable injuries. Therefore, the lawyer has to prove McDonald's owed a duty to prevent the burn, breached the duty, the breaching did directly caused the result, and the damage is legally recognizable injuries. I think the most difficult part is the first one, why McDonald's owed a duty to prevent the burns. If the risk of harm is foreseeable, then the duty exists. That means if a business knows about, or should know about, a high likelihood of the possible harm, then that business must warn or take steps to protect its customers. 

If McDonald's is sued for negligence, it has affirmative defenses such as the plaintiff voluntarily and knowingly assumed known risks(assumption of risk), it is not available to the defendant who caused a dangerous situation in the first place, or the plaintiff contributed to his own injuries. Therefore, McDonald's may argue that the plaintiff should know it was a hot drink and it may hurt if it spilled. And, Stella Liebeck did accidentally spill it out and caused her own injuries.

Strict liability torts require neither intent nor carelessness. It is irrelevant how carefully the defendant acted. It doesn’t matter if the defendant took every precaution to avoid harm. In this case, Liebeck's attorneys may argue that, at around 180 to 190 °F, the coffee was defective since it is under McDonald's control of how it would be served, claiming it was too hot and more likely to cause serious injury than coffee served at any other establishment.

To summarize, I think Ms. Liebeck's lawyers applied an excellent strategy to address the event to become a negligent and somewhat strict liability case. He accused McDonald's of the negligence of selling coffee that was unreasonably dangerous and defectively manufactured. The McDonald's argument that the plaintiff should know it was a hot drink and it may hurt if it spilled seems too weak to become a valid excuse. However, Stella Liebeck did accidentally spills it out and caused her own injuries, so she is responsible for this careless action. But if the temperature was ten degrees lower or more, it will be harmless when it spilled out. 

Why did Ms. Liebeck's lawyers believe that McDonald's was liable to Ms. Liebeck? 

Liebeck's attorneys argued that, at around 180 to 190 °F, McDonald's coffee was defective, claiming it was too hot and more likely to cause serious injury than coffee served at any other establishment. During the case, Liebeck's attorneys discovered that McDonald's required franchisees to hold coffee at around 82 to 88°C. Liebeck's attorney argued that coffee should never be served hotter than 60 °C and that several other establishments served coffee at a substantially lower temperature than McDonald's. They presented evidence that coffee they had tested all over the city was all served at a temperature at least 11°C lower than what McDonald's served. Liebeck's lawyers also presented the jury with expert testimony that a cup of 88°C coffee may produce third-degree burns in about 3 seconds and a cup of 82°C coffee may produce such burns in about 12 to 15 seconds. Lowering the temperature to 71 °C would increase the time for the coffee to produce such a burn to 20 seconds. Liebeck's attorneys argued that these extra seconds could provide adequate time to remove the coffee from exposed skin, thereby preventing many burns. More important documents obtained from McDonald's showed that from 1982 to 1992 the company had received more than 700 complaints of people burned by McDonald's coffee.

Do you think it is reasonable to expect that a hot drink purchased from a restaurant might quickly give you third-degree burns? 

Normally, we know it is hot. But give me third-degree burns? Honestly, I thought it only happens when I touch a hot pot while cooking something or accidentally touch something really hot like a volcano or something like that. So, I think it is kind of not reasonable to expect that a hot latte purchased from a coffee shop might quickly give me third-degree burns. It is terrible. Another small detail I want to mention is that the design of the cups for hot drinks. The cup lid must be strong enough to prevent a possible spill. But, don't make me wrong, I mean that it spills out eventually for ensuring if you put the cup upside down. However, it should not spill out while it is just a little bit slope. In addition, the size of the hole in the lid should be large enough for customers to drink and also small enough that customers do not burn their tongues. 

How did the jury decide the case? 

The jury reached its verdict on the Liebeck case on August 18, 1994. Applying the principles of comparative negligence, the jury found that McDonald's was 80 percent responsible for the incident and Liebeck was 20 percent at fault. Comparative negligence means a partial defense that reduces the plaintiff’s recovery by the amount of the plaintiff’s own negligence. Under this rule, the jury is asked to determine to what extent the plaintiff is at fault, and the plaintiff’s total recovery is then reduced by that percentage. 

Why do you think the jury decided the case this way? 

A partial defense that reduces the plaintiff’s recovery by the amount of the plaintiff’s own negligence. Though there was a warning on the coffee cup, the jury decided that the warning was neither large enough nor sufficient. They awarded Liebeck $200,000 in compensatory damages, which was then reduced by 20 percent to $160,000. In addition, they awarded her $2.7 million in punitive damages. The jurors arrived at this figure from Morgan's suggestion to penalize McDonald's for two days' worth of coffee revenues, which were about $1.35 million per day.

Summerize The Key Evidence of The Case

i. McDonald’s required the franchisee to hold its coffee at 180 to 190 degrees Fahrenheit.

ii. Coffee at that temperature, if spilled, causes third-degree burns in just 3 to 7 seconds.

iii. The chairman of the department of biomechanical engineering at the University of Texas testified that this risk of harm is unacceptable.

iv. The defendant admitted it had known about the risk of serious burns from its hot coffee for more than 10 years. 

v. The jury did not think the corporation was attaching enough importance to that.

vi. McDonald’s quality assurance manager testified that McDonald’s coffee, at the temperature at which it was poured into Styrofoam cups, was not fit for consumption because it would burn the mouth and throat.

vii. The defendant admitted at trial that consumers were unaware of the extent of the risk of serious burns from spilled coffee served at the temperature.

viii. The defendant admitted it did not warn customers of the nature and extent of this risk and could offer no explanation as to why it did not.

Reference

"Know the facts:" resources for consumers. (n.d.). Retrieved November 26, 2021, from https://www.caoc.org/?pg=facts. 

Lau, T. & Johnson, L. (2011). The Legal and Ethical Environment of Business (Vol. 1). Flat World Knowledge.

Tort law: Strict liability and abnormally dangerous activities. Lawshelf Educational Media. (n.d.). Retrieved November 27, 2021, from https://lawshelf.com/shortvideoscontentview/strict-liability-in-tort-law. 

What Are The Purposes of Criminal Law and How Do They Compare To The Purposes of Civil Law?

 In the United States, there are two bodies of law whose purpose is to deter or punish serious wrongdoing or to compensate the victims of such wrongdoing. In criminal law, the courts deal with serious legal offenses like robbery or homicide on behalf of the United States legal system. 

What Are The Purposes of Criminal Law and How Do They Compare To The Purposes of Civil Law? 

Criminal law aims to identify, recognize, punish and educate the greater community and would-be offenders about the consequences of their actions through the criminal justice system.(Slades, Main objective of criminal law - law news 2021) I think the key purposes of criminal law are retribution, deterrence, and restoration. The process of a trial determines the punishment and then takes away certain freedoms and rights such as imprisonment. Deterrence is also one of the primary purposes of criminal law, to discourage people from committing criminal laws. Typically, fear of punishment is the common deterrence. Once a person has been sentenced and convicted they may be offered rehabilitative programs. Although making them pay does not truly and fully restore the harm they made, it is a necessary step to ensure justice exists.

People always make mistakes. Sometimes it is nothing to worry about, but sometimes it is serious and affects the rest of their life. Rehabilitation programs aim to correct and redirect them for a positive outcome. The ultimate aim of rehabilitation programs is to reintegrate prisoners into the community so they can live there harmoniously and become valuable members of the community. 

The purpose of civil law is to settle legal disputes between parties of people, or between parties of people and corporations. Common examples of civil law cases are legal contracts, tort, property law, and family law such as marriage to divorce, and adoption to child support. Civil cases are more private or personal compare to criminal cases.

Typically, criminal law deals with behavior that is or can be construed as an offense against an individual, the public, society, or the state. Civil law deals with behavior that constitutes an injury to an individual or other private party, such as a corporation. And, criminal law and civil law differ concerning how cases are initiated (who files suit), how cases are decided (by a judge or a jury), what kinds of punishment will be imposed, and what kinds of evidence must be provided.

What Would A Society Be Like in which Individuals and Organizations Were Only Subject To Criminal Liability and in which There Was No Civil Liability for Torts or Violating Contracts?

In criminal cases, only the federal or a state government may initiate a case, decided by a jury, and then the punishment for serious (felony) charges often consists of imprisonment but may also include a fine paid to the government. The prosecution must establish the guilt of the defendant beyond a reasonable doubt and defendants are protected against prosecutors that violate their constitutional rights. In contrast, civil cases are initiated by a private party, the plaintiff) and usually decided by a judge, and then the punishment almost always consists of a monetary award. Moreover, the plaintiff must establish the defendant's liability only according to the preponderance of the evidence.

So, what if there is a society in which individuals and organizations were only subject to criminal liability and in which there was no civil liability for torts or violating contracts? That will be a terrible thing, actually! Suppose that you are the victim of a tort case and only the federal or a state government can initiate a case? What would you do? And, the case will be decided by a jury which means you can not settle an agreement or an ADR? Or, there was no civil liability for torts or violating contracts which means you can file a lawsuit for yourself when your intellectual property is stolen by someone? The reason we structured these two systems is that they work efficiently and separately for each of their purposes. However, if we only apply one system for all, it is like asking you to wear your shorts in winter and a heavy jacket in summer.

Reference

Slades. (2021, March 5). Main objective of criminal law - law news. Slades & Parsons. Retrieved November 22, 2021, from https://www.sladesparsons.com.au/what-is-main-objective-criminal-law/. 

The U.S. Jury System Should Be Adopted by Other Countries? What Factors should Inform A Country’s Decision To Adopt A Jury System?

 The U.S. Jury System

In the Bill of Rights, The Fifth Amendment says: "No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury." In the U.S. legal system, the jury has a very special role to play such as the trier of fact or determining the truth, in ensuring citizen participation in the administration of justice. A citizen’s right to a trial by jury is a central feature of the United States Constitution. It is considered a fundamental principle of the American legal system, although laws and regulations governing jury selection and conviction requirements vary from state to state. Article III of the U.S. Constitution empowers the judicial branch of the national government and also states that all trials shall be by jury. The right was then expanded with the Sixth Amendment to the United States Constitution, which states in part, "In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the state and district wherein the crime shall have been committed"(Sixth Amendment - Constitution Annotated | congress.gov).

Types of Juries

There are two types of juries serving different functions in the federal trial courts: trial juries, also known as petit juries, and grand juries. The trial jury(or, petit jury) serves to determine whether the defendant committed the crime as charged in a criminal case, or whether the defendant injured the plaintiff in a civil case. After the trial, they reach a verdict. On the other hand, a grand jury assesses evidence to decide on whether to bring charges. In legal terms, a grand jury determines whether probable cause exists to believe a crime has been committed. Unlike the trial jury, the grand jury does not determine whether a suspect is guilty of a crime. Moreover, defendants and their attorneys do not have the right to appear before the grand jury.

The U.S. Jury System Should Be Adopted by Other Countries? 

To answer this question, let's go back to the spirit of this system and why the U.S. utilizes this system to ensure justice is still alive. It serves to fix some mistrials by judges who did not have enough experience to judge rightly, to prevent judges from being influenced by politicians or their supervisors, to reduce bribes, to reduce the errors made by judges, and to improve people's trust in the judgment and judicial system. But, bringing people who are not knowledgeable can make the system flaw. 

As we can see, most of the reasons are trying to remedy the possible issues about judges. However, it's not perfect. Many common issues such as bias(juries influenced by emotional, prejudices, regional, or historical factors, leading to unfortunate results.), the ability to apply the law, ignorance of the law, and the cost(the allowances and transportation payments during the process). 

In conclusion, I don't think the U.S. jury system should be adopted by every country, but it may benefit many countries where judges are not been well-educated or countries that have serious bureaucracy issues. After all, this system was made for better judgment. So, before any countries that are trying to apply it, they should ask themselves first, why should we apply it, what are the pros and cons, and most importantly, how to execute it.

What Factors should Inform A Country’s Decision To Adopt A Jury System? 

Even though we already have a great jury system, in a real courtroom, the bad guys don’t always lose, and the good guys don’t always win. Therefore, do the good guys are highly likely to win and the bad guys tend to lose if we apply the system is the first question we should ask ourselves. If the citizens of a country can help the whole litigation system to be better, then applying a jury system is necessary. However, although the truth is unchangeable, there are always gray areas among good or bad things. Most of the time, it is hard to say one thing is purely good or purely bad. For example, even though Robin Hood is described as stealing money from the rich to help the poor in the face of tyranny, his action is still highly likely to be committed a crime by most judges while the jury is willing to set him free. 

The ADR(Alternative Dispute Resolution)

Sometimes it is a good idea to try to settle your claim without going to court. As rising costs of litigation and time delays continue to plague litigants, more parties tend to choose ADR programs over complex litigation. ADR is known as Alternative Dispute Resolution. It typically includes negotiation, conciliation, mediation, and arbitration. 

Situations in which I Would Choose ADR Over Litigation

i. To save time. If I do not want to waste too much time during a lawsuit, I tend to choose ADR over litigation. For example, I usually choose ADR to settle disputes in car accidents since a court case claiming the cost of repairs to a car and other losses due to a car accident will cost me over one year to reach the final verdict. 

ii. To lower the cost. Less time spent to solve a dispute means lower costs for attorneys’ fees if it is not obligated to file a lawsuit.

iii. Privacy and Confidentiality. Typically, litigation is open to be public. Arbitrations are private with only designated parties in attendance and the proceedings are strictly confidential. If it is something I want to keep as a secret such as an embarrassing mistake.

Situations in which I Would Choose Litigation Over ADR

I think there are still some situations when ADR may not be appropriate which means it is unavoidable in some cases, and may even be risky for one of the parties. 

i. If I have an urgent need that requires an immediate legal remedy or the other side is not willing to negotiate with me, I might need to go to court instead. Therefore, I will choose litigation. 

ii. Agreements reached in mediation do not act as precedents in future cases. They are usually private and confidential. Therefore, if I want to establish a legal point that other people can rely on, I will choose litigation.

iii. When I want to lower compensation amounts, I tend to choose litigation in Taiwan. Oftentimes, compensation is often lower than is likely to be achieved in court I think. Because it requires much more evidence to prove each claim. In the US, it might be the opposite. So, it depends on whether a trial or a settlement will bring better economic benefits.

A List of Topics That I Would Present To Employees To Train Them To Be Vigilant Against Criminal Behavior in An Organization. What Topics Are Considered To Be Most Important? 

Good employee training is essential for an organization’s success. I think to make an effort to protect employees and show them that I care about them as human beings instead of just worker bees, they will feel safer and more secure at work, and consequently removing distractions that can undermine their productivity. In the US, Federal law requires training on specific health, safety-related topics, and sexual harassment. However, I think before applying any training program, reducing the turnover rate is one of the top priorities. Employers with high employee turnover tend to train less and spend less on training than other businesses. 

To Ensure Employees Understood The Training

To ensure proper adoption, companies and organizations must rely on better leadership. In addition, manage their jobs like they are owners of a small business within the company and they will do for their own self-development. For the benefits of training to persist, I would build in expected accountability through one-on-ones or reviews with a manager. Moreover, leaders need continued coaching to keep the best leadership and to build discipline around the continuous improvement philosophy. 

Reference

Legal Information Institute. (n.d.). Alternative dispute resolution. Legal Information Institute. Retrieved November 20, 2021, from https://www.law.cornell.edu/wex/alternative_dispute_resolution. 

Sixth Amendment - Constitution Annotated | congress.gov. (n.d.). Retrieved November 19, 2021, from https://constitution.congress.gov/constitution/amendment-6/. 

The 3rd article of the U.S. constitution. National Constitution Center – The 3rd Article of the U.S. Constitution. (n.d.). Retrieved November 19, 2021, from https://constitutioncenter.org/interactive-constitution/article/article-iii. 

Types of juries. United States Courts. (n.d.). Retrieved November 20, 2021, from https://www.uscourts.gov/services-forms/jury-service/types-juries. 

The Ways in which The Law Affects Business in Taiwan

 The Ways in which The Law Affects Business in Taiwan

Intro

Going ahead with a business venture is a great career choice for many entrepreneurs, but getting a business up and running and maintaining it smoothly needs more than just efficiency and management skills. And the law is one of the prominent factors that can either help the business grow or ruin it eventually. There are several ways that legal factors affect businesses. From business contracts, getting licenses, and hiring employees, or even managing the taxation. I will highlight some essential legal issues that affect businesses in Taiwan. To operate businesses efficiently, we must know what is expected and what is prohibited. It is also important to know that the government can change the rules and regulations concerning businesses from time to time. Therefore, to be on the good side of the law, ensure that you are up to date with your government laws.

Major Sources of The Law of Taiwan

The sources of laws of Taiwan are majorly from the constitution, common laws, specific laws, and executive orders. They are all based on the Constitution of Taiwan. The Central Regulations and Standards Law as the general rule of its formulation. The Constitution is the fundamental law of Taiwan. With the highest effect, any other laws or orders in Taiwan can not contradict it. The Laws passed by the Legislative organ and signed by the President of Taiwan may be approved to become orders or regulations for implementation.

Management

Governments impose business rules and regulations to ensure that all businesses are run in line with codes of ethics, good health, and the safety of the consumers. In Taiwan, according to the Food Safety and Sanitation Act announced in 2019, the Ministry of Health and Welfare in Taiwan trying to enact to govern food sanitation, safety, and quality, and protect the health of citizens. Food businesses must have a food safety monitoring plan to ensure food sanitation, safety and to test their raw materials, semi-products, or end products on their own. For example, foods or food additives with any materials that are harmful to human health, pesticide or veterinary drugs residue exceeding the permissible tolerance, and expired can not be manufactured, processed, prepared, packaged, transported, stored, sold, imported, and exported.

The major impact of the Food Safety and Sanitation Act on the food industry is they have to ensure their products can not be harmful to human health. That means they must cost more on maintaining the quality of their products. From another perspective, the law protects the public from being harmed and also protect good business owners from failure when their competitors are snatching their market shares by lowering their cost to provide bad foods. However, due to the extra procedures and processes, the prices will rise accordingly. 

Finance

In Taiwan, according to the Securities and Exchange Act announced in 2021, during the public offering, issuing, or trading of securities, no misrepresentations and frauds are allowed. Therefore, misleading anyone to trade securities is prohibited. In addition, the financial reports or any other documents disclosed by an issuer cannot contain any misrepresentations. The major purpose of the Securities and Exchange Act is to support economic development and to protect investors.

The major impact of the Securities and Exchange Act in Taiwan is that misrepresentations and frauds are both reduced, financial reports or any other documents disclosed by an issuer are more reliable, and the whole investing is heading to a more stable future. However, many new startups are struggling with their reports and adventures since they need funds to grow their risky new ideas. 

Consumer Protection

If you want to run businesses in Taiwan, you better understand the Consumer Protection Act. The Consumer Protection Act is enacted to protect the interests, facilitate safety, and improve the quality of life of the consumers. Merchants have to provide a period, within 30 days, for consumers to review all clauses and details in contracts before actually completing trades. The review terms cannot be canceled by other terms to mislead consumers.

The major impact of the Consumer Protection Act is that now consumers can regret legally and force the merchants to prepare for the possible returns. The spirit of this law is to avoid consumers unexpectedly or misleadingly purchasing something they don't need or making them regret. It aims to provide a fair trading environment. However, it also increased the cost of processing the returns for merchants. But, if you think positively, it is also a great chance to provide higher quality products and build trust and loyalty. If your customers are reducing their returns and know you are a trustworthy company that is always happy to do better, they are more likely to be loyal.

Property Protection

According to the Trademark Act in Taiwan, using a trademark that is identical or similar to the registered trademark in relation to goods or services without the permission of the proprietor is held as an infringement of the right of the trademark. The purpose of this Act is to enact to protect the rights of trademark, certification mark, collective membership mark, collective trademark, and the interests of consumers and to maintain fair competition of the industry and commerce.  

Like many other countries, trademarks regulations are also governed by the law. To build empires like Starbucks or McDonald's, are not three-day work or just drawing a mark and pasting them on the wall of all the stores. It is also a differentiation between quality and special cultures. The act provides incentives for trademark owners to provide higher-quality products and services. 

Marketing

Many advertising providers often use early-bird limited discounts as incentives to attract customers. According to Taiwan’s Fair Trading Law, overly lowering the price that intends to restrict competition is prohibited. If a merchant applies an excessive price-cutting competition strategy and it is very difficult for other competitors to provide the same price, this strategy may violate the Fair Trading Law. In addition, overly exaggerated statements that affect consumers' decisions or mislead consumers are also prohibited. For example, some products are claimed to be “first in the country” or “first in the industry”, but it is not allowed if it is not true.

I think the spirit of the Fair Trading Law is to provide consumers with an informative environment while they are making any purchasing decisions. However, even though consumers can get enough correct information, their decisions are not always rational and make 100% wise choices. For example, what if you are browsing Amazon.com searching for a tablet, the payment option is usually only cash, but now credit card is allowed? None-cash payments allow you to get things first and pay later. These payment methods induce us to spend more, even though merchants do not advertise them.

The Taxes

Taxation policy is one of the government policies that affect businesses directly because it is one of the big payables of all businesses and affects their revenues. According to The Specific Goods and Services Tax Act, as known as the Luxury Tax, the sale, manufacture, and import the specific goods within the territory of Taiwan have to follow the rules of this act. The specific goods are any unit of a building and the land associated with the unit that has been held for less than 2 years, any car with the value of over NT$3,000,000, any yacht with a full length of over 30.48 meters, airplanes, helicopters, furniture that been sold over NT$500,000. That means if you are selling these goods in Taiwan, you will be charged a lot of money only because they are expensive. The major purpose of this act is first to lower the prices of land and houses since the housing prices are extremely high. However, it did not work well. The housing prices are still higher than we think they should be.

Labor

Business laws affect employers-to-employees relationships and it is mandatory for employers to follow government regulations regarding the way they treat their employees and their hiring mechanism. If you trying to start up a company and hire workers in Taiwan to join your venture, the Labor Contract Law is the rule you have to know. For example, the minimum wage and the insurance are employers' obligations and employers should not treat workers differently due to their genders. In addition, workers cannot be forced to work exceed eight hours per day and forty hours per week. 

I think the law is trying to balance the rights of both employers and workers since it regulated both of them to perform their duties. However, the minimum wage is not an effective way to do it. Wages are the prices that depend on the demand and supply of labor. Therefore, the best way is to increase the demand for labor, according to the Demand and Supply Model.

Reference

ACT Governing Food Safety and Sanitation - Article Content - Laws & Regulations Database of the Republic of China. (n.d.). Retrieved November 13, 2021, from https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=L0040001. 

Consumer protection act - article content - laws & regulations database of the Republic of China. (n.d.). Retrieved November 13, 2021, from https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=J0170001. 

Williams, B. (2017, February 7). How does the law affect businesses? YourStory.com. Retrieved November 14, 2021, from https://yourstory.com/mystory/6d7c3b1641-how-does-the-law-affect-businesses-/amp. 

To Follow The Letter of The Law or To Follow The Spirit of The Law?

 To Follow The Letter of The Law or To Follow The Spirit of The Law? 

When people obey the letter of the law but not the spirit, they are obeying the literal interpretation of the words, but not necessarily the intent of those who made and signed the law. Conversely, when one obeys the spirit of the law but not the letter, one is doing what the authors of the law intended. In other words, the "letter of the law" is exactly what is printed on the papers and can't be argued. The “spirit of the law” is the reasoning behind why the law was enacted or what it was trying to achieve and it is more likely to be lenient. Therefore, it is possible to violate the “letter of the law” but not the “spirit of the law”. 

For instance, the letter of the law says "check the ID before you sell cigarettes to anyone". The spirit of the law is trying to ensure cigarettes are sold to adults, not teenagers or children. However, should I insist on seeing the ID of a person who is gray-haired and looks very old? Even though it does not violate the spirit of the law which is to ensure cigarettes are sold to adults, it violates the letter of the law since you do not check the ID. Checking the ID is the necessary action of the “letter of the law”.

Trying To Pick One?

When I consider picking only one among the two options, there are always pros and cons. As mentioned previously in the example of cigarettes merchants, if I try to obey the letter of the law but not the spirit. I can prevent anyone who is trying to fake their appearance or simply born with an older face from getting cigarettes. However, if you are already 50 years old and you are asked to bring your ID anywhere you want to buy cigarettes, you may feel it is a deliberate attempt to confuse you. The spirit of the law is why we make the law, but we have to describe it and write it down and record it for implementation. Although the spirit is to confirm the actual age of the buyers, there are many ways we can do it and this is what the words come in. I think the law was made to make the world a better place. A peaceful one. It is hard to pick one side of the two. Both should be carefully considered and kept updated. 

In What Circumstances Would You Believe The Opposite To Be True?

As I said, it is hard to pick one side of the two. There are always pros and cons. However, in some circumstances, such as a boy who wants to buy cigarettes for his disabled father. Does this violate the spirit of the law? His father is the actual buyer. But, to avoid making this exception to become another excuse for this illegal trade, maybe "check the ID" action is the right option. However, if he has his father's ID and then cheated the seller? I think we must consider the spirit and to describe it clearly.

How Does The Rule of Law Affect Business?

In the case of the cigarettes mentioned previously, the regulation seems to restrict their profits since they cannot sell their products to younger people. However, they also follow the rule to avoid being penalized, or even their licenses to sell this product will be revoked. The law takes away some of the private rights for the public good. It is the rule of the game. And, it is their obligation if they want to profit from it.

What Would Business Be Like In A Land Without Any Rule of Law System? 

The cigarettes again. What if those merchants can do anything they want to make profits? What happens if it is allowed to sell cigarettes to children? Without the rule of law, there are only private benefits. Wars and disputes are unavoidable since everyone is trying to "protect" their property. 

Reference

Wikimedia Foundation. (2021, October 16). Letter and spirit of the law. Wikipedia. Retrieved November 12, 2021, from https://en.wikipedia.org/wiki/Letter_and_spirit_of_the_law. 

Managing Ethics

 Preface

This week, the topic focused on managing ethics. In the reading, I have learned what business ethics is, the benefits of managing ethics in the workplace, and codes of ethics and conduct in workplaces. They are important cornerstones of an organization and shape its ultimate contributions to corporate social responsibility. However, many business owners often make business decisions based on what they believe to be right and wrong to shape the moral standard of the organization through their actions. It is not that simple. Oftentimes, your decisions or what you think is right or wrong, are very different when you are in different positions. For example, if you are a knight on a chessboard, your consideration is limited by the rules you can move. If you are a player, your consideration is the overall progress and to win the game, eventually. Maybe, the rules of how we should move our pieces are the most obvious right thing here since you cannot move your pieces "illegally".

Trust and Values

Think of the Prisoner's Dilemma again. If these prisoners are trusting each other, their reactions will benefit both of them. However, don't misunderstand it. The concept does not mean we have to cooperate before doing anything bad. Without integrity, there can be no trust. If you are a lion, how can you convince others to believe that you are a vegan? Although how a lion does its all effort to persuade a buffalo and ensure they will be fine if lions open their mouths, it does not work anymore. I think sometimes, the values are like what we are trying to be. For businesses, the values are also what they trying to be. Set up ethic programs to be a socially responsible enterprise or to be a notorious company. 

Changes with Needs

While we are considering what is right or what is wrong, those things and facts will change over time. For example, AI, automatic production, and intelligent robots are replacing more and more jobs. Should we ban that development to protect those jobs? These technologies may benefit many businesses but they also put many people in danger while they lose their jobs. Some old school rules may not always fit as time passes. Even the most obvious thing, "doing good" can be doubtful. The definition of doing good is not always the same.

Good Person Is Always Good?

The answer is not. We can say that a good person who has always earned our trust is "highly unlikely" to do bad things. I think it depends on the situations the person confronts. During World War II, there was a group of prisoners in a camp built by Nazi Germany for the massacre of Jews. Many Jews were forced to send other Jews into toxic chambers. It seems like they are executioners. Actually, they are just victims and most of them are good people before. Even good people can take bad actions, especially stressed or confused. Have you ever watched the film "Joker"? Do you think the character "Joker" is a good guy or a bad guy? His background and his past can be sympathetic.

Case in Point

On April 15, 2018, two black men walked into a Starbucks in downtown Philadelphia in the afternoon and sat down. They asked to use the restroom but because they had not bought anything, an employee refused the request. They were eventually asked to leave, and when they declined, a Starbucks employee called the police after the men, who were waiting at a table, refused to leave. The men were arrested on suspicion of trespassing. But Starbucks did not want to press charges and the men were later released. The prosecutor’s office in Philadelphia also reviewed the case and declined to charge the men because of “a lack of evidence that a crime was committed,” Benjamin Waxman, a spokesman for the office, said. Then, Starbucks apologized on Twitter later on Saturday afternoon. 

Reference

Stevens, M. (2018, April 15). Starbucks C.E.O. apologizes after arrests of 2 black men. The New York Times. Retrieved October 25, 2021, from https://www.nytimes.com/2018/04/15/us/starbucks-philadelphia-black-men-arrest.html. 

How environmental friendliness could affect the green trust in green marketing? The Core Is Trust

 Preface

As global green trends became more prevalent and important for people, green marketing also developed into an important issue. How environmental friendliness could affect the green trust in green marketing? This week, the major topics are Going Green and sustainable and ethical practices. During this week's reading and assignments, I read and learned from some examples such as McDonald's, Tesla, and more. There are also some negative examples such as NIKE's unfair wages and deplorable working conditions in its factories around Asia. However, every devil was once an angel. Entrepreneurs should learn to resist the temptation of the devil. 

The Core Is Trust

I think the core of these practices and strategies is to earn trust. How do companies earn their stakeholders' trust? People tend to trade and purchase from companies they trust if affordable. However, trust is hard to build but easy to lose. That's why companies must have goals, strategies, plans, and objectives for it. Once you have goals, strategies, and plans, you can lower the chance of getting lost.

Learn from Experience

My father's food company was also trying to go green in the past few years. But, he did not make any plans and strategies. He just thinks by himself and trying to do what he can do or what he should do. And, it was no surprise that he failed. I remember I told him that why do you think those actions are going to work or absolutely earn their trust? It does not absolutely be correct only because you think it is. For example, in a beauty pageant, how would you guess who is going to win? You cannot just look around and see who is the most beautiful one. You have to know each jury's taste of art or aesthetics because what they like may not be the same as you think. 

Standardized Procedures

That's why companies must know each of their stakeholders to prepare the best solutions and to think from multiple perspectives. In addition, that's also why we need Green Certification to help consumers combat greenwashing. The standardized procedures measure what levels of Green actions that companies have taken and how well they have achieved their goals. 

Certifications and Rating Agencies Also Need To Be Trusted

However, those Green Certifications, rating agencies, and their organizations must be trust, too. The near-meltdown in 2008 was a failure of contemporary economic models' understanding of the role and functioning of financial markets. Until six days before Lehman Brothers collapsed five years ago, the rating agency Standard & Poor's maintained the firm's investment-grade rating of "A". Moody's waited even longer, downgrading Lehman one business day before it collapsed. How could reputable rating agencies misjudge things so badly? They have destroyed their reputation and caused distrust. Obviously, trust is hard to build but easy to lose. You cannot have a healthy relationship without trust. And yet, virtually all of us can bring to mind a scenario where our trust has been broken. But how do we develop trust in the first place? Can trust that’s been broken be rebuilt? I think there are four major factors, Honest, Communication, Consistent, and Reciprocity.

Communication and Educating Consumers

Finally, I want to highlight the importance of communication and educating consumers. Most of us don't how companies produce their products and where the materials come from. So, we just buy products we love. But, what if these products come from violence and harm? On PETA website(https://investigations.peta.org/vietnam-crocodile-skin-farm/), reveals the suffering and agonizing deaths of crocodiles in Vietnam to make luxury leather bags for many luxury brands. After seeing those videos, do you really want to use and buy those bags by hurting them this way? Although crocodiles are often considered very dangerous animals, I think the most dangerous animal is us, the human. However, if companies just satisfy the need of their customers and supply the products whatever how they were produced, our world would be far worse than it is today. 

The Real-to-Life Examples of Complex Ethical Dilemmas Example

 

The Real-to-Life Examples of Complex Ethical Dilemmas Example

"Our company prides itself on its merit-based pay system. One of my employees has done a tremendous job all year, so he deserves strong recognition. However, he's already paid at the top of the salary range for his job grade and our company has too many people in the grade above him, so we can't promote him. What should I do?" 

My decision

Reconsider the possible improvement of the system and try to refine the system if necessary. Apologies to him in person to admit the truth of the situation and promising to do better. Give him a fair bonus calculate based on the contribution of this event and give him an opportunity to give the company a voice of how to make things better. 

The “Method One – Ethical Checklist.”

Ethical Checklist Choose the appropriate answer on the scale; "1" = not at all; "5" = totally yes

1. Relevant Information Test. Have I/we obtained as much information as possible to make an informed decision and action plan for this situation? Score = 3

Score -1 for, while the company prides itself on its merit-based pay system and the situation still happens, it means the system may not fit the new events or there are a few bugs we need to fix. Therefore, I have not obtained enough information to make changes.

Score -1 for, although the employee is already paid at the top of the salary range for his job grade and our company has too many people in the grade above him, there are also many other ways we can do to encourage him and to appreciate his efforts. But, before announcing any rewards, we need more information to ensure it is effective without disappointing anyone.

2. Involvement Test. Have I/we involved all who have a right to have input and/or to be involved in making this decision and action plan? Score = 4

Score -1 for, clearly, I have not involved all who have a right to have input or to be involved in making this decision because the stakeholders can be the employee's family members, his friends, or any other people he possibly contacts with.

3. Consequential Test. Have I/we anticipated and attempted to accommodate for the consequences of this decision and action plan on any who are significantly affected by it? Score = 4

Score -1 for, I probably anticipated and attempted to accommodate for the consequences of this decision on any who are significantly affected by it I have considered. However, there are always not perfect if I just think about it based on my position. Therefore, I may have to reconsider it as a player, view it as a player. Like a game of chess, the decision can be made based on one piece's view, no matter it is a king or a queen.

4. Fairness Test. If I/we were assigned to take the place of any one of the stakeholders in this situation, would I/we perceive this decision and action plan to be essentially fair, given all of the circumstances? Score = 4

Score -1 for, fairness is the hardpoint. If I change the policy or rule just for him, I will lose the trust of others and make the program hard to be treated seriously. I can consider taking a position, but it seems highly inappropriate in this situation.

5. Enduring Values Test. Do this decision and action plan uphold my/our priority enduring values that are relevant to this situation? Score = 5

I think this decision and action plan brace the priority enduring values that are relevant to this situation. Most people will know that the company is trying to make things fair and good for each of us.

6. Universality Test. Would I/we want this decision and action plan to become a universal law applicable to all similar situations, even to myself/ourselves? Score = 4

Score -1 for, although I want this decision and action plan to become a universal law applicable to all similar situations, it just can't. There are no perfect plans and decisions, only better and better ones.

7. Light-of-Day Test. How would I/we feel and be regarded by others if the details of this decision and action plan were disclosed for all to know? Score = 4

Score -1 for, as I mentioned in the question 6, although I want this decision and action plan to become a universal law applicable to all similar situations, it just can't. There are no perfect plans and decisions, only better and better ones. Therefore, I must monitor the stakeholders' reactions and ensure my decision is in the right direction.

Total Ethical Analysis Confidence Score = 28 (Quite confident )

To summarize, in my decisions, reconsider the possible improvement of the system and try to refine the system if necessary. It needs much more information such as quantitative the satisfaction of each stakeholder. 

Reference

Complete Guide to Ethics Management: An ethics toolkit for managers. Free Management Library. (n.d.). Retrieved October 23, 2021, from https://managementhelp.org/businessethics/ethics-guide.htm#anchor53723. 

the needs are the fundamental part of why we should managing diversity in workplaces

 This week, the unit 7, the topics are focus on managing diversity in workplaces, how does it impact business performance, what factors are influence the effects of diversity, and how to use the Balanced Scorecard. I think back to the definition of an entrepreneur, a person who sets up a business or business to satisfy discovered needs, taking on financial risks in the hope of profit. I think the needs are the fundamental part of why we should managing diversity in workplaces and even benefit from it. For example, even many people are iPhone lovers, they still choose different colors and sizes. For different people, the needs can be very different. Some of them do not need 512G or more capacity. Although most of us need a phone to communicate with people we have to spend time with, how we use our phone is still varied. 

A Story of Empathy

I think of an interesting story about respect for diversity. "Sometimes You're A Caterpillar" In the garden, there's a caterpillar and a snail, and they're basically best friends. They hang out 24/7. One day, they're on their way to a party that's right outside the garden, and they have to go through the fence to get there. So the caterpillar goes right through, but the snail is stuck. Her shell is just too big and it won't fit under the wire, so she's like, "Crap! I can't get through! Maybe, like, can you lift up the wire, or maybe we can build a little bridge or something?" And the caterpillar's like, "Dude, just go under." And the caterpillar's like, "Go under, come on. We're gonna be late." 

But it's not happening. The shell will not fit under the wire, and at this point, Snail's getting kinda frustrated because it's not like she doesn't wanna go to the party, but for some reason, the caterpillar just isn't getting it. "It's not that easy for me. I just can't crawl under the fence like you can, so I would really appreciate your help here." And this just, like, sets the caterpillar off. "What the heck! Just because I can crawl under stuff doesn't mean that I have it easy. Do you even know what it's like to have 16 feet?! You don't, because finding shoes is a complete nightmare." "I'm just saying I can't go under the fence because of my shell, that's it. I have a shell and you don't, and there's some stuff that's easier for you that's harder for me, just like, I don't know about finding shoes because I don't have feet!" At this momoent, the caterpillar realizes the snail is right. I mean, he's never had to think about shells or slimy trails, and that's a privilege that the snail has never hadbecause she has to think about that stuff all the time. That's part of being a snail. And it's kind of like that for everyone.

We all have our own struggles and challenges, and some of them are small, and some of them are huge and really unfair and beyond our control. And a lot of the time, it can be hard to see what someone else deals with because you've never been in their shoes...or shell. 

Diversity such as having a disability, or different religion, or a different race. Oftentimes, they don't know what it's like to be you, and you don't know what it's like to be them. So it's really important to stop and try and see the other side so we can help each other overcome those obstacles together. It's like sometimes you're the snail, and sometimes you're the caterpillar.

Reference

YouTube. (2015). Sometimes You're A Caterpillar. YouTube. Retrieved October 17, 2021, from https://www.youtube.com/watch?v=hRiWgx4sHGg. 

Managing Diversity in the Workplace

Managing Diversity in the Workplace

Preface

When people refer to diversity, they may be thinking first of ethnicity and race, and then, of gender. However, diversity is much broader than that. Diversity can apply to anyone you perceive to be different from yourself. Dimensions of diversity include, but are not limited to age, ethnicity, ancestry, gender, physical abilities and work experience, or any other dimensions. It is widely noted that diverse teams lead to more innovative and effective ideas and implementations because it requires using diverse perspectives to reach new and creative thinking. Conversely, similarity can cause groupthink and diminishes creativity. Assume that you are the CEO of a shoe company. How can you best tap into the diversity within your company to help you to improve your systems for marketing and selling your product? How can you attract a more diverse workforce and why might this be beneficial? What are some ways that you might incorporate the diversity that you have into developing a workplace culture that values diversity? These tasks can be difficult at first, but we can set our goals, keep them on track, and eventually achieve them.

How can you attract a more diverse workforce and why might this be beneficial?

Many studies have proven that more diversity and inclusion leads to higher revenue and better innovation. Loyalty will also be impacted as many customers will not shop in companies lacking these characteristics. A company that employs a diverse workforce is better able to understand the demographics of the various consumer markets it serves. With the emerging markets around the world, organizations need local talent to enter the marketplace and to communicate effectively. Therefore, localization is one way to do it. Another one is adaptation. Organizations must be technologically and culturally adaptable in the modern economy. Diversity fosters creative thinking and improved decision-making through a deeper and more comprehensive worldview.

What are some ways that you might incorporate the diversity that you have into developing a workplace culture that values diversity?

i. Hire diverse staff

Every business owners want to hire the best employee for each position, but patience can render the best staff with diverse backgrounds. 

ii. Retreat & Build Great Relationships

Give your staff a chance to get to know one another outside of work and plan some team-building activities that encourage your staff members to talk to each other.

iii. Diversity Programs

Some companies will approve funding for a diversity program and allow staff to take a workday for the course. Diversity classes expose people to new ideas, encourage acceptance, and may result in a higher level of productivity. Whether you take it online or invite a diversity expert to deliver an in-office course, diversity workshops can be beneficial to the office.

iv. Education

Education comes in the forms of training, team-building exercises, or courses. The goal of these is to make them aware of their own unconscious bias, bridge gaps, and strengthen relationships. 

In conclusion, managing diversity in the workplace is a necessary challenges for HR professionals. These challenges can be mitigated if an organization makes a concerted effort to encourage a more heterogeneous environment through promoting a culture of tolerance, open communication and creating conflict management strategies to address issues that may arise. To manage a diverse workplace, organizations need to ensure that they effectively communicate with employees. Policies, procedures, safety rules, and important information should be designed to overcome language and cultural barriers. Judge successes and failures on the individual’s merit rather than attributing actions to their background. Help them break down preconceived notions and cultural misunderstandings and make sure each employee is treated the same. Look for ways to incorporate a diverse range of perspectives and talents into efforts to achieve organizational goals.

Reference

Holt, M. (2017, November 21). How to create an organizational culture that values diversity. Small Business - Chron.com. Retrieved October 16, 2021, from https://smallbusiness.chron.com/create-organizational-culture-values-diversity-1198.html.