CASE STUDYDISCUSSION ON THE LEGAL AND ETHICAL ISSUES8th November, 2008GENERAL FACTSThe case study revolves around the character of William who works as a mid-level manager in ERU in Houston, Texas dealing with temporary employment of people in various industries. William is glad to be a part of ERU which acknowledges values and attributes such as dedication, sincerity, loyalty and honesty of their workforce. A strong linkage between professionalism and ethics is incorporated in the vision and mission of the firm. Further in the study it has been revealed that William and his fiancée Jennifer who is a real estate agent have plans to get married.
They have purchased a house and threw a party. At the party William meets his old friend Mark who is a recruiter in the national employment agency called ‘You Need We Find Inc’. However, Mark who was dissatisfied with his current job, requested William to look for a suitable vacancy for him in his firm. William readily agreed to this and forwarded a recommendation letter. Trusting William’s words, Mark was offered a job in ERU. A few days later William came across certain facts regarding Mark and the reason for his discontentment with his previous job which stunned him.
Marks’ family history was even more disturbing. Mark was under suspicion and has been put behind bars for grave charges such as fraud and deception. He couldn’t be trusted especially when the incident of reimbursement of an airline ticket was revealed. Further the case also reflects the legal issue in which William’s fiancée was offered a real estate agent job on the company’s purchase of the land. The deal was offered by Thomas who was Jennifer’s ex- colleague at her previous place of work.
Jennifer agreed and offered property worth $3, 00,000. The deal was accepted and duly signed by all signatories including Thomas within 24 hours, to be closed within a period of two weeks. However an important condition was included into the contract which stated that ‘failure to close within two days after the stated closing date shall be deemed to a breach of contract’. Legal actions against the buyer will ensue thereafter. However, if the buyer pays a non-refundable deposit of $2,000, legal actions will not be taken in lieu of retention of the $2,000.” Thomas was not able to deposit the required sum.
Hence, it was very important for him to close the deal within the stipulated time limit. But Thomas couldn’t meet up the deadline and backed out at the last minute. As a consequence, the sellers informed Thomas and Jennifer that they would certainly take legal actions as it has already been covered in the contract terms. Thomas bluntly told Jennifer that he was not at all concerned as his corporation didn’t exist and he had nothing to lose even if the sellers took any sort of legal action against him.
The only person who was in trouble was Jennifer. She was the intermediary in the deal and moreover she was in dire need of money to keep up with her marriage expenses. She couldn’t afford to loose such a huge amount of money because of the penalty for the breach of contract.