Project 2-Case Analysis.docx - Running head TURNIP PLAZA...

This preview shows page 1 - 4 out of 8 pages.

Running head: TURNIP PLAZA HOTEL 1 MBA 630 Leading in the Multicultural Global Environment Project 2: Making Decisions That are Legal and Ethical Case Analysis: Turnip Plaza Hotel UMUG Prof. Bonnie Peter
TURNIP PLAZA HOTEL 2 Case Background Mark Piper, a tour guide employed at Turnip Plaza Hotel in Port Austin, Michigan developed a reputation for being well skilled at his job and he is recommended by many. Consequently, he was approached by a representative of a rival company offering him more money and a promotion. Somehow Mark’s manager, Edward, heard about the offer and made a counteroffer to provide Mark with a 50 percent raise and a promotion. As a result of Edward’s offer, Mark turned down the offer from the competitor and chose to remain with Turnip Plaza. Unfortunately for Mark, he was fired within a month due to corporate restructuring, and Edward is concerned that Mark will take legal action against Turnip’s parent company, Colossal Corporation. Through this analysis, the following questions are answered: 1) What legal theories might Mark use to try to legally enforce Edward's promise? 2) If Mark were to file a lawsuit and win, what sort of damages or other remedies might he be entitled to? 3) Does Turnip Plaza have an ethical obligation to fulfill the promise made by Edward to Mark? Is it right to lay off Mark under these circumstances? What should Turnip Plaza do from an ethical perspective? What legal theories might Mark use to try to legally enforce Edward’s promise? There are numerous legal theories that can be identified in this case. Yet, the prevalent theories to use relate to the contrast between verbal and written contracts, the promissory vs. non-promissory principles, and agency relationship. Contract Law In order to legally enforce Edward’s promise, one must know whether this is the case of an enforceable contract because Edward’s promise was essentially a verbal one. So, what constitute an enforceable contract? According to contract law, “ A contract is a legally
TURNIP PLAZA HOTEL 3 enforceable promise or an exchange of promises” (Contract Law, n.d.) A contract is then enforceable if certain elements are met: “ There must be an offer, acceptance of that offer, and then an intended exchange of value between the parties” (Contract Law, n.d.). The intended exchange of value between the parties is in other words the mutual benefit to all parties involved. It is also said in the same learning resource that “Those who make a contract do not have to use the word contract or even recognize that they have made a legally enforceable promise” (Contract Law). A promise is referred to a declaration by a legal person (promisor) to undertake or forbear from performing a specified activity (Contract Formation and Execution.,

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture