...McDonald’s is known for its fast-food and joy that it brings to children with its Happy Meals. However, in the Liebeck v. McDonald’s Restaurant case, McDonald’s was known as an inconsiderate corporate giant whose nonchalance cost McDonald’s nearly $3 million. Liebeck v. McDonald’s Restaurant is a case that was a media train in the 1990s and misconceptions about the case filled the airways. Case Overview Why should your favorite quick service restaurant be responsible for serving your favorite breakfast beverage, coffee, just how you like it? Liebeck v. McDonald’s Restaurant involved a then 79 year-old, Stella Liebeck, who purchased a cup of coffee from a McDonald’s located in Albuquerque, New Mexico, in 1992 (“McDonald’s,” 2002). “Liebeck tried to hold the cup of coffee between her knees while removing the lid; however, the cup tipped over and the hot coffee burned her.” While there has been speculation that Mrs. Liebeck was driving the car at the time the coffee spilled on her; however, that was not true at all (“Actual Facts,” 1995 - 2013). These reports were used to dramatize the case and deem it as a frivolous lawsuit. Mrs. Liebeck’s grandson was the driver on the day of this incident, and when Mrs. Liebeck attempted to...
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...Hot Coffee Documentary Paper Sharon 2014/12/01 The Hot coffee Documentary talked about some real cases about the success of the tort reform movement and its impact on average people in the form of mandatory arbitration contracts. Stella Liebeck, 79-years-old, was sitting in the passenger seat of her grandson’s car having purchased a cup of McDonald’s coffee. After the car stopped, she tried to hold the cup securely between her knees while removing the lid. However, the cup tipped over, pouring scalding hot coffee onto her lap. She received third-degree burns over 16 percent of her body, necessitating hospitalization for eight days, whirlpool treatment for debridement of her wounds, skin grafting, scarring, and disability for more than two years. Despite these extensive injuries, she offered to settle with McDonald’s for $20,000. However, McDonald’s refused to settle for this small amount and, in fact, never offered more than $800. The jury awarded Liebeck $200,000 in compensatory damages — reduced to $160,000 because the jury found her 20 percent at fault — and $2.7 million in punitive damages for McDonald’s callous conduct. (To put this in perspective, McDonald’s revenue from coffee sales alone was in excess of $1.3 million a day.) The trial judge reduced the punitive damages to $480,000, but did state that McDonald’s had engaged in “willful, wanton, and reckless” behavior. In Colin Gurley’s case. Colin was born with cerebral palsy because of medical malpractice...
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...Tort Reform All humans on this earth, whether they live in a crowded city, a sparsely populated farming community, a developed or developing nation or a small tribe in the rainforests of the Amazon, have some way by which their civilization is led and regulated for the safety and comfort of its inhabitants. People living together in near proximity need some sort of social control to regulate conduct and relations be it by laws or morals or both. Ivan Nuy, an author who developed the Social Control Theory in 1958, proposed that there are four types of social control: Internal, Indirect, Control with Needs Satisfaction and Direct. Social Control Theory proposes that people's relationships, commitments, values, norms, and moral beliefs encourage them not to break the law. Thus, if moral codes are internalized and individuals are tied into, (their) community, they will voluntarily limit their propensity to commit deviant acts. [ (Nuy, 1958) ] Law is needed for when comfort, morals and disapproval fail to prevent undesirable acts against people in a society. In our country’s system, we have two main types of classifications for justice, civil law and criminal law. Criminal law, under public law, covers laws and regulations that aim to protect all members of the society. Its emphasis is on punishment. Criminal offenders are prosecuted by government officials, who must provide “the burden of proof” to prove the guilt of the defendant beyond a reasonable, doubt, usually a district...
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...Consumers Injured by Hot Coffee Can Seek Recovery Zachary Rami Follow this and additional works at: http://lawecommons.luc.edu/lclr Part of the Consumer Protection Law Commons Recommended Citation Zachary Rami Courts Split as to Whether Consumers Injured by Hot Coffee Can Seek Recovery, 10 Loy. Consumer L. Rev. 310 (1998). Available at: http://lawecommons.luc.edu/lclr/vol10/iss4/6 This Case Note is brought to you for free and open access by LAW eCommons. It has been accepted for inclusion in Loyola Consumer Law Review by an authorized administrator of LAW eCommons. For more information, please contact cklink@luc.edu. CASE NOTES Courts split as to whether consumers injured by hot coffee can seek recovery by Zachary Rami Common sense, coffee and consumers clashed recently in McMahon v. Bunn-O-Matic,l wherein the Seventh Circuit Court of Appeals held that a coffee maker manufacturer did not have a duty to warn consumers that its coffee would be served at 180 degrees, and that the coffee maker was not defectively designed. The decision, which affirmed a lower court's entry of summary judgment in favor of the coffee maker manufacturer, is consistent with a majority of courts, which have held in recent years that such claims leave no issue of material fact for trial.' However, not every jurisdiction has routinely dismissed these "coffee" cases. In fact, McMahon referred to Nadel v. Burger King,3 which held that a products liability claim for excessively hot coffee was appropriate for...
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...Critical Thinking in the Legal Environment: Torts and Product Liability Fall 2009 Introduction This assignment focuses on management skills that would be utilized in critical thinking in the legal environment specifically related to torts and product liability. A manager is constantly challenged with balancing responsibilities to the shareholders to make a profitable business and protecting the best interests of the employees and customers or end users of their products/services. This is especially challenging in large geographically diverse organizations, such as a McDonalds or car dealerships, where having statistical descriptive data, clear understanding of the policies, up and down the organization, and ensuring no significant information is being omitted is critical to running the company and avoiding lawsuits. A manager must be able to effectively analyze and evaluate data to make informed, intelligent decisions in many different situations. They need to be able to evaluate the reasons, without biases, in order to make sound decisions for the organization, as well as their employees and customers. There are lessons learned from the cases reviewed this week for managers related to critical thinking based on the two cases that are the focus of this paper, Liebeck v. McDonald’s and Pearson v. Custom Cleaners. . Liebeck vs. McDonalds As a very controversial tort case, Liebeck vs. McDonalds was a closely followed by the news and legal community. This...
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...Case Analysis Liebeck v. McDonald’s Restaurants Pearson v. Chung Introduction Liebeck v. McDonald’s Restaurant, also referred to as the “McDonald coffee case”, was a well known case in the United States of America in 1994 because it was considered frivolous. The case involved a woman Stella Lieback, who spilled the hot coffee she purchased from McDonald onto her lap and sustained a series of third degree burns, and was awarded millions of dollars from her lawsuit against McDonalds. The coffee was not only hot, but it was scalding, capable of immediate damage to the skin, flesh and muscle (Letric Law, 2011). In addition to the above case, the Pearson v. Chung case, also known as the “pants lawsuit”, was also a well known case in America in 2005 (Lexis-Nexis, 2008). This is a case where an administrative law judge in the District of Columbia had taken a pair of pants to the cleaners for alteration and dry cleaning; and sued the cleaners for $67 million dollars for the loss of his pants. The case was considered frivolous and became a flashpoint in the debate in the United States over tort reform (Lexis-Nexis, 2008). The major focus of this paper will be to critically analyze these two cases on the stated facts, the issues, the applicable laws, and the decision of the judge and the jury. What are the facts? There are some facts associated with Liebeck v. McDonald’s case. The woman involved in this case was 79-year old Stella Liebeck of Albuquerque, New Mexico,...
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...What is your first impression? In the early nineties, Stella Liebeck won a 2.7 million dollar lawsuit for spilling coffee in her lap. This article will reveal the facts, issues, laws, and affects about this case. Many believe that our legal system is out of control. What do you think about this news story? After reading this article you will be a more informed citizen about this case and you will think twice about judging someone based on a news headline. What are the Facts? In 1992, Stella Liebeck purchased a cup of hot coffee at a McDonald’s drive through in New Mexico while sitting in the passenger seat. She proceeded to take off the lid of the coffee cup in order to add cream and sugar. She then accidentally spilled the coffee into her lap where it soaked into her sweat pants that she was wearing. This caused third degree burns that resulted in a seven day stay in the hospital along with skin grafting to repair the damage that was done (Schostok, 2000). What are the Issues? The issue that is specific to this case is whether or not McDonald’s should be liable for selling coffee that is too hot? The broader issue is, should businesses be responsible for the safety of their customers? What Law Applies? The product liability law applies in this case, specifically the “implied warranty of fitness [that is] imposed by the Uniform Commercial Code” (Morgan, n.d.). What did the Jury decide? The jury decided to award Liebeck $200,000 for compensatory...
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...McDonalds coffee and the Liebeck lawsuit •Osmond-Riba home •Elisabeth Riba home •Elisabeth Riba's Journal Writing > I've read recently that the McDonald's coffee lawsuit is back in the news again, being used as an example of frivolous lawsuits, irresponsible juries, excessive verdicts, a generally out-of-control legal system, and thus a justification for tort reform. However, after doing some research, I discovered that the case was hardly as unreasonable as people often make it out to be. I originally wrote this for Usenet several years ago; the links at the bottom of the essay may have expired. -------------------------------------------------------------------------------- McDonalds coffee and the Liebeck lawsuit Lis Riba, 2000 Here are some facts about what really happened: At the trial, it was revealed: •McDonalds required their coffee kept at 185 degrees Fahrenheit, plus or minus 5 degrees, significantly higher than other establishments. [Coffee is usually served at 135 to 140 degrees] •An expert testified that 180 degree liquids will cause full thickness burns in 2 to 7 seconds. •McDonalds knew before this accident that burn hazards exist with any foods served above 140 degrees. •McDonalds knew that its coffee would burn drinkers at the temperature they served it. •McDonalds research showed that customers consumed coffee immediately while driving. •McDonalds knew of over 700 people burned by its...
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...Justin Clark Yolanda Larrymore April 11, 2011 Group 5 Tort Reform As a society in today’s economy we are constantly being bombarded with news about law suits of one kind or another. It seems whenever we turn on the news there is a new high profile case of malpractice lawsuits and individuals are being sued left and right. We live in a lawsuit happy society that only continues to intensify as the economy continues to recover and citizens continue to seek employment. Often the main bulk of the law suits that make the news and that occur in today’s society are medical malpractice suits. One can find themselves hard pressed to watch T.V. without seeing a commercial or advertisement from an attorney offering to sue someone for something. In the realm of medical law suits the possibilities are seemingly endless. Patients are willing to sue anyone over anything including drug manufacturers, doctors, pharmacists, anesthesiologist and so forth. Malpractice insurance has reached an alarming high and physicians continue to fight for a cap to be placed on money awarded to plaintiffs. Physicians fear their jobs and lives may be in jeopardy if something is not done about these outrageous costs while patients worry that their medical care will suffer if such limits are awarded. In the 1990s there was a famous lawsuit that awarded a woman several million dollars in a law suit against McDonalds when she spilled hot coffee on her lap. Many of the details of the case were not given...
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...that often warrant separate applications to different people, thus challenging the very foundation of the above mentioned guiding principles. One legal principle that seems to fall within this general predicament is that of retribution and compensation. The idea is that when an individual or entity causes harm or damage to another, the former is obliged to restitute and compensate the latter for the damages that were caused. For example, in civil law, article 1457 of the Quebec Civil Code[3] states clearly that “where he is endowed with reason and fails in this duty, he is responsible for any injury he causes to another person by such fault and is liable to reparation for the injury…” More precisely stated in Common Law, “damages for any tort are or ought to be fixed at a sum which will compensate the plaintiff so far as money can do it, for all the injury he has suffered.”[4] The design here is simple and...
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...1/13/16 The Basics of the Legal System – Chapters 1 & 4 Sources of Law in the U.S 1. The Constitution * The U.S. Constitution is the supreme law of the land * The U.S Constitution establishes the federal government and enumerates its powers * The body of the constitution * Creates the three branches of government and grants certain powers to each branch * The amendments to the constitution * Protect individual rights by putting limitations on the governments ability to act in certain ways * Amendments protect the government, not private individuals The Legislative Branch * Created by Article 1 of the Constitution * House of Representative * Senate * Responsible for the creation of new laws * Congress is generally responsible for where the money comes from and where the money is spent * All statutes start as BILLS * Bills must be passed by both the House and the Senate * Bills that pass both houses must be signed into law by the president or.. * The president can VETO the bill * If signed by the president the Bill becomes a STATUTE 2. Statues, Codes and Ordinances * Statutes are enacted by Congress and state legislatures * Ordinances are enacted by municipalities and local government agencies * Code = Codified Law = Statute The Executive Branch * Created by Article 2 of the Constitution * President * Vice President * Cabinet Members * Responsible...
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...Chapter 1 Introduction to Law and Legal Reasoning TRUE/FALSE QUESTIONS A1. The stability and predictability of the law is essential to business activities. B1. An important function of the law is to provide jurisprudence. A2. Law is a body of enforceable rules governing relationships among individuals and between individuals and their society. B2. How judges apply the law to specific disputes may depend in part on their personal philosophical views. A3. The basis for the U.S. legal system is natural law. B3. A judge’s view of the law is of little importance in a common law legal system. A4. Constitutional law includes only the U.S. Constitution. B4. Congress can only pass legislation that falls within the limits set up by the U.S. Constitution. A5. A state constitution is supreme within the state’s borders. B5. The U.S. Constitution is the supreme law of the United States. A6. Whether a law is constitutional depends on its source. B6. Each state has its own constitution. A7. Uniform laws apply in all states, including those in which the laws have not been adopted. B7. The Federal Trade Commission developed the Uniform Commercial Code. A8. A state law that conflicts with the U.S. Constitution will be deemed unconstitutional. B8. State agency regulations take precedence over conflicting federal...
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...Yinzhi Miao Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State LL.M. Long Paper Harvard Law School Supervised by Prof. Reinier Kraakman and Mark Roe April 2012 Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State Yinzhi Miao Abstract: There are both considerate horizontal and vertical governance problems in the Chinese state-owned-enterprises (SOEs). Due to their privileged positions in the political economy, traditional institutions of corporate governance are far from perfect. Thus the value of oversea listing as a governance mechanism is highlighted, and that could be better revealed by a deeper analysis of the benefit-and-cost balance by the government which controls the SOEs. However, effective as it is, oversea listing could not be a marvelous antidote to all governance ills. Further, as the two major governance disasters of oversea listed SOEs shows, if the government lacks a proper self-positioning, nontrivial negative implications will be brought to SOEs governance via oversea listing. The ultimate function of corporate governance in SOEs thus relies heavily on public governance. Key words: state-owned-enterprises, oversea listing, corporate China governance, 2 Table of contents I. Introduction ....................................................................................................................4 II. The Governance problems of Chinese SOEs and the limitations of...
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...FUNDAMENTALS OF BUSINESS LAW & ETHICS INTRODUCTION TO CONTRACTS What is the definition of a contract? a promise that the law will enforce 4 Parts of a Contract Agreement: one party must make a valid offer, and the other party must accept it. Consideration: there has to be bargaining that leads to an exchange between the parties. Legality: the contract must be for a lawful purpose. Capacity: the parties must be adults of sound mind. Describe the various types of contracts. bilateral: BOTH parties make a promise. This is the most common and is used for services, sale of goods and almost anything else. A promise for a promise... unilateral: ONE party makes a promise the the other party can accept only by doing something. This is a less common contract. express: In an express contract the two parties explicitly state all important terms of their agreement. This is the majority of contracts. implied: In an implied contract, the words and conduct of the parties indicate the intended agreement. This is less common. executory: one or more parties has not fulfilled obligations executed: all parties have fulfilled their obligations valid: satisfies all of the law's requirements unenforceable agreement: the parties intend to form a valid bargain but a court declares that some rule of law prevents enforcing it voidable: the law permits one party to terminate the agreement void agreement: neither party can enforce, usually because the purpose of the deal is illegal or...
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...FREEZING OUT BEN & JERRY: CORPORATE LAW AND THE SALE OF A SOCIAL ENTERPRISE ICON Antony Page* & Robert A. Katz**† INTRODUCTION The perfect duo. Ice cream and chunks. Business and social change. Ben and Jerry.1 Nobody wants to end up like Ben and Jerry’s, where soon after a multinational acquired it, key facets of its social mission were cut from the company.2 Ben & Jerry’s Homemade, Inc. was once the darling of proponents of social enterprise and social entrepreneurship.3 It was a for-profit corporation that seemingly did not put profits first. Rather, it pursued, in the parlance, a “double bottom” line, seeking to advance progressive social goals, while still yielding an acceptable financial return for investors. It advanced its social mission in many ways, such as by committing 7.5% of its profits to a charitable foundation; conducting in-store voter registration; and buying ingredients from suppliers who employed disadvantaged populations.4 Ben & Jerry’s founders, Ben Cohen and Jerry Greenfield, held out their double bottom line approach (they called it the “double-dip”) as a model for others who wished to “Lead With [their] Values and Make Money, Too.”5 * Professor of Law at Indiana University School of Law—Indianapolis. ** Professor of Law at Indiana University School of Law—Indianapolis and Professor of Philanthropic Studies at the Indiana University Center on Philanthropy. † Thanks to the organizers of the symposium “Corporate Creativity: The Vermont L3C & Other...
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