The Ethical Model Which Calls For Evaluating The Impact Of T

The Ethical Model Which Calls For Evaluating The Impact Of The Decisio The ethical model which calls for evaluating the impact of the decision on stakeholders is the Front-Page-of-the-Newspaper test, the Blanchard and Peale model, and the Wall Street Journal model.

Each of the above tests/models calls for that evaluation.

A remedy the Federal Trade Commission does NOT have is: consent decrees, criminal penalties, reimbursements to purchasers for misleading ads, injunctions, all of the above are available remedies to the Federal Trade Commission.

Brice borrowed $2500, including interest, from Cyndi in February 2010. Now it is April 2013, and Brice still has not made any of the scheduled payments. Cyndi is considering suing Brice for the money owed.

Brice points out that the statute of limitations on an action involving a contract, in the state where they live, is three years. The contract, between Brice and Cyndi, is: void, voidable, unenforceable, executed, none of the above.

If eventually shown not to be accurate, the following statement(s) could constitute misrepresentation: "This airplane has only been flown for 200 hours," "You'll never experience anything else like it," "This cold cream is some of the best in the nation," "This is not your usual piece of luggage." All of the above could be the basis for misrepresentation.

Paper For Above instruction The evaluation of ethical decisions in business practices is crucial for maintaining integrity and trust with stakeholders. Various models have been developed to guide ethical decision-making, each emphasizing different aspects of stakeholder impact and societal norms. Among these, the Front-Page-of-the-Newspaper test, the Blanchard and Peale model, and the Wall Street Journal model are prominent frameworks that highlight the importance of considering the consequences of business actions on the public perception and stakeholder interests.

Ethical Models and Their Focus The Front-Page-of-the-Newspaper test champions the idea that if a business decision or action were to be reported on the front page of a newspaper, it would reveal the ethical implications of the decision. This model urges decision-makers to consider whether their actions would stand up to public scrutiny, helping foster transparency and responsibility (Trevino & Nelson, 2021). By imagining how their decisions would

be perceived if published openly, executives are encouraged towards transparency and moral accountability.

The Blanchard and Peale model emphasizes personal integrity and the development of a moral conscience.

It guides individuals to ask whether they would feel comfortable if their decision were to be disclosed publicly or if it aligned with their core values. This model promotes a consistent moral compass and underscores the importance of individual ethics in corporate decision-making (Blanchard & Peale, 1988).

Similarly, the Wall Street Journal model engages stakeholders by asking whether the decision would be justifiable to shareholders or other interested parties if it appeared in the Wall Street Journal. This approach aligns corporate actions with market expectations and public accountability, thereby reinforcing ethical behavior in the context of economic impacts and stakeholder interests (Svensson & Persson, 2018).

All three models, although distinct, underscore a common theme: the importance of transparency, stakeholder impact, and societal norms in ethical decision-making. These models serve to remind business leaders to evaluate how decisions affect not only immediate stakeholders but also the wider community.

Federal Trade Commission’s Remedies The Federal Trade Commission (FTC) enforces laws against deceptive and unfair business practices. Its remedies are designed to prevent harm, deter misconduct, and restore confidence in the marketplace.

Common remedies include consent decrees, which are negotiated agreements to cease certain conduct; injunctions, which prohibit specific actions; and reimbursements to consumers harmed by deceptive practices (Federal Trade Commission, 2020).

Contrary to some misconceptions, the FTC does not have criminal penalties; these are pursued by the Department of Justice through criminal prosecution. Similarly, the FTC cannot impose criminal sanctions but can seek civil penalties in certain circumstances. Thus, the remedy that the FTC does NOT have is criminal penalties, while remedies such as consent decrees, reimbursements, and injunctions are readily available (Miller & Pate, 2017).

Contract Law and Statute of Limitations In the given scenario, Brice borrowed money from Cyndi, and the statute of limitations for a contract action in their state is three years. Since the loan occurred in February 2010 and it is now April 2013, more than three years have elapsed without any payments or legal action. Under these circumstances, the

contract is classified as unenforceable because the statute of limitations has expired, barring Cyndi from suing Brice to recover the debt (Adams & Zalesne, 2010).

This underscores the importance of understanding statute of limitations in contractual disputes and how it can serve as a defense that protects debtors from stale claims.

Misrepresentation and Its Impacts Misrepresentation involves making false statements that induce another party to enter into a contract. If proven, misrepresentations can lead to remedies such as rescission, damages, or both. Statements like "This airplane has only been flown for 200 hours," or "This cold cream is some of the best in the nation," are material facts that, if false and relied upon, constitute misrepresentation (Restatement (Second) of Contracts, 1979).

On the other hand, subjective opinions or predictions ("You'll never experience anything else like it" or "This is not your usual piece of luggage") are generally non-actionable unless they imply false facts or involve puffery. However, if such statements are manipulative or misleading and cause harm, they could also be bases for misrepresentation or deceptive practices.

Therefore, all the above statements could potentially form the basis of misrepresentation if they are false, material, and relied upon by the other party, emphasizing the importance of truthfulness and transparency in business communications (FTC, 2011).

Conclusion Ethical decision-making in business involves careful consideration of stakeholder impacts and societal expectations. Models like the Front-Page-of-the-Newspaper test, the Blanchard and Peale model, and the Wall Street Journal model serve as effective tools for promoting transparency and integrity. Meanwhile, legal remedies enforced by the FTC are limited to civil measures, excluding criminal penalties, which are reserved for criminal law enforcement.

Furthermore, understanding the legal nuances, such as the statute of limitations, can significantly affect the enforceability of contractual claims. Equally important is the role of truthful communication, where misrepresentations—whether intentional or negligent—can have legal repercussions and damage reputations. Collectively, these frameworks and legal principles underscore the necessity of ethical vigilance and legal compliance in business practices, fostering trust and sustainability in the marketplace.

References Adams, J., & Zalesne, B. (2010). Contract Law: Principles and Practice. Oxford University Press.

Blanchard, K., & Peale, N. V. (1988). The Power of Ethical Management. Word Publishing.

Federal Trade Commission. (2011). Guides Concerning the Use of Endorsements and Testimonials in Advertising. FTC.gov.

Federal Trade Commission. (2020). How the FTC Enforces Federal Consumer Protection Laws. FTC.gov.

Miller, A., & Pate, K. (2017). Legal Aspects of Business. McGraw-Hill Education.

Restatement (Second) of Contracts. (1979). American Law Institute.

Svensson, P., & Persson, M. (2018). Corporate Ethics and Market Expectations. Journal of Business Ethics, 152(2), 389–402.

Trevino, L. K., & Nelson, K. A. (2021). Managing Business Ethics: Straight Talk about How to Do It Right. Wiley.