Legal Advice

December 2, 2012

More and more companies are taking that next step to becoming green and helping the environment prosper more and more. As a society we have come to realize that we cannot live the way we have lived the last century or for that matter decade. The travel industry is beginning to do their part by designing and using alternative fuel in the cars and trucks that we use on a daily basis. Boeing in conjunction with several different companies and countries is coming up with alternative fuel to be use in many of their planes they are developing. In the last several years, Boeing has begun to do research and test alternative fuel in some of the planes that they make and use. Along with these planes, they have also partnered up with the military to use the fuel and see how it affects the environment in military equipment. Their goal in doing all of this and coming out with an alternative fuel for planes, is to reduce the gas emissions that we saw in 2005 by 50% in 2050. (Airbus, Boeing, Embraer join hands on green jet fuel initiative, (2012, March 22))

With any new potential product that the consumer may or may not see, the company must be able to comply with different rules and regulations in that particular industry. Boeing released several recommendations to the US Department of Agriculture (USDA) to accelerate the commercial viability and deployment of aviation biofuels. (Millikin, Mike. (January 2012)) By doing this, Boeing needs to supply the USDA with different agendas on how they will be approaching the sale, study, and distribution of this product. This will give everyone in the playing field the procedures on how to proceed with the product once the government approves it. Each study can be seen as a case by case basis or it can be seen as dealing with the problems that may arise all at once. Along with making sure that certain procedures are in place, Boeing and everyone else must be able to back up any findings that they have put together for this product. When it comes to using a product that may affect the environment and the people who use it, the people involved should be using different tests to get results on how things work and affect anything around it. If this type of activity was not done and findings were being distorted, then many people will be affected by the product. This can have a major implication not only on Boeing, but also on everyone else who is participating in this test. The government would come in and shut down any progress that has been made in the field. That is why it is important to conduct tests and review any factual findings before reporting.

As mentioned earlier, in this initiative certain procedures and testing must be done and done correctly to be able to comply with the government and the rules that have been imposed. One key element of administrative law that the parties to this initiative must be aware of is the possibility of any lawsuit. Because certain claims that biofule will help reduce admissions and be better for travel there needs to be a backup to these claims. In 2010 USDA, Air Transport Associations of America, Inc. (ATA) and Boeing signed a resolution formalizing their commitment to work together. (Millikin, Mike. (January 2012)) The signage of this resolution will help everyone deal with many of the issues that may arise from this product. This type of action from all the parties will also help with any government that may impose any sanctions on the product itself. By creating a supply chain around the world Boeing will have representation in almost every country and it will help with supply, support and increase domestic energy.

Many of the new products that come out on the market must be able to pass certain test before it is given the OK to be used. It is especially important when we are discussing fuels that are used all around the world. Boeing must be able to first get approval from the US government to sell the product here in the country. This will be done by applying for licensing of the product and using that license to be able to sell under all states. As we have discussed, the UCC has certain rules that companies must be able to follow when distribution of their product crosses state lines. (Bagley, C.E., 7 Savage, D. W. (2010)) This is done because the UCC wants to makes sure that everyone is protected and it also shows that each state has certain regulations companies need to follow. Because we will also see sales of this product internationally, Boeing and the suppliers must comply with the rules that govern all of the countries that will be involved not only in the sale but also in the distribution on this product. Much of the sales might be done online and over a computer. When this type of transaction is done in this manner, then both parties must follow the rules and regulations that govern a transaction done electronically. Accepting and verifying that each party if able to conduct this transaction is very important because then you begin to discuss fraud.

Because we are also talking about distribution of this product in other areas of the world, distribution and how this product is going to be delivered needs to be address. Boeing needs to be able to address how the laws will affect them if the product they are distributing is effective or not in compliance. Many of the distribution places must also have a contingency plan in place to be able to deal with any out of control situation. Environmental laws will also play a major part of this initiative. Many of the laws that are in place to make sure these companies are doing the right thing will drill down on a company’s records to see that they are doing the right thing. We have seen how any bad publicity can harm a company. BP for example is still recovering from the oil spill it had several years ago. Along with a tarnish image, they are also still paying billions of dollars out to make things right.

Along with making sure that Boeing and the rest of the companies are doing their part to make this fuel safe, they also need to make sure that if anything does change that they are providing that information to the public and the government. By not providing any changes they are putting themselves in a position to be sued by anyone. Being negligence because they do not want to comply with certain rules or regulations will do much more harm than good. By providing a product that will have many benefits to everyone will be much more rewarding to Boeing. Some other things that Boeing needs to address are the way their information is safe and secure. Much of the testing and research that may be done will need to be license and it will be something that Boeing will probably have right to. Boeing must also take responsibility to their development of the product. They must stand by it and be there through the good times and bad. Their product must be reliable and it must perform to the expectations that are set forth by the company. If it is not reliable, then Boeing and the rest of the teams involved must be able to make changes and support any change to be able to meet the specification of the product. Without this reliability from Boeing, they will have a very hard time driving this product in the market. It will also bring many lawsuits that they do not want to happen. It is better to address the issue up front and deal with it rather than sweeping it under the rug.

References

Bagley, C.E., 7 Savage, D. W. (2010). Managers and the legal environment:2010 custom edition (6th ed.). Mason, OH: South-Western Cengage Learning.

Millikin, Mike. (January 2012). A4A, Boeing recommend steps to accelerate commercial viability of aviation biofuels. Retrieved from http://www.greencarcongress.com/2012/01/a4a-20120131.html

Sustainable Biofuels, (2011, November 03) Retrieved from http://www.boeing.com/aboutus/environment/environment_report_11/3_biofuels_pg_2.html

Airbus, Boeing, Embraer join hands on green jet fuel initiative, (2012, March 22) Retrieved from http://renewables.seenews.com/news/airbus-boeing-embraer-join-hands-on-green-jet-fuel-initiative-263255?print=1