Note: the following case is copyrighted and may be copied and used only by current users and owners of the textbook, BUSINESS ETHICS: CONCEPTS AND CASES by Manuel Velasquez.

Domino’s Delivers
In May 1993 Domino’s paid $2.8 million to settle a lawsuit brought by the family of 41-year-old Susan Wauchop who was killed when her van was struck by a Domino’s delivery truck being driven on a highway in rainy weather.1 The family alleged that the 19-year-old driver was speeding to meet Domino’s guarantee to deliver a pizza within 30 minutes. Domino’s argued that weather and road conditions were the real cause of the accident and refused to change its 30-minute guarantee. Not only was the guarantee popular with its customers, it also set Domino’s apart from its numerous rivals in a highly competitive and crowded business.2 Domino’s Pizza was founded in 1960 when two brothers, Tom and Jim Monaghan purchased a pizza store in Ypsilanti, Michigan. A year later Jim traded his half of the business to his brother for a Volkswagen Beetle and Tom Monaghan became sole owner. By 1983, the company had expanded to 1000 restaurants. Ten years later the company was well on its way to owning over 4000 outlets within the United States, and over 500 outside the United States. In addition, over 1000 Domino’s Pizza restaurants were owned by others as franchise operations. Domino’s had become the fastest growing pizza company in the world. Analysts felt that the key to Domino’s rapid expansion was a promotion that it launched in 1984: guaranteed 30-minute delivery. Initially, the company advertised that if pizza was not delivered within 30 minutes it was free. This was later changed to a guarantee of delivery within 30 minutes or a $3 refund. The company required all franchisees in the United States to sign a contract agreeing to use the 30minute guarantee. Driver training manuals made the