Task 2
Chapter 8 of the book Law and Ethics in Global Organisations covers the different types of business transaction i.e Commercial (business to business) and consumer (business to consumer). It looks at the legal protection involved in such transactions. Nelson takes issues regarding Consumer transactions and looks at them from various standpoints such as moral principles, principles of contract law as well as EU and US Government approach to such issues. The main issue in this chapter which is present in the film Class Action is the disclosure of information (‘the right to know’)
In Class Action, Automobile defects had caused injury to a group of people, who subsequently filed a collective lawsuit against the manufacturer. A report was written by an employee of the company about the defect which advised a recall. This information was not disclosed by the company to consumers nor was it acted upon or addressed in any way.
Under moral principles, consumers have ‘the right to know’ as they cannot make an informed decision without relevant information. Therefore the Automobile manufacturer in the film, by denying the consumers information regarding the fault, they deny them their freedom of choice and are responsible for the Injuries caused.
According to chapter 8 of the book, under the general principles of contract and commercial law, neither mechant nor consumer buyers have a ‘right to know’. Therefore the organisation in class Act would not be obliged to disclose the fault under contract and commercial law alone.
Governments generally obligate companies to disclose relevant information on their products and/or services. According to the book, this is done partly as a form of self regulation. It also acknowledges that consumers have little opportunity to negotiate for relevant information at any point before or after purchase. Deceptive practices as defined