Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
TORT LAW
Tort Law: Liebeck v. McDonalds
Step 1
For this discussion, I elected to focus on the Liebeck v. McDonalds (1994) case. Sometimes in 1992, Liebeck bought coffee from McDonalds which she ended up spilling on her lap causing third degree burns on her thighs as well as genital area. She later on filed a suit accusing the fast-food and restaurant chain of negligence in the United States District Court for the District of New Mexico (Horsey and Rackley, 2013). It is important to note that before proceeding to court, the plaintiff had sought an amicable settlement with McDonalds which the company turned down by floating a counteroffer that Liebeck considered too little to consider. In the suit, the plaintiff claimed that McDonalds had offered for sale a defective product that was unreasonably dangerous, i.e. owing to the fact that the coffee served by the restaurant chain was significantly hotter than similar products offered for sale by other companies. According to Horsey and Rackley (2013), a verdict was reached upon by a 12-person jury to the effect that the restaurant chain was to a large extent responsible for the incident under comparative negligence principles. Thus, the plaintiff was awarded punitive damages to the tune of $2.7 million and compensatory damages to the tune of $160,000 (Horsey and Rackley, 2013). It is, however, important to note that the judge awarded a total of $640,000 (after slashing punitive damages to $480,000) (Horsey and Rackley, 2013). Both the plaintiff and the defendant appealed the decision but later on settled the matter out of court, without disclosing the settlement details.
Step 2
In reaching its verdict, the 12-person jury argued that both the plaintiff and the defendant...…beyond the restaurant industry. For instance, entities in the automotive industry ought to rethink the need to electronically limit the top speeds of their vehicles. This is more so the case given that it could be successfully argued that an automotive company was negligent in its release of units whose top speeds made it difficult for drivers to maintain control. For instance, the Hennessey Venom F5 has a top speed of 301 MPH. The car is manufactured by Hennessey Performance Engineering. If a driver of the car were to cause an accident while driving at a high speed, those injured by the said accident could bring a suit against the car-maker citing comparative negligence. Thus, there may be need for the executive team at the organization to electronically cap the said speed at a lower max speed or align the top…
References
Horsey, K. & Rackley, E. (2013). Tort Law. OUP Oxford.
Hylton, K.N. (2016). Tort Law: A Modern Perspective. Cambridge University Press.
Okrent, C. (2014). Torts and Personal Injury Law. Cengage Learning.
McDonald's Corporation is one of the best known global brands. Starting with 2004, McDonald's witnesses a turn around and has become very profitable again, despite a high turnover of CEOs. McDonald's leadership decided to continue to grow, using many new strategies, such as refurbishing locations, customizing service in each country and geographic area, enhancing R&D and product development, as well as marketing and packaging, extending service, offering healthy choices, and so
McDonald's New Challenges A look at how socio-culture trends such as obesity will require that McDonald's breaks from standardization on a grand scale (Fitness Mantra, 2007) Industry Overview Influence of Culture and Demographics Supporting Work McDonald's is the multi-national company (MNC) that has worked to break through internal barriers on a global scale. McDonald's has been at the forefront in new market expansion and the organization has now covered nearly every market on the globe (Lafontaine
According to Kerin, et al., (2003) all employees posses some form of power to interrupt the smooth running of operations by deciding to be uncooperative in the production processes, or just by terminating their services. Workers may abide to the power of the company, though they usually maintain a strong interest in their employment. Thus, employees and employers, to certain degree, are interdependent. As such, the company cannot depend only
McDonald's the largest fast-food chain across the globe. This is through spanning of approximately 30,000 restaurants across the globe with the aim of maximizing its revenues and profits at the end of the financial year. McDonald's Organization aims at being the customers' favourite place and way to eat and drink as its mission to meet the needs and preferences of its consumers. The pattern of internationalisation of McDonald's Company proves
These restaurants in particular are a threat to McDonalds -- a chain like Subway has a menu better suited for older customers. There are other threats as well, such as eroding sources of wealth. As people retire, their budgets become more fixed. If they rely on pensions from their employers, many of those shifting from traditional defined-benefit plans to defined-contribution plans. Thus, more seniors are going to rely on
McDonalds works within the quick service industry, where they have a differentiated position (Mantkelow, 2014). Although low price is a starting point for firms in the industry, McDonald's is not the lowest-price competitor in the business. They try to use branding as a means of creating differentiation for their products, many of which have trademarks for their own (i.e. Big Mac, Quarter Pounder, McCafe). The company's strategy therefore relies heavily