Christian Business Ethics in Contract Law: A Case Study
This case study examines a business dispute between a family-owned produce company and a health food retailer whose owner, Marshall Petersen, seeks to enforce a contract signed by an unauthorized minor. The paper first evaluates the legal standing of the contract under Georgia law, identifying multiple grounds for invalidity including lack of authorized representation and the signatory's status as a minor. It then shifts to a moral and ethical analysis grounded in Christian business values, arguing that a negotiated, transparent compromise — rather than litigation — best serves all parties. The study concludes that shared benefit, community relationships, and faith-based integrity offer a stronger resolution than any available legal remedy.
- Case Overview: Background facts and nature of the dispute
- Legal Analysis of the Contract: Why the contract is legally invalid
- Moral and Ethical Considerations: Christian ethics applied to business conflict
- Recommended Resolution: Negotiation and shared benefit as the solution
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What makes this paper effective
- The paper cleanly separates legal analysis from moral reasoning, giving each framework its own analytical space before synthesizing them into a recommendation.
- It uses specific legal criteria — the four elements of a valid contract and Georgia's age of majority statute — to ground the argument in verifiable doctrine rather than assertion alone.
- The Christian ethical lens is applied practically, not merely rhetorically: the paper identifies concrete actions (direct dialogue, mediation services, profit-sharing) that reflect the stated values.
Key academic technique demonstrated
The paper demonstrates dual-framework analysis: it resolves the same dispute first through legal doctrine and then through applied ethics, showing how different evaluative lenses can yield different — and complementary — conclusions. This technique is common in business law and ethics courses at the undergraduate level.
Structure breakdown
The paper opens with a narrative case overview that establishes all relevant facts. It then moves into a discussion section that progresses logically: legal standing → ethical obligations → practical recommendation. Citations from the American Bar Association and Georgia Legal Aid anchor the legal claims, while the ethical argument draws on Christian values and available mediation resources.
Case Overview
Marshall Petersen and his wife Gloria began visiting a Sunday school class being taught in Huntsville, Alabama, about six months ago. Marshall is not a Christian, but with the encouragement of his wife — who is a believer — he says he is beginning to explore the faith. This relationship eventually led to a business arrangement in which Marshall's small, local health food products business began purchasing Muscadine grapes from a family-owned produce company. The arrangement became a regular one, with orders placed every month. Despite Marshall often being late with payments for shipments, no penalties or interest were ever charged, and prices and shipment terms were kept consistent.
A disruption in the agreement eventually arose when Marshall asked the delivery person — an adolescent son of the family — to sign a contract guaranteeing the same rates and availability of the product. The contract is potentially problematic, however, since the young man was not a legal adult, nor an official representative of the company. Yet, after a spike in the product's demand became apparent, Marshall chose to attempt to enforce the contractual agreement. There are two basic aspects to this case analysis: one from a legal standpoint, and one from a moral and ethical perspective.
While the legality of the contract that Marshall is attempting to uphold is questionable at best, the more pressing issue is how to address the matter in a moral manner that reflects the values a Christian businessperson would hold most dear. When viewed from this perspective, the decision-making process can be more complex than what the legal aspects of the case require. For example, while it may be legally permissible to disregard the contract, the situation also presents an opportunity to form an enduring relationship, bring Marshall closer to the faith, and help him build a more cohesive family through shared values.
Legal Analysis of the Contract
The legality of the situation should be the first aspect of the case to be addressed. The legal considerations define the range of potential actions available and can help guide the decision-making process. The contract that Marshall holds is unlikely to stand in any court. It was not signed with the consent of management or an official company representative authorized to enter into such a contractual arrangement — and it was not even signed by a legal adult. It is therefore reasonable to conclude that a court would not recognize the contract as valid.
The basis for a legally enforceable contract requires four distinct elements (Vinson, n.d.):
- a mutual agreement, or "meeting of the minds,"
- two or more parties capable of contracting or reaching an agreement,
- an agreement in which all parties undertake some obligation, and
- a lawful purpose.
Furthermore, in Georgia, the legal age of majority — the age at which a person is considered an adult for contractual purposes — is 18 years. Individuals under 18 (that is, minors) may not legally enter into contracts (Vinson, n.d.).
Without a valid contract, Marshall will have few legal options. In court, he could claim that the contract was based on a verbal agreement and should constitute a good-faith arrangement even if it was not signed by an authorized party. However, given the manner in which Marshall pressured the adolescent to sign, there may be grounds for a counter-claim of fraud. The American Bar Association explains the concept of agency as follows:
"A principal of a company can sign contracts for you, but only with your permission. The law refers to such an arrangement as agency. We couldn't do business without it. For example, when you buy a car, you bargain and finally cut a deal with the salesperson. But she doesn't own the car she's selling you. She might not even have a car. She is an agent — someone with the authority to bind someone else, in this case the car dealership, by contract. The law refers to that someone else as the principal." (American Bar, n.d.)
Multiple factors therefore render this contract invalid. The only realistic legal concern in this case would be the cost of legal defense if Marshall were to pursue the matter in court.
Works Cited
American Bar. (n.d.). Contracts and consumer law. American Bar Association. http://www.americanbar.org/content/dam/aba/migrated/publiced/practical/books/family/chapter_9.authcheckdam.pdf
Vinson, C. (n.d.). Basic law of contracts in Georgia. Georgia Legal Aid. http://www.georgialegalaid.org/resource/basic-law-of-contracts-in-georgia
Telios Law. (n.d.). Christian mediation services. Telios Law. Retrieved from http://www.telioslaw.com
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