A truck owned by Johnson Construction Company needed repairs. John Robert Johnson, Jr., the company’s president, took the truck with its attached fifteen- ton trailer to Bubba Shaffer, doing business as Shaffer’s Auto and Diesel Repair. The truck was supposedly fixed, and Johnson paid the bill. The truck continued to leak oil and water. Johnson returned the truck to Shaffer, who again claimed to have fixed the problem. Johnson paid the second bill. The problems with the truck continued, however, so Johnson returned the truck and trailer a third time. Shaffer gave a verbal estimate of $ 1,000 for the repairs, but he ultimately sent an invoice for $ 5,863.49. Johnson offered to settle for $ 2,480, the amount of the initial estimate ($ 1,000), plus the costs of parts and shipping. Shaffer refused the offer and would not return Johnson’s truck or trailer until full payment was made. Shaffer also charged Johnson a storage fee of $ 50 a day and 18 percent interest on the $ 5,863.49.
WHAT IF THE FACTS WERE DIFFERENT? Suppose that Shaffer had invoiced Johnson for only $ 1,500. Would the outcome have been different?
THE ETHICAL DIMENSION Would it have been ethical for Shaffer’s mechanic to lie to support his employer’s case? Discuss.

  • CreatedJune 18, 2014
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