When a new health club opens, the owners offer a discount to the first 100 members who
Question:
When a new health club opens, the owners offer a discount to the first 100 members who enter into a five-year contract. The fee is \($2,400\) annually for the first five years, prepaid, regardless of any fee increases throughout that period. Later, the health club alleges it faces an economic crisis due to the recession and notifies the 100 members who prepaid that the membership fee will increase, based on a provision in the contract that stated, “the health club reserves the right to review the fixed membership fee if it sustains an economic hardship during the five-year period.” The members have brought suit against the club for breach of contract and fraud. The subpoenaed financial records continue to show a small profit. What are the ethical issues and how would you resolve this case using classical ethical principles?
Step by Step Answer:
The Legal And Ethical Environment Of Business
ISBN: 9781454893028
2nd Edition
Authors: Gerald R. Ferrera, Mystica M. Alexander, William P. Wiggins, Cheryl Kirschner, Jonathan J. Darrow