BUSINESS LAW --- For this assignment, you will consider the consequences of acting ethically or unethically. After carefully reading the supplemental ethics materials (Jennings handout), discuss fully the ethical issues related to this case. (1) Categorize the ethical dilemma(s), (2) examine the matter from other perspectives, (3) describe any possible rationalizations, and finally, (4) use at least one of the ethics models to resolve the situation.

Your answer must be typed (double-spaced, font size 12) and between 600 to 1000 words in length.

The Case

Jerald Washington serves on the City Planning Commission. The city is planning to build a new light rail system and is accepting bids on the proposal. Jerald's sister-in-law, Serena, who owns the Worldwide Transportation Co., has submitted the lowest bid for the system. The Custom Transportation Co. has submitted a slightly higher bid for the job. Jerald knows that Serena could complete the job for the estimated amount, but he also knows if Serena gets and completes this project, she will have enough money to sell her company and quit working. Jerald is concerned that the Worldwide Transportation's subsequent management might not be easy to work with if revisions need to be made on the light rail system after its completion. He is torn as to whether he should tell the city about the potential changes in the Worldwide Transportation's management. If the city knew about the instability of Worldwide Transportation, it might prefer to give the contract to Custom Transportation, whose bid was higher than the Worldwide Transportation's bid by only a small amount. Does Jerald have an ethical obligation to disclose the information about Serena to the City Planning Commission?