Susan Whitehead serves on the city planning commission. The city is planning to build a new subway

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Susan Whitehead serves on the city planning commission. The city is planning to build a new subway system, and Susan’s brother-in-law, Jerry, who owns the Custom Transportation Co., has submitted the lowest bid for the system. Susan knows that Jerry could complete the job for the estimated amount, but she also knows that once Jerry finishes this job, he will probably sell his company and retire. Susan is concerned that Custom Transportation’s subsequent management might not be as easy to work with if revisions need to be made on the subway system after its completion. She is torn as to whether she should tell the city about the potential changes in Custom Transportation’s management. If the city knew about the instability of Custom Transportation, it might prefer to give the contract to one of Jerry’s competitors, whose bid was only slightly higher than Jerry’s. Does Susan have an ethical obligation to disclose the information about Jerry to the city planning commission? How would you apply duty-based ethical standards to this question? What might be the outcome of a utilitarian analysis? Discuss fully.


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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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