Situational Analysis

Situational Analysis

Siituation 1.1

As a manager you have an obligation to do what is best for the business.  Obviously, in this situation you are torn because you also feel an allegiance to your friend.

The legal issue here is, if because of your friend’s drinking problem a customer or employee becomes injured at the restaurant, it could be argued that the restaurant knew or should have known of the problem because of your knowledge of the second arrest.  And knowing of the problem and failing to take any steps to correct it created a danger for customers, other employees, or perhaps innocent third parties (i.e. the manager becomes intoxicated at the restaurant and has an accident driving home and injures an innocent driver).

Accordingly, sharing this with your employer is the legally responsible thing to do.


A vendor has agreed to clean your hotel carpets at a very competitive price.  In a telephone conversation with you, the vendor states that if it gets the contract, members of its staff will “do your home carpets once a year” as a thank you.  Apply the seven criteria for ethical behavior to this situation.


  1. I would have liked to see the following questions answered:
  2. Is it legal?
  3. Does it hurt anyone?
  4. Is it fair?
  5. Am I being honest?
  6. Would I care if it happened to me?
  7. Would I publicize my action?
  8. What if everyone does it?


Situation 2.1”

This situation raises two issues:

  1. MSDS sheets should not only be available but they should be reviewed with the worker prior to the task being performed;
  2. A manager must understand the reading and language skills of their employees to ensure a thorough understanding of the potential dangers of interacting with certain chemicals or machinery. In most instances, MSDS sheets are available from the manufacturer in several languages.  That would certainly have been helpful in this situation.


If it had been the common custom and practice to review the MSDS sheet with the worker prior to the task, Bert, if he had not already known, would have discovered that Carlos did not understand English and perhaps could have located a Spanish version of the MSDS sheet.  This is an accident that should have been prevented.


“Situation 2.2”

This is a difficult situation because it appears from the facts presented that Trixie’s organization was well trained and followed through on their responsibilities.  Nevertheless, there are two concerns:

  1. The fact that a minor was served.  The courts recognize that a server of alcohol can only do so much to prevent the use of fraudulent identification to procure alcoholic beverages for minors.  This particular situation demonstrates excellent procedures that can be used to demonstrate diligence by the server to insure that minors are not served via fraudulent identification.  It is unlikely that liability will arise due to the fact that the minor was served alcohol.
  2. The other issue that will need to be defended is the decision to serve three glasses of wine in 90 minutes.  Most people become somewhat impaired when they consume two alcoholic beverages within a one to two hour period.  The question would be – were the patrons demonstrating any physical signs of intoxication during the time they were served?  If so, and if the attorney for the injured patron can demonstrate that the alcohol played a role in the accident, then the bar may have some concerns.


It appears that Trixie has contacted her attorney, her next step, if she has not already done so, would be to make her insurance company aware of the claim, and begin to request statements from her employees regarding the incident.


Finally, it might be a good idea to implement a policy that is used by some restaurants and clubs that when a patron orders a third drink prior to that drink being served to them or any other drink during the evening that a manager must visit with them for a few minutes to determine if service is still appropriate.


“Situation 3.2”

Even though this sounds fairly simple and you are dealing with a friend, the best advice here is to seek legal counsel that deals in protecting intangible property rights such as recipes, procedures, and names (trademarks/service marks).  Additionally, in most states, the sale of a “franchise” such as this is normally subject to very specific disclosure requirements.  Also, the Federal Trade Commission governs the sale of franchises so one must use extreme caution in order to comply appropriately with all of the applicable rules and laws.


By using caution and complying with all applicable laws, you would reap the benefits of your sale if the friend is successful in using the concept; if your friend is not successful, it would be very difficult for you to be held responsible for his or her business failure.


Situation 4.3

It is clear in this situation that Joanna, rather than accepting the offer, made a counteroffer.  Therefore, it is now totally up to the owner, in his or her sole discretion,  whether or not to accept Joanna’s counteroffer.  The owner is right when he tells Joanna that she rejected the offer.  By making a counteroffer the first offer is rejected.  In this instance, it is up to the owner to decide whether or not he is still interested in having Joanna as the manager at the originally proposed salary.



You purchased a warranty for your telephone system that provides 24-hour response time from the vendor.  Draft a letter (no more than one page) to the vendor protesting the breach of contract that resulted when it took three days for you to get service.  Remember that your goal is to have a professional relationship with the vendor, as well as a working telephone system.


I was specifically looking for dates and times.  First, you should date your letter.  Second, you should list the date the incident happened such as “I requested service on January 1, 2015 and received service three days later on January 3rd, 2015”.  Since it took three days for service, this breached our agreement that your organization would respond within 24 hours”.


Situation 5.2

  1. Melissa would want to calmly listen to the concerns; ask for reasonable suggestions that might be accomplished in the time remaining; let the aide know that she is taking these concerns into consideration upon drafting the final invoice (although you might want to get your money up front).


  1. The contract should accept normal wear and tear from the guaranty provisions by the Convention Center.
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