Download Business Ethics Case – Chapter 1

Business Ethics Case – Chapter 1
Suppose you are an attorney for a construction company. While reviewing plans for a
new dormitory your company is building, you realize the dormitory will be built next to a
house you are selling. Someone has offered to buy the house for exactly the amount you
want. You know that as soon as the college announces where the dormitory will be
located, prices for surrounding property, including yours, will drastically fall. You must
now call the person interested in buying your property with your decision on the offer.
1. Determine the ethical issue
Ethical rules of attorneys require them not to take advantage of unequal situations
such as this
2. Identify the actions for handling the situation
Decline the offer without giving reason
If you know when the college will be announcing the location, you may tell the buyer
that you need until that date to make a decision.
3. Identify the people affected by the situation
People affected would be you (the attorney)
the home owner that is selling
any potential buyers
4. Analyze how the situation affects the people involved
Your property value would fall
The new buyer’s property value may fall
OR the new buyer could rent out to college students
5. Decide which of the actions to take
Decline the offer without reason. Tell the buyer you will get back to them when you
know more information about the dorm.
Business Ethics Case – Chapter 1