Reference no: EM133665019

Discussion Post

I. Go to the internet and find a news article posted within the last month that discusses a potential positive or negative externality. Summarize key points in your initial discussion post. Be sure to use the concepts, terminology, and frameworks that are covered this week. For example, you may want to address what externality this regulation is attempting to address. Is it a positive or negative externality? What is the current policy being used? Is there an alternative policy approach that may work better/worse (taxes or subsidies, for example), and why? How effective does the current policy appear to be working?

Note that the goal of this discussion is to read, understand, and discuss recent news using microeconomic terminology. The article should be from an online newspaper or magazine. Materials posted on educational websites, such as The Balance, Khan Academy, and so on, are not considered news articles even if they were recently updated and contain material related to the discussion topic.

Reflection: the students should also include a paragraph in the initial response in their own words, using microeconomic terminology, reflecting on what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.

II. Background/Facts: During a meeting with Winnie and Ralph, the Viral ("Clean") owners, and you, the owners asked several questions about their potential liability for on-the-job accidents resulting in injuries to employees. They particularly need an explanation about Maryland's workers' compensation law.

Winnie and Ralph asked you to respond to the following situation.

Clean secures a contract with the State of Maryland to be part of the distribution chain for PPE items. Negotiations for the contract and conversations about the contract stressed that "speed is of the essence," especially in the critical transfer points like the warehouses and substations. Clean hired Maryland Helpers, a licensed and insured provider of manual laborers to assist with the movement of PPE items and loading of delivery vehicles at both the warehouse and several distribution centers. On Friday afternoon, one of the Clean supervisors was assisting with the loading of masks and respirators when the strappings on the pallet broke, and several respirators fell. The supervisor, Thomas Benson, suffered several broken bones in his foot that would require surgery and several weeks of physical therapy over approximately eight weeks of absence from work. One of the contract employees, Sarah Carter, severely sprained her ankle to get out of the way. She received several x-rays and stayed overnight at the hospital for observation. The treating physician said Sarah should attend physical therapy for four weeks but should otherwise reframe from walking.

A. Analyze whether Thomas can recover his medical expenses under Maryland's workers' compensation law.
B. Analyze whether Sarah can recover her medical expenses under Maryland's workers' compensation law.