Reference no: EM131536823

PROJECT 1 - CASE ANALYSIS

This assignment requires you to read and respond to the case scenario below using critical analysis and the course material from weeks 1-3. Please read the instructions very carefully and ask questions early!  The grading rubric for this assignment is posted here:

FORMAT REQUIREMENTS:

• Label each Section and part of analysis, as Section A, 1., Section A, 2., etc.
• Analyses should be comprehensive, fully supported/justified/explained, specific, and detailed in rationale (this is a most important requirement of this project)
• Analyses should be paragraph format
• All in text citations must be in APA proper format
• Each part should a minimum of 3-4 paragraphs, and likely will be, and should be, longer to be adequately comprehensive.
• Follow directions for assignment closely

CASE SCENARIO: 

Clear 'n Brite, Inc. (Clear), a commercial interior and exterior cleaning service business operated profitably for 10 years with no legal claims against it. Clear had always purchased its cleaning solutions and products from Green Glow, Inc. (Green), a company that manufactures only chemical-free cleaning products. All products purchased are chemical-free cleaning products and supplies, e.g., gloves, masks, etc. 

Each of the Green products carries the following warning label:

Warning: Use only as directed and in a properly ventilated area. Use only the amount of product as directed on the product Directions for Use. Wear gloves when using this product to avoid possible skin irritation. 

Do not ingest product internally. If ingested, seek medical attention immediately.

Avoid contact with eyes to prevent irritation. If product contacts eyes, wash with clear water and seek medical attention if irritation continues more than a few minutes or worsens.

For 6 months, 3 client-companies operating in large office spaces reported to Clear that many employees were complaining of rashes, headaches, and/or nausea after Clear completed routine cleaning services using its usual Green cleaning products in the offices. 

The symptoms of many employees worsened over the months; many needed medical treatment such as allergy medications, and some missed work due to their symptoms.

Clear met with client representatives several times about the complaints, but claimed that no products or cleaning procedures had changed during the 6 months, that the products had never caused harm to consumers or users, that the products were inspected and stored in the usual manner, and that, thus, the employee problems had to be related to other causes.  

US Office Services, Inc., (US Office) one of the 3 client companies, eventually sued Clear and Green under strict product liability for defective and negligent manufacture of the cleaning products, and for failure to adequately warn of dangers of the cleaning products.

Clear and Green denied liability claiming that the products were not defective, not dangerous, that the product warning was sufficient, and that Clear was protected by an exculpatory clause in its contract with US Office in which Clear waived liability for injuries to client-consumers.

The court ruled in favor of US Office and awarded damages.

INSTRUCTIONS FOR YOUR RESPONSE:

Based on the case scenario above, compose a response in accordance with the directions outlined below.

Label each section, Section A and Section B, and label each part of each section, i.e., 1., 2., 3., etc.

Section A.  Assume you are the owner of Clear. You are preparing to meet with Clear's attorney to discuss an appeal to the court's ruling. To help clarify your thoughts about the case, prior to meeting with the attorney, compose a comprehensive summary analysis addressing each of the following topics (in 2-4 paragraphs each, approximately):

1. why you agree/disagree with the appropriateness of the specific parties sued as consistent with product liability law; 

2. why you agree/disagree that the symptoms of the US Office workers support a valid claim that the Green products were defective;

3. why you agree/disagree the Green product warning label is adequate;

4. whether the exculpatory clause in Clear's contract with US Office should affect the outcome of the lawsuit, and if so, how.

Section B.  Write an exculpatory clause to be included in all future contracts with clients that you believe is appropriate, legal, would protect Clear from certain liabilities, and likely would be upheld by a court.

1. Write a 1-2 paragraph explanation of why you believe the exculpatory clause is likely to be upheld by a court.