Essay on Legal and Ethical Scenarios

Published: 2021/11/16
Number of words: 1776


Business owners in the field of entrepreneurship are often caught by legal challenges that cripple their businesses. The best way to fight this problem is to trust business law during the formulation of a business. Some issues are hard to navigate for any business owner; ethical issues have held a wide range within an organization’s ethical standards. Business ethics are a central concern in a business organization. Ethics are also called corporate ethics; these principles examine moral values and problems rising in a workplace environment. There are three forms: corporate, professional, and personal. If you run an ethical business, you should know what ethics to expect, the outcomes, and how to deal with them. Concerning the problem in this question, business laws have come forth to hold workers accountable in workplace ethical issues. Some of the scenarios the owner or any business founder should withstand, face, and fight are unethical accounting, health, safety, discrimination, company policy, business formation, employee and partners agreement.

Business formation

The strength of a building is the type of foundation during construction; therefore, for reasonable business progress, the owner must adhere to a good business structure; every business needs to start on the right footing. (Bayard et al., 2018) ideologically business formation is steps under evaluation. Statistically, the formation contains measures necessary for the application of required business. Brown and Connor are business partners owning Brocon restaurant. The business is currently doing well. Knowing that Connor has hospitality and management skills, the business is fully managed and now has a large flow in their new restaurant. They have to consider the type of business organization for their existing restaurant. For the Brocon business structure, three types of business may apply; some of the applicable business types are:

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Partnership- this is a straightforward business structure for two people. Partnership business structure occurs in two forms. Limited partnership: One partner is recommended to have limited liability, which tends to have limited control over the company. The best thing with this structure is that every party equally divides the company’s total profit; the divided resources generate more output for the business . However, this might not apply to Brocon Company simply because the structure each partner is 100% responsible for losses in the company; this may not be suitable for Brocon business since they deal with perishable goods which may spoil and become unsafe to the consumers. If a situation like this may occur, Brocon will go to a sudden loss, leading to the closure of the new restaurants.

A corporation (C –Corp) is a legal entity separate from the owner; it makes profit and taxations and is held legally liable. C- corp protects the owner from personal liability.

However, have a high cost of liability and needs more severe record keeping. It also has pervasive operational practices; the best thing with this structure is that they pay income tax with their profits and do not depend on their shareholders. They are not faced with high risks since they make an excellent profit to conquer their risks. Having that C-corp is entirely advantageous; it can never apply to this issue of Brocon business. The structure has very many needs, and it is costly. Bronson Company is a new business and has not maneuvered in this field of business; therefore, they do not have the tenacity to fight any ethical issue.

Limited liability company covers both corporate and partnership; it protects the owners from business liability, such as issues of loss, bankruptcy, and lawsuits. (Basory et al., 2021) without a limited liability cover, an investor may refuse ownership from the farm simply because company loss will be higher than it should. According to the needs of Brocon Company, safety is critical. Brocon will be protected from high business risks; their assets will be safe. To sum up, the only business type for Brocon is limited liability cover simply because they will have all their loss covered, like harassment in the workplace and health safety issues.

Business law

Commercial law is a field that regulates persons, merchants any and anyone who is involved in sales; this area of law interacts with other areas to provide a clean environment for business activities. Uniform commercial law (UCC) is not federal law; it is a state law with equality. This law applies where there are interest transactions. Brocon restaurant involves transactions of various assets, services, and negotiable instruments like chairs and tables. Uniform commercial code covers the assets about the sale of goods. Therefore, it protects both parties involved in the transaction. According to Ali ( 2019), due to the rapid growth of business between inter countries and continents, business law has come forth to enhance more dependency on commercial law for safe transaction of money and assets, peace, and business diversity.

 Health and safety in the workplace

All employers have a right to safety. Health administration emphasizes the rise of psychosocial risks. Every occupier must conduct appropriate risk assessments concerning the safety and health of employees and, based on the results, take preventive measures and safeguards to ensure that under all conditions. All chemicals, machinery, equipment, and tools are safe and secure regardless of their intended use and processes under the occupier’s control, without endangering one’s health and per the requirements. This Act includes provisions for personal safety. (Omofowa et al., 2021) leadership quality dimension of best practice promotes employee health and safety on the job. Furthermore, safe work procedures are a component of best practices and promote employee health and safety. Health organization has put weight insurance cover to the third party alleging.

Nonetheless, they give rise to liability for their providers, where of the Member have enough applicable requirements (Bugra, 2019). Product liability is an insurance cover for any hazards of the harmful products that are sold and may cause harm to the consumers. In this issue of Brocon restaurant, it is necessary to acquire product cove since the business is designed to make physical products since they are liable for any property damage. There are three avenues in product liability that cover compensation.

Breach of warranty; this is the law of contact between you and the manufacturer of the assets. This avenue is not mostly used for the third party claim since its limitations make it challenging to use. What limits it is that It has privity, which means there is direct contact between the parties. Also, the seller puts limitations to the warranties in affine print, restricts an injured person to raise their claim.

Negligence is lack of care; under this, any party involved with carelessness is toned liable. The factor of responsibility is necessary for Brocon restaurant to be liable for any careless handling of customers. However, it might be hard to apply this since some claims require detailed investigation.

Strict liability- this law allows the injured party to claim compensation, but the injured party does not need to discover who caused the problem. The lawsuits the Brocon restaurant since the business does not hold only local people, but also travelers served with fast foods. The claim for the injury can be made no matter the distance.

Ethics in accounting practices

Any business organization must maintain specific bookkeeping; if not that, then a critical concern to the organization, especially in public trading industries. If the member pertaining primary liability becomes dishonest, the members with the secondary liability are said to be liable. The secondary party is the drawer, while the primary party is the drawee. According to Accept Terms and Conditions on JSTOR (2021), a bank pays a cheque with its own money, not the one who deposited (drawer); the bank is forced to charge the depositor if the name is under drawer is a forgery.

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In cases of cheque dishonesty, the drawer of such a check takes risks and compensates the holder of such money. In the case of the Brocon business, Erica forged the drawer’s name as east Tennessee packaging (ETP) as drawer; since the drawer’s name was forged, the bank will charge Erika, and the bank will recover the money from the good-faith holder.


Conclusively, every business needs a solid foundation; whatever you choose will stick in your business for years. The number of employers to have, type of law to place along, the type of business entity, the business ethical issues, and how to deal with them. Business management should know what they want in operation. For instance, hiring a good law allows the owner to set a sold framework in a business. Some problems are due to bad decision makings that cause a business to stand in a dilemma. In this section, we summarize the ethical recommendations in workplace situations and how to solve ethical dilemmas. Dilemma measures are crucial to success; refute the ethical issue, value the theories and consider, make decisions and work on your goals, and choose a sound business entity corresponding to your business. To sum up, for successes, navigate change; failure is in learning as you enjoy the business journey.


Accept Terms and Conditions on JSTOR.risk of forgery or alteration of negotiable instruments (n.d.). Retrieved September 8, 2021, from

Ali, S. F. (2019, November 26). Transnational Commercial Law of Arbitration – Developments and Controversies.

Basory, H. A., Suwitera, N. K. S. W., & Setiawan, R. (2021). Economic Justification, Russia Business Regulation and Risk Management in Russian Companies: Limited Liability Company “SSK.” International Journal of Progressive Sciences and Technologies25(1), 24.

Bayard, K., Dunne, T., Dinlersoz, E., Haltiwanger, J., Miranda, J., & Stevens, J. J. (2018, March). Early-Stage Business Formation: An Analysis of Applications for Employer Identification Numbers.

‌ Bugra, A. (2019). Room for Compulsory Product Liability Insurance in the European Union for Smart Robots? Reflections on the Compelling Challenges. AIDA Europe Research Series on Insurance Law and Regulation, 167–197.

OMOFOWA, S., AKHIDUE-OGOGO, R. O., NWACHUKWU, C., & LAM, Trung Minh. (2021). Best Practices for Employees’ Workplace Health and Safety Mediating Role of Organizational Culture – eudl. Eudl. eu

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