Management and Organizational Studies 2275A/B Chapter Notes - Chapter 1: Punitive Damages, Corporate Law, Debt Management Plan
Document Summary
Chapter 1: knowledge of law as a business asset. Women sued macdonald"s for being injured from a hot coffee spill. When she received her coffee she was in the passenger seat and the car was parked. She put the coffee between her legs and as she leaned for the lid, she spilt the coffee on her. From this she obtained 3rd degree and 2nd degree and needed severe skin surgery. After the incident she quit her job and rarely left the house (life changing event) Her lawyer asked for 90,000 dollars and macdonald"s only accepted 800 dollars, therefore she sued. Through macdonald"s research they discovered that the time it takes between the purchase of coffee and consumption is 7 minutes and therefore the coffee would cool down. Macdonald"s serves their coffee 15 degrees hotter than the rest of their competitors. At trial, a specialist confirmed coffee is too hot to consume at purchase.