Question

Joe Laramie owns and operates Joe's Burgers, a small fast food store, located at the edge of City College campus in Newton, Ohio. After several very profitable years, Joe's Burgers began to have problems. Most of the problems were related to Joe's expansion of the eating area in the restaurant without corresponding increases in the food preparation area. Joe does not have the cash or financial backing to expand further. He has therefore decided to sell his business.William Sheets is interested in purchasing the business. However, he is located in another city and is unfamiliar with Newton. He has asked Joe why he is selling Joe's Burgers. Joe replies that his elderly mother requires extra care, and that his brother needs help in his manufacturing business. Both are true, but neither is his primary reason for selling. Joe reasons that William should not have asked him anyway, since profitable businesses don't come up for sale.Required:1. Identify the stakeholders in this situation.2. Did Joe act ethically in not revealing fully his reasons for selling the business? Why or why not?

Answer 1

Solution:

1) Identifying the Stakeholders in this Situation:

The following is the Stakeholders:

Joe Laramie	Students of City College and other customers
William Sheets	City College
Newton, Ohio	Persons financing the purchase of Don's Burgers

2) By Selling the Business Joe didn't act Ethically in not revealing the Reasons. The Purchaser has to investigate a Business before Purchasing the business, rather than relying entirely on the seller's assertions. The Students has the Opinion of this reason. The Students should realize that Joe should have Said something about his problems. Joe will act as ecthical by putting his problems before the seller, but Joe has a failure to disclose them at all is certainly unethical. Joe have shown an intent to deceive that is unethical, and might be actionable in court as well.