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Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
Department of Business Administration
College of Administrative and Financial Sciences
Case study
The Legal Environment of Business (LAW101)
Course Name: Introduction to
StudentàName:
Operations Management
Course Code: LAW101
StudentàID Number:
Semester: 2nd
CRN:
Academic Year: 2022-23
For InstructoràUse only
InstructoràName:
Students rade: Marks Obtained/Out
of
Level of Marks: High/Middle/Low
Case study
In Brazil, the export industry always finds ways to cut costs. The international
community expressed its dismay at the manufacturers,atest cost-cutting decision
to replace flouride with diethylene glycol in toothpaste. Flouride is designed to
strengthen teeth enamel. Diethylene glycol is a poisonous substance used to make
chemicals that are widely used by the automobile industry.
The end product exported from Brazil was poisonous toothpaste that was not
labeled to indicate that it contained diethylene glycol. When the poisonous
chemical was found in the toothpaste, Costa Rican government officials issued a
warning telling consumers to discard the toothpaste.
In 2019, a study found that toothpaste containing diethylene glycol was harmless
if the chemical concentration was below 15.6 percent. The contaminated toothpaste
found in Costa Rica contained levels as high as 5 percent. Costa Rican government
officials warned that it was unsafe in any concentration. It is especially harmful for
children, as well as those suffering from weakened kidneys.
In July 2020, due to growing concern about the safety of the imported toothpaste,
the Costa Rican government banned all manufacturers from using diethylene
glycol in toothpaste. Investigators believed that the toothpaste originated from two
small manufacturers in the Brazil but the manufacturers denied any wrongdoing.
The contaminated toothpaste was found in five shipping containers but there have
not been any confirmed illnesses or deaths from using the contaminated
toothpaste.
Q1. If you were manufacturing toothpaste and decided to substitute
diethylene glycol for glycerin, would you consider it your ethical obligation to
tell the consumer? (Please use the IRAC method and use 2 to 3 paragraphs,
minimum500 words)
Answer:
Q2. Identify and discuss one defense to contract formation that can be utilized in court?
(Explain what a contract defense is. What are the SPECIFIC defenses? What does the
textbook say about these defenses? Give examples of each type of defense. please use 2 to 3
paragraphs, minimum300 words)
Answer:

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