Ethical Dilemma – Risk A lawsuit in 1992 made headlines worldwide when a McDonald’s drive-through customer (Stella Liebeck) spilled a cup of scalding hot coffee on herself. Claiming the coffee was too hot to be safely consumed in a car, the badly burned 80-year-old woman won $2.9 million in court. (The judge later reduced the award to $640,000.) McDonald’s claimed the product was served to the correct specifications and was of proper quality. Further, the cup read “Caution—Contents May Be Hot.” McDonald’s coffee, at 180°, is substantially hotter (by corporate rule) than typical restaurant coffee, despite hundreds of coffee-scalding complaints in the past 10 years. Similar court cases, incidentally, resulted in smaller verdicts, but again in favour of the plaintiffs. For example, Motor City Bagel Shop was sued for a spilled cup of coffee by a drive-through patron, and Starbucks by a customer who spilled coffee on her own ankle. Are McDonald’s, Motor City, and Starbucks at fault in situations such as these? How do quality and ethics enter into these cases?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Ethical Dilemma – Risk
A lawsuit in 1992 made headlines worldwide when a
McDonald’s drive-through customer (Stella Liebeck)
spilled a cup of scalding hot coffee on herself. Claiming
the coffee was too hot to be safely consumed in a car,
the badly burned 80-year-old woman won $2.9 million
in court. (The judge later reduced the award to
$640,000.)
McDonald’s claimed the product was served to the
correct specifications and was of proper quality.
Further, the cup read “Caution—Contents May Be
Hot.”
McDonald’s coffee, at 180°, is substantially hotter (by
corporate rule) than typical restaurant coffee, despite hundreds of coffee-scalding
complaints in the past 10 years. Similar court cases, incidentally, resulted in smaller verdicts,
but again in favour of the plaintiffs. For example, Motor City Bagel Shop was sued for a
spilled cup of coffee by a drive-through patron, and Starbucks by a customer who spilled
coffee on her own ankle.
Are McDonald’s, Motor City, and Starbucks at fault in situations such as these? How do
quality and ethics enter into these cases?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Franchising
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.