Case summary:
Some years back a major lawsuit against MD made the news, when a drive-through customer spilled scalding hot coffee on herself. The 80-year-old woman received a final settlement of $640,000. MD however maintained that the coffee was served as per specifications to ensure proper quality, and the coffee had printed on it “caution – contents may be hot”.
Subsequently several well-known drive through chains have had similar experiences, and in most cases the judgement has gone in favour of the plaintiff.
To determine: Are the drive through chains at fault in such cases? How does ethics and quality relate to these cases?
Explanation of Solution
The drive-through chains are not at fault in such cases, since clear warnings have been provided on the cup that the contents are hot. Further the only way to make a coffee of adequate quality is to pass steam through it.
The relation to ethics in this case is not really strong, since there are more prominent cases where companies have flouted ethics leading to human deaths due to chemical poisoning or bad product design.
Quality is always a perceived concept. It is in the eye of the beholder. However in this case, most coffee drinkers know that to prepare coffee requires very hot water to bring out the flavor. Hence if MD compromises on the water temperature the coffee will not taste the same, and customers will then not want the coffee.
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Chapter 6 Solutions
Operations Management
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