View attached explanation and answer. Let me know if you have any questions.
1
Legal Memorandum
Author
Affiliation
Course
Instructor
Due Date
2
Legal Memorandum
TO: John and Ann Applewood
FROM:
DATE:
RE: Mountain Top View Inc. Case
Legal Issues
The first legal issue facing Mountain Top View Inc. relates to tort law. The tort is a legal
jurisdiction associated with common law where claimants suffer from harm or loss, causing legal
liability to a company or entity that is obligated to provide products or services. A tort case is
often settled via monetary damages or compensation as relief for the wrongful acts (Deakin &
Markesinis, 2019). The main forms of tort law include battery, assault, deliberate infliction of
emotional distress, and false imprisonment. The company faces a serious tort case primarily
regarding negligence and product liability. In torts law, negligence is defined as the failure to
take reasonable care that eventually results in damage to another individual or entity. Product
liability occurs when the seller or manufacturer of a product is considered liable for placing a
defective product in the consumer’s hands (Deakin & Markesinis, 2019). As illustrated in the
case study, a customer was injured and had to have his arm amputated after rock climbing while
using equipment from Mountain Top View Inc. The United States does not have any product
liability law. However, states have their laws and base them on strict liability, negligence, and
breach of warranty theories.
Besides the lawsuit from the equipment failure, the company faces another case regarding
insider trading. Generally, insider trading is defined as a situation where an individual trades a
company’s stock or securities based on the company’s non-public material information
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(Seitzinger, 2016). The law considers insider trading as a breach of fiduciary duty. At the federal
level, laws such as The Insider Trading Sanction Act of 1984 and the Insider Trading and
Securities Exchange Act of 1988 define the punishments given to persons deemed to have
violated the law (Seitzinger, 2016). Both Steve and Victor bought 2,000 shares in company stock
the day before the merger without declaring their actions. In this regard, the culpable individuals
face hefty fines or imprisonment of up to 20 years.
The third legal aspect regards the data breach. Cybersecurity issues are generally
regarded as criminal acts. However, executives and directors can be held liable for a breach for
their failure to anticipate or oversee the company’s security measures (Weber & Studer, 2016).
The investigative authorities will focus on how the information was stored, and measures are
taken to prevent the data from any potential vulnerabilities. The CIO hired by the company
should have taken the necessary measures to ensure the company was free from any data
breaches.
Ethical Issues
Ethical issues are fundamentally different from legal ones. However, some legal issues
have an ethical angle, as illustrated in the case study provided. The clients have bestowed the
company with the trust to safely store their data. However, due to the company’s negligence,
critical information belonging to the clients has been stolen. Essentially, this means that the
company has failed to guarantee the much-needed privacy and confidentiality, two of the most
fundamental ethical responsibilities of the company. Besides being illegal, insider trading is also
considered unethical. The internal stakeholders with material non-public information have an
undue advantage over the rest of the public. Generally, it is considered unethical because it is
unfair to other potential investors and stakeholders (Seitzinger, 2016). Lastly, the company has
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an ethical responsibility to ensure the safety of its customers. It must ensure that its products are
of the required quality standards. Prioritizing profits over safety is regarded as a serious ethical
concern for the organization.
Recommendations
The first recommendation regards corporate responsibility practices the company should
undertake. The company history has demonstrated several weaknesses, such as the safety of its
products and the ability to enhance the security of its customer’s data. As a result, the company
needs to reflect on its practices and develop a customer-centric approach for its business model.
The customer’s needs and satisfaction should inspire all the business decisions and strategies.
Corporate responsibility focus emphasizes the company’s responsibility and accountability to
customers, employees, communities, and shareholders. Besides favoring the customer, the
organization must promote much-needed transparency at all levels to ensure that all stakeholders,
particularly shareholders, are treated fairly and equally. A code of conduct will help emphasize a
culture of responsibility and accountability. The code will identify all the ethical boundaries
within which the company will adopt to maintain its corporate responsibility.
The deontological ethical theory would best guide the company as it seeks to move
forward. The deontological perspective focuses on the duties and morality of human actions. The
theory emphasizes that some actions are morally obligatory regardless of their outcomes (Lazar,
2017). For instance, in this case, Mountain Top View Inc. has a moral duty of ensuring that the
data of the customers are well-kept and maintained against potential breaches. Moreover, the
company has a duty of enhancing customer safety and equal treatment of the shareholders. Thus,
the ethical theory sets the foundation for accountability within an organization. Lastly,
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advancement in technology will significantly help the organization better manage its data. The
advanced technology will also create a database for managing inventory and enhancing quality.
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References
Deakin, S., & Markesinis, B. (2019). Markesinis and Deakin’s tort law. Oxford University Press,
USA.
Lazar, S. (2017). Deontological decision theory and agent-centered options. Ethics, 127(3), 579609.
Seitzinger, M. V. (2016). Federal Securities Law: Insider Trading. Congressional Research
Service.
Weber, R. H., & Studer, E. (2016). Cybersecurity in the Internet of Things: Legal
aspects. Computer Law & Security Review, 32(5), 715-728.
View attached explanation and answer. Let me know if you have any questions.
1
Legal Memorandum
Author
Affiliation
Course
Instructor
Due Date
2
Legal Memorandum
TO: John and Ann Applewood
FROM:
DATE:
RE: Mountain Top View Inc. Case
Legal Issues
The first legal issue facing Mountain Top View Inc. relates to tort law. The tort is a legal
jurisdiction associated with common law where claimants suffer from harm or loss, causing legal
liability to a company or entity that is obligated to provide products or services. A tort case is
often settled via monetary damages or compensation as relief for the wrongful acts (Hayes,
2021). The main forms of tort law include battery, assault, deliberate inflic…
