Ethics Case Study Jack Johnson is the owner of Jacks Family Restaurant, an upscale family-style restaurant in downtown Chattanooga. Jacks has been in business for more than 30 years and has developed a widespread reputation throughout southeastern Tennessee for fine dining and personalized service. Jack is not only the owner, but also the head chef. He makes it his practice to come out of the kitchen into the dining room to greet his customers, and he knows many of his regular customers on a first-name basis. As a result, over the years he has developed a loyal clientele. Over the July 4 holiday weekend, Jacks offered a special barbecue dinner, cooked over a grill on the outdoor patio and served to customers outdoors under a tent that Jack had rented for the occasion. On July 5, Jack received a phone call from a customer who claimed that she became sick after eating at his restaurant the previous day. The next day he received two more such calls. On July 7 Jack received yet another call with a similar complaint from the wife of a customer who had eaten at his restaurant on the 4th, and who was now in the hospital being treated for severe food poisoning. After investigating, Jack discovered that the shipment of meat he served on July 4 was contaminated with a strain of salmonella, a form of food poisoning. Jack had recently switched to a new supplier for the meat served at his restaurant, and he strongly suspected that the meat was contaminated when it was delivered to him. However, because of the time that has passed, it would be difficult for him to prove that the contamination was the fault of the vendor who supplied the meat, and he was sure that the vendor would claim that it was due to the way the meat was stored and handled after it had been delivered to his restaurant. Jack is concerned that if word gets out that his customers got food poisoning from eating at his restaurant, his business will suffer. He is also worried about the possibility of a lawsuit by one or more of his customers. Due to the recent economic downturn, he has been losing money at his restaurant, and he is afraid that if business doesnt improve he may have to close. He is also worried about the future for the 35 employees who depend on his restaurant for their livelihoodcooks, waiters and waitresses, dishwashers, hostesses, busboys, etc. Only a small amount of the meat remains in Jacks refrigerator, and he could easily dispose of it without leaving any trace, so that no one would be able to tell for certain where the contamination came from. So far, no one else is aware of what Jack has learned about the meat. Based on the foregoing facts, answer the following questions. 1. To whom does Jack owe a duty? (There is more than one answer list all individuals or groups you can think of.) For each response, describe the nature of that duty. 2. What action should Jack take to fulfill his duty to each person or group identified in your answer to question 1, above? 3. What are the possible economic and/or legal consequences for each action identified in your answer to question 2, above? 4. Discuss all ethical conflicts that may arise between the duties that Jack owes to each person or group. 5. If Jack sought legal advice from you, what would you advise him to do? Would your advice depend on whether his restaurant is covered by liability insurance? 6. Is your advice the most ethical approach to this problem? Why or why not? If the advice you would give Jack is not the most ethical approach, explain why you chose this action. *Adapted from Bagley and Savage, Managers and the Legal Environment, 5th Ed., Chapter 1.