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Written Assignment #1: Kyle and his family own a successful farming and food processing businessat several locations near Nauvoo in Walker County, AL (not far
Written Assignment #1: Kyle and his family own a successful farming and food processing businessat several locations near Nauvoo in Walker County, AL (not far from Jasper, AL). The produce that they grow (vegetables andfruits) is sold under their own label,Alabama Sunshine. Kyle raises all of the produce on the family's farms and sells it and the condiments that he makes from the produce at a roadside market that his familyowns just outside ofNauvoo at the intersection of Bailey Road and Highway 5. Although his family helps run the business, like many business operations, Kyle hires temporary workers during the peak times of the planting, growing, and harvesting. He also hires temporary workers during peak production times in his condiment (hot sauce and pickles) processing facility in Jasper, AL. As can happen during peak times, Kyle is approached by one ofhis regular (full-time) employees about hiring, as a temporary worker, a brother-in-law named Carl who isnew to Alabama. This potential employee, Carl, would agree to work for below minimum wages, would not expect any health insurance or other benefits, and would gladly acceptall earningsin cash without any deductions for social security (OASDI) or other taxes. The offer is tempting for Kyle. With the rising costs of fuel, fertilizer, and supplies, Kyle needs to cut expenses wherever and whenever possible. He could save money by hiring Carl. Since his operation isrural (primarily inWalker and Winston counties, AL), he feels that he would probably not have anyproblemsfrom State or federal authorities. Kyle tries to be an ethical business person. He knows that what he is being asked to do is questionable at best and possibly illegal but it is late February;planting season for early spring crops is upon him, harvest time for the winter crops is approaching quickly; and he knows that he needs the extraworkers to get his crops processed and the future crops planted.Without a successful harvest and preparation for the next planting, there will be noAlabama Sunshineproduce to sell and he will not be able to support his family or the regular employees. As people have grown more health conscious, demand for Kyle's organically grown produce has increased and grocery store customers are asking forAlabama Sunshineproducts by name. Kyle would like to expand the retail operations to include a store along I-22, a nearby major highway that connects Birmingham, AL,and Holly Springs, MS; however, he does not want to get entangled in what he considers to be "unnecessary" federal and state regulations. He knows that he could face some problems but is not sure what those problems might be. Kyle finished his business degree from UNA several years ago and he vaguely recalls Unit 1 in his BL 240 textbook, so he understands the basic issues but he trusts your knowledge and comes to you for advice and counsel. Among the many questions you must address, you ask yourself: What should Kyle consider as he ponders the relationship between "law" and "business ethics"? What factors, if any, have changed society's concept of business ethics and the social responsibility of business enterprises? What should Kyle understand about the relationship between "maximum profits" and "optimum profits"? Kyle feels certain that the State of Alabama can regulate his business (but he's not sure where the State gets the power to do so) and wonders if the federal government can also regulate his business. As you consider Kyle's situation, you ponder Kyle's best argument against federal regulation of his roadside stand and farm businesses as the operations exist now. Will he be successful in this argument? Would it make a difference if he opens a store along the highway I-22? Under what authority would the State of Alabama have an interest in Kyle's business? What other issues might Kyle face?
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