When more employers were required to provide healthcare benefits for employees, eight restaurants in the Los Angeles
Question:
When more employers were required to provide healthcare benefits for employees, eight restaurants in the Los Angeles area all added a 3 percent surcharge to their bills, explaining to customers that the sum was needed to cover the cost of healthcare benefits. A class action suit was filed against the restaurants contending they were engaged in illegal price fixing in violation of antitrust law. Is it ethical for the restaurant owners to make clear to customers why their prices are going up by saying so expressly on the bills, rather than just raising prices and burying the cost in general prices? Is it ethical for those filing suit to claim that businesses should not pass on their higher healthcare cost?
Step by Step Answer:
The Legal Environment of Business
ISBN: 978-1337095495
13th edition
Authors: Roger E. Meiners, Al H. Ringleb, Frances L. Edwards