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The Hot Coffee at McDonald's
- 1. Aaqib Hussain BBA- VII Hot Coffee at McDonald's Hot Coffee at McDonald
- 4. The Case • 79 year old Stella Liebeck went through the drive through at McDonalds with her Grandson • Bought 49cent cup of coffee, placed between her knees to put cream and sugar in and top came off- car was parked at the time
- 5. Continue… • Spilt coffee on thighs, buttocks, causing 2nd and 3rd degree burns- • Liebeck wanted $20 000- for medical expenses • McDonalds offered $800 • Coffee was found to be served at severely hot temperature
- 6. Continue… • The coffee was made at 180-190 F, where as normal temperature of coffee was 140-150 F • The lady was compensated $200,000, but the amount was reduced to ( 200000*80= $160,000)
- 8. Ethical standards • Individual level • Mrs. Stella Liebeck • corporate level • McDonald's • Governance level • The court
- 9. Implication of ethical theories • The due care theory: manufacturer is responsible to inform all the information about the product • Social cost theory: manufacturer is responsible for any cause that arise due to their product • Contractual theory: • Duty to disclose • Right of information
- 10. Thank you!