Legal and Ethical Issues in Business

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Legal and Ethical Issues in Business Case Study #1 Stellar Health PMBA 503 1. Legal Issue Stellar Health Order Fulfillment “Hollywood is a place where they place you under contract instead of under observation.” - Walter Winchell A lot can be learned from Hollywood Film and TV industry in terms of contracts. When Stellar Health received an order worth $7,000,000 in revenue and attributed to the company’s profit, a valid contract must have been in place prior to production otherwise this can cause serious financial damages to both parties. Business to Business transactions are assured to take due to Contract Law that is designed to provide stability and predictability for both parties in the marketplace (Miller, 2011). Otherwise, business and commerce would not in existence. An order of this magnitude exists due to a valid contract in place for both parties. An offer was made by both parties – scenario can be: Stellar Health made an offer to Strong-n-Healthy to supply and produce vitamins and supplements for its stores. Strong-n-Healthy accepted this offer with a certain amount that would cover the distribution and operating costs for selling vitamins and supplements produced by Stellar Health. Another element is the capacity of both companies’ ability to enter this agreement. Stellar Health being a mid-size pharmaceutical company has the license to supply and produce vitamins and supplements and Strong-n-Healthy with its numerous store locations. In addition, the legality of this transaction is not in question due to the legal goal for both parties to enter this contract for commercial purposes and would obstruct with the law. These four elements constitute the validity of the contract between Stellar Health and Strong-n-Healthy as if any of these elements are lacking, no contract will have been formed (Miller, 2011). Lastly, as a future

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