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If you were the owner of Universal and you discovered what the serviceperson had done to Bauza, how would you handle this situation from an ethical point of view?

If you were the owner of Universal and you discovered what the serviceperson had done to Bauza, how would you handle this situation from an ethical point of view?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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If you were the owner of Universal and you discovered what the serviceperson had done to Bauza, how would you handle this situation from an ethical point of view?
Ethics Emphasis Bauza, age seventy-eight and in poor health, discovered that her furnace was not working properly. The part of the country in which she lived was experiencing se- vere winter weather and heavy snow, and extreme cold weather was predicted. She scanned the yellow pages of the telephone book and spotted an ad by Univer- sal Heating and Air Conditioning that read:"24 Hours Emergency Service-Family- Owned Business Offering Prompt, Honest, Low-Cost Service. Special Considera- tion Given to Senior Citizens." When Bauza called Universal (she was attracted by this ad), she indicated that she was a senior in poor health and on welfare who could not afford to be without heat. Universal agreed to send a serviceperson to her house within an hour. A short time later the serviceperson arrived and exam- ined the furnace. Afterward he indicated to her that the furnace (which was only five years old) needed major repairs but that these repairs were out of warranty. The cost estimate given to her was $500. Actually, the serviceperson was not being truthful. He was simply taking advantage of Bauza, who had no idea what was wrong and what the cost of repairs should be. She had to rely on the serviceperson's expertise. The furnace actually needed only minor repairs totaling $90. Bauza knew that she had to have the repairs done, but she also knew that she couldn't come up with the money. She asked to pay in three monthly installments because she did not own a credit card. The owner of the business approved this method of payment as long as Bauza signed a paper agreeing to make these pay- ments. Bauza signed and the repairs were made. Question to Discuss If you were the owner of Universal and you discovered what the serviceperson had done to Bauza, how would you handle this situation from an ethical point of view?
Transcribed Image Text:Ethics Emphasis Bauza, age seventy-eight and in poor health, discovered that her furnace was not working properly. The part of the country in which she lived was experiencing se- vere winter weather and heavy snow, and extreme cold weather was predicted. She scanned the yellow pages of the telephone book and spotted an ad by Univer- sal Heating and Air Conditioning that read:"24 Hours Emergency Service-Family- Owned Business Offering Prompt, Honest, Low-Cost Service. Special Considera- tion Given to Senior Citizens." When Bauza called Universal (she was attracted by this ad), she indicated that she was a senior in poor health and on welfare who could not afford to be without heat. Universal agreed to send a serviceperson to her house within an hour. A short time later the serviceperson arrived and exam- ined the furnace. Afterward he indicated to her that the furnace (which was only five years old) needed major repairs but that these repairs were out of warranty. The cost estimate given to her was $500. Actually, the serviceperson was not being truthful. He was simply taking advantage of Bauza, who had no idea what was wrong and what the cost of repairs should be. She had to rely on the serviceperson's expertise. The furnace actually needed only minor repairs totaling $90. Bauza knew that she had to have the repairs done, but she also knew that she couldn't come up with the money. She asked to pay in three monthly installments because she did not own a credit card. The owner of the business approved this method of payment as long as Bauza signed a paper agreeing to make these pay- ments. Bauza signed and the repairs were made. Question to Discuss If you were the owner of Universal and you discovered what the serviceperson had done to Bauza, how would you handle this situation from an ethical point of view?
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