1. Two and three substantial pages. DUE BY NOON ON SATURDAY EASTERN TIME
2. Your assignment must be prepared using APA format. You must use the in the example’s headings, arguments and counterarguments in the analysis, and bold all in‐text citations. No Plagiarism, and two citations.
3. Your score will be determined by evaluation of your substantive content. Your analysis and solutions must be based on the principles of law, ethics, and business – not on your opinions. You MUST describe how application of the principles to the key facts support your determination of the issues, in other words, you need to show the reasoning behind your decision. Critical Legal Thinking Case Rubric.
2. Recognize the applicable areas of law
3. Identify the applicable principles of law
4. Identify the key facts
5. Apply the law to the facts to resolve the issue
6. APA Format; Organization; and grammar, punctuation, and spelling
Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling’s high specifications. The relationship has been mutually profitable. Sterling could not have built its reputation as an industry leader without NoBugs’s reliable and consistently high-quality products; Sterling’s business has enabled NoBugs to grow rapidly while providing its investors with an attractive rate of return.
Some months ago, several of Sterling’s computers exploded shortly after installation. Upon investigation, Sterling discovered that tiny imperfections in NoBugs’s microchips had aggravated a dormant design defect in the computers, causing the explosions. Analysis of the chips indicated that they were indeed below specifications and that the imperfections were caused by a slight miscalibration of NoBugs’s encoding equipment. NoBugs recalibrated the equipment and promptly resumed production of perfect chips.
Sterling’s losses from the explosions – lost profits, out-of-pocket costs associated with compensating customers for the explosions, and injury to business reputation – are estimated to exceed $20 million. Sterling and NoBugs disagree on the amount of the loss for which NoBugs should be responsible. Sterling has a strong legal case for breach of contract against NoBugs. Sterling’s CEO is considering a lawsuit. She asks you to prepare a report discussing litigation strategy and the advantages and disadvantages of litigation; and discussing pretrial planning should the company opt for litigation.
See attached format example
Textbook Title: Managers and the Legal Environment: Strategies for Business Edition #: 9
Author: Constance E. Bagley