Dracca Incorporation Law Case

Dracca Incorporation Law Case

Ethical Considerations

Dracca Incorporation dumped their Funny Bunny Toys in Canada because they did not pass US safety inspections and in this way saved themselves from a huge loss. Although the toys were allowed into Canada, the fact that they were not allowed to be sold in the United States shows that the toys were harmful to children. Thus, the children in Canada who use these toys are at a risk. This shows that Dracca violated the principles of corporate social responsibility because they were not supposed to sell toys considered unsafe. The fast that the profit margin of these toys were high led the company to find a way out of the disaster they faced in the US when their toys were not allowed to be sold. Considering the fact that the toys were exported from the United Stated to Canada, the US government can impose a ban on the export of Funny Bunny Toys to any country because it can be harmful to children. The Canadian government should also be informed of the goods being shipped to them so that they may also take necessary action.

Contract with NT

There is no mention of any contract between Dracca Incorporation and Northern Toys according to the United Nations' Conversation on Contracts on International Sale of Goods (CISG). The provision of the CISG states that if one of the parties of the contract rejects a certain clause in the offer, a new contract would have to be framed. In this case, NT accepted the offer on a condition that Dracca also supplies it with 20 cartons of Happy Hippos. There is no mention of whether Dracca accepted the offer to supply NT with 20 cartons of Happy Hippo. Hence, this contract does not exist.

Legal and Ethical Ramifications

By offering ...