Question

Boeing Airplane Co. contracted with Pittsburgh–Des Moines Steel Co. for the latter to construct a super- sonic wind tunnel. R.H. Freitag Manufacturing Co. sold materials to York-Gillespie Co., which subcon- tracted to do part of the work. To persuade Freitag to keep supplying materials on credit, Boeing and the principal contractor both assured Freitag that he would be paid. When Freitag was not paid by the subcontractor, he sued Boeing and the contractor. They defended on the ground that the assurances given Freitag were not written. Decide. What ethical values are involved?

Answer 1

The assurances given by Boeing and the principal contractor to Freitag can be considered legally binding, even if they were not in writing. The ethical values involved include honesty, integrity, and accountability.

Step-by-step explanation:

Under the circumstances described, the assurances given by Boeing and the principal contractor to Freitag that he would be paid can be considered valid and legally binding, even if they were not in writing. This is because oral or verbal contracts can be enforceable in certain situations. In this case, Freitag continued to supply materials on credit based on the assurances given by both Boeing and the principal contractor. Therefore, Freitag has the legal right to sue both Boeing and the contractor for non-payment.

The ethical values involved in this situation include honesty, integrity, and accountability. Boeing and the contractor made assurances to Freitag to persuade him to continue supplying materials, and it is their ethical responsibility to fulfill those promises. Failing to do so would undermine trust, harm business relationships, and potentially cause financial harm to suppliers like Freitag.