News on Business And Law Assignment Report

Running head: NEWS ON BUSINESS AND LAW
A News story on Business and Law
Name of the Student
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Author Note

1
NEWS ON BUSINESS AND LAW
Facts
Boeing, the world-famous aircraft designer and manufacturing company, has been in
the news for a couple of years now, but for all the wrong reasons though. First with the
Ethiopian Airline crash in March 2019 and then subsequently the Lion Air crash in October
2019 brought the company under the scrutiny of the media (Pontefract, 2019). Investigations
and inquiry of the situation brought out the news that the company was aware of the flaws in
the aircrafts, yet it did not let the airline companies know about it, for saving their goodwill,
thereby creating the havoc and killing hundreds of innocent lives.
Background
In the quest for competing with its arch rival, Airbus, Boeing modified a 50-year-old
aircraft by installing an anti-stalling mechanism and claimed that it was now a fuel-efficient
short haul plane as reported by the Wall Street Journal (Pontefract, 2019). The company did
require the pilots of the airline companies secure additional training for the modified aircraft.
Soon after a couple of mechanical failure complaints, the company understood that the flight
stimulators were not reproducing the right flight conditions, thereby causing certain
discrepancies. It was strongly held by the airline companies and the assessing authorities that
the two crashes, exhibiting exact same fatal behaviors, were not to be blamed on the pilots
but on the aircraft manufacturing company, Boeing who has breached its values and integrity
in order to compete with its rival and mark a global presence (Pontefract, 2019).
Legal issue
The major legal issue of this news article is Boeing’s violation of its own values,
integrity and passenger safety, which was a matter of pride for the company. It breached its
duty of care that it has towards its clients by not notifying about the improper functioning of