Business

Business Ethics Case

FIN 370

May 31, 2011

University of Phoenix

Business Ethics Case

3.5 Business Ethics The National Enquirer, Inc., is a Florida corporation with its principal place of business in Florida. It publishes the National Enquirer, a national weekly newspaper with a total circulation of more than 5 million copies. About 600,000 copies, almost twice the level in the next highest state, are sold in California. The National Enquirer published an article about Shirley Jones, an entertainer. Jones, a California resident, filed a lawsuit in California state court against the National Enquirer and its president, who was a resident of Florida. The California lawsuit sought damages for alleged defamation, invasion of privacy, and intentional infliction of emotional distress. Calder v. Jones, 465 U.S. 783, 104 S.Ct. 1482, 79 L.Ed.2d 804, Web 1984 U.S. Lexis 4 (Supreme Court of the United States)

1. What kind of paper is the National Enquirer?

The National Enquirer is a national yellow journalism tabloid.

2. Was it ethical for the National Enquirer to try to avoid suit in California?

It was unethical for the National Enquirer to try to avoid suit in California, because the magazine and writer of the article about Jones were fully aware of the wide circulation of magazines in California (600,000 copies). With so many copies being sold in California, the writer should have considered the impact the libelous writing would have on Joneses career there.

3. Are the defendants subject to suit in California? Why or why not?

The defendants are subject to suit in California since they sell magazines there. The fact that a large portion of the National Enquirer’s sells takes place in the state of California supports this claim further (about 16% of all magazines are sold there).