CBS: Necessary And Ethical Dilemmas

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For a company as big as CBS, I am pretty sure they have a legal department that designs their contract and reviews them all the time. Therefore CBS should be fully aware of the terms of the contract. However, having been part of the corporate world, I can see how an organization can become liable for an irresponsible action of one employee. From that context this could be an oversight of one person. In any case, CBS quickly was aware of the situation and willfully continued to act unethically. The actors' contracts stated that they are supposed to earn 5 percent of the net profits from merchandise if their image is the only one on the product. They are supposed to receive 2.5 percent of the profits from merchandise with a group image on …show more content…

When the lawsuit was filed, CBS added that they have been working with the actors to resolve the royalty pay issues for some time. Meanwhile it looks like after the lawsuit was filed, CBS issued checks to the actors for the previous five years, which included a merchandise royalty share for those slot machines. Looking at all these factors, I feel like they were aware and were later starting to make a good faith effort in the eyes of people. Often the contracts are enforced and written in favor party responsible for writing the contract, so contracts may be biased toward one party. While this could seem unfair, I feel that in this way at least this helps us to get started a certain place. Once the initial contract is reviewed, the other party should take steps to eliminate these biases. They should make a list of changes, or modifications, which they would like to see, then discuss them with the other parties to the contract. As a result of this negotiation, they may be able to change the contract so the terms, or conditions, are more favorable to them. On the other hand the party that did not create the contract (employee, buyer etc) typically one who gets paid or receives something, has to make sure that the contact is

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