LEG 100: Business Law
Prepared for: Professor Matthew Grasham
November 4, 2012
This paper is going to examine the difference between Black Bike week and Harley Davidson Spring Bike Rally (predominantly white) in Myrtle Beach, South Carolina. We are going to see if the NAACP had a valid reason to file a lawsuit against Myrtle Beach and several of its businesses. If so, we are going to see how risk management could’ve played a bigger role in preventing the lawsuit from happening. We will also be discussing ethical considerations that might be applicable to this case. Then, we’ll determine which sources of law would be most relevant in this case and how management could leverage knowledge of sources to prevent similar instances in the future.
Summarize the actions that lead to the lawsuit. Myrtle Beach is a popular tourist destination among people of all walks of life throughout the world. One of the things Myrtle Beach is known for is its Bike rallies. One is called Black Bike week and the other Harley Davidson Spring Bike Rally. For years they have been trying to ban/restrict the activities that go on during Black Bike week. The NAACP took it amongst them to sue the city of Myrtle Beach and a few of its establishments for discrimination. The only time during the year where the majority of tourists are black is on Memorial day weekend, during Black bike week. So, the NAACP filed a pair of Federal lawsuits stating that Molly Darcy’s and the American Pancake and Omelet house refused to serve visitors of Black Bike week. They closed their businesses during peak times to refrain from serving the black customers. Another complaint states that even though during the Harley Davidson Spring Bike Rally, a portion of Ocean Boulevard was closed off for an afternoon to control a fight between two motorcycle gangs, the Hell’s Angels and Pagans. Even with things like this happening during white bike week and nothing of this nature during black bike week, restaurant owners and businesses still refuse to service visitors of the black bike week. Discuss what management could have done in terms of risk management to have prevented the events that lead to the lawsuit. Risk management is an important business function and a major part of the business planning process. The roles and responsibilities of risk management are to try and eliminate or reduce the risk of having certain things happen that can pose a threat to your business. The risk manager/team has to be identified and then the risk manager will devise a plan to get rid of any risks that may have a negative impact on the business. The management of these businesses could have taken better steps and precautions to avoid this. Even though this is 2012 and we have a Black President, the world still sees color. Race is a big part/the reason for a lot of lawsuits against businesses. The company’s should’ve either closed for both biking events or if it was a matter of safety that they were concerned with, they should’ve beefed up the security. All in all, they should have had better risk management in place to prevent this. Most small businesses don’t have the funds to handle litigation. Money is a fueling factor for any and all businesses and all money is green. For them to close during one of the busiest weeks of the year would have been a tremendous loss. The businesses, more than likely did not have a risk management team in place since they are small businesses. Most small businesses don’t invest in risk management or a legal team. Companies have a social responsibility to be fair, just, and treat all customers equal. The management teams of the restaurants were using discriminatory customer service by closing while the Black bike week was going on. Discrimination can cause companies an immeasurable amount of money and...