------- Loblaws Hepatitis a Class Ction Case Study |

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  • Topic: Hepatitis A, Hepatitis, Hepatitis B
  • Pages : 5 (1363 words )
  • Download(s) : 403
  • Published : July 10, 2011
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Business and Selected Stakeholder Relationship|
------- Loblaws Hepatitis A Class ction Case Study|
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Index

Introduction of the Loblaws Hepatitis A Class Action incident3

Introduction of Loblaws company3

Definition of class action4

The reason of the incident5

Serious impacts and negative media coverage5

Alternatives6

a)Precautions before the issue arises6
b)Remedy after the issue occurred7

Recommendations7

Background of the Loblaws Hepatitis A Class Action incident
On September 3, 2002, a class action was launched in Toronto to against Loblaws alleging that customers and other persons may have been exposed to the Hepatitis A virus because of allegedly contaminated produce at Loblaws' Humbercrest store located at 3671 Dundas Street West in Toronto. This lawsuit relates to an employee of Loblaws infected with Hepatitis A. Although the identity of this employee was not disclosed, the fact was confirmed that this employee, who worked in the section of the store in which products were prepared, displayed and sold, has caused the infection to spread.  Thousands of customers of Loblaws obtained an inoculation following the identification of the infected individual as an employee of Loblaws, working in the produce section of one of its stores. On June 15, 2006, the Settlement of this action was approved by the Superior Court. Loblaws would pay $150.00 to each class member and all the cost of notification, administration, and distribution of the settlement fees. However, Loblaws supermarkets and loblaw companies didn’t admit any wrongdoing or liability on their part. The settlement has been made to maintain loblaws’ good will with its customers and its concerns with the inconvenience they may have sustained as a result of this incident.

Introduction of Loblaws company
Loblaw Companies (Loblaw) is a subsidiary of George Weston. Loblaw distributes food products, general merchandise, drugs, and financial products and services. It is the largest food retailers in Canada. The company primarily operates in Canada. It is headquartered in Toronto, Canada and employed139, 000 people as on December 29, 2007. The company recorded revenues of approximately $27,493.1million during the 2007, an increase of 2.6% over year 2006. The operating profit of the company was approximately$688.6 million. The net profit was approximately $308.8 million in 2007, as compared to net loss of approximately $204.9 million in 2006.

Definition of class action
In law, a class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. However, in several European countries with civil law different from the English common law principle (which is used by U.S. courts), changes have been made in recent years that allow consumer organizations to bring claims on behalf of large groups of consumers. If the action is certified as a class action, which is the case, persons who do not wish to pursue their claims against Loblaws or who wish to pursue their claims on an individual basis may opt out of the class action and commence their own individual actions at their own expense. The class members will not be required to pay any legal fees to the class action lawyers unless the class action is successful at trial or the class action is settled, in which case the legal fees will be divided amongst the class members on a pro rata basis and deducted from the amount of compensation that the class members may ultimately receive. The reason of the incident

Since this case is analyzed basing on the course of Ethics and Shareholder management, the reason could be divided from two perspectives. First, if we assume that Loblaws was not...
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