Subject: Duty to Disclose
Within the Gilbane Gold case, the major problem is the contribution of water pollution by dumping chemicals to speed production for Z CORP. However, there is doubt as to what extent the company violated city regulations. Tom Richards believes that Z-CORP broke regulations repeatedly but Professor Massin believes that it is not solid evidence. Part of the problem is that two different tests are involved: an older and a less sensitive test which does not break regulations but there is also the newer and more sensitive one which does. The newer test was said that the company just broke city regulations, but not by a large amount.
There is the question about the legal status of the new tests. Would the city use the old or new tests in determining whether Z CORP broke the law? The current law specifies that the old test is, but there is reason to wonder what the courts would do if Z CORP was aware that it was violating the standards by the more sensitive tests. The long-term health effects of presenting numerous amounts of heavy metals into Gilbane Gold have gone under question. When David was interviewed, Massin had said that if the company increased its production significantly, then there may be a problem. How large is this problem? The problem was unsure to the participants in the case but the problem is significant enough that it is brought to attention. It was also presented that the new tests would be expensive but this a very small factor to this problem.
What would happen if Z CORP executives took David's suggestion and presented their problem to the city (if it is a problem)? Would city bureaucrats spot Z CORP's financial difficulties and attempt to work out a reasonable agreement with Z CORP? If Z CORP executives knew the city would be willing to do an agreement - perhaps by providing Z CORP added tax relief - they would not hesitate with David's suggestion. It is unknown to how the city of...