A Day at the Beach: A Multidisciplinary Business Law Case Study

• DOI: http://doi.org/10.1111/j.1744-1722.2010.01071.x
• Published date: 01 February 2010
• Date: 01 February 2010

A Day at the Beach:

A Multidisciplinary Business Law

Case Study

Leonard Rymsza,

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Kurt Saunders,

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Paul Baum,

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and

Richard Tontz

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flip-flop (flı

˘p’ flo

˘p’) noun: . .. A backless, often foam rubber sandal held to the

foot at the big toe by means of a thong.

1

I. INTRODUCTION

This case study, written for use in a multidisciplinarycourse, e xposes students

to concepts in business law, economics, and statistics. The case is based upon a

hypothetical scenario involving a young woman who, having spent a relaxing

day at the beach, heads for home. On the drive home, a flip-flop she is

wearing becomes lodged under the gas pedal. In attempting to dislodge the

flip-flop, the car she is driving drifts into the lane of oncoming traffic, running

head-on into another vehicle. The injured driver of the other vehicle files a

lawsuit against the young woman and the manufacturer of the flip-flops.

The business law portion of the case raises questions regarding neg-

ligence and strict products liability. The economics aspect of the case in-

volves the calculation of lost earnings and present value, and the statistics

r2010 The Authors

Journal compilation r2010 Academy of Legal Studies in Business

129

Journal of Legal Studies Education

Volume 27, Issue 1, 129–162, Winter/Spring 2010

n

Professor of Business Law, College of Business and Economics, California State University,

Northridge.

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Professor of Business Law, College of Business and Economics, California State University,

Northridge.

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Emeritus Professor of Systems & Operations Management, College of Business and

Economics, California State University, Northridge.

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Professor of Economics, College of Business and Economics, California State University,

Northridge.

1

THE AMERICAN HERITAGE DICTIONARY OF THE ENGLISH LANGUAGE (4th ed. 2000).

portion of the case requires regression analysis of automobile accident

data. Instructors can easily modify the case for use as an in-class or take-

home assignment in an introductory business law course by eliminating the

economics and statistics issues.

In Part II of this article, the hypothetical scenario is presented for con-

sideration. Part III provides a set of questions to prompt and direct discus-

sion. An overview of applicable law is provided in Part IV for use in analyzing

the relevant tort claims and defenses. Teaching notes in Part V outline ped-

agogical objectives and suggestions for use of the case and includes a detailed

analysis of the potential claims and counterarguments or defenses.

II. THE CASE STUDY

It was one of those dog days of summer in the Buena Bella Valley. Tem-

peratures had been in the low one hundred degrees Fahrenheit for the last

two weeks. Jitsy Jetsonwas at the end of her rope coping with the heat.Over

the hill at the local beaches, the daily temperatures for the last two weeks

had been at least twenty degrees cooler than in the valley. Jetson decided to

spend the day at Veronica Beach to enjoy the cooler weather and impress

other beachgoers with her new slim figure. For the last several months Jet-

son had been eating healthy and exercising daily. In addition, she was eager

to show off a stunning yellow polka dot bikini by Aquacleara and a new pair

of Sandpiper designerflip-flops that she had just purchased from the Sand-

piper Footwear outlet store during a recent visit to the local mall.

The weather at the beach was just as expected. The skies were a fan-

tastic shade of periwinkle blue. There was not a trace of pollution in the air;

the beach was free of debris; and the coli form content of the ocean water

was within acceptablelevels. As she lay on the sand, absorbingthe warmth of

the sun, she could smell the wonderful aromas of freshly made buttered

popcorn and cotton candywafting from the nearby concessions on Veronica

Pier. Jetson could not help but think that life was good here in paradise.

At days end Jetson was on an emotional high. She was feeling as good as

she had felt in months. She decided to head for home. Jetson had driven to the

beach in her new Nimbus 2009 WMB-X4 convertible sports car.Now, with the

top down, Jetson drove along the coast highway on her way to the canyon

road that would take her over the hills and back into the valley. While waiting

at a stoplight, Jetson was conscious of the stares from occupants of the other

vehicles also waiting at the stoplight. Flattered by the stares and hoping to

130 Vol. 27 / The Journal of Legal Studies Education

impress all who could see, she stepped on the accelerator and started to drive

through the intersection at normal speed. However, as she stepped on the gas

pedal, one of the flip-flops Jetson was wearing slipped off her foot and became

lodged under the pedal. The automobile continued to accelerate but at a very

rapid rate. Within moments, Jetson lost control of the vehicle. In the process,

the X4 crossed the double yellow line and into oncoming traffic, colliding

head-on into a car driven by Patrick McDuff.

As a consequence of the accident, McDuff suffered a spinal cord

injury resulting in his becoming a quadriplegic. McDuff and Jetson have

each retained legal counsel to represent them in resolving liability issues

that have arisen as a result of the unfortunate circumstances in this case.

III. DISCUSSION QUESTIONS

In resolving this legal dispute, students may be directed to consider the

following questions in relation to the facts described above and the statis-

tical, legal, and economic principles explained in the next section:

1. McDuff ’s attorney, Mr. Cole Hahn, decided that it might be helpful to

introduce data that would show that accident rates among drivers wearing

flip-flops are higher than the accident rates among drivers wearing other

types of footwear. Mr. Hahn obtained results of a federal government

survey that produced data relating to nonfatal motor vehicle accidents

and the nature of footwear worn by drivers at the time of the accidents.

The data represented the difference between nonfatal accident rates of

drivers wearing flip-flops and that of drivers wearing other types of foot-

wear. The survey data is presented in Table 1. Mr. Hahn is not sure the

results of the survey support the position that the accident rate among

drivers wearing flip-flops is higher than the accident rate among drivers

not wearing flip-flops. He fears that the survey might reveal the worse

case outcome, namely, that drivers who wear flip-flops have lower acci-

dent rates than drivers who do not wear flip-flops . In addition, he is un-

sure how to analyze the data before making a final decision whether to

use the surveyresults in settlement negotiations or, if needed, at trial. Mr.

Hahn needs help in making sense of the data. Does the data support his

position? In addition, Mr. Hahn is concerned about the limitations that

might exist regarding the methods being used to analyze the data. Are

there any recommendations that might overcome the limitations?

2010 / A Day at the Beach 131