CASE I

CASE I – UNIT 7

The Affordable Care Act is a topic of ethics because the piece of legislation restricts the
autonomy of employers, while giving more control to the choice of one’s own health care. The
ACA, also referred to as Obamacare, imposes restrictions for businesses based on the size of
their respective workforce. According to Business Law by Clarkson and Miller, large businesses,
with fifty or more employers, are required to offer health insurance to their employees or pay a
tax penalty (Clarkson 650). One of the main concerns emphasized by critics about the legislation
is that it hurts small companies and offers businesses an incentive to reduce or replace the
number of full time positions, while encouraging the growth of more part time jobs. These
concerns are unrealistic, mainly because there lacks sufficient evidence to prove the offset in full
time positions and burden placed on small businesses. Actually, there is indication of real growth
of employment in small business industries. An article written about the ethics of the ACA
explains that, “with the new options of individual health care, small businesses have seemed to
attract workers from larger companies in order to get insurance benefits” (Sorrell 2012). In
theory, the ACA is designed to improve the quality and affordability in health care. The piece of
legislation has introduced restrictions that have increased the transparency in the insurance
marketplace while ending the discriminatory practice of increased premiums and encouraging
greater health care options.
Plain and simple, small businesses are not ethically obligated to offer their employees’
health insurance. Although it is undeniable that heath care is essential and important, the
extension of health care to smaller business is a heavier burden to bare. Furthermore, a growing
number of small business owners believe that the increasing costs and risks involved with
offering health coverage is too expensive to endure. In the Society for Human Management
Resource Journal, Stephen Miller discusses the direct effect on small business owners a result of
this piece of legislation. “The delayed rollout of the ACA’s small business health options
program (SHOP) and the limited plans in many states along with the phase-out of grandfathered
plans, have all worked against small business coverage” (Miller 2016). Even though the
Affordable Car Act provides a marginal advantage to large companies, it does not provide the
same benefits in small-scale environments. Forcing small businesses to provide coverage not
only hurts the companies, but it could also a drawback from low-income individuals. According
to Miller, “few large employers desire to drop coverage, but the same does not always apply to
small employers. Many find that employers at the low end can get heavily subsidized coverage in
the open market that will be as attractive and potentially more than coverage that the employer
could provide” (Miller 2016). Since employers and employees each benefit from the
independency of health care coverage, small businesses are not ethically obligated to offer their
employees’ health insurance.
Small businesses are crucial to the growth of the market, as they make up around 48% of
United States employees and consist of over 98% of US businesses (SBA). Interfering with the
stability of US employers would undoubtedly impede the growth of the economy. Which is why
simply repealing the legislation would not be suffice. According to a study made by the
Department of Health and Human Services, “in the years before, nearly one of every insurance
applicant were denied coverage altogether due to pre-existing conditions and more than a third
were charged higher rates” (DHHS 2017). Evidently, before Obamacare many self-employed
individuals and small businesses were forced out of health insurance. For this reason, repealing
the ACA without a legal equivalent would not be beneficial.
 Works Cited

Business Administration, U. S. (2017). Small Business Profile(Vol. 1, pp. 1-4, Rep.). Retrieved
April 15, 2018, from https://www.sba.gov/sites/default/files/advocacy/United_States_1.pdf.

Clarkson, K. W., Miller, R. L., Cross, F. B., & Clarkson, K. W. (2018). Business Law: Text and
Cases(14th ed.). Retrieved April 16, 2018.

Department of Human and Health Services. (2017, January 05). Health Insurance Coverage for
Americans with pre-existing conditions: The Impact of the Affordable Care Act(Rep. No. 1).
Retrieved April 13, 2018, from ASPE Offie of Health Policy website:
https://aspe.hhs.gov/system/files/pdf/255396/Pre-ExistingConditions.pdf.

Millers, S. (2016, April 04). Small Businesses Are Dropping Health Coverage; Large Employers
Hold Steady. Retrieved April 18, 2018, from https://www.shrm.org/resourcesandtools/hr-
topics/benefits/pages/small-business-health-coverage.aspx.

Sorrell, J. (2012). Ethics: The Patient Protection and Affordable Care Act: Ethical Perspectives in
21st century healthcare. The Online Journal Issues in Nursing,18(1).
doi:10.3912/OJIN.Vol18No02EthCol01.
 CASE I – UNIT 8

The online marketplace has seen drastic growth over the past few years, with current
technologies that allow retail to be more streamline. Tech giants like Amazon, eBay and Google
have discovered a successful niche in the market of online e-business retail and more companies
join them in their pursuit. Online businesses offer companies connection with other networks and
supply chains on a global scale. The unrestrictive access to consumers abroad comes at a price
because of the liability and overall risk that businesses are exposed to. According to the 14th
edition of the Business Law textbook, the authors state that, “a number of laws specifically
address issues that arise on the internet. Issues such as unsolicited emails, domain names and
cybersquatting are specifically address here” (Miller 170). These pieces of legislation include
The Federal CAN-SPAM Act, as well the U.S. Safe Web Act, and are created to make the
internet a more secure environment to consumers. Nevertheless, this does not resolve all the
global disputes of businesses. The reason that international business owners are cautious when
entering any new country is because their business is subject to that country’s respective laws.
Even if a contract has a choice-of-law clause in which it specifies which nation’s law precedes,
arbitration is still complicated in the context of international disputes (Miller 44-45). To avoid
this type of liability, international business owners must adapt their website to the laws of most
countries, and possibly create different web domains for more restrictive countries.
A couple concerns that arise from global online businesses are the taxes gained from then
revenue earned in each country and to whom those taxes are to be paid to. The issue is stimulated
by the reality that these businesses must not only pay tax in the foreign country, but also income
tax in the United States. According to Caterpillar v. Commissioner of Revenue, the precedent
was set that business dealings in international trade, whether or not it may be through a foreign
subsidiary, are subject to domestic income tax. The dispute arose when the construction
company Caterpillar filed tax refund claims against the IRS for the income tax the company
earned from their subsidiaries in Belgium and France. “Caterpillar and other domestic members
licensed their trademarks and technology to foreign members in return for royalty payments. The
company also provided intercompany loans to foreign and domestic member and receive interest
payments on these loans” (SCM 1997). In this case, it is important for international business
owners and investors to understand the tax laws in the U.S. and abroad when it comes to
international dealings. The simple use of a trademark or license that was created domestically,
can create conditions for various taxes and requirements.
To ensure the possibility of success in global commerce, on businesses should design
their web sites while considering the extent of international law, foreign and domestic taxes and
lastly, product diversification. Furthermore, the dealings of international business involve
offering diverse products designed for the broad range of target consumers. A study made by the
University of Reading, provides compelling evidence that proves that product diversification is
correlated to the performance in market penetration. “Product diversification has a significant
role in the way unrelate products effect the inter-regional performance of global markets”
(Rugman 2014). It is evident the individuals from different regions possess different needs and
therefore require a more diverse spectrum of products.
In closing, international business owners face various obstacles in their pursuit of global
expansion. International law, taxes and product diversification are all a part of this process as
well as the potential for online fraud. Lastly, a final remedy for online fraud is the safety and
protection of consumer information. According to the Business Law textbook, “around 7 percent
of Americans have been victims of identity theft. More than half of these identity thefts happen
because of the misappropriation of information” (Miller 205). Essentially, the best way to
prevent the fraudulent activity associated with online orders is to ensure the safety online data.
International businesses reap more benefits in that they connect with more customers, yet their
business is restricted because of the different governments involved.
 Works Cited.

Clarkson, K. W., Miller, R. L., Cross, F. B., & Clarkson, K. W. (2018). Business Law: Text and
Cases(14th ed.). Retrieved April 16, 2018.

Rugman, A. M., Sohl, T., & Oh, C. H. (2014, March 1). Regional and Product Diversification

and the Performance of Retail Multinationals(Rep. No. 1). doi:JHD-2014-02.

Caterpillar INC. v. Commissioner of Revenue, C6-97-27 (Minn. September 11, 1997).