Utilizing Ethical Reasoning Based on Ethical Standards

Name
Course
Institution
Date
Ethical Issues
John Darwin, general manager of National Steel, has contacted you for advice. John wants to know if National Steel should sell the steel it has on stock to Wire Mesh. In no more than two double spaced typed written pages, summarize what advice you would give to John and the reasons for the advice given. Be sure to include an analysis of the ethical and business issues involved.
National Steel Distributors (“National Steel”) has contracted with Sleep Right Mattress Company (“Sleep Right”) to sell 20,000 tons of steel at $ 8.00 per ton to be delivered by 31st May. However, there is now a shortage of steel, and Wire Mesh Fences (“Wire Mesh”) is willing to buy at $12.00 per ton, but this would force Sleep Right to buy at $ 10 per ton, and national Steel would be liable for the extra per $ 2 per ton. In contracts, there is mutual agreement and consideration between the parties and ethics in decision-making is necessary to protect each party’s rights and not deliberately any of them. John Darwin, National Steel’s GM, can cancel the contract with Sleep Right if the company sells to Wire Mesh.
When creating a contract, the parties are in agreement, and National Steel is legally bound and committed to fulfilling the promises as part of the agreement with Sleep Right. There is a presumption that both parties know they are legally bound, and they agreed to the terms without coercion or deception. While there is no information on whether a cancellation clause in the contract was applied, it would be necessary to ensure a mutual agreement to rescind the contract between National Steel and Sleep Right. National Steel‘s goal is not merely profit maximi...