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Your score will be determined using the Critical Legal Thinking Case
Rubric. Please read this rubric thoroughly BEFORE attempting this
assignment. You should also consult the Critical Legal Thinking
\”How-to\” rubric and the example case in the Critical Legal Thinking
Case Assignments of the Syllabus.\r\nYour score will be determined by
evaluation of your substantive content. Your analysis and solutions must
be based on the principles of law, ethics, and business – not on your
opinions. You MUST describe how application of the principles to the key
facts support your determination of the issues, in other words, you
need to show the reasoning behind your decision.\r\nKey facts are those
facts that determine if the principles of law are met. You must
demonstrate that you recognize the key facts in this case. List the key
facts individually. Do NOT simply repeat or retype the factual
scenario.\r\nThe length of your response has no bearing on your score.
There is no minimum or limit, however most responses will be between two
and three substantial pages.\r\nYour assignment must be prepared using
APA format. See the Tools and Resources page for more information about
APA styling.\r\n\r\nSterling, Inc. is a manufacturer of state-of-the-art
computers. For the past ten years, Sterling has acquired all of its
microchips from NoBugs Corporation, the only producer of chips meeting
Sterling\’s high specifications. The relationship has been mutually
profitable. Sterling could not have built its reputation as an industry
leader without NoBugs\’s reliable and consistently high-quality
products; Sterling\’s business has enabled NoBugs to grow rapidly while
providing its investors with an attractive rate of return.\r\n\r\nSome
months ago, several of Sterling\’s computers exploded shortly after
installation. Upon investigation, Sterling discovered that tiny
imperfections in NoBugs\’s microchips had aggravated a dormant design
defect in the computers, causing the explosions. Analysis of the chips
indicated that they were indeed below specifications and that the
imperfections were caused by a slight miscalibration of NoBugs\’s
encoding equipment. NoBugs recalibrated the equipment and promptly
resumed production of perfect chips.\r\n\r\nSterling\’s losses from the
explosions – lost profits, out-of-pocket costs associated with
compensating customers for the explosions, and injury to business
reputation – are estimated to exceed $20 million. Sterling and NoBugs
disagree on the amount of the loss for which NoBugs should be
responsible. Sterling has a strong legal case for breach of contract
against NoBugs. Sterling\’s CEO is considering a lawsuit. She asks you
to prepare a report discussing litigation strategy and the advantages
and disadvantages of litigation; and discussing pretrial planning should
the company opt for litigation.
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