Jody Blanke, ProfessorComputer Information Systems and Law

The Law Evolves“The laws of society are more powerful than

any law that Congress can put on the books. Woe to any businessman who doesn’t read the laws of society and understand them.”Tom Stephens, CEO of Manville Corporation,

1988

Law and Public Policy“Public law – the formal rules embodied in

constitutions, statutes enacted by legislatures, judicial decisions rendered by courts, and regulations promulgated by administrative agencies – both reflects and helps shape social expectations.”Constance Bagley and Diane Savage, 2009

Corporate Social Responsibility“There is one and only one social

responsibility of business – to use its resources and engage in activities designed to increase profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”Milton Friedman, Nobel Prize winner, 1972

A.P. Smith v. Barlow (1953)

1982 Chicago Tylenol MurdersSept. 29 – the first of 7 people

died after taking Tylenol capsules purchased in the Chicago area

Tylenol accounted for 15% of J & J’s net earnings of $468M in 1981

Tylenol held 35% of the $1.2B painkiller market

Oct. 5 – J & J recalled 31 million bottles of Tylenol (worth an estimated $100M)

Tylenol quickly recaptured market sharePrompted change to caplet and tamper-

evident safety seals on boxes and bottles

The Rules of SocietyRegina v. Dudley and Stephens (1884)

Balancing RightsKelo v. New London (2005)

90-acre development plan115 privately owned properties

Balancing RightsPoletown v. Detroit (1981)

GM wanted to keep 6,000 jobs in DetroitPoletown was 465 acres, had 4,200 residents, 1300

homes, 140 businesses, 6 churches, 1 hospital

Balancing RightsPoletown 1961 Poletown 1997

Balancing RightsChattanooga, Baltimore

Promoting ValuesCharitable Immunity

Flagiello v. Pennsylvania Hospital (1965)Good Samaritan Laws

The Death of Lady DiThe Seinfeld FinaleVan Horn v. Watson (2008)