The Legal and Ethical Environment of Business - Case Study Example

The cruise issued receipts to passengers that had a clause stating that any claim made by either the employees or the passengers must be made under the country in which the cruise flag. For this case, the cruise flag a Liberia flag hence any claim to be made must be under the Liberia law. For a ship to operate international, it should have a country of registry for it to operate in the international water. Cruise vessels of countries such as United Kingdom, United States, Netherlands, Panama, Norway, Bahamas, Netherlands, and Liberia are provided with the flag registry.

These countries are members of the International Maritime Organization (IMO) as they provide the vessel owners with the registry services and maritime expertise. In a competitive international shipping industry, flag registration requirement must be met. The first requirement is that the flag state should be a member of International Maritime Organization (IMO) that adopt the IMO's maritime safety Resolutions and Conventions and secondly is that a flag state must have an established maritime organization that is capable of enforcing all international and national regulations.

 Since the DWI cruise ship flies Liberian "flag of convenient", they are normally are under a regulatory agency of maritime experts that ensure shipping companies are compliant with the laws of commercial vessels registered in that country in areas of operation procedures and practices. (International Council of Cruise Lines, 2006) DWI issued tickets to Mr. and Mrs. Lowell stating that any claim made by both the passengers and the employees against the shipping company should be made under the law of the country in which the cruise flag.

The DWI cruise Minnow happened to fly Liberian flag, therefore, any claim made against the shipping company should be made under the Liberian law. Under the Liberian law, any property of the wife belongs to the husband and she has no capacity claim for them or even claims for his injuries. When Mrs. Lowell returned to Miami, her attorney faxes a letter to DWI shipping company requesting them to send to the $10 million within 10 business day in regards to Mr. and Mrs. Lowell incident. Indeed the Lowell suffered during the robbery incident in their cabin and they lost valuable items like jewelry.

But according to the Liberian law, the wife has no capacity to sue for his husband injuries and even if the jewelry belonged to her, she has no capacity to sue for them since they belong to the husband. However, Mrs. Lowell was also battered and suffered emotional distress during the robbery incident. For this case, her attorney can sue the shipping company for negligence under the law of tort. Her attorney needs to argue that Mrs. Lowell suffered after the robbery incident, therefore, sues the company for damages for breach of contract; infliction of emotional distress; assault and battery.

She is entitled to remedies for damages due to negligence on the side of the shipping company for there was no clause on the ticket on this and they owed her a duty of care during while on their ship as a passenger. Under the Liberian law, the law of tort protects the individuals' interest in their bodily security and its objective of the remedy is to reinstate a person's initial position.