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Law, 27.02.2021 22:30 ericka79

California Motors Corporation operated two plants in Carlsbad, CA from 1998- early 2020. During that time, California Motors Corp. took advantage of tax credits under a CA state tax law that encouraged business owners to create and maintain jobs in CA. As part of obtaining the tax credits, CA Motors Corp. would consistently represent that its plants offered local residents nearly 13,000 jobs. These promises were published in local North San Diego county newspapers and on the corporate website. The city of Carlsbad agreed to the tax abatements in order to retain the jobs in the area under the State tax law. In January 2020, CA Motors Corp. announced it was consolidating operations and that one of the plants would close. More than 4000 jobs were lost. The employees of the closed plant and the City of Carlsbad sued CA Motors Corp. for breach of promise and misrepresentation. Q. Discuss the ethical and legal issues in the above fact pattern. (Short answer)

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