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CASE STUDY - ALLIED INTERESTS

People who dial a toll-free number that ends in HOPE expect to reach an advocacy group that fields complaints about nursing homes and lobbies for better treatment of their elderly residents. The phone rings and a message is recorded which later is reviewed by a lawyer, who pays for the toll-free line and also a Web site which encourages suing for money damages. Ties to advocacy groups give such lawyers a ready source of referrals, as well as a means of circulating among people with complaints about nursing homes, without necessarily running afoul of far-association rules against soliciting business.

As public sentiment has shifted and as legislators and jurors have gotten tougher on nursing home owners, the liaisons reflect growing money making potential. Texas juries awarded $92-million in 1997 and $250-million in 1998 to nursing-home claims, which have especially stoked lawyers' interest as plaintiffs' lawyers normally charge 30 to 40 percent.

  1. What are some ethical concerns? Explain
  1. Are ethical theories in conflict? Explain
  1. What should be done, and why should it be done?

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