Fraud : An Example Of A False Statement Of Facts, Affirmative Act, Or Silence? Essay

Phar-Mor, Inc was a thriving discount grocery store in the late 1980’s. Phar-Mor was moving product quickly but profit margins were not significant enough to pay the bills. By the early 1990’s, Phar-Mor declared bankruptcy due to fraudulent financial reporting and misappropriation of assets, making it one of the largest frauds in U.S. history. Below, we will use auditing standard AU 316.85 Appendix A in conjunction with the video “How to Steal $500 million” to analyze how incentives/pressures, opportunities, and attitudes/rationalizations allowed for fraud to start and continue at Phar-Mor.

"In California, the elements for a viable contract are 1) parties capable of contracting; 2) their consent; 3) a lawful object; and 4) sufficient cause or consideration." In regards to a minor 's capacity to contract, a minor is capable of contracting unless specifically prohibited. However, Section 6710 of the California Family Code states that "except as otherwise provided by statute, a contract of a minor may be disaffirmed by the minor before majority or within a reasonable time afterwards."

Did Westby commit fraud? Fraud constitutes the making of false statements (1) with the knowledge of its falsity or reckless indifference to the truth (2) the intent that the listener relies on it (3) the result that the listener does so rely on it, and (4) the consequence that the listener is harmed.

* Minors are defined as individuals under the age of majority to contract. This is the age at which a person is entitled to the management of his/her own estate (18 in most states).

Contractual capacity is, “The legal capability to form a binding contract. A number of classes of people lack contractual capacity, and these include minors…” (BusinessDictionary.com, 2010). A minor’s capacity to contract and the lack of an employee’s capacity to bind a company by contract could be used in defense against a breach of contract.’ Consideration is necessary for any contract to exist. A promissory estoppel is used when consideration requirements are absent (Kubasek, Brennan, & Browne, 2015, p.250).

There’s a line between child and adult, and it can be fuzzy, So how do we in the YellowHammer State define between adults and minors.All states have minor laws, the age in which a citizen is considered an adult in the eyes of the law.In Alabama, has legal process referred to (Emancipation) the legal age is 19 years old; the age of majority Code of Alabama 26-1-1 minors still have legal rights and responsibilities.A 15-year old can enter into an insurance contract, under the Alabama laws.Under Code of Alabama 26-13-1 at age 18 they are eligible for emancipation, in laymen's terms, they are at the age

The amount listed is the enrollment agreement was 10,020.00 which gives a difference of :

Teens that are 18 are looked as adults –Teens at the age of 18 are “adults” they can vote, go get married, serve for the country, go to jury duties, and move

Outside the United States, the situation is similar. In China, the government provides detailed regulations for contracts made by minors. According to Chinese Contract Law, ‘The party shall, when making a contract, have corresponding capacity for civil rights and civil conduct’ (Article 9, Contract Law for PRC). Minors are considered as adults only if they reach 16 years of age and make a living on their own. In South Africa, a minor is a person who is under 16 years of age, which is different from China and U.S.

1. Competent parties. A court will not uphold a contract entered into by parties the law does not believe have the capacity to take on such a legal responsibility, such as minors or people who are mentally incapacitated.

Imagine a future where minors have more rights in society. There are many laws in our society that are crucial for living in a peace filled society. Some laws however, are not as crucial to our society and are not necessary for our daily lives. All people are supposed to be created equal, including children, yet our society still excludes them from many rights. This defies the rights of human equality in the United States. Minors should have equal rights as adults.

According to the laws governing the country, persons between the ages of seven to seventeen is the are regarded as juveniles.

Minor in possession laws govern the possession of alcoholic beverages by those under the age of 21. A minor that is

Creating awareness is process used to make people know that information is available and how to deal with fraud /corruption if they hear about the matter to assist Bow Treasures in preventing fraud and corruption.

Marshall received a signature on a contract from a seventeen year old minor in which he hopes to enforce. From a legal standpoint, minors have a limited ability to enter into contracts. The seventeen year old minor employee can void the contract he signed at any time. Minors have the option to do this because of laws made to protect them