Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
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SRJ Bhd (SRJ) has two divisions in two different business segments. The first division is in the medical devices manufacturing business. In July 2020, the company was presented with a lawsuit by a group of customers. The customers claimed that SRJ has provided them with inaccurate blood glucose readers that have jeopardised their health and life. Based on the evidence and advice by the company’s legal team, it is possible for SRJ to lose the lawsuit. However, until the end of December 2020, the timing and amount of the lawsuit is yet to be estimated. The next proceeding shall be proceeded in the year 2021.
The second division of SRJ is located in country B. The main business activity of this division is producing manual transmission for car industry. However, due to changes of consumers’ preference toward automatic transmission car and lack of demand on manual transmission vehicles, the company is planning to close the division to avoid future losses. The board of directors has…
During an internal investigation, Black, a Certified Fraud Examiner, interviewed Green, a fraud suspect. Although Green wanted to leave in the middle of the interview, Black blocked the exit and prevented him from leaving. Green subsequently confessed to committing fraud. If, under these facts, Green files a lawsuit for false imprisonment against Black, Black will likely: A. Win the case because the qualified business privilege protects investigators conducting internal investigations. B. Win the case because Green confessed to the fraud. C. Lose the case if a trier of fact concludes that he restrained Green without consent or legal justification. D. Lose the cans because Green did not leave the interview.
Widget Corporation is the manufacturer of many popular children’s toys but have seen a great decrease in sales and the board of directors is worried that the business may no longer be viable. The board decides to aggressively sue other toy manufacturers that have likely been infringing on Widget’s intellectual property, enter into a joint venture with a another company to build a new factory to reduce costs, and make large and notable donations to children hospitals as part of a PR campaign to raise the corporation's image. Additionally, the board decides to start manufacturing medical equipment to make up for the projected shortfalls in budget, even though the corporation was formed to make toys. Some shareholders are upset and sue the board of directors.
b) Would the ultra vires doctrine play a role in the shareholders suit again the board? Why or why not?
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- David H. Brooks, a university graduate with an accounting degree and the former CEO of DHBIndustries, Inc., was charged in October 2007 with accounting and securities fraud for failing toreport the company’s inventory at the lower of cost or market. From 2001 to 2005, DHB purchasedlarge quantities of a material called Zylon and used it in making bulletproof vests that were sold tothe U.S. military and local law enforcement agencies. During this same period, DHB learned thatZylon deteriorated rapidly when exposed to light, heat, and body perspiration. DHB knew that oneof its competitors, Second Chance Body Armor, had stopped using Zylon in its vests and, eventually, discontinued its business because customer demand for its Zylon-based vests had evaporated.DHB did not write down its own inventory of Zylon and Zylon-based vests because it had a largecontract to supply the U.S. military with bulletproof vests. In its financial statements for the yearended December 31, 2004, DHB reported…arrow_forwardWhat best describes the effect of the word fiend in this excerpt? It establishes the time period in which the story occurred by using language that is not typically used in today's society. It develops the conflict by establishing the fact that Judge Lenon is unforgiving when he feels that someone has been unpatriotic. It enhances the theme of the story by suggesting that it is nearly impossible to receive a fair trial during this time period. It characterizes Judge Lenon as a corrupt judge who does not care to serve justicearrow_forwardOn March 2015, Agency A is taking legal action against its competitor for patent infringement relating to a patent that had been granted to the agency on one of its products. The outcome of the case is uncertain. However, it is probable that the court will order the competitor to pay damages to the entity. Use facts given in No. 1, but assumes that on June 2015 the Chief Legal Counsel of Agency A informs the management that it is now virtually certain that the court will order the competitor to pay damages to the entity. State whether a contingent liability or contingent asset exists. Explain your answers by stating the criteria of your answers below.arrow_forward
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