assent, and has rx accepted ii. (Notes….Legal Consequences of Agency) 1. Inward Looking Consequences: relate to the relationship between the principal and the agent and are largely governed by the contracts between the parties and by the law of fiduciary duties 2. Outward Looking Consequences: relates to the relationship among the principal, the agent, and a third party and are governed by various “principles of attribution” (authority….actual/apparent) 1. Tend to be the primary focus where central
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The Dan Rather scandal, also called “Memogate” is a scandal surrounding the 60 Minutes story aired on CBS September, 8th, 2004 just a few weeks before the presidential election. The scandal surrounded George W. Bush's time while in the National Guard service. In the scandals there were memos that provided information about claims that were supposedly created in 1973. They were found in the files of Lieutenant Colonel Jerry B. Killian, who died in 1984 (2004, para.1). Experts and bloggers investigated
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Week 8 Assignment 2: Joshua Baker Leg100 Instructor: Prof. Madhavi Basnet-Karki Tuesday, November 26, 2013 In the summer of 2012, JPMorgan Chase, the biggest U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that concealed this massive loss. Now we are going to discuss how administrative
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Prescriptive Approaches to Ethics at Enron Enron was a global energy firm that filed for bankruptcy protection in 2001. The firm’s senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron. In addition, the firm’s external auditing firm, Arthur Andersen, was complicit in the fraud by knowingly certifying false financial statements as accurate. Arthur Anderson participated
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interactions an attorney owes a fiduciary duty to his or her own client. Rule 1.1 is the Duty of Competence which goes beyond the knowledge of the law to encompass skills preparation and diligence. Rule 1.3 states the duty of the attorney to handle all matter with reasonable diligence and promptness. As an attorney if you do not follow these rules you not only commit an ethical transgression but can also be held liable to your client for damages. Other fundamental fiduciary duties include
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Everywhere”) acquired Burger Palace after the Board of Directors unanimously approved the transaction. Upon learning of the acquisition, the Sports Everywhere shareholders plan to file a derivative lawsuit alleging that the directors breached their fiduciary duty to the corporation. Eugene Dallas (“Dallas”), Chairman of the Board of Directors, inquires whether the business judgment rule is applicable to the determination of the Board. STATEMENT OF FACTS Dallas is the Chairman of the Board of Directors
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Table of Contents I.) INTRODUCTORY PRINCIPLES 2 A.) Efficiency and Other Concepts 2 B.) Agency and Partnership Law 2 II.) INTRODUCTION TO THE CORPORATE FORM 16 A.) Formation and Structure 16 B.) Debt, Equity, and Valuation 22 III.) CONTROL OF CORPORATE DECISIONS 32 A.) The Role of the Shareholder 32 B.) Management Obligations 50 1.) Duty of Care 51 2.) Duty of Loyalty 56 3.) Duty of Fairness: Parent-Subsidiary Relationships 63 4.) Duty of Good Faith 64 5.) Management Obligations
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Part 1: Law in Society A) A responsible business person would set a comprehensive code of ethics and values to be met by employees and associates, and would make clear how this code is to be enforced and in what matter it will be followed-up. A legal risk plan will be outlined and the business person will make the decision to retain a lawyer or hire an on-staff lawyer to handle all legal issues that may arise, and to follow up on the legal risk plan ensuring it is implemented accordingly and adhered
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factor” test. The substantial test relates to the fact that the act could have “substantially increased” or would have “materially increased” the risk that had been realized in the harm that took place. There is also the aspect of the breach of fiduciary duty where a person enjoys certain discretionary powers over the other person due to significant amount of practical interests of the other person. In this case it is the doctor who enjoyed discretionary powers related with the medical
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CORPORATIONS I. CHARACTERISTICS NOTE: the characteristics of a corporation are to be distinguished from those of partnerships, limited partnerships & LLPs: 1. Continuous life 2. Transferability of interest 3. Separate entity (a PERSON in the eyes of the law) 4. LIMITED LIABILITY for the owners/shareholders 5. Management- generally managed by board of directors, rather than shareholders/owners. II. TYPES OF CORPORATIONS 1. DOMESTIC: a corporation
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