Business Law
Scenario
Ingrid is a CEO of a corporation. Ingrid wants to sell shares in the corporation. She wants to make as much money as possible, so she creates fictional records for how much the corporation is worth, who the managerial personnel are, how money from the sale of shares will be used, how much property the corporation has, how much liquid assets your corporation has, and whether there are any lawsuits against the corporation. After the first year of selling shares, Ingrid exaggerates the profits the corporation makes every year for the next ten years.
Ingrid learns from an outside source that a project the corporation had been working on was a failure and that the value of the corporation’s shares will plummet as a result. Ingrid calls a meeting of the corporation’s board of directors and tells them the bad news.
Amari is a board member. Amari goes home and tells Amari’s family that they will lose moneynext week when the shares’ value drops. The next day, Amari’s husband tells his drycleaner the bad news. The drycleaner, Mikhail, owns shares and is worried. Mikhail calls Mikhail’s stockbroker Itsuki and tells Itsuki to sell all of Mikhail’s shares before the price decreases.
Identify each and every 1) law and 2) ethics principle we have covered in the scenario, making sure that you show a clear relationship between each 1) law and 2) ethics principle you identify and 3) the facts that are related to it; and making sure to also provide your own interpretations and conclusions on each issue you discuss and why you arrived at them.
