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Pros and cons of alternative dispute resolution
Literature review of ethics in accounting
Pros and cons of alternative dispute resolution
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In this assignment we will exam three case-studies and determine whether the best course of action would be litigation, ADR or criminal prosecution. In the first we look a case of embezzlement, the second is a case of product liability and the third involves a supplier providing non preforming goods. We will evaluate the specifics of each and determine the best course of action. Spoiler alert, some of these may involve more than one course of action.
Case Study #1 In the first case study, we learn about Adele, a secretary who has the ability to write checks for her company in order to buy office supplies. Adele, needing money for groceries for herself and daughter, ends up writing a check out to herself with the intent of repaying it. Instead,
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Sure not Bernie Madoff or Ken Lay level embezzlement, but that is just a difference of degree. Embezzlement is different than larceny in that where larceny is taking someone else’s property that you should never had in the first place, embezzlement is when you are entrusted with someone else’s property and you take it for your own gain (Lau, & Johnson, p.185, 187 2011). Either way it is still a form of theft and is a crime. The obvious answer is that since this is a crime the best course of action would be criminal prosecution. If the company called the police, and had Adele arrested, she would probably be convicted and would be ordered to pay restitution. The company would eventually get their money back. This would also have the effect of letting others in the company know that if they steal from the company they will be prosecuted, which could have the effect of cutting down on other forms of …show more content…
If ABC Company sells heating lamps by the thousands, making them angry over one order seems dumb, especially if they know it was their fault. This puts ABC Company in a good position to try an Alternative Dispute Resolution, in this case negotiation. I would go to XYZ Company and let them know what happened and explain that because of their actions your company had taken a loss. Prior to calling them I would set a reservation point of replacement of the product but would shoot for that plus I would ask them to cover half of the loss. I would want the solution to be a win/win. In this way both companies are feeling some pain, but not overwhelmingly so. Remember the next mistake might be ours and vendors relations are almost as important as customer relations. I would only consider litigation if XYZ would not even replace the 150w bulbs with the 250w bulbs I originally
Ans. 7 From my point of view I would have reported the scheme to senior management. The scheme would have proved very harmful for the whole company and the harm of the company is bad for each and every employee of the company. Many people may have lost their jobs due to this scheme.
I believe corporate liability would allow a case to be filed to require the money stolen to be repaid in a judgment against the corporation. A corporation has no actual body making jail time impossible, but makes it possible for The Sommet Group to be held accountable and pay a select dollar amount that satisfies the fraud committed by the employee and by association the corporation.
Also, around 5,300 employees were found to be involved in the scheme over a period of 5 years. In this case, if the defendant is liable, how should they be prosecuted for their fraud? Aggressive sales goals push employees to break the rules. “On average, 1 percent of employees have not done the right thing, and we terminated them.
Cross, Frank B., and Roger LeRoy Miller. "Ch. 13: Strict Liability and Product Liability." The legal environment of business: text and cases, 8th edition. Mason, Ohio: Cengage Learning Custom Solutions, 2012. 294-297. Print.
The case study Chris and Alison Weston describes how Chris and Alison committed mail fraud. The case is recorded from their recollection of events in an interview style format. Chris enlisted his wife Alison to set up a business that would provide the company with research services and identifying potential possible candidates for open positions at the company Chris worked. The Westons then started to overbill Alison’s business with each invoice. According to Chris, he saw opportunities with what he was doing, but he did not see the risks involved.
The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.
Are the elements of embezzlement present in this fact pattern? First off in “Moore v. United States, 160 U.S. 268, 269 (1895), the Supreme Court defined embezzlement in the following terms, Embezzlement is the fraudulent appropriation of property by a person to whom such property has been entrusted, or into whose hands it has lawfully come. It differs from larceny in the fact that the original taking was lawful, or with the consent of the owner, while in larceny the felonious intent must have existed at the time of the taking.” Therefore, the elements of embezzlement are present in this fact pattern due to the intentional taking of money without
This includes but is not limited to; check forgery, inventory theft, cash or check theft, payroll fraud or service theft. Another example of misappropriation of assets is when a company pays for goods or services that were not received or used. Embezzlement is a very common form of misappropriation where companies manipulate their accounts or create false invoices. An example of misappropriation of assets was discovered in 2008 and the victim organization was Fry’s Electronics. The Vice President of Merchandising and Operations, Ausaf Umar Siddiqui had set up a fake company that received illegal kickbacks. Siddiqui embezzled $65.6 million to pay off his gambling debts. Embezzlement of money from a company can understate cash and show a false picture to the creditors and investors. This can lead them to make decisions on misrepresented information. Another example of misappropriation of assets was of a hedge-fund manager, Philip A. Falcone who borrowed $113.2 million from investors from a hedge fund company (Harbinger Capital) and he used that money fraudulently to pay off his personal taxes. Instead of using the investor’s money for the intended purpose, which was to build a wireless phone network, he deceived them by using the money without their knowledge to pay off his taxes. The company had to file for bankruptcy as it had $23 billion in losses and withdrawals and it could not pay back
Unlike the Accounts Payable master file and the company’s receiving reports, which are maintained by independent third parties, Wayland Manufacturing Company’s Accounts Payable and Purchases accounts are completed in-house with insufficient internal controls. The lack of sufficient internal controls increases an employee’s opportunity to commit and conceal fraud. In addition, the high employee turnover places the accounting department’s responsibilities on the company’s Chief Accountant, Fred Newbaker. The lack of a separation of duties enables Newbaker to create vendor invoices to commit fraud and the lack of a third party approval system enables him to conceal his wrongdoings (Arens, Elder, & Borsum 2013) (Accounts Payable and Disbursements Fraud
employee theft and fraud. Fraud and theft have a lot in common. Both are criminal acts, and both
Krystal knew that Jacob had good speaking skills and they both decided that Jacob would do the presentation. Jacob’s presentation was a success and they successfully sealed the contract. The owners of the company were so impressed and gave Jacob a $10,000 bonus check. Jacob saw this opportunity where he could use the money for his son’s medical bills. However, he knew that Krystal did most of the work and deserved the bonus money.
What do you think? Should more limits be placed on law enforcement officials’ ability to seize assets of suspected wrongdoers?
the owner and the employee over theft or loyalty it can easily spillover to your customer.
In other well-known cases of embezzlement, we have seen some heavy sentencing. For example, Bernie Madoff embezzled approximately 65 billion dollars and was sentenced to 150 years in prison. He has only paid back approximately 5.87 billion dollars (Rosenblum). In many cases, the victim will not receive full restitution. Another with Kenneth Lay of Enron, who embezzled eleven billion dollars, faced up to 45 years in prison and died before he could serve this sentence
This essay will go through imperative elements for implementing fraudulent misrepresentation and to provide innocent party to recover civil damages, gain an injunction or other remedies from the other party. Business law is very broad concept of law which covers all the legal issues that include many commercial and domestic cases which make up most of the civil cases and there are only few criminal cases where there has been serious breach of law. With the help of reference to relevant case law, this essay will argue that Bob Wheelie suffered loss due to fraudulent misrepresentation of historical figures of business by Mr Spoke as Bob anticipated that the business was in good financial position whereas the business was struggling and he ended