Business Law
When most people think of securities fraud and corporate misconduct, they will often associate Enron to these ideas. This is because it went from being the tenth largest company in America to one the biggest bankruptcies in U.S. history. On surface, everything appeared to be fine. Until it was disclosed, that the firm was running out of cash and the executive officers were unloading their stock. (Eichenwald, 2005)
This raised concerns that something more was happening behind the scenes. To fully understand what occurred requires carefully examining the firm itself, the effects it had on the legal system, the lasting impact on stakeholders and conducting an analysis of the situation. Together, these elements will highlight the various securities laws that were violated and the way case changed corporate governance going forward. (Fox, 2004)
The Circumstances at Enron
Enron was founded in 1985. This occurred after Houston Natural Gas merged with Northern Natural Gas. The combined companies were taking advantage of deregulation inside the natural gas industry and electricity markets. At the heart of their strategy, was to create a business model to purchase these assets and then sell them to customers for a sizable profit margin. This became a concept known as energy trading. (Eichenwald, 2005) (Fox, 2004) (Fusaro, 2002)
However, major problems began to develop when they would speculate that prices were moving higher and went in the opposite direction. This caused the company to experience tremendous losses and it created uncertainty in their business model. Moreover, the firm was aggressively purchasing new businesses that were deregulating in various parts of the world. They also began to construct facilities in order to meet the growing demand in countries (such as: India) for electricity and natural gas. (Eichenwald, 2005) (Fox, 2004) (Fusaro,...
Business Law Final The case involving John is a part of a pattern of behavior that is designed to benefit him at all costs. This has made him more egotistical in his dealings with others by knowingly violating the law. As he is has been indicated and never found guilty 10 times. This is problematic, as it is giving John and his associates a sense of aloofness. To effectively curtail these
Business Law The federal district court for the district in which the State of Confusion resides will have jurisdiction over the constitutionality of the B-Hitch Statute. The lawsuit by Tanya Trucker will be heard in federal court because the federal courts have jurisdiction over issues of federal questions. This suit concerns a matter for the federal courts because the issue is "whether a state statute which interferes with commerce in the
Business Law The author of this report has been asked to answer regarding several different legal and/or ethic cases or questions. Those cases/situations are Wrench LLC vs. Taco Bell, California & Hawaiian Sugar Company vs. Sun Ship Inc., the general legal cases and practice of cybersquatting and general ethics. While these cases are controversial and the topic of many scholarly conversations, the outcomes that should have happened are quite clear. Regarding the
The most significant purposes comprise: persuading actions of the members of a culture, resolving disagreements inside the culture, upholding significant social values, and providing a way for social change (Meiners, Ringleb and Edwards, 2009). Canadians are recognized for their logic of fair play, their admiration for working people, and for their devotion to the rule of law. These principles are reflected in the legal system governing Canada's businesses (Phillips,
It is at this point, when the company will address these challenges over the long-term and become more economically viable in the process. ("Resolution of Business Ethical Dilemmas," n.d.) At the same time, this strategy is very balanced. The only drawback is that there will be short-term pain (in varying degrees) for different stakeholders. This means that the firm can remain in business when the bankruptcy is occurring and maintain
The grand jury returned a 112-count indictment against Steve Warshak, company president; his mother, Harriet Warshak; general counsel Paul Kellogg; and former employees Charles Clarke Jr., Steven Pugh and Amar Chavan. A company called TCI Media, which was allegedly used to launder money, was also part of the indictment. The charges include 77 counts of money laundering, 12 counts of mail fraud and four counts of bank fraud (Berkeley
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