BUSINESS LAW

Required for Problems I & II & Extra Credit: Define the rule of law for each problem, then apply the rule of law to each issue in question of each facts of each Problem. The answer for each issue in question of facts in each Problem must be define, explained and decided with two and/or three paragraphs for each fact of each Problem. No summary, preferences or ideas. Definitely no one sentence answer for each issue in question of each Problem is accepted. Problem I (40 points) Rule of Law: Criminal Law Facts 1: Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsanitary conditions caused by Vic, a Tasty Foods employee, in the company's warehouse. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection reveals no such corrections. Sophie knows nothing about any of this. (20 pts) Issue: Can Tasty Foods be convicted of a crime in these circumstances? Define, explain, and decide Issue: Can Sophie be held personally liable? Define, explain and decide Facts 2: Fred, a successful stockbroker, gives a lecture about investing. Some of the persons who attend the lecture form Gain & Profit, an investment club, and ask Fred to advise them. Gain & Profit allows Fred to set up an account for the club with a brokerage firm and gives Fred control of the account, but does not authorize Fred to withdraw funds for his own benefit. Fred uses the money in the Gain & Profit account to repay personal loans. Charged with embezzlement, Fred defends his actions on the ground that he intended to repay the club. (20 pts) . Issue: Is Fred guilty of embezzlement? Why or why not? Define, explain and decide