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Business Law: Martin vs McDonald's Corporation
Essay Instructions:
I. Read Case 40.1 “Martin v. McDonald's Corporation” on page 636 of the Cheeseman text. Answer the following questions:
a. Should businesses be held liable for criminal actions of others? Why or why not?
b. What is the benefit to a franchisor of establishing and requiring its franchisees to adhere to security rules? Is there any potential detriment? Explain.
II. Read Case 41.1 “United States v. Bhagat” on page 657 of the Cheeseman text. Answer the following questions:
a. What is insider trading? Explain. What is tipping? Explain.
b. What percentage of insider trading do you think the government catches?
RESPONSE DUE: NOVEMBER 22, 2010
Essay Sample Content Preview:
BUSINESS LAW
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(19, November, 2010)
Business Law
Case 40.1. Martin v. McDonald’s Corporation
It is ideal that businesses should not be held responsible for criminal activities committed by other businesses. Due to the fact that business ethics and morals require that criminal actions should be punished. The offenders should therefore be made to suffer the consequences while the offended should be rewarded by compensation (Boldrin & Levine, 2008).
The establishment of the security rules by the franchisor to be followed by the Franchisees ensures that both the two parties are under protection. If the rules are strictly followed, then the business is protected from crime actions. This reduces theft incidences thereby reducing losses at the same time. The case of Martin v. McDonald’s Corporation could have been avoided if only the Oak Forest franchise could have followed the instructions that were given by Jim Carlson, the MacDonald regional security manager after the inspection on October 31st.
Case 41.1 United States v. Bhagat
Insider trading is the act of buying or selling of corporate...
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