Project #50949 - homework

Multinational Companies (graded)

Let's finish up this term with a discussion about moving our personal and business ethics into the international business realm. Let's look at how ethics and laws span the concepts of all of our TCOs to date and discuss them in a realistic perspective, with particular emphasis on the multinational company and the effects of laws in other countries on business in the United States, and vice versa. The TCO topics have been the following:

A: Ethics
B: Governmental regulation
C: Warranties and product liability
D: Contract law
E: Employment law and vicarious liability
F: Intellectual property
G: Antitrust and fair trade activities
H: Corporate activities and the SEC
I: International ethics

Do you see any of our TCOs in a different light now at the end of the term than you did at the beginning of the term? If so, which one(s), and why?

Also, please review Marianne Jennings' article on "Why an International Code of Ethics Would be Good" from Week 1. (The article is posted in Doc Sharing.)

To start this topic, do some web research on a company that interests you and that is publicly traded in some stock exchange in the world. Specifically, try to find one that operates in more than one country. Then, pick two of the above TCOs and explain how the law involving those TCOs would make it harder or easier to operate multinationally. Explain what problems a company would have.


SOX and Insider Trading (graded)

Review problem 24-15, found on page 677 of your eBook. Let's look at corporate malfeasance, both specifically as it is seen in the case of Mr. Bleakney and NMC, and more generally, at companies across the country. It seems as though there is an outbreak of corporate "bad ethics" that is translating into escalating costs for compliance and policing.

Along with the SEC and their policing and efforts at ending bad business practices that relate to the stock market, we also have the Sarbanes-Oxley Act, also known as SARBOX, or SOX, which is becoming a big buzzword in the business world. We will look at that here and in the other topic. As part of that discussion, start thinking about the different ways different officers of the company will look at and use or follow SOX (i.e., the CEO, CIO, and CFO).

To start this discussion, let's look at the conduct of Mr. Bleakney. Was his conduct illegal under the Securities and Exchange Act, and more specifically, Section 10(b) and Rule 10b-5? If so, how? If his conduct was not illegal under Section 10(b) and Rule 10b-5, explain why not.

Was his conduct unethical? Why or why not?



Ronald Bleakney, an officer at Natural Microsystems Corp. (NMC), a Section 12 corporation, directed NMC sales in North America, South America, and Europe. In November 1998, Bleakney sold more than 7,500 shares of NMC stock. The following March, Bleakney resigned from the firm, and the next month, he bought more than 20,000 shares of its stock. NMC provided some guidance to employees concerning the rules of insider trading, and the corporation said nothing about potential liability with regard to Bleakney’s transactions. Richard Morales, an NMC shareholder, filed a suit against NMC and Bleakney to compel recovery, under Section 16(b) of the Securities Exchange Act of 1934, of Bleakney’s profits from the purchase and sale of his shares. (When Morales died, his executor Deborah Donoghue became the plaintiff.) Bleakney argued that he should not be liable because he relied on NMC’s advice. Should the court order Bleakney to disgorge his profits? Explain. Donoghue v. Natural Microsystems Corp., 198 F. Supp. 2d 487 (S.D.N.Y. 2002).



Subject Business
Due By (Pacific Time) 12/09/2014 12:00 am
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