Premium Essay

Local Lawsuit

In:

Submitted By mowens5026
Words 1385
Pages 6
Legal Advice
Question #1 - Summarize the actions that lead to the lawsuit. In the suit Board of Trustees of Community College District No. 508 v. Coopers & Lybrand, the Board filed suit due to Cooper’s failure to report discrepancies and inappropriate investments by the Treasurer and Chief Financial Officer Phillip R. Luhmann. According to Kilbride (2003,
p.1), “in 1988, 1990, and 1992, the Board Adopted Resolutions authorizing its treasurer to invest
City Colleges’ funds only in instruments permitted by the Public Funs Investment Act
(Investment Act) (30ILCS 235/1 et seq, (West 2002).” It further implies that “the resolutions provided that the funds should be invested only in securities guaranteed as to payment of principal and interest by the full faith and credit of the United States of America.” (Kilbride,
2003) Before funds were needed, the securities were required to mature to minimize interest risk rating. Despite these rules, Mr. Luhmann invested funds in unauthorized securities. He continuously proceeded with these investments known as “pairing off”.” (Kilbride, 2003) In other words, he purchased a security and sold it as profit before payment was required. From 1991 until 1993,
Mr. Luhmann invested funds, violating regulations of the Investment Act. From 1991 until
1992, Arthur Andersen’s accounting firm audited City Colleges’ financial statements. Coopers
& Lybrand’s accounting firm audited City Colleges’financial statements in 1993. In 1994, Ron
Gidwitz, Board Chairman, learned that Mr. Luhmann violated investment regulations and declared a financial emergency and proceeded to file a lawsuit against Coopers & Lybrand
L.L.P. Andersen’s firm reviewed the financial statements during the time period in question. A settlement was later reached with the accounting firm. Being the same

Similar Documents

Free Essay

Local Lawsuit

...Local Lawsuit Trimmer Harris Dr. Teddilane Turner Business Law 100 July 29, 2012 Introduction Tyson Food Incorporation is one of the world’s largest processor and marketers of chicken, beef and pork, the second largest food production company in the Fortune 500 and a member of the S &P 500, has been found in violation of the Fair Standard Act. Tyson produces a wide variety of protein based and prepared food products and is the recognized market leader in the retail and food service market it serves. Tyson provides products and services to customers through out the United States and more than 90 countries. The company has approximately 1150 team members employed at more than 400 facilities and offices in the United States and around the world (Tyson Foods.com). In a local lawsuit I will summarize the actions that lead to the lawsuit. Discuss what management could have done to prevent the events that lead to the lawsuit and the ethical consideration reflected in the law applicable to this case. Determine which source of law would be most relevant in this case and how management could have leverage knowledge of the sources to prevent similar instance in the future. Finally recommend what management might be able to do to pursue alternate resolutions outside of court. Summarize the actions that lead to the lawsuit. Owning a business almost guarantee that you will be in civic court at some point. You may be forced to file a business lawsuit against a customer who...

Words: 1098 - Pages: 5

Free Essay

Local Lawsuits

...Georgia State Conference of the National Association for the Advancement of Colored People and the Georgia People's Agenda filed a lawsuit against Georgia Secretary of State Brian Kemp and state Department of Human Resources Commissioner Clyde Reese for failing to provide voter registration forms to residents seeking public assistance, like food stamps and Medicaid. The suit claims Georgia has been engaging in statewide noncompliance with the National Voter Registration Act of 1993 (NVRA) Section 7. It contends the state has deprived thousands of low-income Georgia citizens the opportunity to vote. In 2007-2008, Georgia public assistance offices received 21,762 voter registration applications a 79 percent drop since 1995-96 (Fleishman, 2004). Section 7 of the NVRA requires that all public assistance offices, in states subject to the NVRA, distribute a voter registration application with each application for public assistance, and each recertification, renewal, or change of address relating to an individual’s receipt of public assistance. It further mandates that all public assistance offices in a covered state assist clients in completing a voter registration application (unless a client declines such assistance), provide a form that asks clients whether they wish to register to vote and includes certain specified information concerning the voter registration process, and accept completed voter registration forms for delivery to the appropriate elections authority. Defendant...

Words: 1132 - Pages: 5

Premium Essay

Local Lawsuits

...Cassandra Williams Week 4 Assignment 1 Professor Adrienne Garabedian Strayer University The nature of the organization of Sam’s Club and its other Wal-Mart affiliates is that we are in business for the sake of small business and its customer’s/members and to afford them reasonable and quality products and services. At the current Sam’s Club that I interviewed at I asked store manager Freddie Cox about what he thinks is the nature of the business and its size, and any specific human resource challenges it faces, and his response was he thinks that “there is so many demands for managers and associates to help keep the company going and that there should be better training to help those entering the company to help keep order.” In an interview that I did with another associate she stated that she would like to see “more learning programs in place for the sake of helping create a more diverse and complete environment so that if you chose to go to another country like Germany or japan that you have access to a learning course that would teach you that language.” The store itself is about five-hundred eighty stores nationwide with more than three-thousand retail Wal-Mart’s and is currently the largest in the U.S. if not worldwide. When asked about if there are any specific human resource concerns all that I got were blank stares because the Sam’s Club and Wal-Mart affiliates are all very good at maintaining and keeping control of various operations and any issues that arise...

Words: 1066 - Pages: 5

Premium Essay

Ruby Tuesday Ethical Issues

...STRAYER UNIVERSITY Ruby Tuesday Ethical Issues Multiple lawsuits [Type the author name] 6/8/2016   Ruby Tuesday is a successful national restaurant chain specializing in “American” type cuisine, enjoyed by many on a daily basis. While they are able to thrive in a very tough industry, they have been in the news for some possible ethic conduct violations, one regarding employee wages and another regarding gender bias hiring. In 2012 a law suit was filed against Ruby Tuesday Inc. (RTI), by what the industry refers to as “front of house” employees, which covers waiters/waitresses/food runners and bartenders. These type of employees are paid on a different type pay scale, as a good part of their wages are made from tips from the customers they serve. Since these “tipped” employees focus on customer service, the las states they are only allowed to spend no more than 20% of their work day performing “side work”. (ROC n.d.) The suit claims that RTI would have employees punch out and continue to work or perform tasks before they punched into work. The suit was settled out of court, with RTI paying about 3 million dollars to workers for lost wages. In another suit, Ruby Tuesday, Inc has been accused of discriminatory hiring against men. The company placed an ad in a Utah newspaper looking for seasonal bartenders and servers, actually indicating a preference for women (Phillip 2015). The company was providing housing for the employees and apparently...

Words: 583 - Pages: 3

Premium Essay

Nordstrom Case

...its superior, best-in-class customer service. The Nordstrom sales clerks, or “Nordies”, were famous for routinely going above and beyond what was considered common industry practice to ensure that customers received the best shopping experience imaginable. On the surface, this key competitive advantage was what set Nordstrom apart from other department store chains. But upon digging deeper into the incentive commission system that was in place, coupled with unclear guidance for mid-level managers on how to manage their sales teams, it soon became apparent that Nordstrom unintentionally created a hostile work environment that contributed to a huge drop in employee morale and led to a publically humiliating and costly class action lawsuit filed by the local union in Washington. This paper will attempt to explain the intended benefits and unintended consequences of Nordstorm’s incentive compensation system, how it motivated or demotivated its employees to behave in certain ways, and provide two possible solutions that could help foster a higher level of intrinsic motivation while retaining the spirit of the company’s key competitive advantage: its superior customer service. 3rd question (Unintended consequences of compensation system): The way in which the compensation system was structured by the sales-per-hour (SPH) ratio measurement, coupled with a lack of transparent guidance for how middle managers should directly manage employee hours, led to several costly unintended...

Words: 426 - Pages: 2

Free Essay

Business Law I: Class Action Law Suits

...of business law is the class action lawsuit. I find this intriguing because class action law suits are often litigated on the same principles as other types of civil action suits, however, the outcome of the class action lawsuit often may have a deep impact on our society, as well as our legal system as a whole. In a normal civil lawsuit, where the plaintiff is the victor, said plaintiff is typically well compensated for their respective damages. Thus it can be viewed that is how justice is served in these cases. In the class action lawsuit where the plaintiffs win, often the individual is not proportionately compensated for their damages as compared to the victor in the average civil suit. In fact there have been class action law suits that have been held in favor of the plaintiffs, damages have been rewarded by the courts, but the individual did not receive a cent of monetary compensation. Yet, in these cases, justice has still been adequately served on the basis of morality. . In this paper, we are going to take a look at class action lawsuits. This paper will cover the history of class action lawsuits, what exactly a class action law suit is, how a class action suit is filed, and we’ll take a look at some of the more famous and impacting class action lawsuits in our nation’s history. The history of most of the United States legal system is deeply rooted in the heart of English common law, and class action lawsuits are no exception. The origins of...

Words: 2643 - Pages: 11

Premium Essay

State of Confusion

...through the state of Confusion they need to be equipped with a specific trailer hitch, which is made only in the state of Confusion. Tanya Trucker is frustrated because of the fact the Federal government has not been involved so far in regard to the state of Confusion obligating truckers to buy the required hitch or go around in which may cost more money than purchasing the required hitch. Why should the truck drivers buy a specific trailer hitch that the state of Confusion sells and requires no one knows if it is more secure than those already on the trucks. Tanya Trucker is weary of this outrage and wants for something to be done. Tanya Trucker has decided to file lawsuit against the state of Confusion to end this hitch dilemma and overturn the statute once and for all. In Tanya’s preparations to pursue this lawsuit she needs to first find what court will have the jurisdiction over the case. If Tanya Trucker case is strong enough she may file at the civil division of the state trial courts. The general jurisdiction trial courts would first hear testimony and seek any evidence presented that can determine the strength. If Tanya Trucker’s case would get thrown out she can seek her appeal in the Appellate Court System in which no further evidence can be brought in play and have the case reviewed thoroughly. This situation arises a question is the state of Confusion statute constitutional? I believe this Confusion statute is not constitutional because there is no federal...

Words: 1244 - Pages: 5

Premium Essay

Traditional Litigation

...United States, traditional litigation system refers to the resolution of disputes by utilizing the civil court system. The system is based on an adversarial system of justice where attorneys’ are duty bound to zealously represent their clients within the bounds of the law and the Canons of Professional Responsibility. All court proceedings, from the commencement of an action up to and including a trial, are governed by the formal and detailed rules of civil procedure” (XXXXX). There are 2 main phases in filing a civil lawsuit using traditional litigation. The first phase is, to commence a court action. This process happens when the defendant of the case is formally served with paperwork from a local law enforcement agency. The second step in traditional litigation is a pre-trial hearing. In the pre-trial hearing a discovery has to be made. A discovery is court monitored and allows the parties involved to exchange documentation that is relevant to the lawsuit. While the pre-trial phase is existent, the parties may file as many motions needed to determine the outcome of the litigation. Alternative Dispute Resolution (ADR) can be the best way to file a business suit. The cost of ADR can be less of the cost of traditional litigation, if used properly. Traditional litigation can be expensive especially if one party decides to linger the court...

Words: 625 - Pages: 3

Premium Essay

Nontraditional Litigation

...to included investigation, pleadings, discovery, pre-trial, trial, settlement and appeal. Both parties are represented by attorneys and the case is decided by a judge or jury, and if each party feels the court’s decision is in error, then one can appeal the decision, to be tried in a higher court of law. Although most trials are settled outside of courts and not all trials go through every stage, litigation can become expensive and complicated with increased party involvement. Because lawsuits can take several months to years before it even goals to trial, alternate dispute resolution (ADR) methods are other ways of remedying conflict, and could save companies money. Both are effective, however, choosing the best method to resolve a conflict should depend on the nature of the conflict. Some of the things that can affect companies and should be considered in deciding whether to litigate or use an alternate dispute resolution are: 1) knowing a particular state’s ADR laws, local court rules and the company’s contractual agreement 2) fee and expenses of the trial, attorney fees and additional requirements for discovery and pre-trial motions in civil litigations 3) whether or not the company can appeal versus ADR, which cannot and 4) what is the...

Words: 691 - Pages: 3

Premium Essay

Local Business Fraud

...First Universal Lending LLC- An Elaborate Scam By Javoris L. Brown Strayer University LEG100 – Emily Smith Business Law 1 November 2012 The local business I choose to do my research on is First Universal Lending LLC, a limited liability company created by attorney David J. Feingold. Originally, First Universal Lending was created to help borrowers with the process of financing or purchasing a home. However, throughout the time that they were helping borrowers, many people were put into loan payments that they could not afford. With their livelihood and pride at state, borrowers began to complain about the loan that First Universal Lending acquired for them. Once these complaints were made public the company’s credibility reached an all-time low. In an effort to rekindle the flame the company hired new managers and personnel to point them in the right direction. Sean Zausner and his younger brother David Zausner were the new recruits that would maximize the profit and minimize the lost. After doing a bit of research, the Zausners proposed a new program that was capable of having an infinite line of income, The Loan Modification. During the loan modification process borrowers were attempting or led to believe that the terms of their mortgage could be reconstructed to their benefit or needs. With their home and family at state borrowers were willing to pay anything to keep their houses, this train of thought is what the Zausners predicted to happen. Once David Feingold...

Words: 1546 - Pages: 7

Premium Essay

Bugusa

...through veiled regulations. The contract between both parties should be written to have the best interest of both parties. Some laws that protect rights in the US don’t apply in other countries. Without proceeding with legal ramifications the company the American company can claim compensation from their foreign partners. Factors that could affect Cadmex decision to grant sublicensing agreements are the companies may not make the product to the required quality standards or production requirements. When local customs and laws conflict with the customs and laws of an organization operating abroad which will prevail. It comes down to what was written in the contract. The local law will prevail on the basis that most read the provisions for American businesses working in foreign countries. There are certain laws in different countries that are set to protect their domestic companies. The issues are not similar on the basis the week one readings that was more of a civil lawsuit against a tobacco...

Words: 343 - Pages: 2

Premium Essay

State of Confusion

...made any attempt to regulate the truck hitches used on the nation’s highways, Tanya feels that the statute is a violation of the federal commerce clause, and hopes to have the statute overturned. What Court has Jurisdiction? The specific components of a case aid in determining the jurisdiction over a suit. For Tanya Trucker’s case, she may file in either a state or federal court as they both have jurisdiction. However, it would be pointless for Tanya to file suit in the State of Confusion where the trailer hitches are produced, sold, and required for transport. This could cause court bias, as Tanya’s company is located in another state. Diversity of citizenship jurisdiction allows a state case to be brought to a federal court if the lawsuit involves citizens from different states and involves a nonfederal question. The federal court must apply the appropriate state’s law in deciding the case, and the dollar amount must exceed $75,000 (Cheeseman, 2010, p. 41). Although the case could involve diversity of citizenship, Tanya believes that the State of Confusion does not have the right to impose a statute that hinders free trade between states as defined by federal law. The federal court must determine a statute’s constitutionality when it is inconsistent with federal law, as it appears to be...

Words: 1720 - Pages: 7

Free Essay

Mccormack & Mcauliffe V. Campus Crest Group, L.L.C.

...McCormack & McAuliffe v. Campus Crest Group, L.L.C. Elizabeth Braquet Gibson LeTourneau University Business Law – Sanders Heather McCormack & Nicole M. McAuliffe v. Campus Crest Group, L.L.C. (including business subsidiaries) United States District Court, W.D. North Carolina, Charlotte Division Campus Crest is a major developer in the United States that builds and manages multiple properties on College campuses throughout the country. The firm has locations and subsidiaries in numerous states and has seen its share of scandal during its duration. Heather McCormack (Plaintiff #1) was hired by Campus Crest in 2008 as an operations controller for Campus Crest. Later that same year, Ms. McCormack was promoted to the VP of Administrative Services and given a raise to $100,000 a year with an added bonus at the end of 2008 in the amount of $50,000. For several years the Plaintiff was exposed to unstable working environments, requests by upper management to falsify records, numerous accounts of racial discrimination against prospective employees and the sexual advances from a company official (VP, Sharpe). Ms. McCormack stated that while employed by Campus Trust Group, L.L.C. she was confronted on numerous occasions with hostile and discriminatory comments by the company’s executive vice president, Brian Sharpe. She stated the extreme unease she felt in the work environment due to these actions. Mr. Sharpe is quoted by coworkers as often making statements...

Words: 1543 - Pages: 7

Premium Essay

Litigation

...Traditional and Nontraditional Litigation Chauncey Davis LAW/531 June 18, 2011 Alfred Green Traditional and Nontraditional Litigation Litigation can be a lengthy and expensive process that must align with procedural guidelines set forth by local, state, and federal laws. According to Cheeseman (2010), litigation defines as “a process of bringing, maintaining, and defending a lawsuit” (p. 34). A manager or leader in an organization must concede that at some point he or she will have to file a suit against someone or someone will file a suit against his or her company. Depending on the complexity and nature of the case, someone wishing to file a suit can either use the traditional litigation system or nontraditional forms of alternative dispute resolution (ADR) methods. The traditional system and ADR both provide advantages and disadvantages for which this author will compare and contrast them to identify the pros and cons. In the United States, the traditional litigation system involves the courts resolving disputes by following the procedural steps of the civil court system. The system is adversarial and requires attorneys (for plaintiffs and defendants) to represent their clients zealously in accordance with the laws and Canons of Professional Responsibility (Barron, n.d.). The plaintiff has the burden of proving his or her case by the preponderance of the evidence, whereas the jury will serve as the finder of fact to determine if the plaintiff has met...

Words: 830 - Pages: 4

Free Essay

Law 421

...Interactions Josh Herricks LAW/421 June-6-2013 Luke Martin Legal and Ethical Issues in Resolving International Interactions When an individual or a company is going to involve themselves in international transactions and or resolve a problem he or she should be educated with the laws and understand the foreign culture that he or she is doing business with. Without knowledge of the laws and the customs of a country it could mean that the business transaction will end before it started. It does not matter how small the international transaction, how good the partnership is, and if he or she thinks that nothing will ever happen during international transaction it is him or hers responsibility to make sure they are protected from any lawsuits and any litigations occurring. Businesses that take part in international transaction need to remember the transaction can be challenging. Both parties of an international transaction should come to an agreement on what is the choice of law and what forum selection will be used. The choice of law is to help eliminate confusion and helps coming to an understanding. The forum selection is a decision on how the conflict will be resolved such as arbitration, litigation, jurisdiction of the courts, and procedures. More issues are the culture will be different in a foreign country and if there are any religious views that he or she follows. In the United States men and women are treated equally. Men and woman have the choice on what they want...

Words: 1007 - Pages: 5