Scribd
Upload
56 views3 pages

Legal and Ethical Issues in Business

This document contains two short essay responses about legal cases. The first response discusses a case involving a woman named Debbie who took out a bank loan but then lost her job, explaining that under federal banking regulations and the original contract, she remains obligated to repay the loan. The second response describes a case of embezzlement by someone named Eddie Embezzler, explaining that his actions violated both criminal law, with possible jail time and fines, and civil law, allowing the victim to recover losses through legal means. Both responses cite statutory and contract law as the relevant legal sources.

Uploaded by

Raeesa Potnis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
56 views3 pages

Legal and Ethical Issues in Business

This document contains two short essay responses about legal cases. The first response discusses a case involving a woman named Debbie who took out a bank loan but then lost her job, explaining that under federal banking regulations and the original contract, she remains obligated to repay the loan. The second response describes a case of embezzlement by someone named Eddie Embezzler, explaining that his actions violated both criminal law, with possible jail time and fines, and civil law, allowing the victim to recover losses through legal means. Both responses cite statutory and contract law as the relevant legal sources.

Uploaded by

Raeesa Potnis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Week 1

BADM 537- Legal, Ethical, and Social Environment.


SHORT ESSAYS

Raeesa Potnis
University of the Cumberlands
1/10/2021
Response 1:

Since Debbie borrowed money from First Bank under a contract to pay it back with

interest, it is evident that she had the intention to pay the loan amount plus interest back. In the

current scenario, Debbie has made payments for two months and then loses her job. The source

of law that protects First Bank against losing their money and requiring Debbie to pay money

under the original signed loan contract agreement is Statutory Federal Law[ CITATION Jen18 \l

1033 ]. Federal regulations under The Federal Reserve System regulate state-chartered member

banks, bank holding companies, foreign branches of U.S. national and state member banks, Edge

Act Corporations, and state-chartered U.S. branches and agencies of foreign banks. Under these

regulations and the original contract that Debbie agreed to while loaning the money, she will owe

the Bank the remaining amount. For example, if the bank has taken some mortgage against the

amount of the loan, the bank will have the remedy to take the mortgage thing like the house, the

jewel under the bank's authorization, to recover the amount. Second, if there is someone who has

taken the guarantee from the person who has taken the loan, the bank will recover the amount

from the guarantor.

Response 2:

Eddie Embezzler violated both criminal and civil law. As a criminal offense, most

embezzlement gets prosecuted under state law; however, the federal government also prosecutes

those who embezzle from the federal government (or someone paid by the federal government,

like a contractor working on a government building). If convicted, the penalties include

incarceration, fines, and victim restitution (money to pay for a loss). In addition, the victim, i.e.

Betty Boss can also sue in the civil court. The civil judgement can allow Betty to recover by

garnishing wages, levying on a bank account or by seizing and selling the perpetrators property.
This will depend on remedies provided under state civil law. This is a violation of both criminal

and civil law because embezzlement is a criminal offense that harms the society as well as a civil

offense that is a wrongdoing against a person or persons [ CITATION Jen18 \l 1033 ].

References
Jennings, M. M. (2018). Business: Its Legal, Ethical, and Global Environment. Boston, MA:
Cengage

You might also like