Business essay outline
1. A Description Of A Business Situation That Presents A Legal And Ethical Issue.
A. Security Exchange Act 1933 and Security Exchange Act 1934
I. Providing sham or false information concerning the sales of shares which violates the Securities Exchange Act Of 1933 and the Securities Exchange Act Of 1934 (Manne, 1966).
II. Engaging in deceptive and illegal activities that take advantage of an investor in the sale of securities hence violating the Securities Exchange Act of 1933 and the Securities Exchange Act of 1934 (Jacobs, 1989).
III. The exclusion of facts or providing false statements regarding the sale of a security by a company hence violating the Section (12(a) (2) of the Securities (Act of the 1933 (United States. Securities and Exchange Commission, 1958).
B. Sarbanes–Oxley Act (2002)
I. Poor certification of the accuracy of information submitted to SEC by chief financial officers and chief executive officers leading to criminal proceedings against these officers and the company
II. Factual errors by CFOs and CEOs of auditing companies in annual and quarterly reports of the companies they audit.
III. Firing an employee by a company for whistle blowing on the violation of the Sarbanes–Oxley Act (2002) by a company
C. Federal antitrust laws: Sherman(Antitrust(Act(of(1890
I. Engagement in a combined contract or conspiracy in trade by states
II. Colluding with another party to monopolize certain commerce or trade through using artificial monopolies (Lewis, & Alan, 1991).
III. The creation of artificial monopolies by more than one company to destroy competition in an industry for the purpose of monopolizing the industry.
IV. Engaging in activities that are illegal and anticompetitive by a company
D. Clayton(Act(of(1914
I. The engagement in price discrimination by a firm
II. A company entering into lease or a contract that prevents buyers from procuring goods or services from competitors (Norman, 1986).
III. The gaining of the stock of another company to get rid of competition or create a monopoly that is artificial (Paul, 2003).
IV. Companies merging without informing the Federal Trade Commission((FTC)
V. A person or directorates serving competing companies that have undivided profits of ten million each or more, having aggregate surplus and capital. (Deepa, 2005).
2. A description of at least two ethical theories under which the situation will be analyzed.
A. Ethical theories
I. Kantian ethical theory: the theory explains that people should not do to others what they would not wish others do to them. Therefore companies should not engage in manipulative practices that will make them have an advantage over other companies since if other companies did that they will have playing field that is not level (Daniel, 2007).
The second theory that explains the need to comply with Federal Securities and Antitrust Laws is the utilitarianism ethical theory. The theory applies to the situation since it advocates for laws to be there for utility purposes in assisting people to conduct themselves in ways that are beneficial to themselves and others (Heimir & Holmgren, 2000).
3. An explanation of the specific areas of law under which the situation will be analyzed.
I. The situation will be analyzed in the area of law that deals with fraudulent activities that companies engage into for selfish gains (Damian, 2005).
II. The situation will also be analyzed in the area of law that deals with contracts in order to examine valid contracts when engaging in the sale of securities and contracts that are invalid.
III. The other specific area under the law that the situation will be analyzed is the area of negligence when engaging in business practices so as to analyze action that can be termed as negligent when companies engage in the buying and selling of security.
References
Damian M. (2005). Pleading Around The Private Securities Litigation Reform Act: Reevaluating The Pleading Requirement s For Market Manipulation Claims, .California Law Review, 7. 87 63
Daniel T. O. (2007).When Fraud Pays: Executive Self-Dealing and the Failure of self-Restraint. American Business Law Journal, 44. 4 571–601, Winter 200
Deepa N. (2005). The Toxic Convertible: Establishing Manipulation in the Wake of Short Sales. Emory Law Journal, 54, 721.
Examination and Analysis of Domination and Control, Front running, and Parking, 55 ALB.L.REV. 293.
Heimir G, & Holmgren, M. (2000). Ethical Theory: A Concise Anthology. New York: Broadview Press
Jacobs, A., S. (1989).Section 16 of the Securities Exchange Act, Volume 1. Boston: C. Boardman,
Lewis D. L. & Alan R. B. (1991). Securities Market Manipulations: An
Manne, H., G. (1966). Insider trading and the stock market. New York: Free Press
Norman S. P. (1986).Stock Market Manipulation and Corporate Control Transactions, 40 .Maimi Law Review. 671
Paul G. M. (2003). The Exchange as Regulator. Virginia Law Review, 83, 1453.
United States. Securities and Exchange Commission (1958).General Rules and Regulations under the Securities Exchange Act of 1934, as Amended. New York: U.S. Government Printing Office
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