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Fundamentals of Business Law

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Details: When one thinks of crime, it's usually with individuals in mind. However, companies commit crimes too. Review the articles below and respond to this question, citing the articles you reviewed:

Do the company's actions fit the definition of a crime? If so, what kind, a felony or a misdemeanor? Why or why not?
Articles:

Ex-WorldCom Chief Ebbers Convicted of Fraud

Reliant Energy Services, Inc. and Four of its Officers Charged With Criminal Manipulation of California Electricity Market

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Solution Summary

Details: When one thinks of crime, it's usually with individuals in mind. However, companies commit crimes too. Review the articles below and respond to this question, citing the articles you reviewed.

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Yes company's action such as WorldCom fits the definition of crime. The Criminal Code requires various elements to be proven before a person can be convicted of a crime. The commission of a prohibited act by the accused - for example, causing bodily harm, counseling a person to commit an offense, driving while impaired, or touching a person for a sexual purpose, must first be proven. In following situations, the corporations has Direct liability:

Company treated as having itself committed the wrong

Crime: fault will be attributed by statute

Tort: fault may be attributed by common law or statute
Let us take the case of WorldCom. This organization was started by Mr. Bernie Ebbers in 1983. They entered the long-distance telephone business in 1983 with a Jackson, Miss., company known as LDDS. They change the name to WorldCom in 1995 and the growth of it happened mainly due to acquisition strategy. In Continuation with that strategy, there was a $37 billion purchase of MCI in 1998. Thus WorldCom became symbol of success in 1990s and became second largest long distance telecom company with $107 billion in Assets. It employed more than 60000 people and operated in 65 countries. But the company's performance deteriorated due to saturation of telecom industry and bad managerial ...

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