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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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    https://brainmass.com/business/business-law/fundamentals-of-business-law-139091

    Solution Preview

    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 ...

    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.

    $2.19

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