Embezzlement Case Study

In this assignment we will exam three case-studies and determine whether the best course of action would be litigation, ADR or criminal prosecution. In the first we look a case of embezzlement, the second is a case of product liability and the third involves a supplier providing non preforming goods. We will evaluate the specifics of each and determine the best course of action. Spoiler alert, some of these may involve more than one course of action.
Case Study #1 In the first case study, we learn about Adele, a secretary who has the ability to write checks for her company in order to buy office supplies. Adele, needing money for groceries for herself and daughter, ends up writing a check out to herself with the intent of repaying it. Instead,

Sure not Bernie Madoff or Ken Lay level embezzlement, but that is just a difference of degree. Embezzlement is different than larceny in that where larceny is taking someone else’s property that you should never had in the first place, embezzlement is when you are entrusted with someone else’s property and you take it for your own gain (Lau, & Johnson, p.185, 187 2011). Either way it is still a form of theft and is a crime. The obvious answer is that since this is a crime the best course of action would be criminal prosecution. If the company called the police, and had Adele arrested, she would probably be convicted and would be ordered to pay restitution. The company would eventually get their money back. This would also have the effect of letting others in the company know that if they steal from the company they will be prosecuted, which could have the effect of cutting down on other forms of

If ABC Company sells heating lamps by the thousands, making them angry over one order seems dumb, especially if they know it was their fault. This puts ABC Company in a good position to try an Alternative Dispute Resolution, in this case negotiation. I would go to XYZ Company and let them know what happened and explain that because of their actions your company had taken a loss. Prior to calling them I would set a reservation point of replacement of the product but would shoot for that plus I would ask them to cover half of the loss. I would want the solution to be a win/win. In this way both companies are feeling some pain, but not overwhelmingly so. Remember the next mistake might be ours and vendors relations are almost as important as customer relations. I would only consider litigation if XYZ would not even replace the 150w bulbs with the 250w bulbs I originally