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The rule of law case studies
Ethical practises in business
Ethical practises in business
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Martha Stewart and Macy’s signed a contract saying that Macy’s could sell Martha Stewart branded products in Macy’s stores, including exclusive items like kitchenware and bedding. Over the years, Macy’s has made a massive profit from this line. Without consent, Stewart and JcPenneys made a deal saying that JcPenneys could sell home décor products out of Martha Stewart store-within-a-store locations at Penney’s stores. Macy’s sued them both for a breach of contract, and violating the terms of its original contract with Martha Stewart Living. Macy’s wanted JcPenneys to take certain items off of their shelves and demanded compensation for loss of profits. JcPenneys and Martha Stewart responded that the agreement they encountered with one …show more content…
Macy’s won the case. JcPenneys disagreed and appealed the case. The case went to the New York appeals court. The New York Supreme Court Appellate Division, First Judicial Department, restored claims alleging that JcPenneys persuaded Stewart to reveal confidential information about its contract with Macy’s and engaged in unfair competition. The appeals court said that JcPenney’s desire to have Martha Stewart’s company breach its contract with Macy’s was intentional, but declined to award punitive damages. The appeal decision was made by Judge Jeffrey K Oing, who after a six-week bench trial in 2013, rule that J.C. Penney had interfered with the contract between Stewart and Macy’s, paying the way for Macy’s to claim lost profit-related damages in the high-profile case. Macys was represented by Theodore Grossman of Jones Day, and he said that J.C. Penney is now in a worse position for having appealed. During the course of the trial, the top executive from all three companies took a stands including Macy’s CEO Terry Lundgren, and former J.C. Penney CEO Ron Johnson. J.C. Pennney argued on appeal that the contract between Stewart’s company and Macy’s was vague and did not prevent a side deal allowing J.C. Penney to set up mini Martha Stewart stores within J.C.
First, what crime did Martha Stewart commit? Before answering this question, I would like to briefly explain and identify the nature and some of the developments of the case. The troubles started when Stewart sold approximately 3,928 of her shares on the company called ImClone System on December 27, 2001. According to (Sullum, 2004), Stewart sold ...
The jury convicted Stewart of making false statements to investigators during her February 4 interview, in violation of 18 U.S.C. § 1001. The jury found Stewart guilty of making the following false statements, each of which was a specification in Count Three of the Indictment. Martha Stewart told the Government investigators that she spoke to Peter Bacanovic on December 27 and instructed him to sell her ImClone shares after he informed her that ImClone was trading below $ 60 per share. Martha also stated that during the same telephone call, she and Peter Bacanovic discussed the performance of the stock of her own company, Martha Stewart Living Omnimedia ("MSLO"), and discussed K-Mart. She told investigators that she had decided to sell her ImClone shares at that time because she did not want to be bothered during her vacation. Stewart stated that she did not know if there was any record of a telephone message left by Peter Bacanovic on December 27 in her assistant's message log.
The following is a case analysis of Ally Bank, a subsidiary of Ally Financial Inc. Ally Bank strives to offer its customers a different experience when it comes to banking. Most banks offer many location and hundreds of ATM machines that are ready and available to use. Whereas, Ally Bank, is not found in towns or your nearest city. Ally Bank is far different than most banks and only has two locations, and does not own one ATM machine.
he issue in this case is whether or not Stallmart is protected under the shopkeeper exception act due to having probable cause. Indiana courts have adopted a standard, which set forth the a test that “probable cause exists only where the facts found on reasonable inquiry would induce a reasonably intelligent and prudent person to believe that the accused had committed the crime charge.” Overall, a judge would likely find the factor of probable cause in favor of Stallmart.
In 2011, MSLO expected to raise extra capital. It swung to investment financier Blackstone to locate a strategic accomplice. Blackstone, through its connections with members of the governing body of JCP, organized Ms. Stewart and JCP executives to meet. In spite of the fact that JCP executives truly knew about Macy's concurrence with MSLO and that MSLO was searching for a strategic (money related) accomplice, they continued to initiate negotiations for a retail partnership instead of the strategic partnership at first sought by MSLO. The confirmation in the record plainly shows that JCP executives realized that, keeping in mind the end goal to acquire this retail partnership, they would need to "break" the exclusivity provisions in the Macy's
Macy’s Brought their new million dollars online store, online in 2007, and their goal for their online sales ranged in the billions. According to the MSNBC, Macy’s online sales earned 450 million in 2005 and rose to 620 million in 2006, that is a 38 percent increase in their online profits growth within a two-year span (Ness, 2007). Jim Sluzewsk, who was the Senior Vice President of Corporate Communications and External Affairs for Macy's stated that because of their Research on consumers who shop both online and in Brick and mortar stores demonstrated their loyalty to the brand name (Ness, 2007). This also demonstrates that Macy’s online strategy is intended to increase their total sales from a dual-shopper demographic. Another reason that
Martha Stewart was charged with securities fraud, obstruction of justice, conspiracy, and civil charges. She had made false statements to F.B.I., SEC, and investors. She withhold information from these organizations about the selling of her stocks with in the company of ImClone. She was convicted and sentence to five months in prison, five months of house arrest, and a full two years of probation.
Martha Stewart made a kind of securities fraud known as "insider trading" which means using insider information to make a stock transaction. It is trading in the stock market, making improper use of inside information. This information, most of the time, is held by directors of listed companies and those who provide investment services or counseling.
Martha Stewarts strategy style based on Michael Porter’s three key principles of effective strategic positioning is broad needs, many customers. This strategy is used to create a unique valuable position, with broad needs it is the varying domestic based books, supplies, merchandise and etc, that she sells to many customers who look to her as a domestic role model. In August of 2005 New York Times, an article mentions how her ten months in jail has given her time to think, along with come with the decision that the company will broaden their services to develop “a line of branded homes designed by the company and inspired by her aesthetic,” (Carr, C1).
In 1897 Sebastian Spering Kresge opened five-dime stores in Memphis and Detroit with John McCrorey as his partner. Two years later the partnership broke up and each person kept one city. Mr. Kresge kept the Detroit store and began expanding from there onward. In 1912 the company became incorporated as S.S. Kresge and was the 2nd largest dime store chain with 85 stores and annual sales of more than $10 million. In 1918 S.S Kresge was listed on the New York Stock Exchange. Throughout the decades, Kresge rapidly expanded eventually opening the first Kmart store in 1962 in Garden City, Michigan. By 1966 there were more 160 Kmart stores in the US and Canada. In 1968 Kmart began airing TV commercials. In the 1970s, Kmart continued to expand opening 270 stores in 1976 alone. In 1977, S.S. Kresge changed its name to Kmart because 95% of its sales were coming from that branch. In the 1980s and early 90s, Kmart diversified by adding other retailers such as Walden Book Company which was the number one bookstore chain in the US. The Sports Authority in 1990, 90% stake in OfficeMax and the Borders bookstore in 1992. Also in 1990 Kmart opened its first Kmart Super Center in Medina, Ohio. Whatever was left of the Kresge locations in the US was sold to S.S. Kresge's former partner's store chain McCrory's. Between 1994 and 1995 earnings began to fall for Kmart causing them to sell off their other operations, OfficeMax, The Sports Authority, PACE, Borders and its US automotive service Centers. Also in that time period, more than 200 US stores were closed. Fast forwarding to the future, Kmart launched www.bluelight.com which is now known as www.kmart.com in 1999. In 2002 Kmart filed for Chapter 11 Bankruptcy which was the biggest retail bankruptcy i...
The purpose of this case report is to identify the legal and ethical issues in the Martha Stewart case study. I will discuss these issues, compare Ms. Stewart’s actions against the ethical theories, draw conclusions to the lessons learned, and make recommendations to limit future outcomes.
Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart has four parts to their corporate strategy. 1. Dominance in the Retail Market 2. Expansion in the U.S. and International Markets 3. Creation of Positive Brand and Company Recognition 4. Branch Out into New Sectors of Retail Wal-Mart’s public affairs strategy must work to make implementation of these policy goals happen. Its public affairs strategy enables the company to move into other sectors of the marketplace and expand into foreign countries. The public affairs strategy also involves gaining access to politicians who can help Wal-Mart achieve its goals. Wal-Mart has a very active
The Martha Stewart insider trading case was a high profile case filled with uncertainty. In order to say whether or not Stewart handled her indictment responsibly, it is necessary to start with an assumption regarding her guilt or innocence. For the purposes of this paper, based on the information I have read about the case, and based on the fact that she was found guilty of all counts (although not all specifications) in her stock conspiracy trial (with the exception of the security fraud charge which was thrown out), I will assume that she is guilty. (courttv.com) Based on that assumption, there are several reasons that Martha Stewart did not handle her indictment responsibly which can be summarized in a recap of the charges: she lied about receiving illegal information leading her to sell her stock, she lied about having a prearranged agreement to sell her stock when it fell below $60 per share, she tried to hamper the investigation by providing false information, and she worked with her broker to obstruct justice and make false statements regarding the scandal. (chicagotribune.com) As the CEO of Martha Stewart Living Omnimedia (MSLO) and as a successful businesswoman motivated to protect her own personal interests, it might be easy to understand the temptation behind her decisions, but the discussion here will be based on whether or not her decisions were responsible.
Management is responsible for the preparation and fair presentation of the consolidated financial statement of JP Morgan Chase Bank N.A. in accordance of GAAP. The main purpose is to recognize any reasonable assurance to test the consolidated financial statements of any material misstatements. The audit of JP Morgan Chase Bank N.A. present fairly, in material respects, the financial positioning of the firm.
In the case of Dayton Hudson Corporation, the company fell into a situation of a hostile takeover attempted by the Dart Group in 1987. At that time, Kenneth Macke was the CEO of the Dayton Hudson Corporation and sternly disagreed with letting the company fall into the hands of the Haft’s. Macke’s decision on what could be done to terminate the takeover turned the circumstances over to the hands of the state of Minnesota where Dayton Hudson’s headquarters resided. Macke requested a special session of the legislature to revisit the Minnesota corporate takeovers statute. This proved to work in Dayton Hudson’s favor and a statute was enacted that left the decision of a takeover up to the Board of Directors of the company.