WBU BUAD3318 CHAPTER 19 ESSAY

Agents and employees of Deco Arts Corporation and Echo Imitations, Inc. are convicted of conspiring to violate a fed­eral law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

Donatello is a director and officer of Enzio’s Pizza Corporation. Donatello selects an ad campaign that consumers find offensive—a market­ing decision that results in a dramatic decrease in profits for the firm and its shareholders. The shareholders accuse Donatello of breaching his fiduci­ary duty to the corporation. What is Donatello’s best defense against this ac­cu­sation? Later, a resolution comes before Enzio’s board to expand its menu to compete with Fabio’s Pasta Palace Restaurants Inc. Donatello is a director and shareholder of Fabio’s. What is Donatello’s responsibility in this situation?