Dismiss the corporate entity and the directors from lawsuit

Assignment Help Operation Management

Reference no: EM131676385

"jeans 4 all" is a manufacturer of casual and sportswear items in Altoona, PA. The company received notice from the U.S. Department of Justice's Antitrust Division that a federal lawsuit had been filed against the company for violations of antitrust law. The suit alleged that four (4) employees of "jeans 4 all" had conspired with certain retail outlets to fix the price at which the companies most popular jeans would be sold. The corporation, the corporate board of directors, and the individual employees involved were all named as defendants in the lawsuit.

The board of directors of the company instructed its corporate legal counsel to prepare a motion to dismiss the corporate entity and the directors from the lawsuit. The board told their legal counsel that since they had no knowledge of the employees' price-fixing activities and had never approved of it, then the employees should be held personally liable for acting on their own.

ARE THE DIRECTORS CORRECT IN THEIR LEGAL POSITION? WHY OR WHY NOT?

Reference no: EM131676385

Questions Cloud

Explain carpal tunnel syndrome : Explain carpal tunnel syndrome. What structures are involved, and what pathology exists here. Recommend prevention tips and treatments for this syndrome

During the project objectives validation process : Could you please discuss the SMART rule that a project manager can use during the project objectives validation process?

What types of occupational toxins affect the central nervous : How do we distinguish between developing countries, and developed countries. Provide examples of each and describe the occupational health care

Oil sales in domestic infrastructure projects : What will happen to the value of the U.S. dollar if oil producers decide to invest most of their earnings from oil sales in domestic infrastructure projects?

Dismiss the corporate entity and the directors from lawsuit : The board of directors of the company instructed its corporate legal counsel to prepare a motion to dismiss the corporate entity and the directors from lawsuit.

What is australia balance on goods and services : Australia's Current Account, Use the following balance of payments data for Australia from the IMF. What is Australia's balance on goods and services?

Discuss extended care for functionally disabled persons : What roles do nursing homes play in providing rehabilitation and extended care for functionally disabled persons

Accurate statement about modern business corporation : Susan Sharpe, an amateur but very smart stock trader, by means of properly analyzing public sources of information and using her native intelligence.

Key make-to-stock component for wholesale companies : A company manufacture a key 'make-to-stock' component for wholesale companies. how how much time would it takes to manufactured all components.

User Account

All Pages