Answer No. 1
All the legal rules that define the corporate self regulation in a free enterprise market economy have been providing protection to stakeholders to prevent misconduct. This is actually a process which the SEC self regulatory and other legal rules have been providing. The regulations are quite committed and have been reaping in positive results which have looked to overcome the corporate misconduct to a great extent in companies.
As per the fiduciary duty of loyalty, it offers the officers and the directors of the firm with the support they need to make the decisions related to corporate judiciary. They maintain a balance where they try to minimize all personal conflicts. However, the law has one loophole; it can be breached in the self interest and by creating a corporate opportunity.
Another major advantage of having SEC self regulatory is that it has the potential to monitor the decisions of all the parties that are involved. This is a positive induction in some instances, however, this is considered as a loophole on some occasions. Therefore, it is necessary for the participating corporations to reduce the elements and chances of corporate misconduct. They should focus on sustaining the corporate business regulations. However, it is necessary to maintain a balance where the SEC should not intervene too much in the business decision making.
Along with this, researchers have showed concern over the fact that the excessive rules tend to limit the decision making power of the participants. Therefore, it is necessary that the parties are allowed to make decisions freely. It is necessary for the firms to identify the reasons for the corporate misconduct. Most of the times, it occurs when the leadership or the management of the firm is not competent and involves individuals that do not have the right skill to management people issues. Therefore, it is necessary that the firms instate individuals who are effective and can efficiently work according to the regulations of the firms.
To overcome the corporate misconduct and to ensure that the parties involved do not enter into personal conflicts, it is necessary that the firms look to work as per the elements of corporate opportunity. This shall allow the companies and the parties involved to pick those rules that can be pivotal for the success of the firm and actually follow them. By instating corporate opportunity the firm can even fulfill the needs of the SEC regulatory authority. If the firms are free of corporate misconduct, they can perform their business activities in a more organized manner.
Answer no. 2
Part I
The legal case that has been faced by Spike has been sued by the Consumer Fraud Office of the State Attorney General who has claimed that the company has been involved in making incorrect statement to attract the consumers and has not presented the clear and accurate picture to the consumers. The Consumer Fraud Office has made a charge against the company where it claims that the commercial signs presented by the company have been focused on entertaining the customer needs.
However, it is important to understand that the courts have considered the First Amendment challenges that are aligned to use the Central Hudson analysis for the scrutiny of the test. All the different courts have tried to apply the immediate scrutiny and its rules rather than trying to become strict in commercial signs posted by firms.
Therefore, it can be said that the Central Hudson test can confirm that the rules which do not violate and create issue for the First Amendment can be concerned with the illegal activity and also related to the regulation speech. Also, the speech can be a misleading factor because it shall be unable to provide the actual picture. The interest of the government in the speech is obvious. The Supreme Court as per the 1993 instructions has issued a stated, which indicates that the principle in the protection of commercial speech relates to the social evolution.Law Assignment Case Solution
Part II:
If Spike looses the case, it will definitely be a future give and take over corporate conduct. It has been observed that the firms commercialize the features of the firm that portray positive image of the firm. Moreover, it is quite clear that if the right people or the knowledgeable individuals are not involved in the firm the firm can enter in to the future give and take over corporate conduct. The statement of Washington Post, it states that the legal agency might be accountable for the decisions and its commercial speech also................
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