PRESENTATIONS next week Tues Defense Contracting : Martin Chu (Northrop Grumman); Dean Hansen (Lockheed Martin) Fast Food Industry : Jennifer Steiner (McDonalds); Jennifer White (Chick-Fil-A) Broadcast Media/Radio : Jennifer Linwood (Radio One); Lauren Cohen (Clearchannel) Thurs
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When should business be civilly liable for acts of an employee or agent?
Can businesses be held criminally liable as legal persons? If so, for whose acts is the organization responsible?
Can businesses have a guilty state of mind? How?
Can businesses be punished criminally? How?
1. If business organizations be criminally liable, for whose acts is the organization responsible?
Hilton Hotels case: Co. policy and manager directed purchasing agent not to participate in illegal boycott. Court: Better rule is strict vicarious liability because violations (and individual violator) are hard to determine, and violations benefit company.
Is this typical? Was this employee acting on behalf of the firm? Would Hilton have been criminally prosecuted in other countries?
What can/should managers do to protect themselves and the company from criminal liability?