A few days after the inventory control system for Revlon, the cosmetics giant, went down, officials discovered that Logisticon, a software developer, caused the downtime. Seven months earlier, Revlon had signed an agreement to have Logisticon install a real-time invoice and inventory processing system. Prior to completion of phase 1 of the project, Revlon discovered a series of programming bugs. Revlon pro¬ ceeded to withhold any additional payment on the contract to Logisticon, who con¬ tended that the software was fine but that the computer hardware was faulty. When Revlon refused payment, Logisticon sought repossession: It used a telephone dial-in feature in the software to make a disabling phone call and render the system unusable.

After a three-day standoff, Logisticon reactivated Revlon’s inventory system. Revlon filed suit in California Superior Court, charging Logisticon with trespassing, breach of contract, and misappropriation of trade secrets (use of Revlon passwords). Logisticon filed a countersuit for breach of contract. Revlon and Logisticon later set¬ tled out of court.

Would Logisticon’s actions be classified as sabotage or repossession? Why? Would you find the company guilty of committing a computer crime? Be prepared to defend your position to the class.