Almost thirty years ago, Sears was the target of national scrutiny because of a well-publicized consumer fraud in California. Some say that the Sears brand was forever impacted by the fraud. Conduct an Internet search to understand the scandal Sears faced in 1992 when Sears settled consumer fraud charges in California related to automotive repairs made by the Sears Auto Centers in California.

If history is not to repeat itself, managers must learn from the case studies of the past. Recently, Wells Fargo bank admitted to creating more than 3.5 million unauthorized accounts or credit cards. A. (4 points) Describe the costs to Wells Fargo of this scandal. B. (6 points) What steps has Wells Fargo taken to prevent a repetition of the events that created the unauthorized accounts and credit cards? C. (4 points) Should Wells Fargo have foreseen the possibility that its organizational architecture could bring about this result?