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Bentley Standard and Trust (BST) is a large financial institution on the north end of town. BST employs close to 400 employees in two buildings.
- Bentley Standard and Trust (BST) is a large financial institution on the north end of town. BST employs close to 400 employees in two buildings. There are standard uniforms for security, cleaning staff and junior financial officers but for higher end employees such as loan, investment and accounts officers, business apparel is worn. One day Tammy and Jimmy Bakker entered the main branch of BST with the intent of opening an investment account. The office was very busy and after a cursory meeting at the door by reception, the were sent to a waiting room that had full view of the trading room floor. Tammy and Jimmy could see all of the officers busily working with clients. They also saw one smartly dressed women currently without a client at a desk. As they were very anxious to get their investment account started. They went out and asked the woman for help. The woman introduced herself as Jessica Hahn and began to give them information about investments through BST. The Bakkers were impressed and asked about getting involved. Jessica gave a number of options but said the quickest way to start was to open an account in the broker's name. Jessica was the broker. Jessica said they could open an initial account for $1000. This would get them an account number that they could then invest as much or as little as they pleased. The Bakkers promptly wrote a personal check to Jessica Hahn for $1000. Jessica then presented the Bakkers with BST investment forms, asked them to fill them out and indicated that she would promptly return to help. The Bakkers filled out the forms and waited for Jessica to return. She never did. Eventually Jimmy got a manager to assist. The Manager said that there was no investment officer named Jessica at BST and all accounts are opened via bank transfer and not personal checks. Security cameras show Jessica leaving the building. The check was cashed ten minutes later at a bank near the office and the police indicated that Jessica Hahn is a known con artist. The Bakkers would like to sue BST but BST says they are not liable. Do the Bakkers have a case? (10 points).
- Winter Dark Ltd. is a corporation formed as a limited liability with offices multiple jurisdictions. There are 7 members on the board of directors, recently it was discovered that Winter Dark has had a small-scale embezzlement issue with a few of the financial officers. The officers in question are related to four of the directors who had of habit of voting to approve the financials over the vocal objections of the other directors. There is evidence that the approval of the objected material came with both strong and weak review of the materials. Eventually, one of the objecting directors turns over the financials to law enforcement and the accountants are arrested and prosecuted. Now the objecting directors and some shareholders would like to pursue relief against the other directors. What are the options. (10 points).
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