(SOLVED) James the owner of an auto parts store told his

James, the owner of an auto parts store, told his employee, Rickey, to clean and paint some
tires in the basement. Highly flammable gasoline fumes accumulated in the poorly ventilated
space. James threw a firecracker into the basement as a joke, intending only to startle Rickey.
Sparks from the firecracker […]

On November 5, Hawes, Inc., a small subcontractor, opened an account with Basic Corp., a
supplier of construction materials. Hawes promised to pay its bills within 30 days of purchase.
Although Hawes purchased a substantial quantity of goods on credit from Basic, it made few
payments on the accounts until […]

Fluor, an engineering and construction company, was awarded a $1 billion project to build a
coal gasification plant in South Africa. Fluor signed an agreement with a South African client
that prohibited them both from announcing the agreement until March 10. Accordingly, Fluor
denied all rumors that a major transaction […]

Refco Inc. failed to disclose in SEC filings that millions of dollars of its accounts receivables
were uncollectible. Two months after its IPO, the company went bankrupt. Shareholders filed
suit against the company’s law firm, alleging that it was liable under Section 10(b) for drafting
Refco’s SEC filings that contained […]

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When Classic Corp. went public at $12 a share, its waterbed business was floating along
nicely—the company had annual sales of $23 million and turned a hefty profit. The company then
sprang a leak and suffered through many years of losses. Isaac, who owned 64 percent of the
stock, decided […]

William H. Sullivan, Jr., purchased all the voting shares of the New England Patriots Football
Club, Inc. (the Old Patriots). He organized a new corporation called the New Patriots Football
Club, Inc. The boards of directors of the two companies agreed to merge. After the merger, the
nonvoting stock in […]

Pfizer Inc. paid $2.3 billion to settle civil and criminal charges alleging that it had illegally
marketed 13 of its most important drugs. This settlement made history, but not in a good way. It
was both the largest criminal fine and the largest settlement of civil health care fraud charges […]

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