Dracca's Case Study

Dracca Case Study

This case study refers to the case of Dracca, in which the company's leading officials have incurred the organization's profits without considering the impacts on the legal consideration and ethics of the business plan. Moreover, it also sues the person individually for paying the debts associated to the whole organization, which affects the company's reputation among its stakeholders.

Answer 1

The answer to the first question is definitely yes. Selling a large portion of their holdings, which they have in Dracca shares is definitely a very unfair decision, and the court can definitely take an action on such action. All the information of the people related to an organization, is like a secret they have to keep, and using those set of information for their own purposes is a serious offense. The company must take an action related to such occurrence, and this is a serious offense to be sued in the court. The case of Marley is definitely less serious than the case of Farian. In spite of that, being a senior member of the hierarchy; he was supposed to show more interest and loyalty towards the organization. The statement by Farian makes him responsible to make this news out in the public which might be dangerous for the organization. It is a serious offense and can cost an immense deal to the organization.

Answer 2

This certainly comes under the section 10(b). As, this section is considered to be a principal statutory weapon against the frauds. This law was principally designed in 1934, for prohibiting an individual from the usage of any device, or artifice of device that can cause a liability to the organization. The thing that may cause an investor to rethink on the decision of buying stocks of any organization comes in it, including the decision ...