Learning Team Reflection: Week 6 IRAC Briefs - Admission/Application Essay Example

Learning Team Reflection: Week 6 IRAC Briefs The applicable rule of statute is the tort law principle that a company’s executives owe its investors a duty to provide them with the company’s correct transformation plans as well as company’s true financial situation, without any malicious intent (Miller & Jentz, 2010). The malicious intent requirement, in this context, includes the defendant (Kodak’s executives) purposely misleading its investors with substantial certainty that their actions would result in investors purchasing stock (Neubauer & Meinhold, 2010).

It is however not a must for a company’s executives to warn investors of the open and obvious risks of purchasing stock. If there is evidence showing that the company’s executives breached this duty (failed to disclose the right information to the investors), and duty infringing caused the investors to lose their money, then the company will be liable for the investors’ losses (Neubauer & Meinhold, 2010).ReferencesTop of FormBottom of FormTop of FormMiller, R. L. R., & Jentz, G. A. (2010).

Fundamentals of business law: Excerpted cases. Mason, OH: South-Western Cengage Learning. Neubauer, D. W., & Meinhold, S. S. (2010). Judicial process: Law, courts, and politics in the United States. Boston, MA: Wadsworth Cengage Learning. Bottom of Form