Barbara Williams_PLA2930-1_Unit4_Homework

Barbara Williams_PLA2930-1_Unit4_Homework - Unit 4...

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Unit 4 Contemporary Issues in Law Barbara Williams Homework March 6, 2010 Professor Jennifer Maloon A. Enron and Andersen
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1. In Fall 2001 when the stock price on Enron was falling, because Enron was changing plan administrators, employees were prohibited from selling their stock. Is that legal? Why or why not? Remember to cite to legal and statutory support for your answers. It is not legal for a company to freeze an employee’s ability to sell stocks at anytime. I believe the grounds for this being illegal would be both market manipulation as well as a breach of fiduciary duty. 2. Did Enron executives act ethically when they sold their stock before the Enron collapse? Why or why not? Remember to cite to legal and statutory support for your answers. Enron executives did not act ethically when they sold their stocks before the company’s collapse. Their actions were both illegal and unethical. They violated Sec laws as far as insider trading and fraud. They sold because they were trying to bail before the prices fell. 3. Did the Enron executives and Anderson partners act ethically in shredding documents? Why
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Barbara Williams_PLA2930-1_Unit4_Homework - Unit 4...

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