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All the things that are in bold need to have a response, I also posted a few examples of responses. The first three are questions from the instructor, the others are from my classmates commenting on the chapter.
Posted by Instructor
Chapter 37 Sarbanes Oxley Act
SOX
Under Sarbanes-Oxley, who cannot be a member of an audit committee of a publicly traded company and why?
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An officer, |
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A consultant to the company, |
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Outside lawyer for the company, |
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All of the above cannot be a member of the company’s audit committee |
Please respond in 150 words
Posted by Instructor
CORPORATE GOVERNANCE:
Under the Sarbanes-Oxley Act, which of the following is false and why:
a. Sarbanes-Oxley requires all covered companies to have a code of ethics for financial officers.
b. Destruction of documents related to the financial reports of a company carries a 20-year penalty.
c. Attorneys who represent publicly traded companies need not report any financial fraud to boards because of the attorney-client privilege.
d. The Act prohibits public companies from making personal loans to their directors or executive officers.
Please respond in 150 words
Posted by Instructor
K-MART
The directors of Kmart, Inc. voted several years ago to approve a new marketing plan that involved endorsements by Martha Stewart of Kmart home products such as linens, paint and decorations. Marketing studies have shown that Martha Stewart was not the right match for endorsements for Kmart’s customer base. Kmart is now in Chapter 11 bankruptcy. Its shareholders believe the Martha Stewart decision was the cause of the company’s demise. Do the shareholder’s have a cause of action against the board of directors, or does the Business Judgment Rule apply?
Please respond in 150 words
These are posted by my classmates, just need responses to them
Internal Problems at the FDA
posted by LATASHA
Nov 29, 2013, 7:35 PM
The FDA regulates what impurities are allowed in foods and what processes drug companies must complete before new drugs can be sold. The staff at the FDA has decreased 14% in the past 14 years. When the agency is understaffed, then the agency can’t perform its job which puts the American citizens at risk. The FDA has lost 600 inspectors in the past 4 years, which also makes the agency unable to protect the country’s food supply. The loss of inspectors also decreases the number of inspections performed. Another problem at the FDA is that some inspectors had to write handwritten, urgent reports that could be potentially lost in files and never found.
Please respond in 150 words
What is Wrong with the FDA?
posted byMICHAEL
Nov 28, 2013, 1:24 PM
I believe that the Food and Drug Administration has an important task in ensuring that the American people are getting safe foods and products from companies and corporations. After watching the video, I am surprised to see that an agency with the responsibility to make sure that people are safe, would be severely understaffed like this. Our country is going through an economic crisis for the past couple of years. Out of all the unnecessary spending that our government is responsible for, I cannot believe that they would cut funding for the FDA.
There should be no reason why the food and water supply should be dangerous to the American people and there is nobody that is stepping in to say that this is wrong. The thing that really bothers me about learning about how things SHOULD be in this country is that in reality, our government is cutting budgets for some important things that America needs to pay attention to. I saw something on the news a few months ago during the whole government shutdown that there were many recalls and food services that were not occurring.
With an agency that is supposed to be in charge of the safety of Americans, there should be no reason at all why FDA inspectors should be writing reports by hand. In my opinion, this should be addressed and held as a top priority for the U.S. Government to look into and address.
Please respond in 150 words
Chapter 43 speaks about administrative law. According to Cheesman (2013) “administrative law
posted Briana
Nov 26, 2013, 10:17 AM
Chapter 43 speaks about administrative law. According to Cheesman (2013) “administrative law is the law that governments enact to regulate industries, businesses, and professionals” (p. 727). Administrative law involves laws and legal principles governing the administration and regulation of government agencies for both Federal and state. Such agencies are given power by Congress to act as agents for the executive.
An example of a few would be some of the following:
· Social Security Administration
· Employment/Labor Boards
· Unemployment Insurance Agencies
· Workers Compensation Boards
· Licensing Agencies
· Zoning Boards
Please respond in 150 words
Sarbanes-Oxley Act of 2002
posted bALEXANDRIA
Nov 27, 2013, 9:45 AM
Addressing the systemic weakness of the corporate governance practices prevailing in the pre-Sarbanes-Oxley corporate environment requires more than correcting the most visible manifestations of the problem. Weak governance practices are the combined result of several offenders and lax controls over the performance of both management and the board of directors.
Laws and regulations have never been sufficient to guarantee society’s welfare or, in this case, improvement in corporate governance standards. Accountability is the key. The owners of America’s corporations–the stockholders–must hold accountable nonperforming managers, directors, auditors, and market participants, as the performance of these groups directly impacts shareholder value. The corporate governance process must be reengineered into one that guarantees performance excellence by management and the board of directors when performing their agency duties as trustees of shareholder confidence.
In Smith & Robertson’s Business Law, the authors define the relationship between agent and principal as follows: “an agent as a fiduciary (a person in a position of trust and confidence) owes to his principal the duties of obedience, diligence and loyalty; the duty to inform; and the duty to provide accounting.” The definition then cites various examples of the agent-principal relationship: “A fiduciary duty arises out of a relationship of trust and confidence. A duty imposed by law, an agent owes it to the principal and an employee to his employer. A trustee also owes it to a beneficiary of a trust, an officer or director of a corporation to the corporation and its shareholders, and a lawyer to his clients.
Please respond in 150 words
**This is an example of a response but you can respond to this if you want**Re: Sarbanes-Oxley Act of 2002
posted byANTHONY
Nov 27, 2013, 10:01 PM
Hello Alexandria, great post. I think that Sarbane-Oxley has done a great job with putting companies on the right track and with situations like Enron something had to happen. Although I have confidence in the market system I am not confident in the people ensuring that companies are complient with the new Sarbanes-Oxley acts. For example I have yet to see an internal auditor come in and check the financials for any adjustment we are doing. As I stated in my first post that CFOs or someone from the executive team need to sign the FMT1 and I have yet to see an analyst check to see if the financials was signed.
Toxic Substance Copntrol Act
posted by THOMAS
Nov 29, 2013, 8:57 AM
In 1976, Congress enacted the Toxic Substances Control Act13 and gave the EPA authority to administer the act. The act requires the EPA to identify
toxic air pollutants that present a substantial risk of injury to human health or the environment. The act requires the EPA to establish standards for toxic chemicals and requires stationary sources to install equipment and technology to control emissions of toxic substances. EPA standards for toxic substances are set without regard to economic or technological feasibility. The act requires manufacturers and processors to test new chemicals to determine their effects on human health and the environment and to report the results to the EPA before the chemicals are marketed. The EPA may limit or prohibit the manufacture and sale of toxic substances, and it can remove them from commerce if it finds that they pose an imminent hazard or an unreasonable risk of injury to human health or the environment. The EPA also requires special labeling of toxic substances (cheeseman 2013).
Cheeseman, H.R. (2013). Business law: Legal environment, online commerce, business ethics, and international issues (8th ed.). Upper Saddle River, NJ: Prentice Hall.
Please respond in 150 words
**This is an example of a response but you can respond to this if you want**Re: Toxic Substance Copntrol Act
posted byALLYSON
Nov 29, 2013, 4:11 PM
Thank goodness for the EPA, and the Toxic Substances Control Act. In the health care facilities I have worked in we are required to bag and box hazardous waste in these huge red bags and they came every month to collect. There are some nasty and very biohazardous materials that come out of health care facilities. Especially hospitals and long-term care places. One of my jobs currently is working at the office at a landfill. People try to bring in hazardous materials all of the time such as liquid paint and gas. Most people do not realize that the EPA has to put all kinds of regulations into place to try to keep our ground water from getting polluted. If people were allowed to dump their hazardous waste in the landfill it would all trickle out into our town ground water. Poison the fish and Lord knows what else. We have a hazardous waste collection day once a year to try to help folks get rid of some of those things safely. However I think they should hold one at least twice a year. No one else wants to hold on to that junk either. Even with the hazardous waste collection and EPA regulations, we still have to pump and safely dispose of the leachate water that comes from the landfill. Environmental safety inspectors come regularly to test our ground and leachate water.
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