MGT 3850A CORPORATIONS AND THE CRIMINAL LAW FALL 2007
FINAL EXAM SECTION A . WORTH 90 MARKS
SECTION B TO BE DISTRIBUTED IN EXAM ROOM. WORTH 10 MARKS
FINAL EXAM IS WORTH 35% OF COURSE GRADE
EXAM TAKES PLACE Monday DECEMBER 17 IN UH632 FROM 2 TILL 5 P.M.
ANSWER THREE (3) OF THE FOLLOWING QUESTIONS.
EACH SECTION A QUESTION IS WORTH 30 MARKS.
WHILE THERE IS SOME OVERLAP, DO NOT REPRODUCE SUBSTANTIAL
AMOUNTS OF THE SAME MATERIAL IN DIFFERENT QUESTIONS.
QUESTIONS
1. What conceptual and practical difficulties arise for the criminal law with respect
to criminal liability of corporations? Discuss critically Canada’s recent change from
“identification” theory to “aggregation” theory. Consider also the approach of the
criminal law in at least one other country.
2. Halstead and Cobb criticise the use of Gross Domestic Product (GDP) as a
measure of countries’ economic progress. Discuss critically the authors’ arguments
and their suggestions for a more accurate measurement tool. Consider in your
answer the details of alternative measurements of economic progress used in
Alberta or elsewhere.
3. The constitutional protection of commercial speech was provided only three
decades ago in the USA and two decades ago in Canada. Discuss the case for
constitutional protection of commercial free speech of corporations in Canada. Can
a meaningful distinction be made between commercial and political speech? If so,
should such a distinction be made by Canadian law? Explain your answer. What
measures, if any, should Canadian lawmakers take to distinguish socially beneficial
from socially harmful commercial speech? Use examples to illustrate or support
your argument.
4. Identify the main distinction between a corporation and (a) a sole proprietorship
and (b) a partnership. Discuss critically arguments for and against allowing a
business person to incorporate a business or multiple businesses in which he or she
is the primary shareholder. Is there a valid argument for allowing incorporation
only for enterprises with a minimum amount of capital invested? What
improvements do you consider should be made, if any, in the selection of directors
and their specific responsibilities?
OVERLEAF
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5. Discuss critically the nature of workers’ cooperatives in Canada and abroad.
Discuss whether workers cooperatives are a viable and realistic alternative to
corporations? Use examples of cooperatives in making your argument.
6. Glasbeek and the “The Corporation” paint a picture of corporations as recidivists
and psychopaths. Discuss the symptoms that those authors identify and give
examples of the alleged behaviour. What penalties or punishment do you consider
are or could be effectively applied to corporations or their controllers to deter,
punish and rehabilitate offenders? Do you consider the “regulatory” laws (as
opposed to criminal law) an effective regime to deal with corporate offenders?
7. Glasbeek sympathises with, but denies the effectiveness of “the corporate social
responsibility movement”. The author refers to the movement as a politics of
impotence”. Discuss critically some of the work done by the social responsibility
movement and indicate, with reasons, whether you agree with Glasbeek’s portrayal
of the social responsibility movement.
8. Glasbeek criticises corporations and the corporate form as inimical to democracy.
He is critical of what he considers both the undemocratic innards of the corporation
and the excessive power that corporate leaders have in the political system in
Canada and across the globe. Ideally, a democratic society should have checks and
balances to limit the power of particular individuals, groups or institutions. Such
groups and institutions may include governments, professional bodies, the media,
universities, trade unions and other labour organizations, religious organizations,
and corporations. Consider and discuss critically whether such checks and balances
to avoid excessive concentration of power are currently successful in Canada, with
respect to corporate power. What changes do you recommend?
9. Adam Smith (1776), Berle and Means (1932) and various contemporary writers
contend that the separation of ownership from control is inherent in the corporate
form of organization as well as problematic. Discuss and assess the arguments of
such writers.
10. In spite of criticism of corporations, it is argued by some that the problems are
caused by “bad apples” and that a significant number of corporations benefit
society by virtue of their efficient, ethical and socially responsible conduct. Using
examples, discuss the positive contributions that certain corporations make to
Canadian or other societies.
REMEMBER THERE IS AN OVERLAP IN THE SUBJECT
MATTER OF SOME QUESTIONS. PLEASE DO NOT
REPRODUCE SIGNIFICANT AMOUNTS OF THE SAME
MATERIAL IN DIFFERENT ANSWERS. YOU WILL NOT
BE CREDITED FOR SUBSTANTIAL DUPLICATION.
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