MGT 3850A CORPORATIONS AND THE CRIMINAL LAW FALL 2006
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 DECEMBER 12 IN SU 063 FROM 2 TILL 5 P.M.
ANSWER
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.
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 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?
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 producers of the movie “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.
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.
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