MGT 3850B CORPORATIONS AND THE CRIMINAL LAW FALL 2008 EXAM IS ON MONDAY DECEMBER 15 IN UH D/630 FROM 2 TILL 5 P.M. 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 ANSWER ANY THREE (3) OF THE FOLLOWING QUESTIONS. EACH SECTION A QUESTION IS WORTH 30 MARKS. WHILE THERE IS SOME OVERLAP, PLEASE 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 and court decisions 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 1 5. 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? 6. 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. Provide evidence and argument for your point of view. 7. 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, if any, do you recommend? Note that, if you suggest no changes, you must explain why. 8. 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. 9. 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. 10. Corporations and universities each claim to contribute to the efficient functioning of democracy in Canada. Each sees itself as working in the public interest. There is debate, however, about the “corporatization” and commercialization of Canada’s universities. It is the belief of some, but not all, academics that corporations ought not to have the influence that they do on teaching, research, and administration of universities in Canada. Discuss critically the roles that corporations and universities play in Canada’s democracy and economy. Consider and comment on the opinion that corporate influence on university research and teaching is contrary to the public interest. 2 YOUR GRADE WILL BE DETERMINED BY THE QUALITY OF YOUR IDEAS AND ARGUMENTS AND OF THE EVIDENCE PROVIDED IN SUPPORT OF YOUR IDEAS AND ARGUMENTS. YOU WILL ALSO BE CREDITED FOR YOUR USE OF AND REFERENCE TO RELEVANT ACADEMIC, JUDICIAL AND OTHER OPINIONS, THE LENGTH OF YOUR ANSWERS MUST BE SUFFICIENT TO ENSURE THE READER’S UNDERSTANDING OF YOUR OPINIONS, ARGUMENT AND EVIDENCE. YOUR ANSWERS MUST ALSO DEMONSTRATE YOUR OWN UNDERSTANDING OF THE QUESTIONS AND ISSUES. 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. NOTE SECTION B QUESTIONS WILL BE DISTRIBUTED IN THE FINAL EXAM ROOM IMMEDIATELY PRIOR TO THE COMMENCEMENT OF THE EXAM. SECTION B QUESTIONS ARE WORTH 10% OF THE FINAL EXAM MARKS. ANSWER ALL SECTION B QUESTIONS. PLEASE DO NOT BRING THESE QUESTIONS TO THE EXAM ROOM. YOU WILL RECEIVE ALL QUESTIONS PRIOR TO THE COMMENCEMENT OF THE EXAM. 3