Professor Richard Landoll
Business Law 100
November 4, 2012
Local law firms (2012) states that Fischer Hardware of Springfield, VA has filed a lawsuit against Ace Hardware over Business law violations. According to 7 on Your Side (2012), Fischer Hardware has been around for over sixty years and was convinced by Ace Hardware to purchase the franchise based on fraudulent papers. 7 on Your Side (2012), states that the Ewers say that Ace submitted bogus financial documents to the bank in order for them to get approval for a Small Business Loan. Jackman (2012) says that the Ewers recently cleared a huge hurdle in their case when a judge rejected Ace’s motion to throw out the Ewer’s case, but he did advise Ace to settle the case. Washington Business Journal (2012), states that Ace is also is facing federal investigations from two other agencies.
For the Ewers to make sure they did not end up in the situation that they currently in, there are some things they could have done involving risk management. According to Bagley (2010, p.10) the Ewers could have looked into having a legal astute manager. Bagley (2010, p.10) says that a legal astute manager have content, specific knowledge of the law and the application of legal tools. The Ewers would have benefited from this at the beginning of the process of purchasing the business and making sure that everything that was being done, was being done legally correct.
Ethically Ace Hardware Corporation has made a decision that was not legal or ethical at all by falsifying documents. This could harm a corporation and has harmed many businesses and corporations that have done this to get away with something. Not only has Ace done this with Fischer Hardware, but they are facing lawsuits involving two other agencies and this may harm. If Ace decided to refrain from doing this, then there may be a chance that they...
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