The Legal Environment of Business THE CASE OF BLUE MOOD CLOTHING INC.  Blue Mood Clothing Incorporation is an apparel producing company It is a wholly owned subsidiary of Colosal Corporation Its number one product is the breezer Lately, about a month ago, there has been an incident of theft involving 5000 breezers The company’s investigator Bill has Alex as his main suspect; he was seen packing a number of breezers at the back of his van Introduction  There is a need for ultimate discretion in this case given that all the culprits have not been confirmed. Alex Ridgefield is so far implicated because he was caught on film. Another reason that implicates Alex is that despite being a night security guard at Blue Mood Clothing Incorporation, he masquerades himself as a sales agent of the company. Bill, the company’s investigator, is looking for more proof because Alex may be working with other personnel in the company. This presentation will give invaluable insights with respect to the case of pilferage at Blue Mood Incorporation. 2 Colossal Corporation can terminate Alex without any hearing or notice This is because Alex is an at-will employee of Blue Mood Incorporation Besides, there is a morally reprehensible reason (theft) as to why Alex should be terminated. Termination of Alex  Employment at will is a code of common law that permits either a member of staff or a boss to end a working relationship at any time, for any particular reason, with or minus prior notice, and even for a reason that can be regarded as morally reprehensible, provided that the termination of the working relationship never falls into an exception to the employment-at-will principle. 3 Alex Ridgefield is responsible for several crimes committed against Blue Mood Clothing Inc. They include: Stealing 5000 breezers from the company Identity theft; Alex Ridgefield posed as a sales person of Blue Mood while he was not Breach of contract; Alex was supposed to guard the property of the company from theft but instead he did the opposite; he stole it. Did Alex Commit Any Crime?  The past two decades have witnessed an increase in the criminalization of business law. In the Blue Mood case, Alex stole from the company and he was caught on camera. As such, Alex Ridgefield is more likely to go to prison for defying the terms of a contract (choosing to be a thief while he was supposed to be a guard). In addition to that, his actions come across as a corporate offense (Twomey, Jennings & Greene, 2016). 4 Nick’s crime is receiving stolen property Given that the investigation by Bill is still ongoing and Nick is completely not off the hook, there is a possibility that he had intent. If Nick is found guilty it is worth mentioning that his crime will attract a prison term and fines for the damage caused to Blue Mood If Nick had no intent to receive stolen property, he will still be charged for negligently buying stolen property Did Nick Commit A.

1. The Legal Environment of Business
THE CASE OF BLUE MOOD CLOTHING INC.
Blue Mood Clothing Incorporation is an apparel producing
company
It is a wholly owned subsidiary of Colosal Corporation
Its number one product is the breezer
Lately, about a month ago, there has been an incident of theft
involving 5000 breezers
The company’s investigator Bill has Alex as his main suspect;
he was seen packing a number of breezers at the back of his
van
Introduction
There is a need for ultimate discretion in this case given that
all the culprits have not been confirmed. Alex Ridgefield is so
far implicated because he was caught on film. Another reason
that implicates Alex is that despite being a night security guard
at Blue Mood Clothing Incorporation, he masquerades himself
as a sales agent of the company. Bill, the company’s
investigator, is looking for more proof because Alex may be
working with other personnel in the company. This presentation
will give invaluable insights with respect to the case of
pilferage at Blue Mood Incorporation.
2
Colossal Corporation can terminate Alex without any hearing or

2. notice
This is because Alex is an at-will employee of Blue Mood
Incorporation
Besides, there is a morally reprehensible reason (theft) as to
why Alex should be terminated.
Termination of Alex
Employment at will is a code of common law that permits either
a member of staff or a boss to end a working relationship at any
time, for any particular reason, with or minus prior notice, and
even for a reason that can be regarded as morally reprehensible,
provided that the termination of the working relationship never
falls into an exception to the employment-at-will principle.
3
Alex Ridgefield is responsible for several crimes committed
against Blue Mood Clothing Inc. They include:
Stealing 5000 breezers from the company
Identity theft; Alex Ridgefield posed as a sales person of Blue
Mood while he was not
Breach of contract; Alex was supposed to guard the property of
the company from theft but instead he did the opposite; he stole
it.
Did Alex Commit Any Crime?
The past two decades have witnessed an increase in the
criminalization of business law. In the Blue Mood case, Alex
stole from the company and he was caught on camera. As such,

3. Alex Ridgefield is more likely to go to prison for defying the
terms of a contract (choosing to be a thief while he was
supposed to be a guard). In addition to that, his actions come
across as a corporate offense (Twomey, Jennings & Greene,
2016).
4
Nick’s crime is receiving stolen property
Given that the investigation by Bill is still ongoing and Nick is
completely not off the hook, there is a possibility that he had
intent.
If Nick is found guilty it is worth mentioning that his crime will
attract a prison term and fines for the damage caused to Blue
Mood
If Nick had no intent to receive stolen property, he will still be
charged for negligently buying stolen property
Did Nick Commit Any Crime?
Nick was quick to purchase breezers from Juanita Winfrey
without any form of contracting. Perhaps if he had used an
attorney he would not be in risk of being labeled a receiver of
stolen property; he would have every right to pin the blame on
Juanita. At the moment there is no knowledge as to whether
Nick is guilty or not i.e. whether he intentionally bought stolen
property or not. If he had no intent, perhaps the courts will be
merciful and charge him a fine for his negligence.
5
Bill has a confidentiality agreement and swore an oath of
secrecy to Vice President Dodger
His crime, if any, is that of defamation
He defamed both Nick and Blue Mood

4. Defamation is a civil wrong and a crime in all of America’s
states
Did Bill Commit Any Crime?
Bill’s crime is that of defamation. In as much as he did not send
the email intentionally, he still wronged the company and Nick.
Nick Johnson has a right to sue Bill for defamation given that
there is no concrete evidence or legal proceeding that can indict
him yet. Bill defamed the company because when news of theft
and disorganization in company protocol reach some existing
and potential buyers, they may not want to be associated with
Blue Mood anymore; that will result into a lot of losses.
6
Juanita’s crimes, if any, revolve around:
Receiving stolen property
Retaining stolen property
Disposing of stolen property
Did Juanita Commit Any Crime?
All states in the US are against the receipt of stolen property to
stop theft and to dismantle organized crime businesses that gain
from theft. The Model Penal Code, a model law embraced by
many jurisdictions, factors in the receipt of stolen goods within
its consolidated theft offense (Model Penal Code §§ 223.1,
223.6).
7
Alex could defend himself or use an attorney for his defense

5. He could allege that he was coerced to steal a part of the
company’s consignment from the warehouse
Alex could also allege that someone from the inside threatened
to fire him if he did not get the shirts to Juanita for him or her
i.e. he could claim that instructions came from up top (from one
of his bosses who was working with Juanita)
In fact , Alex could say that he was officially instructed by the
company VP Kenneth Dodger to load his personal van with the
shirts and take them to Juanita
Alex’s Defenses
Alex needs a good well paid attorney to defend him because the
evidence against him is solid, particularly the tape. His only
way out is to tell the jury that his action was part of protocol;
that he occasionally handled assignments that constituted
ferrying consignments from the warehouse to other storage
places and bulk buyers.
8
Nick could say that he does not know anything about the shirts.
He was simply a buyer looking for a seller in the internet and
in the process he found Juanita
He could answer or deflect any incriminating question by
asking the prosecution to ask Juanita why she lied to him
Nick could say the legal preceding is a conspiracy to sabotage
his business because he did not know the truth regarding where
the shirts came from.
Nick’s Defenses
Nick’s case is a bit lighter because he was not directly involved

6. in taking the shirts from the warehouse. There is no solid
evidence against him and he could play the victim of a fraud.
9
Bill could say that he truly sent the email by mistake and he did
not want to blow his cover intentionally
He could come up with an excuse that lately he has been staying
up on many nights in an attempt to figure out the case and that
must have made him a bit clumsy
Finally bill could say that given his clean record in taking up
and successfully handling the company’s investigations in the
past, he should be given some credit.
Bill’s Defenses
Bill’s case is lighter too because he was not directly involved in
taking the shirts from the warehouse. His role was that of
investigation and his only mistake was leaking information and
defaming the company. He has a good history of never exposing
company information and such may ward off any suspicion of
malice on his part from his superiors.
10
Juanita could peg all the blame on Alex
She could say that Alex came to her lying that he was Blue
Mood Incorporation’s sales representative
If asked about receipts, itineraries, and invoices among other
purchase documents, she could say that she was in a hurry to
make quick money and did not doubt Alex since he was
affiliated to a reputable company such as Blue Mood Inc.
Juanita’s Defenses

7. So far there is no evidence against Juanita proving that she stole
or aided the stealing of shirts from the company. This makes it
very easy for her to blame the individual that was actually seen
on camera taking the breezers i.e. Alex.
11
A tort is a type of wrongful activity that brings about harm to
another party
A tort can be said to be intentional or not depending on the state
of the individual that does the wrongdoing
When an individual that makes a mistake willingly intended to
commit it, then it is an intentional tort
Negligent torts are the ones committed when someone is not
aware of the law
Intentional Torts
Given the facts available for the case of Blue Mood Inc., only
the prosecution can decide who is guilty of committing an
intentional tort or a negligence tort. So far only Alex is
answerable to the courts on grounds of committing an
intentional tort. Juanita and Nick can plead negligence to the
jury.
12
As a tort, conversion consists of:
Taking the property of another person
Illegally converting that property’s ownership
Presenting said property as your own either through sales or
marketing
Intentional Torts of Conversion

8. In the world of criminal law, conversion can be regarded as
theft. Alex, Nick, and Juanita all handled stolen property; for
that matter, it is the responsibility of the jury to judge whether
negligence or intent was the case.
13
Defamation, as a tort, constitutes:
Saying something that is not true about another person
Such untruthful statements usually bring about harm
It revolves around written and spoken words
Intentional Tort of Defamation
For the Blue Mood Case, it is worth mentioning that Bill
committed libel against Nick, who may be innocent. In the event
that the court finds Nick innocent, he could go ahead and sue
Bill for damages.
14
According to the investigation conducted so far by Bill, there
is a thin line between the innocence and guilt of Nick
Nick innocently bought apparel from Juanita without prior
knowledge that the whole consignment was stolen
If found guilty, Nick’s intentional tort would revolve around
being an accomplice to Alex in stealing Blue Mood’s clothing.
Did Nick Commit an Intentional Tort?
Given that Nick did not do anything intentional to harm Blue

9. Mood Inc., he may be charged for negligence when it comes to
tort law. Nick was negligent because in he just bought 5000
breezers without asking for any form of documentation from the
seller. He had no receipt, purchase order, itinerary, or invoice
among other possible documentation that characterizes a normal
transaction.
15
The intentional torts committed by Alex are rather obvious and
revolve around:
Being an identity thief
Breach of an employment contract
Stealing and selling property that did not belong to him
Did Alex Commit an Intentional Tort?
It is more likely that the torts committed by Alex are
intentional. First in line is trespass to chattels and conversion;
these are both intentional torts that center on wrongful and
intentional interference with the possession of another
individual or company’s property. Alex is the one who
facilitated the movement of the clothes from the company’s
warehouse. He was aware too that what he was doing was
wrong.
16
Given that every permanent or contracted employee of Blue
Mood Incorporation signs a confidentiality agreement, Bill
committed a tort but it is most likely that it was not intentional.
He is at the mercy of the company’s vice president because he
could charge him for negligence or fire him
Bill’s negligence partly or fully compromised an important
investigation that the company was conducting regarding theft

10. Did Bill Commit an Intentional Tort?
In the event that the company makes a decision to sue for
damages, Bill could be fined. His offence was not a criminal
one but it could also cost him a great deal of time and money.
17
Bill is yet to figure out if the torts committed by Juanita were
intentional or whether they were due to negligence.
It is even unclear whether Juanita was deceived by Alex or
whether she is party to the crime
In case Blue Mood Inc decides to sue Juanita, it may sue her for
damages and negligence (Ferrera et al., 2018).
Did Juanita Commit an Intentional Tort?
Juanita could have to go to court because of negligence. She
bought not one, not two, not three; but 5000 shirts without any
form of legal documentation. Wasn’t she curious that it was a
bit odd Alex brought her franchise in a private minivan as
opposed to a company truck. Why wasn’t she given receipts.
18
There are several things Alex could say to defend himself. They
include:
Juanita was a con and she threatened him with his family if he
did not steal the shirts for her
The company’s vice president had a competing apparel business
and he coerced him to steal the shirts from the warehouse.
Alex and Nick were the vice president’s aides and the VP was
only reacting because they had been caught.

11. Alex’s Defense on Torts Committed
Alex will have to be indicted and can only be successful if he
puts up a really good defense. He was caught on tape;
something that is not easy to erase.
19
Bill’s torts, if anything, are out of negligence
He should stick to his statement and emphasize on the fact that
he sent the email to his entire inbox by mistake
Bill could use his longstanding history with the company to
claim that he could not possibly betray Blue Mood
Bill’s Defense on Torts Committed
Bill should defend himself on the grounds that his is a tort of
negligence and not a tort of intention. Given that there is no
proof he sent the emails on purpose, his sentence will be
lighter. He should also argue that he has worked for the
company many years as an investigator without leaking any
information.
20
Juanita’s crime centers on negligence and her defense should
center on a few possibilities. They include:
She should deny dealing with Alex previously and that he is
someone she met online (Singer, 2018)
She should insist on the fact that Alex posed as Blue Mood’s
sales executive
In her defense she should challenge the prosecution to produce

12. solid evidence against her.
Juanita’s Defense on Torts Committed
Given that trespass to chattels and conversion are general intent
torts that could land Juanita into trouble simply because she was
found in possession of stolen shirts, she should pin all the
blame to Alex. Juanita should say that she has never met Alex
in her life and had only dealt with him for the first time.
21
Nick’s defense will pretty much be the same as that of Juanita.
Nick should argue that if he was involved he would not share
information so freely with Bill regarding Juanita
Nick’s defense should also posit that if he was guilty and aware
of the nature of the merchandise, he would not be so quick to
buy it and post an advert online (Beatty, Samuelson, & Abril,
2018).
Finally Nick should argue that online sales do not involve a lot
of paper work and for that reason he did not ask documentation
from Juanita
Nick’s Defense on Torts Committed
Nick’s defense should be much like Juanita’s. He should thus
put the blame on Jenny for linking him with stolen property.
Failure to do so could lead to a serious case that is based solely
on possession of stolen property.
22
Depending on the crime, either the government or Blue Mood
clothing, or both will collect damages.

13. The intentional torts caused financial loss to the company and
in the event that anyone is found culpable damages will be paid
To discourage rogue behavior in the corporate world, the state
where Blue Mood Inc. is located will most likely punish the
offenders through fines and jail time.
It is worth mentioning that any defendants found not guilty can
sue Blue Mood for defamation and get compensatory damages
Who Will Collect Damages?
The main aim of tort law is to offer remedies, normally in terms
of damages (money awards), to parties negatively affected by
the civil wrongs of other people. The damages offered for tort
violations revolve around punitive and compensatory damages.
Two parties that can collect damages in this case include Blue
Mood Inc. and the state government. Collection of Damages by
Blue Mood Inc. will be facilitated by the courts where the legal
proceedings concerning the theft will occur. What’s more, in the
event that the defendants in the case are able to prove their
innocence; they will collect damages on grounds of defamation.
23
The primary aim of compensatory damages is to put the injured
party in the same position that party would have been had the
tort never been committed
In this case Blue Mood Inc. is the main injured party
There is a need to restore the financial position the company
was in prior to losing its consignment of 5000 breezers
Upon indictment of those found culpable, the courts will fine
the guilty an amount that is equivalent to the selling price of the
5000 breezers; these are known as special damages because they
are quantifiable
Compensatory Damages and Who Will Collect Them

14. Compensatory damages awarded to Blue Mood Inc. may even be
more than the selling price of the shirts because the company
would have sold the stolen shirts for a profit and produced
another batch of shirts. In summary, the tortfeasors wasted the
time and money of the company.
It is also worth mentioning that the damages awarded to Blue
Mood Inc. may be more in case the courts decide to award the
company with general damages. The general damages is
something that the company can collect because they lost
reputation and consortium respectively (there is a likelihood
that some companies may dissociate themselves with Blue Mood
because of the case; there may be a perception that the
company’s system is not safe).
24
Punitive damages are meant to punish a tortfeasor
The person or persons who the courts may punish because they
want to award Blue Mood is Alex
His was an egregious case and intent was clearly involved
Other defendants such as Juanita and Nick may be punished as
well
Punitive Damages and Who Will Collect them.

15. Traditionally, punitive damages are damages that exceed basic
compensation and they are awarded to punish defendants. For
the defendants involved, punitive damages will be applied if the
courts feel they engaged in particularly reckless or wanton
conduct that shows ignorance to the interests of other people.
25
The defendants may collect damages if and only if:
they are found innocent of the crimes and torts they were
accused of
If they sue Blue Mood Inc. immediately on grounds of
defamation the moment their case
Damages that Could Be Collected by the Defendants
Any of the defendants (Alex, Juanita, Bill, and Nick) can sue
the company and collected damages provided that they are
innocent.
26
The legal environment of a business is subject to many
challenges
As such the managers of a business should be well versed with
matters pertaining keeping the law and breaking the law
With the support of attorneys and the criminal justice system at
large, it becomes easy to
Conclusion
For both the plaintiffs and the defendants, it is best that they are

16. well versed with matters of business law. This way they will be
able to make sensible complaints and pleas respectively in front
of the jury. All the same it is worth mentioning that the outcome
of the case is something that will be very hard to predict.
27
Beatty, J. F., Samuelson, S. S., & Abril, P. S. (2018). Business
law and the legal environment. Cengage Learning.
Ferrera, G. R., Alexander, M. M., Wiggins, W. P., Kirschner,
C., & Darrow, J. J. (2018). The Legal and Ethical Environment
of Business. Wolters Kluwer Law & Business.
Singer, L. (2018). Settling disputes: Conflict resolution in
business, families, and the legal system. Routledge.
Twomey, D. P., Jennings, M. M., & Greene, S. M. (2016).
Anderson's Business Law and the Legal Environment,
Comprehensive Volume. Nelson Education.
References
ISOL 536
Security Architecture and Design
Threat Modeling
Session 4a
“What Can Go Wrong?”
Agenda
• Attack trees

17. • Attack libraries
• Quiz notes
• Reading: Chapter 4, 5
Approach
• “What can go wrong” & “what to do about it”
are often (and reasonably) tied together in
practice
• This course splits them because they are
distinct questions & skills
Security mavens Experts in
other areas
STRIDE Trees Libraries
ATTACK TREES
Attack Trees
• Structured relationship between attack details
– Detail (This is a subcategory of that - sequencing)
– Present as outline, picture (graphically)
– Creation vs. use (“best” depends on needs)

18. Using an Attack Tree
• Find an appropriate tree
– Web search
– Appendix B of Threat Modeling
• Iterate through your diagram & tree
– “Does this apply here?”
– More precise iteration is more useful when you’re
learning, or for high-stakes analysis
Creating Attack Trees
• Creating attack trees
– for a project
– for general use (very hard!)
• Steps:
– Choose a representation
– Create a root node (goal, “Get root”)
– Add subnodes
– Consider completeness
– Prune (mark – don’t delete)
– Check
ATTACK LIBRARIES
Libraries

19. • Collections of knowledge for you to apply
• Collection of detailed lists of common problems
• Important considerations
• Audience
• Scope
• More structured than a mnemonic
• More detailed than a tree
• CAPEC is the most detailed library available
today, offering great structure
• OWASP – Web application centric
Checklists and Literature Search
• Checklists
• Static
• Useful for commonly recurring threats
• May limit creativity
• Literature search
• Review of past attacks
• Useful to leverage work on similar systems
Recap
• Memonics like STRIDE, trees, and libraries can
all support finding threats—what can go
wrong.

20. • The best tool is the one that works for
you/your team
– Those may be different
• Familiarity with a spectrum will help you
Quiz notes
• Quiz this week
• 4% of total grade
• 20 multiple choice questions
• 20 minutes to complete
• You have only 1 chance to take this quiz
• No re-take option!
• Do NOT start the quiz until you are really ready to take the
whole quiz!