1. Blue Mood Clothing Inc.
(Case Study)
Student’s Name
Department, Institution
Professor’s Name
Course
Date
2. Introduction: Case Study Summary
• Theft occurred at Blue Mood Clothing Inc.
• Investigations point out to Alex as the main suspect
• Alex posed as a sales agent despite being a low-level ‘employed at will’
employee
• Alex sold the goods to Juanita for value, who in return sales to Nick
• Nick advertises them and is entrapped by Bill, the investigator, who realizes
that the shirts were stolen
• Bill in the course of the investigations accidentally sends an email to over 200
individuals terming Nick as a thief
3. Issues Arising
• Can Colossal Corporation terminate Alex without any notice or a hearing?
• Did Alex, Nick, Bill, or Juanita commit any crimes and, if so, which crimes did
each person commit?
• What defenses, if any, might the relevant persons allege in response to the crimes
you identified?
• Did Alex, Nick, Bill, or Juanita commit any intentional torts and?
• What defenses, if any, might the relevant persons allege in response to the
intentional torts you identified?
• Can anyone collect damages for the intentional torts?
4. Issue 1: Termination of Alex
• Alex was a low-level worker in the warehouse employed at
will.
• He can be terminated without any hearing
5. Issue 2: Crimes Committed by Alex, Nick,
Bill, or Juanita
• ALEX:- Crime of stealing (theft)
• NICK:- handling stolen property contrary
• BILL:- No evident crime committed
• JUANITA:- handling stolen property contrary
6. Issue 3: Defenses for the Crime
• ALEX:- No solid defense for the theft
• NICK:- No knowledge that the goods were stolen and that he acquired them
for value
• BILL:- No crime to defend against
• JUANITA:- No knowledge that the goods were stolen and that he acquired
them for value
7. Issue 4: Intentional Torts by Alex, Nick, Bill,
or Juanita
• Alex
• Conversion
• Fraud
• Nick
• No identifiable intentional tort
• Bill
• Defamation
• Intentional interference with economic interests
• Juanita
• Fraud
8. Issue 5:Defenses for the Intentional Torts
• Alex
• Conversion- No solid defence
• Fraud- No solid defense
• Nick
• No identifiable intentional tort- not applicable
• Bill
• Defamation- Mistake
• Intentional interference with economic interests- Mistake
• Juanita
• Fraud- Innocent purchaser for value
9. Issue 6: Damages for the intentional torts
• Who can recover and from who?
• Colossal Corporation – recover damages from Alex
• Nick- Recover damages from Bill or Colossal Corporation (under
vicarious liability doctrine)
10. Insights
• Some of the issues fall under the realm of criminal law
• Other issues fall under torts
• For torts, damages are payable
• For criminal law, damages may not be awarded
11. Conclusion
• High probability of Alex being found guilty for stealing (crime)
• High probability of Alex being found guilty of torts
• High probability of Bill being found guilty of tort
• Juanita and Nick not likely to be guilty of crimes or tort
• High chances of the corporation recovering damages from Alex
• High Chances of Nick recovering damages from Bill or the corporation
12. References
• Gordon, J. M., Chapman, J., Akins, B., Tate, T., & Gordon, W. (2016).
Business Law: An Introduction.
