Your Client Told You That It Needed to Have "A

question 13

Essay

Your client told you that it needed to have "a completed compilation of its financial statements,in good form" for presentation to its bank this upcoming Friday in order to obtain a needed working capital loan.Although you had promised to accomplish this task on time,you were arrested for drunk driving on Thursday and had to spend most of the day at the police station arranging to post bail.
You knew that,if you had told your client the truth,the client would have terminated your professional relationship.This in turn would have required you to layoff Garza,your superb accounting analyst who is financially responsible for the care of her aged parents.As a result,you told the client that your child had to go to the emergency room for stitches after she inadvertently sat on the sharp point of scissors while working on an art project.Your client relayed this excuse to the bank as the reason that the submission of its financial statements would be delayed.
a. Evaluate your conduct from the standpoint of deontology.
b. Evaluate your client's statements to the bank from the standpoint of deontology.
c. Evaluate your conduct from the standpoint of consequentialism.

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Definitions:

Freeze-Out

In corporation law, a type of oppression by which only minority shareholders are forced to sell their shares.

Right Of Appraisal

The process to determine the fair market value of an asset by a neutral third party or appraiser.

Greenmail

A situation where a company buys back its own shares from a potential acquirer at a higher price than the market value to prevent a hostile takeover.

Lock-Up Option

A contractual agreement where shareholders are prohibited from selling their shares for a specified period following an initial public offering (IPO).