Author(s): Thomas J. Freeman, Aaron McKain
The primary subject matter of this case concerns the legal and ethical issues involved when a company defrauds its own customers. It provides students with the opportunity to act as a corporate attorney also serving in the role of an ombudsman (Volvok 2013). Students must consult state and federal consumer protection and banking laws. Students should also consider the ethical issues involved as well as the effect on the bank’s brand and consumer confidence in the bank. This case has a difficulty level of four or five and is appropriate for undergraduate or graduate business law classes where business law and ethics are covered. This case is suitable for both classroom and online discussion and as an individual or team assignment. The case is brief enough to be covered in a single class period. Ideally, it would be discussed and assigned during one class period and then completed during the next class period. That would allow the students out of class time to consider and study the issues involved.