Project 1: Introduction to the Legal Environment of Business

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Blue Mood Clothing, Inc
Course Resource
Blue Mood Clothing, Inc
Notice: Contains Confidential Information
Blue Mood Clothing, Inc., a company devoted to producing positive, moodaltering apparel and various other clothing items, is a wholly owned
subsidiary of Colossal Corporation. Blue Mood Clothing’s most famous and
best-selling product is the Breezer—a skin-tight shirt with an air ventilation
system that allows the breeze to pass through the shirt. Colossal
Corporation has uncovered an incident of theft at Blue Mood Clothing:
approximately one month ago, over five thousand Breezers were stolen
from Blue Mood Clothing’s Atlantic City, New Jersey, warehouse.
Shortly after the theft was discovered, Colossal Corporation’s internal
investigator, Bill, found an online advertisement for the sale of exactly five
thousand Breezers, described as shirts with an “air ventilation system that
allows a cooling breeze to pass through the shirt.” Bill called the contact on
the website and set up a meeting with the seller, Nick Johnson. When Bill,
under the guise of being an interested purchaser of the Breezers, inquired
about Nick’s distributor, Nick did not hesitate to reveal that he purchased
the Breezers from Juanita Winfrey, his long-time business associate. Bill
inspected the five thousand Breezers, and confirmed they were indeed the
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Blue Mood Clothing, Inc
same Breezer products that were stolen from the warehouse. He then
requested a price quote from Nick and asked Nick to hold the products for
him for seven days. Nick agreed.
That same afternoon, before additional investigation, Bill sent an email
intended solely to be sent to the vice president of Blue Mood Clothing,
Inc., but he accidentally hit “reply all” to a previous message, and sent the
email to every employee at Blue Mood Clothing, Inc., over two hundred
people. The email stated, among other things, that “Nick Johnson was a
thief and had an extensive criminal record in New Jersey. He stole the five
thousand Breezers. I will continue my investigation tomorrow.” This
statement was not true. Nick’s old friend from high school, who worked at
Blue Mood Clothing, Inc., forwarded this message to Nick, who became
worried about his business and reputation.
Bill arranged a meeting with Juanita the very next day, during which he
posed as an interested clothing buyer. He asked Juanita if she had any
Breezer distributors she could recommend. Juanita said that she works
directly with a Blue Mood Clothing sales agent named Alex Ridgefield, and
that she recently purchased five thousand Breezers from him at a fair price.
Juanita also said that Alex is quite interested in expanding his business with
her, and would provide Bill with a great deal.
After his meeting with Juanita, Bill checked the personnel records at Blue
Mood Clothing and identified Alex Ridgefield as a low-level warehouse
employee who has been with the company for over 20 years. Alex’s
personnel record is spotless, with no prior personnel issues and no
complaints. Alex is an at-will employee who is in charge of night security at
the Atlantic City warehouse and has no history in sales. As a night security
guard, Alex is responsible for protecting the warehouse from theft and is
not permitted to sell products. After further investigation, Bill found
company emails between Juanita and Alex in which Alex posed as a sales
agent. Reading the emails, it became obvious that neither Juanita nor Nick
knew that the five thousand Breezers were stolen, and that both bought
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Blue Mood Clothing, Inc
the Breezers for fair-market value. Bill then collected video from all of
Alex’s shifts and was able to locate a film of Alex packing the Breezers into
his personal minivan and driving them out of the warehouse parking lot.
Your task is to research the legal issues surrounding the stolen property. It
is up to you to decipher which laws have been broken and deduce any
potential remedies. Vice President Dodger wants you to prepare a narrated
PowerPoint to present this information to the senior leadership team.
Because of the sensitive nature of this case, the vice president has asked
you to operate with total confidentiality and without involving the legal
department.
© 2024 University of Maryland Global Campus
All links to external sites were verified at the time of publication. UMGC is not responsible for the
validity or integrity of information located at external sites.
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