Calus Inc Case Summary

Henry has to ensure his due diligence as the president and chief operating officer of CALLUS Inc. and have proper supervision during his absence to ensure that his business is operating properly. He must be aware of any future events that are going to have a great impact on the business, since he can be held strictly liable for his business . Although Henry has a very small team he still needs to be prepared for any future legal liability. Initially, he needs to make sure that the employee's in charge of the new project, Armando and Lucy have the necessary knowledge, training, and proper supervision. Although Armando is one of the senior sales representative, Lucy is fairly new and has no background, which is why ongoing supervision of this project is crucial. Henry should limit their power and authority in this project, since it can potentially cause legal problems for the business. The business should implement important policies regarding marketing rules and …show more content…
The new venture that Armando and Lucy are leading is an unexperienced field for CALLUS Inc. therefore it can easily incur stiff fines and penalties. Employees in such an occurrence shall be held accountable and liable for any deceptive misrepresentation internally to prevent future occurrences. Henry should require a project plan that outlines the steps that Armando and Lucy are going to take with this project, so he can oversee and a clear plan of the direction the company will be going. Without clear directives such as an outline of steps, Henry cannot prove that he took the necessary due diligence to monitor them. By not being involved in this process Armando and Lucy may act impulsively to momentarily benefit, and cause long term losses and liabilities. Any changes to the plan should be approved by the appointed auditor or supervisor during Henry's