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Sears - Case Study Example

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Case Study
Journalism & Communication
Pages 3 (753 words)


Sears Roebuck & Company woke up to some grave allegations which called for potential chances for legal as well as criminal proceedings against the company by the United States Department of Justice. …

Extract of sample

The accusations brought against the company were considered to be quite grave and fatal owing to its impact on the reputation and business of the company. The request for reviving the case of Francis Latanowich prompted a review of the case by Judge Carol Kenner which revealed few facts that proved to act against the actions of the company. It was found from the further evaluation that the company mailed the security guard an offer according to which a payment of $28 each month made by the individual would prevent the company from reclaiming the goods that were purchased by Francis Latanowich before turning bankrupt. The act of influencing the debtors to enter into such agreements was known as reaffirmations and is considered to be lawful. Such kinds of agreements are considered to be quite common in the business of retail credit, however, it is perceived to be an unethical behavior by numerous judges. In addition to this, it was made mandatory for credit companies to file those reaffirmations with their respective courts for the reason of evaluating the potency of the debtor by the judge with regard to the fresh payment. The affirmation of Francis Latanowich was not found to be filed by the court and an explanation for such a conduct was demanded from the company by Judge Kenner. This proved to be the other breach that was made by the company. The company was also found to pay no heed to the law in quite a few similar cases that were considered to be illegal. Such grave accusations against the company and the violations of law made by the company called for huge losses as well as adverse reputation for it which would hamper its business operations in the future. ...
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