Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

Exercise 1

For several years, CSK Auto, Inc., fraudulently reported inflated earnings. During this period, Maynard Jenkins was CEO. He was not involved in the fraud, however, and he was never charged with a crime. Nonetheless, using a SOX provision, the SEC sought to claw back some of his earnings during this period. Should Jenkins be financially responsible for fraud that occurred on his watch, even though he did not participate