http://www.seattlepi.com/business/318638_bestbuy06.html?source=rss
Summary
The article that I have chosen to base my summary blog upon revolved around the altering of documents pertaining to a lawsuit against Best Buy. The lawsuit concerned Microsoft, yes the multibillion dollar company, paying Best Buy to sign up unsuspecting customers to a trial version of MSN Internet service, and once the trial version ended customers were left with unapproved charges on their credit card bill. Timothy Block the lawyer hired by Best Buy, willingly altered two e-mails and a memo before presenting them to the plaintiffs and the judge, resulting in Best Buy losing any credibility in the eyes of the judge and the jury. Timothy Block later admitted to his mistake, resigned as Best Buy’s lawyer and now is on medical leave due to stress and depression. The lawsuit can go one of four ways, Best Buy and Microsoft losing the case, Best Buy losing, Microsoft losing, or Microsoft and Best Buy winning. But if either of the two companies or both lose, their will be tens of millions of dollars paid in damages.
Connection
This article concerning Best Buy and Microsoft connects with Chapter 12 Specialized Journals, Chapter 14 Cash Control and Banking, Chapter 15 Analyzing Financial Statements, and Chapter 16 Payroll Accounting in various ways. In accordance to Chapter 12, Best Buy and Microsoft will see an increase in the sales or income section of their synoptic journal and also an increase in their sales journal and possibly their general journal. In retrospect to Chapter 14 customers who were signed up for the trial MSN Internet service will have numerous credit card charges which will eventually lead to a decrease in their personal bank account. In accordance to Chapter 15 the plaintiffs and judge in this lawsuit, will use the financial statements to determine how much Microsoft and Best Buy benefited from the unethical practice and also victims of the unethical practice. Finally in retrospect to Chapter 16 the owners of Best Buy who agreed to the practice will probably increase their salary as the company’s gross profit increases, and the same for the Microsoft employees to implement the practice.
Reflection
Firstly after reading this article I would just like to say that Microsoft should have known better than to try to increase their sales through an unethical practice. A sale can only be defined as a sale if both or more parties agree, and what Microsoft and Best Buy were implementing can only be defined as trickery. But one surprising thing that appeared when I read the article is that a senior partner at Block’s lawyer firm, is also a director at Best Buy, which could insinuate inside influence. The accounting firm for Best Buy should have noticed money coming in from side deals with Microsoft, which should have alerted them to realize an unethical practice was taking place, and thus they should have immediately consulted a higher power. And by that I mean the police or owner(s) and not God.
3 comments:
I agree with you Chris. The companies shouldn’t be blamed one hundred percent but that doesn’t necessarily mean that they should get off scot free. Some of that blame does belong to the accounting firm that BestBuy has. From the article I got the impression that the lawyer did what he did and left because he felt shameful and this further proves that they hold some responsibilities to one degree or another.
Wow, Best Buy and Microsoft are already earning so much, and they are still craving for more while using such dirty methods?! Talk about greedy business people... Anyways, what microsoft and Best Buy did was totally stupid. They should have known that trying to fool their customers is totally impossible since all the problems would be exposed when their customers receive an unexpected bill. This is clearly the two huge corporations' fault. The lawyer trying to alter documents to fool the judge just placed them into an even worse situation. In my opinion, I believe that Microsoft and Best Buy will lose the case one way or another.
I'm not surprised at what Bestbuy and Microsoft tried to do. Many big corporations will see us consumers as the little people and themselves as the big people. Feeling bigger than us, it makes them feel as if they're allowed to do anything and in this situation, it was unethical charges to customer's credit cards. I believe that the two corporations will be paying a huge fine and reimbursing their customers. It seems that the Apple commercials are swaying away Microsoft customers which seem why Microsoft had to do this. Timothy Block, the lawyer for BestBuy should be fined as well because of his unethical practice. Because of him altering two e-mails and a memo before presenting it to the judge, it shows that he has lied in a court of law and in which I believe that is a criminal offence.
Tommy On
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