Business Law Case Study: University Club Funds Ethical Dilemma

This case study analyzes a business law scenario involving a university club and its funds. The main dilemma revolves around the club president, Matt, who fails to deposit the money earned from T-shirt sales into the club's account, instead keeping it in his own. The case explores the ethical and legal implications of this action, considering the perspectives of Erica, a club member, and the potential impact on the club's activities. It examines the relationships between the individuals involved and the potential consequences of their actions. The case study highlights the need for ethical decision-making, financial accountability, and proper handling of club funds. The solution suggests that Erica should first attempt to resolve the issue with Matt and then approach the Student Office administrator to resolve the situation. The case references relevant academic materials to support the arguments and analysis.

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Business Law

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Main dilemma in the scenario:
In this case, the main dilemma is faced by Erica who is a sophomore at the university. The
money which was earned by the selling of Tshirts by the club was not submitted in the account
of the club. Instead, it was submitted by the president of the club, Matt in his own account.
Consequently, there were no funds in the club for the upcoming year.
Reasons and Realizations
1. Matt and Erica shared a good friendship. Erica feared that their relationship could get
strained due to the involvement of money matters.
2. Matt had been the president of the Spirit Club for the past 2 years. While Erica was the
youngest and the newest member of the club who lacked the desired experience.
3. Despite Matt convincing Erica that he would submit the money and rectify the mistake,
he did not do it towards the end of the year (Sadgrove et al., 2012).
What’s at stake for the key parties
1. The good relationship between Erica and Matt could get strained out due to the
involvement of the money matters.
2. Matt, being the president since two years possessed power. He could deteriorate the
position of Erica both in the club as well as in the University.
3. In case Erica gets the desired help, Matt could be suspended from his presidentship on
account of his depriving the club of the desired money.
4. The Spirit Club would be deprived of the required money for its upcoming programs and
would to accomplish them.
Arguments to those who disagree
It is important for Erica to solve the situation which the Club is going through. She should
initially talk to Matt again. In case he does not take the desired step, she should approach to the
administrator of the Student’s Office to resolve the issue.

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Powerful and Rational Response
The amount received from the selling of Tshirts belongs to the club. The Administrator of the
Student office should look into the matter and order Matt to return the money which is due to the
club as soon as possible. This would ensure that the upcoming year of the Club could be well
planned according to the budget (Scaffer et al., 2011).

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References
Sadgrove, J., Vanderbeck, R. M., Andersson, J., Valentine, G., & Ward, K. (2012). Morality
plays and money matters: Towards a situated understanding of the politics of
homosexuality in Uganda. The Journal of Modern African Studies, 50(1), 103-129.
Schaffer, R., Agusti, F., Dhooge, L. J., & Earle, B. (2011). International business law and its
environment. London, UK: Cengage Learning.