Legal Environment 4th Edition by Jeffrey Beatty, Susan Samuelson

تمرين 5

Barry Minkow founded ZZZZ Best, a publicly traded carpet cleaning company. The company had a $5 million line of credit from Prudential Bache. Sheri Elowsky was the vice president at Prudential in charge of the ZZZZ Best account. After Minkow flew her to Los Angeles and wined and dined her for the weekend, she approved a $225,000 extension on the company's line of credit. Minkow gave her a post-dated $2 million check to pay down the loan. Two days later, ZZZZ Best's stock price dropped steeply. Minkow would not return Elowsky's phone calls. She then discovered that Minkow had resigned from the board and the $2 million check would not be honored. Is there anything Elowsky could have done to reduce Prudential Bache's losses?