Cengage Advantage Books: Foundations of the Legal Environment of Business 2nd Edition by Marianne Jennings, Albert Napier, Marianne Jennings

Exercise 4

Richard M. Scrushy, the former CEO of HealthSouth and now a convicted felon (bribery), was the subject of a probation hearing. Prosecutors said that Mr. Scrushy was trying to leave the country via his 92-foot yacht, the Chez Soiree. The yacht journey was nixed when bad weather hit the Atlantic coast. Mr. Scrushy protested the allegations, testifying that he had permission to travel to South Florida as part of a vacation that had been approved for him and his family (including going to Disney World). He said he did not tell the probation officer about the trip to Miami because her questions were not specific enough, "I can't answer the question unless she asks me."24 The federal magistrate said that Mr. Scrushy was being "coy" with his probation officers. Discuss whether Mr. Scrushy breached any ethical standards with his conduct and interpretation of the terms of his probation.