Fact Pattern 15-1
Gretta is the CEO of a paper company built near a river used in interstate commerce although the state in which the company is located is land locked and not near the coast. Gretta determines that a significant amount of money needs to be spent to comply with the federal Clean Water Act. She is already in trouble with stockholders because of low profits and does not wish to spend extra money on pollution control. Therefore, she instructs employees to simply dump waste into the river. She was aware that she would be fired if the company received a heavy fine, but she decided to take the risk because she was in danger of being fired if profits did not come up anyway. Also, while Gretta believed that the Clean Air Act applied; Linda, a majority stockholder, told her that the Clean Water Act would not apply based upon the location of the plant.
-Refer to fact pattern 15-1. Does Gretta have any greater danger in this situation than being fired?

Question

Quizplus · Accepted Answer

Gretta can be held individually liable for violating the Clean Water Act since she knowingly instructed employees to dump waste into the river. This violation can result in fines as well as imprisonment. The fact that she was under pressure to increase profits does not excuse her conduct. Additionally, the belief of Linda, a majority shareholder, that the Clean Water Act did not apply does not absolve Gretta from liability as ignorance of the law is not a defense.

Fact Pattern 15-1 Gretta Is the CEO of a Paper Company Built near Company