Question

In one of the case studies in the textbook, Rita Mae King was a purchasing agent at an electronics and appliance chain. She frequently worked with travel vendors and managed to put Spicewood Travel on the top of the preferred vendor list. Upon investigation, the fraud examiners discovered that she ran her own travel agency out of her office at the store and received kickbacks from Spicewood Travel in return for having her company use them to book trips. Why didn't the company pursue legal action against King?

Answer 1

The company may have decided not to pursue legal action against Rita Mae King due to lack of concrete evidence and the potential costs and time involved in litigation.

Step-by-step explanation:

The company likely did not pursue legal action against Rita Mae King, the employee involved in the fraud scheme, due to several factors. First, the investigation mentioned that there was little concrete evidence of her wrongdoing. Legal action requires strong evidence to support the charges.

Second, pursuing legal action can be costly and time-consuming for a company, especially if it involves litigation. The company may have weighed the potential costs and benefits and decided that it was not worth pursuing legal action in this particular case.