Existence of separate entities


Case Problem:

Cedric Kushner Promotions Ltd. (Kushner), a corporate promoter of boxing matches, sued Don King, the president and sole shareholder of a rival corporation, alleging that King had conducted his corporation’s affairs in violation of § 1962(c) of the Racketeer Influenced and Corrupt Organizations Act. A federal district court dismissed the complaint. In affirming, the U.S. Court of Appeals for the Second Circuit expressed its view that § 1962(c) applies only where a plaintiff shows the existence of two separate entities, a “person” and a distinct “enterprise,” whose affairs that “person” improperly conducts. It was undisputed that King was an employee of his corporation and was acting within the scope of his authority. Under the Second Circuit’s analysis, King was part of the corporation rather than a “person” distinct from the “enterprise.” In cases presenting similar facts, other federal courts of appeal had concluded that the sole shareholder of a corporation was a “person” distinct from the corporate “enterprise.” Kushner appealed the Second Circuit’s decision, and the U.S. Supreme Court granted certiorari. Which interpretation of § 1962(c) did the Supreme Court adopt—the Second Circuit’s or the one followed by other federal courts of appeal?

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Business Law and Ethics: Existence of separate entities
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