Southern Journal of Business and Ethics, v. 8, 2016 VOLUME 8 (2016) SOUTHERN JOURNAL OF BUSINESS AND ETHICS Table of Contents . 1-2 Title Page . 3 SALSB Executive Board . 4 Editorial Policy . 5 Notes for authors . 7 Call for Papers . 9 Nicholas C. Misenti. 11 Personal Liability for Commission of a Tort: A Significant, and Often Overlooked, Exception to Limited Liability in the LLC and Corporation Charlie Penrod, Kimberly McCorkle, and Susan Harrell. 39 Doing While Learning: How Business Programs Can Integrate Beneficial Experiential Learning Opportunities for Pre-Law Business Students Thomas M. Krueger and Mark A. Wrolstad. 68 Looking Beyond the Pale: Evidence that Investors Look Beyond Concurrent Annualized Returns in Assigning Corporate Reputations Evan A. Peterson & Dhruv S. Patel. 92 Benefit Corporations: Fostering Socially Conscious Corporate Leadership Rafik Elias . 109 The Relationship between the Protestant Work Ethic, Empathy and Business Students’ Distrust of Corporations Brad Reid . 123 Employment Contract or Mere Words? – The Traps Workers Face Kana Ng and David E. Ritter . 137 Medicaid Expansion and Activity Based Costing as a Means of Measuring Efficiency and Improvement in Healthcare Laura Sullivan, Dirrell S. Jones and Diana Brown. 149 Attorney Misconduct and the Role of the Grievance Process in Civil Proceedings Arising from the Same Facts Jonathan R. Everhart. 160 Back to Business: A Practical Guide on How to Reinstate Involuntarily Terminated & Forfeited Business Entities in Texas 1 Southern Journal of Business and Ethics, v. 8, 2016 Table of Contents, Continued. Michael S. Cedillo, Laura Sullivan and Diana Brown. 170 Avoiding Imputed Disqualification Charles Bultena, Charles Ramser, & Kris Tilker . 181 Mediation Madness II: Dealing with Destructive Emotions Justin Blount, Carol S. Wright, Ashley A. Hall, and Judith L. Biss . 202 Social Media: Creating Student Awareness of its use in the Hiring Process Laura Sullivan, William Hogg and Diana Brown . 219 Statistical Extrapolation in Complex Litigation: Science or Guesswork? Bret N. Bogenschneider . 237 The Professional Ethics of U.S. Tax Treaty Interpretation 2 Southern Journal of Business and Ethics, v. 8, 2016 SOUTHERN JOURNAL OF BUSINESS AND ETHICS Volume 8 2016 EDITOR-IN-CHIEF Marty Ludlum Associate Professor of Legal Studies University of Central Oklahoma WEB MASTER Joseph A. Zavaletta SENIOR ADVISORY EDITOR William T. (Will) Mawer Dean, School of Education and Behavioral Sciences Southeastern Oklahoma State University ADVISORY EDITORS Ellen K. Boegel, St. John’s University Justin R. Blount, Stephen F. Austin U. Raygan Pierce Chain, Southwestern Oklahoma State U. Jennifer Barger Johnson, University of Central Oklahoma Darrell Ford University of Central Oklahoma John L. Keifer, Ohio University John Maisch University of Central Oklahoma David Ritter, Texas A&M U. - Central Texas Laura Sullivan, Sam Houston State University The Southern Journal of Business and Ethics is an official publication of the Southern Academy of Legal Studies in Business ISSN: 1944-5474 Listed in: Cabell’s Directory, Ulrich’s Directory, and EBSCO Copyright to the contests of the articles published herein is retained by the respective authors. Copyright to the design, format, logo and other aspects of this publication is claimed by the Southern Academy of Legal Studies in Business. The views expressed herein are to be attributed to the authors and not to this publication, The Southern Academy of Legal Studies in Business, its officer, the editors, or any named college or university. The material appearing in this publication are for information purpose only and should not be considered legal advice or be used as such. For a specific legal opinion readers must confer with their own legal counsel. 3 Southern Journal of Business and Ethics, v. 8, 2016 SALSB EXECTIVE COMMITTEE (2016) Executive Director & Program Chair Web Master Laura L.Sullivan Joe Zavaleta Sam Houston State University Loyola Center for Justice Huntsville, Texas Boise, Idaho [email protected] [email protected] President Immediate Past-President Ray Teske Brian Elzweig University of Texas – San Antonio Texas A&M – Corpus Christi San Antonio, Texas [email protected] Vice-President Secretary- Treasurer Joey Robertson Jennifer Barger Johnson Sam Houston State University University of Central Oklahoma Huntsville, Texas Edmond, Oklahoma Editor, Southern Law Journal Editor, Southern Journal of Business & Daniel T. Ostas Ethics University of Oklahoma Marty Ludlum [email protected] University of Central Oklahoma [email protected] House of Delegates Representative Director of Conference Special Events Henry Lowenstein Marcia Staff Coastal Carolina University University of North Texas Weatherford, Oklahoma [email protected] 4 Southern Journal of Business and Ethics, v. 8, 2016 From the Editor-in-Chief. This is the 8th volume of the Southern Journal of Business and Ethics, an official publication of the Southern Academy of Legal Studies in Business. The Journal is being published in hardcopy and electronically on the Southern Academy’s web page at http://www.salsb.org. The SJBE has been included in Ebsco Host services, allowing for full text search on most university library systems! This provides a great benefit to our authors and readers! All articles that appear in this volume of the Southern Journal of Business and Ethics have been recommended for publication by the Advisory Editors, using a double, blind peer review process. A personal thanks is extended to the Advisory Editors for all their hard work and dedication to the Journal and the Southern Academy; without their work, the publication of this Journal would be impossible. This is my eighth year as Editor-in-Chief, and I wish to express my sincere thanks and appreciation to all the Officers of the Southern Academy for their support, encouragement, assistance and advice throughout this year. I would like to further express appreciation to Will Mawer of Southeastern Oklahoma State University, for his efforts in coordinating the start of the Journal. The publishing of this journal is an intense educational experience which I continue to enjoy. Many of the papers herein were presented at the Southern Academy of Legal Studies in Business meeting in San Antonio, Texas, April, 2016. Congratulations to all our authors. I extend a hearty invitation to the 2017 meeting of the SALSB in San Antonio, Texas, April, 2017. The Southern Academy annual meeting has been voted the “BEST REGIONAL” among all the regions affiliated with the Academy of Legal Studies in Business (ALSB) featuring over 60 authors and 50 papers. I hope to see ya’ll in San Antonio! Please check the web site (www.salsb.org) for further information. To further the objectives of the Southern Academy, all comments, critiques, or criticisms would be greatly appreciated. Again, thanks to all the members of the Southern Academy for allowing me the opportunity to serve you as editor-in- chief of the Journal. M.P. (Marty) Ludlum Editor-in-Chief Southern Journal of Business and Ethics www.salsb.org 5 Southern Journal of Business and Ethics, v. 8, 2016 6 Southern Journal of Business and Ethics, v. 8, 2016 Notes for Authors: The focus of the Southern Journal of Business and Ethics (SJBE) is to examine the current trends and controversies in business, law and ethics, both domestic and international. In addition, future issues will include a new section, Short Notes, which will consist of shorter articles focusing on pedagogical ideas for the new business law instructor. All authors promise that any submission is original work, and has not been previously published. Since the topics of SJBE cross into many different academic areas, the SJBE does not have a specific format. Authors are free to use Chicago style, Harvard style or the APA, as long as the application is consistent throughout the paper. The title should be in ALL CAPS. The text should be in Times New Romans 12 point font for the text and 10 point font for the footnotes. Authors’ names should be centered below the title. Paragraphs should be indented five spaces. The maximum size for a paper is twenty-five pages, all inclusive, single spaced. Articles substantially longer may be accepted as space allows. All submissions should include a complete copy (with author identification) and a blind copy (with author identification left blank). All submissions are electronic, in MS-Word format. No paper copies will be reviewed or returned. Artwork is discouraged. Tables and charts should be kept to a minimum and should be included in an appendix following the paper. Submissions deadline is 45 days after the SALSB spring meeting each year. Articles sent after the deadline will be reviewed for the next issue, or may be withdrawn by the author and submitted elsewhere. Look for the call for papers at the Southern Academy’s website (www.salsb.org). If you would like to serve SJBE as a reviewer, your efforts would be appreciated. Many hands make light work. If you have any questions, please submit them to the Editor in Chief. Please submit all papers to: Marty Ludlum Editor in Chief, SJBE [email protected] 7 Southern Journal of Business and Ethics, v. 8, 2016 8 Southern Journal of Business and Ethics, v. 8, 2016 Mark Your Calendars March 23-25, 2017 Southern Academy of Legal Studies in Business San Antonio, Texas Find the details at: www.SALSB.org 9 Southern Journal of Business and Ethics, v. 8, 2016 10 Southern Journal of Business and Ethics, v. 8, 2016 PERSONAL LIABILITY FOR COMMISSION OF A TORT: A SIGNIFICANT, AND OFTEN OVERLOOKED, EXCEPTION TO LIMITED LIABILITY IN THE LLC AND CORPORATION NICHOLAS C. MISENTI* ABSTRACT An important, but little understood, exception to LLC and corporate limited liability shields exists: namely, limited liability shields contain a carve out for the common law rule that imposes personal liability on members and shareholders who personally commit of a tort. Personal liability applies even though the entity is also liable under Respondeat Superior.