I sort of feel that rules are there for a reason and if people continue to get away with breaking them (and if others cover for them), they will keep breaking them until something really bad happens. However, I also believe that when you have a problem, you should deal with the person who you have a problem with before you go above their head and "tatlle." So, if it is a small or first-time offense... talk to the chapter. If it is a bahavioral pattern that could become dangerous... consult the higher-ups.
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