Business law students study the corporate entity and learn from the beginning that since corporations are legal persons they can be charged with crimes.  Corporations cannot be imprisoned, because they have no physical body, but they certainly can face monetary penalties. Such was the recent fate of Credit Suisse.

Credit Suisse pled guilty to one count of “intentionally and knowingly” helping many U.S. clients prepare “false” tax returns.  For decades, Credit Suisse bankers fabricated “sham entities” to help hide the identities of U.S. clients who did not claim the Swiss accounts on their tax returns. They also failed to maintain records related to those accounts, destroyed documents sought by the U.S. government, and helped U.S. clients draw money from those accounts in ways that would not raise a red flag to the IRS. Out of the $2.6 billion, $1.8 went to the Treasury Department, $100 million to the Federal Reserve, and $715 million to the New York State Department of Financial Service.

The monetary penalty is the only punishment levied on the bank, as government officials feared anything further, such as ceasing operations, would have had a detrimental effect on the global economy. Moreover, top bank officials who were involved in the scheme will keep their jobs, even though there were calls for them to resign by their own statesmen.

Reportedly, the Department of Justice is looking to bringing charges against France-based BNP Paribas for similar offenses. But without some officer or director accountability, there will be no deterrence.

The Securities and Exchange Commission charged three software company founders with insider trading and forced them to disgorge $5.8 million in illegal profits, penalties and interest.  Insider trading occurs when people in high levels of management trade company securities based on non-public information.

Lawson Software’s co-chairman, Herbert Richard Lawson, tipped his brother and a family friend (both retired from the company in 2001) about the probable sale of the company to Infor Global Solutions, a privately held software provider.  While negotiations were occurring, the media learned of a possible merger.  Lawson Software’s stock price began to climb based on analyst reports of a possible bidding war with more than one company considering acquiring Lawson Software.  The reports were predicated on an article indicating that Lawson Software conducted a “market check” through its financial advisor to see if there were any other companies interested in a merger.

But Infor Global was the only company interested in buying, as the market check produced “little-to-no interest.”  Lawson Software notified the public that Info Global offered to pay $11.25 per share, however, the media was still reporting incorrectly that other companies were interested in acquiring the company and that the merger would likely be for $15-16 per share.  Those companies listed in the media reports were actually the same companies that declined purchasing Lawson Software in the market check investigation.

The SEC charged defendants both knew the reports were false and Infor Global would not increase its offer any more than $11.25.  But in face of that knowledge, Lawson, his brother and his friend sold shares of the company for approximately $1 over Infor Global’s price, pocketing millions.  Defendants agreed to disgorge the profits and “to the entry of final judgments enjoining them from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.”

An associate director in the SEC’s Division of Enforcement stated, “Richard Lawson conveyed material information that was contrary to what was being publicly reported, and his brother and friend made a windfall when they subsequently sold their company shares at inflated prices.”  He further stated, “When news surfaces about the possibility of a merger and details of the media reports are incorrect, it is illegal for insiders who know the true facts to trade and profit.”

One of the causes of action a plaintiff can bring in a product’s liability lawsuit is a defective design claim. General Motors is facing multiple lawsuits over faulty ignition switches installed in the following vehicles: Chevy Cobalt (2005-2010) and HHR (2006-2011); Pontiac G5 (2007-2010) and Solstice (2006-2010); Saturn Ion (2003-2007) and Sky (2007-2010). More than 2.6 million have been recalled.

A Georgia couple who settled a lawsuit with GM for their daughter’s death is suing again on the grounds that GM’s lead design engineer lied when he testified he had no knowledge of any design “changes” to the switches. Their daughter was killed when her 2005 Cobalt slipped into accessory mode, cutting off the engine and causing her to collide with another vehicle. Her family settled based on this information.

But in recent disclosures to the National Highway Traffic Safety Administration and Congress that testimony appears to be false. The company apparently knew about the problem for years. Now, the family has filed another lawsuit claiming they would not have settled if they had known that evidence was concealed. GM denies the accusation.Settlements are contractual, and therefore, considered final once the parties agree to the terms.  Like all contracts, there are certain situations where a settlement agreement would be deemed void.  In this case, plaintiffs would have to convince a judge that they were somehow misled or defrauded by what GM did or said in order for the settlement to be void and the case to proceed.

Criminal law is certainly an important part of the study of business law, and Fourth Amendment questions always seem to come up in class.  Students are very interested in learning about when the police can search a person’s car, office or home, or when and where can they arrest someone. Generally, police need a warrant either to search a person’s property or to arrest, unless it falls within a constitutional exception.

Most students do not know that there is a difference between an arrest warrant and a search warrant.  An arrest warrant is an order by the court directing a sheriff, constable or police officer to find and arrest a person who is wanted for a crime.  In contrast, a search warrant permits a law enforcement officer to search a person’s place of residence or other location for evidence of a crime.  An arrest warrant, however, does not permit the police to search a home or building for a person where the police reasonably believes the person named in the arrest warrant may be found without the consent of the owner.  The question then becomes whether there are any other times police may enter certain areas of a third-party home and search for a person even though they are only acting pursuant to an arrest warrant.

In the New Jersey Appellate Division decision, State v. Craft, 425 N.J. Super. 546 (App. Div. 2012), Judge Graves held that exigent circumstances permitted the police to enter a bedroom of a third-party home to arrest defendant for a shooting even though they were operating solely under the authority of an arrest warrant.  The facts are as follows.

The Newark Police Department’s Fugitive Apprehension Team is responsible to dispatch officers to certain addresses where fugitives may be found based on certain intelligence.  James Craft was wanted for a shooting.  Officers arrived at the location noted in the arrest warrant.  It was a three-family dwelling located on South 13th Street.  The police believed that defendant was residing there with family on the second-floor.

The front door to the residence was open, and the police proceeded to the second floor.  The officers were in plain clothes, but at least one of them was wearing a badge around his neck. Defendant’s mother opened the door and permitted the police to enter.  The officers told defendant’s mother that they had a warrant to arrest her son. Defendant’s mother told the police that her son was not there, but offered to call him on her cell phone.  Upon dialing the number, the police heard a phone ringing behind a bedroom door. The officers believed it was defendant’s cell phone ringing and that he would most likely be in the bedroom.

When they opened the bedroom door, they found defendant attempting to escape.  The police testified they saw defendant drop a handgun as he climbed through the window.  They also discovered five vials of cocaine in plain view on the top of a dresser.  Defendant was arrested and charged.  The trial court suppressed the evidence finding that the “coincidence of a phone ringing” was insufficient evidence to justify entry into the bedroom without a search warrant and that the police did not have an “objectively reasonable belief” that “defendant both resided at and would be found at” his mother’s apartment.

On appeal, the court reversed, holding that “there was no constitutional violation by the police, and it was error to suppress the items that were seized. The arrest warrant provided probable cause for defendant’s arrest; the officers entered the apartment with [defendant’s mother’s consent]; and [the police] had reason to believe defendant was present in an adjoining room when a cell phone began ringing after [defendant’s mother] called her son.  In addition, the officers knew the arrest warrant was for ‘a shooting’ and, therefore, defendant was potentially dangerous.  Under these circumstances, there was a compelling need for immediate action to apprehend defendant, and it was impracticable for the officers to obtain a search warrant.  Thus, their entry into the bedroom was objectively reasonable, and the items seized were in plain view.”

Here, the exigency to protect persons inside the home from being shot by a potentially armed individual excused the police from failing to consider the possible “coincidence” of the phone ring. According to one of the officers, upon hearing the phone ring at the time defendant’s mother dialed, he reasoned since people generally stay close to their cell phones, he would find defendant next to his.  As a result, the search into the bedroom was reasonable.

Posted by Katie Kim.

On Thursday, Martin Shkreli, a 32 year-old pharmaceutical executive, was arrested by the federal authorities on securities and wire-fraud charges stemming from an alleged Ponzi scheme he ran as a hedge-fund manager. What the young executive was doing was taking out loans from investors to start a new pharmaceutical company and using that money to pay off his debt from his hedge-fund. Martin Shkreli committed “fraud in nearly every aspect of hedge-fund investments and in connection with his stewardship of a public company,” said the director of enforcement at the Securities and Exchange Commission, Andrew J. Ceresney.

Shkreli was already notorious for price-gouging during his time at Turning Pharmaceuticals. His idea was to acquire decades old drugs and raise the price of it to $750 from $13.50 per pill. The current charges are not related to Shkreli’s work as chief executive of Turing Pharmaceuticals.

The federal authorities say that Shkreli was running three schemes that had connections to one another, he defrauded investors and used stock and cash from an unrelated pharmaceutical company to cover up the money he lost. The Brooklyn US attorney filed a seven-count criminal indictment and the Securities and Exchange Commission filed a related civil complaint on alleged securities fraud against Shkreli. Federal officials painted Mr. Shkreli’s business dealings as “a securities fraud trifecta of lies, deceit and greed.”

Shkreli was released on a $5 million bail, secured by a bank account and his father and brother. The authorities also arrested Evan L. Greebel who served as an outside counsel to Retrophin, the company Shkreli previously worked for. Shkreli treated Retrophin like his “personal piggy bank” where he used $11 million to pay back shareholders of MSMB funds.

Katie is an accounting/finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Katie Kim.

In the technology industry, two leading companies may be heading to the Supreme Court over the design of smartphones. There is no confirmation of whether or not the case will be accepted, but the Supreme Court has not taken a design patent in over a century.

A few weeks ago, Samsung agreed to pay Apple $548 million in damages over a design patent but did not agree to it as part of a settlement. Apple took Samsung to court on the grounds that Samsung intentionally and knowingly copied Apple’s iPhone designs. Apple prides themselves on their innovation and when the threat of copycats infringe on their innovations it takes away from their profits. Apple submitted evidence that showed the evolution of the Samsung product increasingly resembled the Apple iPhone

At trial, Apple convinced the jury that some of the designs Samsung used on their smartphones, like the rounded rectangular corners and touch screen made of smaller icons, were taken from and patented by Apple.

On the other hand, Samsung argued that the law under design patents was misapplied. The law is meant to protect “ornamental” features that are not part of the products intended function. Samsung lawyers feel that this should have been made clear to the jury.

On Monday, Samsung filled an appeal to the Supreme Court. The company argues that the legal framework behind designed patents is flawed and out dated for the modern digital world. “The law was written for a time long before the smartphone was invented,” said Mark A. Lemley, a law professor and director of the Stanford University program in law, science and technology. If Samsung is left to stand with a sweeping rule against it then it will “lead to absurd results and have a devastating impact on companies.”

Katie is an accounting and finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Stephen D’Angelo.

Just six hours after New York Attorney General placed a temporary injunction, which would stop sites like Fanduel and DraftKings from doing business in New York, an appellate court saved them by issuing an emergency temporary stay that will allow New Yorkers to continue to use Fanduel and Draft Kings until further notice. This stay will last at least till the end of the year which is likely when a permanent decision will be made, “Eventually, both sides will go before a panel of four or five appellate judges” Randy Mastro said, from an outside council for DraftKings.

The State of New York is likely to win the case because of the wording of their law on gambling. Fantasy football gambling sites commonly use the defense that they don’t take wagers, they take entry fees. In many states, this allows them to continue to do business. But, New York is stating that their penal law does not refer to “wagering” or “betting.” Instead it states that a person, “risks something of value.”

Although New York has the upper hand, the laws in place are very vague. The statement regarding risking something of value had no relation to online fantasy sports gambling when created. It was worded this general because that would include gambling bookies in a gambling law. I personally do not believe that Fantasy sports gambling will be shut down in New York. The NBA, NHL, and MLB all own equity in Fanduel and the likelihood of the 600,000 New Yorkers who play daily fantasy to not be able to in the New Year is very slim.

Stephen is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2017.

Posted by Stephen D’Angelo.

Friday morning, two days after the judge presiding the Uber class action lawsuit decided that drivers attempting to arbitrate can be included in the law suit, Uber sent drivers a new agreement. The document undermined the judge’s ruling by revising the arbitration clause.

Liss-Riordan and her team are filing an emergency motion that will be heard in front of Judge Edward Chen next Thursday; it asks the court to block Uber from enforcing this new driver agreement. “Uber has tried to fix the problem that Judge Chen ruled made the agreement unenforceable,” Liss Riordan told TechCrunch in an email.. The Private Attorney General Act gives “a private citizen the right to pursue fines that would normally only be available to the State of California. It also allows that private citizen to “seek civil penalties not only for violations that he personally suffered” but also for violations of “other current or former employees.”

According to Chen’s Wednesday ruling, the Uber driver agreement of 2014 and 2015 illegally waived drivers’ rights under PAGA, which informed Judge Chen’s decision that the arbitration clause could not be honored because it contained an illegal provision. This was the reason for the provision of the agreement, to quickly remove the illegality and include new provisions to the agreement.

The Private Attorney General Act protects uber drivers from what uber has tried to prevent, a large action against the company. Uber has agreed to resolve any claim against the company but only on an individual basis. Uber’s driver agreement provision also attempts to prevent workers from participating in any class collective or representative action against the company. Uber also rewrote the agreement to remove a requirement that arbitration between a driver and the company remain confidential. The language makes it clear that the agreement goes into effect only when a driver accepts it  not when a revision is published, therefore, protecting drivers who previously signed the agreement.

Stephen is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2017.

Posted by Dan Udvari.

On December 3, 2015 Donald L. Blankenship – the CEO of Massey Energy, Co. – was convicted of a single misdemeanor for conducting a conspiracy to violate safety rules in his coal mines just before the Upper Big Branch Mine disaster that occurred on April 5, 2010.

Massey Energy was the fourth largest publicly traded coal extractor by revenue ($2.69 billion) in the United States. It was founded in 1920 by the Massey family and operated in Richmond, Virginia. The company consisted of approximately 5800 employees right before Alpha Natural Resources acquired the company for 7.1 billion dollars. Interestingly, 99% of the shareholders voted in favor of the acquisition, which shows how poorly the company was governed by management. Don Blankenship took control over the company in 1992 and created a culture that favored profits over safety. In total, the coal extractor giant had around 369 citations and orders, which totaled a staggering 10.8 million dollars.

On April 5, 2015 a massive explosion in the Upper Big Branch Mine in Montcoal, West Virginia occurred that killed 29 people. This tragedy was the worst since the 1970 Hyden disaster. Massey Energy operated the Upper Big Branch Mine and later turned out that they operated the mine in a manner that was against several rules set up by the MSHA. The investigation later determined that the ventilation system in the mine did not work properly and failed to get rid of the toxic gases that caused the explosion. Massey intentionally neglected all the safety rules and citations issued by the MSHA for the purpose of increasing profits. However, this case goes deeper than one thinks. According to reports, Massey Energy is very influential on political figures and officials in West Virginia. Using this power, they were able to bribe and manipulate MSHA regulators so they look the other way when inspecting the mines.

In November 2014, Don Blankenship, was indicted by a federal jury on four criminal counts including conspiracy to violate safety laws, securities fraud, defrauding the federal government, and making false statements to the SEC. Even though he was charged with these, he was only found guilty of one on December 3, 2015. Had he been convicted of all four, he could have been sent to prison for approximately thirty years. Now, he is only serving one year in jail.

I do not believe that Blankenship should only serve one year in jail. It seems unfair to those who had lost their lives because of profits. It baffles me that people as greedy as him get away with conspiracy and murder charges. It seems that money can literally buy your freedom in the United States. All you need is a good lawyer or lawyers.

Dan is a graduate accounting student with a certificate in forensic accounting at the Feliciano School of Business, Montclair State University, Class of 2016.

Research project posted by Rafael Gabrieli.

Eminent Domain

Part I:

Eminent domain is the power to take private property for public use by a state or national government. There would be just compensation for the private property seized, however, many problems arise from this act. The way that eminent domain works is that it is backed by the Fifth Amendment to the US.  Constitution, which is that your state government has power over all property in the State, even private land. The land can be taken without the consent of the owner, as long as he or she is justly compensated. The purposes for which eminent domain vary, however, it has to be used for a public good somehow. This means that roads, courthouses, schools, or any other infrastructure that can benefit the public will come into place of the land that the government took using eminent domain. The state government or national government is able to use eminent domain for large-scale public works operations or even growing freeway systems.

Part II:

Pros:

In Houston, Texas, land was obtained by the use of eminent domain in order to create the Minute Maid Park baseball stadium, which has benefitted the surrounding community immensely. The baseball stadium brings millions of people each year to downtown Houston. What is amazing to see is to compare it with the Houston community before the stadium was built, which was very barren and unsocial.

The I-85 widening project in Concord, North Carolina will reshape the way inhabitants travel around Concord. The inhabitants are being justly compensated, and some are even getting 5%-10% more than the initial appraisal value. This new freeway widening will allow traffic to be lessened during rush hours, which posed a big problem for the city during the past couple of years. It is a necessary and responsible use of eminent domain.

Cons:

Private property could have sentimental value, like a house that has been in the family for generations. This is the case with the Keeler family from Claverack, New York, who lived in their house for four generations and were being forced out due to the state’s plan to expand power lines. Another problem with eminent domain is that the price that the owner feels he deserves is more than what is being offered to him. This happened to Rich Quam, owner of a house in Fargo, North Dakota since 1997. The town stated that his backyard could become structurally unstable, so the city offered him an amount to buy the property from him. Rich Quam declared it an insult however, because the amount did not reflect the years of hard work he put into renovating the house, adding a second level and a garage. A third problem is the simple desire to not want to abandon a profitable business, which almost occurred a couple years back to Perry Beaton, property co-owner of a Burger King that the city of North Kansas City was attempting to seize from him.

Part III:

In Economic Justice for All, it is stated that the common good may sometimes demand that the right to own be limited by public involvement in the planning or ownership of certain sectors of the economy, which is essentially the basis for eminent domain. Catholic support of private ownership does not mean that anyone has the right to unlimited accumulation of wealth, rather, it states that “no one is justified in keeping for his exclusive use what he does not need, when others lack necessities.” Thus being the Catholic Social Teaching stance on Eminent Domain: if it is for the public good, an individual should be more than willing to give up his property that is not essential to his well-being in order to further the development of society and his surroundings.

Works Cited

Clayton, Adam. “Family Rallies to save Farmland from Eminent Domain.” Columbia-Greene Media. N.p., n.d. Web. 10 Mar. 2016.

“Economic Justice for All.” Wall Common Good Selected Texts. N.p., n.d. Book. 10 Mar. 2016.

Lewis, David. “Eminent Domain: Still A Useful Tool Despite Its Recent Thrashing.” Planetizen. Planetizen, 5 Sept. 2006. Web. 10 Mar. 2016.

Messina, Ignazio. “City Threatens Eminent Domain.” Toledo Blade. N.p., 26 Jan. 2014. Web. 10 Mar. 2016.

Reaves, Tim. “Making Way for the Freeway: Eminent Domain Claims Homes.” Independent Tribune. Independent Tribune, 7 June 2015. Web. 10 Mar. 2016.

Ross, John. “Hands Off! North Kansas City Loses Eminent Domain Case « Watchdog.org.” Watchdogorg RSS. N.p., 23 Jan. 2014. Web. 26 Jan. 2014.

Posted by Sydney J. Kpundeh.

The famous over the counter drug Tylenol was at the center of a case that was brought before a Pennsylvania federal district court in early November. The case involved a lady who had taken Extra Strength Tylenol for many years to treat various conditions. In Mid-August of 2010, she underwent lumbar laminectomy surgery and afterwards she was instructed by her doctor to take Regular Strength Tylenol in conjunction with Lorcet, a prescription drug containing acetaminophen, but not to exceed 4 grams of acetaminophen in a 24-hour period. For approximately two weeks, she used the Regular Strength Tylenol, as instructed, until the bottle ran out, after which she began using Extra Strength Tylenol. At some point, she stopped taking the Lorcet due to its side effects. On August 29, she unfortunately was diagnosed with acute liver failure and died two days later.

After her passing, her sister filed a products liability lawsuit, “including claims for defective design and negligent failure to warn against McNeil, which manufactures the drug, and Johnson & Johnson, McNeil’s parent company.” Her sister insisted that the defendants knew that Tylenol could cause liver damage when taken at or just above the recommended dose. Also, she claimed defendants were liable for the her sister’s death because they had failed to warn her of the “risks of injury and/or death.” The defendants moved for summary judgment on the ground that the sister had not offered sufficient evidence to support her failure to warn claim.

Under the Alabama Extended Manufacturer’s Liability Doctrine, there are two factors that must be shown to find the scope of a manufacturer’s legal duty. The first is that there is some potential danger and the second is that there is a possibility of a different design to avert that danger. In this case, sufficient evidence was presented to show that the manufacturers knew or should have known that Extra Strength Tylenol could cause liver damage. The facts also showed that the manufacturers were working to find a substitute. Finally, the evidence also showed that the plaintiff’s sister died of acetaminophen-induced liver failure after taking Extra Strength Tylenol as directed.

Sydney is a political science major with a minor in legal studies at Seton Hall University, Class of 2016.

Posted by Sydney Kpundeh.

A disgruntled New Jersey father has brought products liability design defect and failure-to-warn claims against The New Jersey Port Authority Transit Corporation to recover for injuries arising out of a take-home asbestos exposure. The case’s premise surrounds the father’s daughter, who started to exhibit signs of mesothelioma, which he claims were a result of secondary exposure to friable asbestos fibers through direct contact with her father and while washing his asbestos-laden work clothing. The father is an employee of the Port as a train operator, yard operator, and supervisor. His job duties included the repair and maintenance of asbestos-contaminated air brake systems on the Port’s multiple unit locomotives. When his daughter’s symptoms started worsening, he filed a product liability design defect and failure-to-warn case against the Port and various manufacturers of locomotives and locomotive brake shoes. He claimed that his daughter’s injuries could have been caused by her exposure to asbestos dust created when he replaced the brakes on cars he worked on after hours.

When the case was put before the court, all parties moved for summary judgment. The Port’s argument was that federal legislation and court precedent preempted state tort claims related to locomotives. The automobile defendants argued that there was no evidence that the father’s contacts with automotive brake dust were sufficiently frequent, regular, and proximate to establish causation.

The Appellate Division of the Superior Court of New Jersey ruled that the injuries were preempted by the Locomotive Inspection Act (LIA) under the doctrine of field preemption. The court ruled in such direction because they examined a number of previous decisions that had been considered in the scope of the LIA’s preemptive effect and found that the only way to ensure uniformity is that they must rule the same way.

The failure-to-warn claims that the father filed against the various manufacturers and sellers of asbestos-containing automobile brakes were dismissed summarily because there was insufficient evidence of medical causation linking their products to second-hand exposure. “[T]he evidence showed that the father replaced brakes shoes contaminated with asbestos on four occasions over a period of eight years.”

When he was asked about these times, he could not recall the names of the manufacturers of the replaced brake shoes nor could he recount the number of times he installed new brakes manufactured by the named defendants. Therefore, “it was clear that even if the father was exposed to one of each of the automotive defendants’ products over the eight-year period in question, this exposure was so limited that it failed to meet the frequency, regularity, and proximity test that is required for this type of case.” Hence, this is why the case was dismissed.

Sydney is a political science major and legal studies minor at Seton Hall University, Class of 2016. 

Posted by Melissa Nomani.

Lawsuits filed against Lumber Liquidators claim that homeowners who put certain laminate flooring into their home are being exposed to high levels of formaldehyde. This puts them at risk and also lowers the value of their property. As of this July, the number of lawsuits filed against the company has gone up from only a mere ten in June. Many lawsuits began being filed after a 60 Minutes episode that aired on March 1, 2015, exposing the high levels of formaldehyde in laminated flooring made in China. Formaldehyde is a known carcinogen and has been linked to cancer and respiratory problems. A study done by 60 Minutes showed that 30 out of 31 of the tested flooring samples (all of the sample were Lumber Liquidators products).

According to a study conducted by 60 Minutes, 30 of 31 flooring samples from Lumber Liquidators did not meet formaldehyde emissions standards. It is estimated that thousands of people have Lumber Liquidators flooring in their homes. Some lawsuits claim that homeowners have suffered from respiratory problems after installing the laminate flooring.

Another issue that has risen is that Lumber Liquidators is being accused of false advertising and selling products comprised of particles that come from endangered habitats and trees. The US Department of Justice is investigating the company for their alleged use of wood. The wood was illegally cut down from Russia–this directly violates the Lacey Act. The Lacey Act does not allow for the importation of products made from woods that are illegally logged.

Furthermore, this past May, Lumber Liquidators CEO, Robert Lynch, resigned. During this month the company also announced that it would be suspending the sale of flooring from China. The company offered homeowners free  indoor air quality screening, if they had purchased laminate flooring from China.

The number of lawsuits against Lumber Liquidators continues to grow.

Melissa is a finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Melissa Nomani.

Farmers across the United States are filing suits against Syngenta. As stated in the article, “The lawsuits allege the biotechnology company’s genetically modified Agrisure Viptera and Duracade seeds contaminated US corn shipments, making them unacceptable for export to China.” China does not allow the importation of GMO products that it has not tested. In February of 2014, China learned that the corn shipments from the U.S. contained Viptera. Agrisure Viptera is a seed that is genetically modified (known as MIR162) to prevent damage to crops by earworms and cutworms. As a result, China has rejected corn imports from the U.S.

Over 1,800 suits have been filed. Lawsuits filed against Syngenta state that the company put seeds on the market even though there was no approval from foreign markets. This has led to some farms having great financial losses. Even farmers who do not use GMO seeds could be affected due to accidental contamination from other fields. Syngenta has tried to refute the lawsuits by stating that they are not responsible for protecting farmers from GMO seeds. This arguments were rejected in September by Judge Lungstrum, who refused to dismiss the suits.

It has been estimated by The National Grain and Feed Association that as of April 2014 almost $3.0 billion worth of losses were caused by Syngenta’s Agrisure Viptera MIT162 corn seed.

The first of the lawsuits are expected to go to trial in June 2017.

Melissa is a finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

The rivalry between Alphabet Inc.’s Waymo and Uber has intensified as Google’s parent sued Uber on grounds of patent infringement and trade secret misappropriation in February. Anthony Levandowski, a former employee of Google, has allegedly stolen 14,000 files worth of trade secrets to create his own self-driving truck company, Otto, acquired by Uber last year. Bloomberg Technology claims that the design and construction of the laser-scanning system to guide the autonomous cars took Waymo about seven years to build, while Uber supposedly accomplished the task in a mere nine months.

According to the suit, Mr. Levandowski allegedly registered the company Otto mid-January of last year and left Alphabet twelve days later, but not before downloading 9.7 gigabytes worth of classified information from Waymo’s design server. The suit further claims that he took the time to meticulously conceal his activities by attaching “an external hard drive to his laptop for eight hours, before erasing the history of his computer,” and never using it again. A few months after Mr. Levandowski left Alphabet and received his last compensation check, Otto was bought for $680 million in stock by Uber.

The article reveals that Anthony Levandowski is not the only former employee accused of stealing confidential data from Waymo’s self-driving car project, which has led to approximately $500 million for Otto employees. Waymo explains that Uber unfairly used this stolen information as a shortcut to create a strikingly similar laser sensor system to their own. When confronted with this complaint, Uber spokeswoman Chelsea Kohler claimed, “We take the allegations made against Otto and Uber employees seriously and we will review this matter carefully.” Despite this statement, Mr. Levandowski has been unavailable to comment.

Danielle is a finance and ITM major at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

https://www.wsj.com/articles/alphabets-waymo-sues-uber-over-self-driving-car-secrets-1487894378

https://www.bloomberg.com/news/articles/2017-02-23/alphabet-s-waymo-sues-uber-for-stealing-self-driving-patents

Posted by Courtney McCardle.

Johnny Depp, a very famous and popular actor filed a lawsuit in the beginning of 2017, as he believed the issue is costing one of his homes. He filed a lawsuit against his own business managers for more than $25 million in a jury- seeking suit. Depp is alleging fraud in breach of contract and professional negligence. The complaint also alleged that the management firm was attempting to foreclose on Depp’s primary home through a loan that was claimed to be from the management company. “In essence, TMG treated Mr. Depp’s income as their own, available to either TMG or third parties to draw upon as desired.”

Depp’s first step was to ask for a restraining order to stop the process of foreclosing the home. When the attorney for TMG was notified of this issue, he sent out a statement saying “For 30 years, Joel and Rob Mandel, and their company The Management Group, have been trusted business managers to some of the most successful individuals and companies in the entertainment business. For 17 of those years, they did everything possible to protect Depp from his irresponsible and profligate spending.” He also said Depp faced financial ruin in December 2012 with a $5 million bank loan. The Mandels loaned him the $5 million and Depp promised to repay by January 2014. By October 2016, Depp allegedly owed $4.2 million and as a result, the Mandels non-judicial foreclosing on some of Depp’s properties.

This lawsuit is an attempt to ruin the foreclosure by changing the actions of his managers. He ended up keeping all of his real estate holdings and was forced to pay back the loan to the Mandels.

Courtney is a business major at the Stillman School of Business, Seton Hall University, Class of 2019.

Source:

http://people.com/movies/johnny-depp-fraud-lawsuit/

Posted by Gen Nagai

A law passed on 2015 that eggs sold in California have to come from hen that have enough room for them to stretch in their cages. This may also be known as “free-ranged eggs”. The purpose of this is to not only let the hen live a better life but studies have found that not giving them the ideal way of living increases the chances of getting salmonella from the eggs that they produce.

This may sound good, however, bad news come with it. Firstly, consumers will have to expect prices of the eggs to rise. Secondly, there may be a shortage of eggs may occur as 90% of eggs come from places where it is not acceptable to sell according to the California Law.

Today, over a dozen states have filled a law suit directly to the U.S. Supreme Court on Monday (Dec.04, 2017) to block this law as it violates the U.S. Constitution’s interstate commerce clause and are pre-empted by federal law. Although, a similar case has been rejected 6 different times by 6 different states, Missouri Attorney General Josh Hawley is confident in the new lawsuit as he has economic studies to back his case up.  He has mentioned that California’s egg law has cost consumers nationwide up to $350 million annually as a result of higher egg prices.

States that are backing up this case include Alabama, Arkansas, Indiana, Iowa, Louisiana, Nebraska, Nevada, North Dakota, Oklahoma, Texas, Utah, and Wisconsin.

Gen is a business information technology management major at the Stillman School of Business, Seton Hall University, Class of 2019.

Source: https://www.cnbc.com/2017/12/04/the-associated-press-the-latest-13-states-challenge-to-california-egg-law.html

Distractions can cause auto accidents and smartphones have been identified as one.  Many states have laws that limit the use of smartphones while driving. Lawyers generally do not pursue distraction cases if there is evidence of some other cause, such as speeding or reckless driving.

There has been an increase in motor vehicle fatalities across the country and they include those involving pedestrians and bicyclists. The studies, however, do not seem to attribute the increases to speeding or driving under the influence.

Many speculate smartphone use is a major cause of the spike in fatalities, but none of the studies show any causal connection. Part of the difficulty in collecting data lies in the reporting forms used by police.  “Only 11 states use reporting forms that contain a field for police to tick-off mobile-phone distraction, while 27 have a space to note distraction in general as a potential cause of the accident.”

In Torts, we discuss defamation and the strict limitations surrounding public figures when pursuing claims against people who say things that hurt their good reputation. Bill O’Reilly, a former prominent news commentator, filed a $5 million-dollar lawsuit against a former politician who posted statements on Facebook regarding his former girlfriend’s treatment by Fox News after she made harassment accusations.

The complaint states: “‘Plaintiff [O’Reilly] seeks damages for the public hatred, ridicule, disgrace, and permanent harm to his professional and personal reputations as a result of Defendant Panter’s publication of knowingly defamatory statements about Plaintiff, which were made with actual malice, as well as Defendant Panter’s intentional infliction of emotional distress upon Plaintiff.’”

Claims made by public figures are difficult, but not impossible, to prove because they require a showing of malice.  Here, the complaint alleges defamation and intentional infliction of emotional distress.

The United States Supreme Court dismissed cases involving President Trump’s executive order blocking people traveling to the United States from certain countries. A September order replaced the March order expanding the restrictions. Since the March order expired, the cases pending before the High Court were moot.

The Supreme Court also vacated the underlying Ninth Circuit opinion blocking the order.  The effect is now there is no precedent, which the district court in Hawaii relied upon to block the September order. The Justice Department will be asking the district court to revisit his ruling now that the Supreme Court has acted.

Posted by Divina Tanamal.

An unnamed telephone marketing company was recently brought to trial by the Department of Labor. The company was accused of unfair treatment of its employees for not allowing them to be financially compensated while taking breaks in between working hours. Although the sales representatives were able to log off their computers and take breaks in any frequency or duration that they desire, once they become inactive for more than 90 seconds, their wage hours are placed on pause. Essentially, they are not paid for their break times. The Department of Labor implicated that Title 29, Part 785.18 of the Code of Federal Regulations stated that, “rest periods of short duration, running from 5 minutes to about 20 minutes, are common in industry” and that they “promote the efficiency of the employee, [therefore] are customarily paid for as working time.” This portrays the company’s unwillingness to pay its employees’ break times as incompliant with federal regulations.

Nonetheless, the company retaliated by claiming that another segment of the Code of Federal Regulations (29 C.F.R. § 785.16) states that when “an employee is completely relieved from duty which are long enough…to use the time for his own purposes,” that time is to considered as “hours worked.” In essence, the company has a loose break time policy that allowed its employees to leave their computers whenever or however often they liked, liberating their employers from any obligation to pay for the breaks taken.

In my opinion, the company’s institution of its break times policy was merely a stratagem to minimize the employees’ incentive to take breaks. Since it is expected for most places of employment to allow their workers to take brief paid breaks, this company should not be exempted from that same expectation. It is only just for employees to be able to take breaks in between hours of working without the deterrent.

The case was brought in the Eastern District Court of Pennsylvania. The court claimed that 29 C.F.R. § 785.18 is a more widely accepted rule compared to the more specific 785.16, illustrating its disagreement with the company’s appeal.

Divina is a business administration in the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Connor O’Reilly.

On October 15th California Governor Jerry Brown signed several employment related bills into effect. These bills have been crafted and designed to change laws regarding the state’s employers. “The newly-enacted laws address a range of topics, including criminal conviction history, salary history and sanctuary immigration policy.”

The governor’s first major law bans inquiries regarding salary history when applying for a new job. “California will now prohibit all employers from inquiring about or relying upon salary history information of an applicant as a factor in determining whether to offer employment or an applicant’s salary.” This law was created in order to deter pay inequalities in regards to gender, race and ethnicity. This bill adds a completely new section to the Labor Code which applies to employers on both a state and federal level.

Next, California just passed a “Ban the Box” law which prohibits pre-application questioning regarding criminal records. In an effort to thwart discrimination and promote equal opportunity employment, “California will now prohibit all employers with five or more employees from inquiring into or relying upon an applicant’s criminal conviction history until an applicant has received a conditional offer of employment.” Further, if an applicant has a criminal record, employers are required to conduct individualized assessments on the conviction history including severity of the offense, the time that has passed and the nature of position sought. Their decision must be calculated, explained to the applicant, and be in compliance with California’s Fair Pay Act.

Additionally, California now declares itself a Sanctuary State and will prohibit employers’ compliance with newly passed federal immigration laws. This controversial law makes it illegal for employers to voluntarily permit federal immigration agents from searching private workplaces without a warrant. There are also several other regulations regarding time requirements before searches and harder requirements to obtain Employment Eligibility Verification from already employed workers. The penalties are extremely harsh for disregarding these laws which range from $2,000 to $10,000.

Without a doubt, California is creating laws that give more power and rights to workers. By eliminating salary history in the application process, each applicant will be given a salary solely based on their skills. California’s “Ban the Box” laws also promote equality in hiring and negate discrimination towards people with criminal records. Yet the new law prohibiting businesses from complying with Federal laws is extremely concerning and shocking. This is clearly a backlash at President Trump and his harsh crackdown on illegal immigrants, yet it will prove to be very taxing on the business owners of California. Overall, I believe California is creating important laws to give rights back to the working class, but creating laws that go against federal law will cause issues down the road.

Connor is an business administration major at the Stillman School of Business, Seton Hall University, Class of 2020.

Source:

https://www.natlawreview.com/article/recent-deluge-california-legislation-imposes-new-requirements-employers

Posted by Nicholas Lillig.

On October 20^th, a judge tossed out a $417 million jury award to a woman who claimed that she developed ovarian cancer by using Johnson & Johnson talcum-based powder for feminine hygiene. The lawsuit is continuing even after the woman, Eva Echeverria, has died. Her attorney released a statement saying, “We will continue to fight on behalf of all women who have been impacted by this dangerous product.” Under clear scrutiny for their product, Johnson & Johnson has most recently been hit with a multimillion-dollar jury verdict. Los Angeles County Superior Court Judge Maren Nelson granted the company’s request for a new trial, saying there were errors and jury misconduct in the previous trial that ended with the award two months ago.” She also ruled that there was not enough convincing evidence that Johnson & Johnson acted with malice and that the award for the damages was far too excessive. This was the fourth time that Johnson & Johnson had to go to court in order to address this matter.

The product, Johnson & Johnson’s Baby Powder, uses a talcum based powder in which is used to treat diaper rashes. It is commonly found in soap, antiperspirant, toothpaste, makeup and even bath bombs. Many people use this powder to fight inflammation on their skin or for personal hygiene. The reason as to why this company is brought under the microscope is to debate whether the talc based powder can cause ovarian cancer in women. There is evidence on both sides of the argument for how it can effectively cause ovarian cancer. A report that was released in May of 2016 determined that 63 percent of women with ovarian cancer had used talc. Another previous study reports, “In 1971, four OB/GYNs found talc particles in more than 75 percent of the ovarian tumors they investigated”. Scientific studies and the juries involved point to yes, this product is liable to cause ovarian cancer. Evidence against the case states that the exact relationship is unclear as tumors can develop regardless of whether talc is applied in the situation.

The issue is that for over 100 years, Johnson & Johnson has been marketing their baby powder to treat diaper rash and as a daily feminine hygiene product. In the most recent cases, juries are pointing towards the evidence that it does cause ovarian cancer. Eva Echeverria and her attorney believe Johnson & Johnson failed to warn the public about “talcum powders potential cancer risks”. A spokeswoman for J&J said, “Ovarian cancer is a devastating disease – but it is not caused by the cosmetic-grade talc we have used in Johnson’s Baby Powder for decades. The science is clear and we will continue to defend the safety of Johnson’s Baby Powder as we prepare for additional trials in the U.S.” The company has decided that it will continue to fight for their product in further trials.

Nicholas is a finance major at the Stillman School of Business, Seton Hall University, Class of 2020.

Sources:

Posted by Daniel Szatkowski.

According to Chris Bruce in a Bloomberg article dated October 17, 2017, Wells Fargo was found charging costumers fees to lock interest rates on mortgages and other loans made with the bank. The lock rate fees earned by Wells Fargo are up to $98 million in the period of approximately four and half years ending February 2017. Wells Fargo incorrectly claims that their clients are behind and/or missing payments, which would lead to increased interest rates. Instead of increasing the rate, Wells Fargo tells them to pay rate-lock fees to keep the rate where it is.

The manner in which Wells Fargo is charging lock-rate fees is unethical. First of all, many of the Wells Fargo clients were not actually behind on their loan payments. According to Brian Brach and other mortgage applicants, “Wells Fargo employees wrongfully blamed customers for loan processing delays and made them pay fees to maintain a lock on interest rates that might otherwise expire.” The delays were caused by Wells Fargo, which triggered the rate-lock fees; therefore, no fees should have been issued to the clients.

Wells Fargo wanted to unethically increase their profit by charging these rate-lock fees even though they did not apply to the situation. The company’s reputation will drop due to the new unwanted press and the clients are putting Wells Fargo on trial. The first of the reimbursement will be sent out during the final quarter of this year.

Daniel is an accounting major at the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Noah Stanton.

On the 16th of October, the Supreme Court has made the decision to proceed on the dispute between government authorities and technology companies like Microsoft, who are being forced to give emails and other digital information “sought in criminal probes but stored outside the U.S.” According to the article, justices intervened in a case of federal drug trafficking investigation where they needed emails that Microsoft had on its servers but were beyond the search warrant being that the servers are in Ireland. The Supreme Court decision is impeding investigations, according to the Trump Administration and 33 states. Cases regarding terrorism, drug trafficking, fraud and child pornography are all being delayed because courts are waiting on the ruling regarding obtaining information that is kept abroad.

This case is among many that tech companies like Microsoft about digital privacy that might relate to crime and extremism. This Supreme Court case is an example of finding the balance between older laws and recent technological developments. Microsoft is saying, “Congress needs to bring the law into the age of cloud computing” where most information is not held in the jurisdiction of current law. Back in 2013, a warrant issued to obtain emails pertaining information about illegal drug transactions. Microsoft cooperated but went to court at the time because the emails held at servers overseas were not handed over.

A Justice Department lawyer stated Microsoft can retrieve emails stored domestically or not with a single click of a button. The simplicity of the action does not change the boundaries the warrant has though. All of these troubles relate back to the 1986 Stored Communications Act, which has minimal use when information is held overseas. The article states, “The current laws were written for the era of the floppy disk, not the world of the cloud.”

The president of Microsoft said Congress needs to act by passing new legislation. This would help put an end to the numerous legal actions that take place about officials trying to obtain private information from U.S. based tech companies because they keep servers around the world. The court is expected to confront the issue of emails from an American citizen or foreigner and where they reside. The Supreme Court Case will take place early next year.

Noah is a business administration major at the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Charles Bond.

My article is about the people who feed millions of Americans, farmers. Specifically, a ruling the USDA first tried to implement, but then decided to rescind. This ruling would have offered more protection for farmers who raise cows, pigs, and chickens for the largest meat producers in the United States. The USDA’s plan would have made it easier for farmers to sue those meat producers they are in contract with for unfair, discriminatory, or deceptive practices. This was a policy that was set to be enacted at the end of the Obama Administration but was put on hold until the Trump Administration took over; the USDA under the new administration decided to drop it. “Currently, several court rulings have interpreted federal law as saying a farmer must prove a company’s action harm competition in the entire industry before a lawsuit can move forward.” The farmer’s cannot just say they believe a company is aiming to cause harm; they must prove the company said this was their intent.  Passing the new rule would ease the burden of finding proof.

This new rule would have been extremely beneficial for chicken and pork farmers. “Chicken and pork producers must enter long-term contracts with companies like Tyson Foods and Pilgrim’s Pride that farmers allege lock them into deals that fix their compensation at unprofitably low levels and forces them deeply into debt.” Farmers are unaware of the repercussions of these deals until it is too late to do anything about them. The National Chicken Council President was strongly against this rule and thought the rule would have “opened the floodgates to frivolous and costly litigation.” Politicians are split on the ruling. Senator Pat Roberts was pleased with the rule being dropped stating, “It demonstrates the Trump administration’s commitment to promoting economic prosperity and reducing regulatory burdens in rural America.” Meanwhile Senator Charles Grassley criticized the rule being shot down saying ,“The USDA is the U.S. Department of Agriculture, not the U.S. Department of Big Agribusiness.”

This is a complicated issue, with reasonable arguments on both sides. However, it seems unreasonable not to have this rule. It is proven that meat producers exploit farmers across the board just so they can maximize profit and keep the farmers reliant on them for business. An argument made against the rule was that it opens the floodgate for farmers to bring cases against the companies, whether they have sufficient evidence or not. If the companies really were doing no wrong than they would not care because the cases would always go there way and secondly the ruling is only being implemented because so many farmers are claiming the companies are doing wrong and they have means to bring them to court. It really is a dicey issue, but ultimately the farmers should be allowed to take the companies court and have the law settle the disagreement.

Charles is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2020.

Source:

https://www.nytimes.com/aponline/2017/10/18/us/ap-us-farm-rules.html

Posted by Devaki Sidhaye.

Recently department of Justice announced largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 individuals, including 115 doctors, nurses and other licensed medical professionals. Their involvement in health care fraud scams totaling approximately $1.3 billion in false billings. As per the department, many of the charges were related to medical professionals illegally prescribing opioids and other prescription narcotics, some of which were then sold on the street. Furthermore, according to federal officials, a rehab facility in Palm Beach, Fla., recruited addicts with gift cards, drugs and visits to strip clubs, billed the government for over $58 million in false treatments and tests. A clinic in Houston allegedly gave out prescriptions for cash. Some falsely billed Medicare and Medicaid. Narcotics officers have arrested schoolteachers, doctors, nurses and fellow law enforcement personnel (Merle, 2017).

According to the Centers for Disease Control and Prevention, approximately 91 Americans die every day of an opioid related overdose. Attorney General Jeff Sessions said at a news conference that, “One American dies of a drug overdose every 11 minutes and more than 2 million Americans are ensnared in addiction to prescription painkillers.” He further said in assurance that, “We will continue to find, arrest, prosecute, convict and incarcerate fraudsters and drug dealers wherever they are.” Health and Human Services Inspector General Daniel Levinson added that, “Health care fraud is a reprehensible crime, it not only represents a theft from taxpayers who fund these vital programs, but impacts the millions of Americans who rely on Medicare and Medicaid” (Merle, 2017).

This approaches a larger debate about how the country should address the government estimates are addicted to opioids. Public health authorities urge doctors to cut back on the prescriptions they offer. States struggling with the shortage of treatment has proposed roll back of the Affordable Care Act’s expansion of Medicaid (Merle, 2017).

This crisis represents a massive public health challenge that requires a broad-based, multi-pronged response from public health agencies and law enforcement. Physicians, pharmacists and citizens all can play a role in identifying and preventing nonmedical use of prescription drugs. Doctors and other healthcare professionals who prescribe these drugs need to be educated about responsible prescribing of opioids and about safe, effective alternatives that are not addictive and presently available (Young, 2016).

Even though law enforcement officials use advanced investigative methods to uncover the different actions health care fraud happens, they can’t fight these crimes alone. Individual can help remove these people responsible for wrongdoings by protecting their health insurance identification number, social security number, looking through the statements for medical services he didn’t receive, and reporting to authorities on recognizing the signs of possible fraud (Outreach, 2012).

For the protection of each person of the country as well as for the economic strength it is essential to destroy all traces of health care fraud. Health care frauds damage billions of dollars of the nation; mislead general public in the courses of actions, and innocent people become victims of white-collar crime.

Devaki is an MS Accounting student at the Feliciano School of Business, Montclair State University, Class of 2018.

References:

Merle, S. H. (2017, 07 13). DOJ announces charges against 400 people for $1.3 billion in health-care fraud. Retrieved from www.washingtonpost.com: https://www.washingtonpost.com/news/business/wp/2017/07/13/doj-announces-charges-against-400-people-for-1-3-billion-in-health-care-fraud/?utm_term=.f9b959fbfea6

Outreach, E. &. (2012, 04 23). How to Protect Yourself From Health Care Scams. Retrieved from www.aarp.org: http://www.aarp.org/health/medicare-insurance/info-10-2010/fightfraud.html

Young, L. (2016, 03 04). There’s no debate – America’s opioid epidemic is undeniable. Retrieved from www.pennlive.com: http://www.pennlive.com/opinion/2017/09/heres_what_you_need_to_know_ab_5.html

Posted by Nora Shelbi.

In the article, Isaac (2017), discussed the issue of the Uber investor and claimed that Travis got involved in the material misstatement and fraudulent trading.  As per the investors, it has been declared that such fraudulent activity has been done with the intention to get the outside control of the board; and, he is involved in the breach of contract and breach of duty. Also, the investors are claiming that Mr. Kalanick’s “overarching objective is to pack Uber’s board with loyal allies in an effort to insulate his prior conduct from scrutiny and clear the path for his eventual return as C.E.O.”

The author of the article has declared that all the fraudulent activities which have been done by Mr. Kalanick is mainly due to restoring his position as the CEO and for this purpose, he is using the fraudulent ways which are not allowed at all in the corporate environment. The persons who were in favor of him have declared that he does not want to be the chief executive officer of the company, but others have said that he is doing this just to achieve the control without even having the title of the chief executive officer of the company.

There are many other claims, which are made, including an atmosphere of sexual harassment at workplace. The company is also sued by the sister company of Google for stealing the trade secrets of company, Waymo. Such issues concerning litigation against the company as well as its officials are not in favor of the company. It is deteriorating the image of the company, as well as, dissatisfying the investors to a greater extent. (ISAAC, 2017)

Nora is a graduate accounting student at the Feliciano School of Business, Montclair State University.

Reference:

ISAAC, M. (2017, Aug 10). Uber Investor Sues Travis Kalanick for Fraud. Retrieved Sep 20, 2017, from The New York Times: https://www.nytimes.com/2017/08/10/technology/travis-kalanick-uber-lawsuit-benchmark-capital.html

Posted by Sabrina Gilliam Formey.

Health care fraud may be more extensive than fraud in other industries because deception branches from an assorted group of players; those players being insurance companies, pharmacists, providers, suppliers, health care vendors, health care provider employees, physicians, specialists, and patients.  To compound the problem, some of those players are not only acting independently, but also participating in fraudulent activities within a network, or organized crime rings, and or with computer hackers who are unjustly profiting from committing health care fraud.  As a brief example, insurance billing claims that a facility submitted for a number of Alzheimer’s patients receiving “group therapy”, when they were actually placed in a room to watch the movie “Forrest Gump”, doesn’t scratch the surface on how persistent health care fraud has been; and how it continues to morph into new dimensions, that are discovered months and sometimes years after millions of dollars have been dispersed for fraudulent claims.

Lack of public awareness about health care fraud fosters a criminal subculture of operators that swindle unjust profits for their own personal gain.  Those fraudulent activities, not only create health and safety risks, but also drive up costs for healthcare.  These costs are later transferred to patients resulting in higher costs for care: higher employer sponsored or group premiums, higher deductibles, and higher co-pays.  Additionally, there are “double jeopardy” costs that further become a burden for citizens to bear through state and federal tax increases levied to close deficit gaps for government healthcare programs.

Common Channels for Health Care Fraud

1. Billing for services not rendered.

2. Billing for a non-covered service as a covered service.

3. Misrepresenting dates of service (billing one treatment date as separate dates).

4. Incorrect reporting of diagnoses or procedures (includes unbundling).

5. Overutilization of services.

6. False or unnecessary issuance of prescription drugs.

“According to the Centers for Medicare & Medicaid Services (CMS), national health expenditures in the U.S. reached $2.6 trillion in 2010 – 17.9 percent of GDP.”  With the expansion of coverage of an estimated 22 million people that were previously uninsured prior to the U.S. Affordable Care Act(ACA), health fraud crime will become an undeclared war between government agencies and insurance companies that are trying to stop these crimes and the many players that are many steps ahead due to the gap in systems, lack of controls, and stratagem for auditors/investigators deployed to  monitoring claims activities and continuous oversight that would be required.

Sabrina Gilliam Formey is a graduate student at the Feliciano School of Business, Montclair State University.

Article

10 popular health care provider fraud schemes ‘Do no harm’ isn’t their motto By Charles Piper, CFE, CRT

January/February 2013

http://www.acfe.com/article.aspx?id=4294976280

Additional Readings

• Health care: A ‘goldmine’ for fraudsters

January 13, 2010: 3:07 PM ET   By Parija Kavilanz, senior writer

http://money.cnn.com/2010/01/13/news/economy/health_care_fraud/

• Blockchain: Putting the ‘Block’ On Healthcare Fraud, Waste, And Abuse

July 19, 2017, 08:16:38 AM EDT By Michael Scott Bitcoin Magazine

http://www.nasdaq.com/article/blockchain-putting-the-block-on-healthcare-fraud-waste-and-abuse-cm817907

Additional Readings

• Health care: A ‘goldmine’ for fraudsters

January 13, 2010: 3:07 PM ET   By Parija Kavilanz, senior writer

http://money.cnn.com/2010/01/13/news/economy/health_care_fraud/

• Blockchain: Putting the ‘Block’ On Healthcare Fraud, Waste, And Abuse

July 19, 2017, 08:16:38 AM EDT By Michael Scott Bitcoin Magazine

http://www.nasdaq.com/article/blockchain-putting-the-block-on-healthcare-fraud-waste-and-abuse-cm817907

Posted by Stanley Bukowski.

On August 6, 1991 was when the internet, also known as the “World Wide Web”, became available to the public. At that time, cyber-attacks ever occurring, never crossed anyone’s mind. Since the launch of the World Wide Web, cyber-attacks and IT threats continue to significantly grow each year. Even though they are known to be threats to business/organizations/firms/universities, they are most importantly a threat to individuals themselves. Even though business/organizations/firms/universities may lose financial resources from cyber- attacks, individuals lose their sense of total personal privacy. Personal Privacy is a concept that is cherished and treasured for four main reasons (Brey). The first reason is that privacy must be well-adjusted to national security and public order. Secondly, it is known to be a condition that is necessary for autonomy, which allows individuals to develop their own personality through personal experiences. Thirdly, privacy is known to be a safeguard to us which shields them from external threats of exclusion and/or blackmail. Lastly, it can also provide social value as well.

In the field of computer security, one will see that it is the process of being able to counteract and detect illegal usage of a computer. Computer security deals with having the ability to act as a safeguard by fighting off cybercriminals/identity thieves that are trying to get a hold of our personal resources that we have stored on our computers. Basically, the main goal for computer security professionals is to provide the protection that is needed for the valuable information and resources that are stored on our computers. The two types of computer security systems that exist are: System Security, which protects the software and hardware of a computer from mischievous programs and Information Security, which protects three different types of data such as availability, confidentiality, and integrity (Brey).

On June 11, 2017 the University of Virginia was silently blind-sided with a cyber-attack from China, where several attackers that operated together to successfully wire transfer $996,000 to what was first an unknown, untraceable location. This attack was successful due to the fact that there was a breach of information that leaked out information that the University of Virginia was upgrading their security system and also due to the fact that the thieves stole a computer from the university that belonged to the comptroller (U.VA). Once the thieves had a hold of this information and the computer, they implanted a virus into the university’s entire IT system, which allowed them to gain access to the University’s accounts at BB&T Bank. When the virus ultimately completed the job that it was created for, they were able to steal the universities online banking credentials, commencing them to successfully complete a single wire transfer to the Agricultural Bank of China.

To most people, this would set off a red flag, especially since it was a wire transfer from a United States university to a random, unheard of bank located in China. Not only should that have been a red flag, but a red flag should also have gone off seeing that the University of Virginia had no prior records in their transfer history to wire transfer money to the bank in China. Regardless of the fact that most universities in America purchase their school supplies from across seas, they tend to always use reputable banks, where they have several prior transactions in their transfer history. Even though there is a good chance that the university may retain most of its lost, they will not receive the entire amount that was stolen.

Believe it or not, most thieves today are known to be what we call “cyber hackers.” Thieves that commit these types of crimes are the individuals, co-workers, friends, family members that you would least likely expect to commit such a crime. Before we continue any further, the next four descriptions that are listed below, are the characteristics that management of business/organizations/firms/universities should look for when trying to identify a thief (Singleton).:

1. Reputable CharacterStudies show that you will never find a thief that disrupts the regular flow that happens daily at the working environment that they are a part of. These types of thieves will have the type of reputation at work where nothing ever seems to bother them. They will never portray or converse towards others or with others dishonest behavior and will never discuss their own personal financial issues. By doing so, management will never be suspicious that they would or ever think of stealing from the company.
2. Collaborate with AdministrationYou will find thieves to always be individuals that continually help their co-workers out with projects. The only plot twist is–they will only help them to the point where they will not be exposed to information that management could possibly use against them. Thieves use reverse psychology and have a relaxed personality when dealing with auditors. They tend to put on a poker face and give auditors everything they need in order for the auditors to be able to complete their jobs. Thieves believe in the fact that if they behave like they have nothing to hide, auditors/management will never become suspicious of them.
3. Work-a-holicsTaking a vacation from work will lead thieves down a one-way road, known as jail. If a thief were to take a vacation and the IRS/Auditor just happened to start an investigation while they were gone, will red flag them as the first source of why financial resources are missing. By not taking a vacation while the IRS/Auditor are conducting their investigation, there is a slimmer chance of the IRS/Auditor blaming them.
4. Norm: SecrecyThieves know that to successfully commit corporate fraud, they need to follow the norm of secrecy. Thieves know not tell anyone within or outside the company about the future corporate fraud they are about to commit. The percentages of successfully completing corporate fraud diminish the more individuals that the thief would inform. No matter if it is their best friend, wife, brother, etc., thieves know that to successfully complete the operation, they must act as an assassin, working silently alone.

I believe that business/organizations/firms/universities that implement Biometrics Security Systems will not completely bring cyber-attacks to an end, but it will certainly decrease them to the bare minimum because it is a form of access control. Biometric Security Systems are known to be as a technique of entry in which users/individuals are recognized based on their physical individualities, personal/behavioral/biological features. Having a wide variety of alternatives to choose from, business/organizations/firms/universities have a large selection pool that they may elect from to incorporate a the type of biometrics of their choice. For example, fingerprint, retinal, & palm scanners and face recognition are just a few of the types of biometrics available. Fingerprints are now being used as access controls for smartphones because in order to unlock their phone with their fingerprint, the fingerprint must be equivalent to the fingerprint that was previously stored on the smartphones system. This prevents thieves from getting their hands on private information that is on the device. The same exact notion can be applied to the corporate world. (Lombard0).

Information of the advancement of Biometrics is spreading amongst many individuals today and is becoming more of a topic of discussion due to its popularity due to it replacing passwords with login credentials. The most recent examples of biometrics security systems is now used when individuals take the GMATS. Before entering to take the standardized test, the proctor uses a palm vein reader upon entry to ensure that the exam is not being taken by a random individual and that it is being taken by individual who signed up for the standardized test.

Years ago it would cost a business/organizations/firms/universities tens of thousands of dollars to implement such a finger print scanner into their building but today it only costs about $200 dollars to have a finger print scanner implemented into a desktop, $2,200 for a retinal scanner to be implemented at limited access doors, and $250 for a palm scanner for each room for an employee to enter their office. For example, if the company has 5,000 employees:

A. 5,000 employees * $200 finger print scanner laptop = $1,000,000 B. 5,000 employees *$250 palm scanner entrance to office room = $1,250,000 C. 5 retinal scanners * $2,200 enter limited access door  = $11,000 D. 10,005 Installment fee for Scanners *$300 (avg of all three) = $3,001,500

E. Yearly Maintenance of all three Biometric Units = $25,000

Posted by Serkan Saka.

Have you ever thought how important it is for universities to receive government research support? As we know that reputation is also very important for all the universities. Columbia University one of the best universities in the world and a top university for medical research. Recently, however, Columbia requested research funds from National Institutes of Health (NIH) for medical research but was caught in related fraudulent activity.

According to Danielle Douglas-Gabriel’s article in The Washington Post, Columbia’s research costs were lower than what they actually received from NIH. One of the reasons is that Columbia University conducted their research off campus, but misinformed NIH that the research would be conducted on campus, which would make the research more expensive. After government investigation, Columbia University will pay $9.5 million to NIH to cover false charges (Douglas- Gabriel, 2016).

The school officially released a statement by Caroline Adelman, a spokeswoman says, “The government disagreed with the university’s approach and took the position that a lower indirect cost rate was appropriate.”(Douglas-Gabriel, 2016). On the other side the NIH’s statement says “ Money gained by such behavior deprives other research programs of funds that could yield life-altering new treatments”(Douglas-Gabriel, 2016). It is very important to inform correctly in any case. It is not important if you are a big institution or small business, as either could be involved in white-collar crime.

Serkan is a MS accounting student in Feliciano School of Business, Montclair State University, Class of 2018.

Source:
Douglas-Gabriel, Danielle. (2016, July 14). [Columbia University to pay $9.5 million to Settle Fraud Charges]. The Washington Post. Retrieved from https://www.washingtonpost.com/news/grade-point/wp/2016/07/14/columbia- university-to-pay-9-5-million-to-settle-fraud-charges/?utm_term=.f974cc316f05

Posted by Alhanouf Almubarak.

This case discusses Tesco the Britain’s biggest retailer accounting scandal. In October 2014, the Serious Fraud Office (SFO) began a criminal investigation into accounting practices at Tesco. Chris Bush, (Tesco’s former managing director), Carl Rogberg (former finance chief), and John Scouler (former food commercial head) were charged with fraud over an accounting scandal after the company announced that it had overstated its first-half profit by approximately $420 million. At that time the company suspended many executives for accounting irregularities.

Some of the reasons why Tesco overstated the expected profits of the group at that time was mainly because it agreed on commercial deals with suppliers too early. The investigations against Rogberg, Scouler and Bush revealed that they purposely falsified Tesco’s digital accounting records and its draft interim accounts by the “inputting of and/or reliance upon commercial income figures which gave a false account of the financial position of Tesco.” (Butler,2017). The offenders’ crime by abuse their position and fraud accounting can lead to prison sentences of up to 10 and seven years respectively.

Posted by Ola Mohammed Alghasham.

The world encounters cases where frauds are committed by white collar criminals. Executives whom fight against fraud are beneficial for the company. Although the board and management make strong efforts in composing fraud preventing policies, there are several behavioral, environmental, and fraud assessment elements which are ignored during the composition of such policies and their absence provides shelter to the fraudsters. White collar criminals often attain confidence from their role in the organization. This confidence gets transformed into arrogance which prohibits the criminal from applying organizational policies and rules on himself, as an employee of the company.

There is no doubt that the top management always looks for the creative and clever individuals as employees. They forget, however, this creativity and cleverness can be used against the company instead of in its favor. Employees with these traits can cunningly commit frauds by practicing unnoticeable unethical behavior. Companies should execute proper controls with the recruitment of talented people. The tone of top management can either promote or discourage the ethical behavior because it is supposed to set an example for the rest of the organization. The whistle-blowing attitude is shaped by the organizational culture. Moreover, an illogical increase in pay, without any improvement in the performance, allows the fraudsters to continue their unethical activities.

Board members and executives should identify the fraud tactics and fraud hidden strategies of these individuals to compose a fool-proof risk assessment process. Major warnings can appear from the financial data (e.g. unusual, frequent or large transactions), documents with missing or incomplete information or suspicious signatures, poor controls (e.g. lack of monitoring, poor reconciliation of accounts, lack of position to manage conflicts of interest), behavior (e.g. unstable behaviors, mismatched lifestyle with income, high expectations family, and job dissatisfaction). Management must implement strong controls in the day-to-day business operations to avoid fraudulent activities. The board must adopt a proactive behavior in the elimination or early detection of fraud by establishing an audit committee with full authority, monitoring transactions, promoting and maintaining an ethical environment, and composing a procedure for the reporting of fraudulent activities. The board must compose and enforce certain strategies to cope up with the frauds. The executives must develop an ethical environment for keeping the employees loyal with the company and directing the human talent towards the betterment of the company.

Ola is an graduate accounting major with a certification in forensic accounting at the Feliciano School of Business, Montclair State University.

Source:

Marks, J., (2012), A Matter of Ethics: Understanding the Mind of a White-Collar Criminal, Financial Executive, pp. 31-34. Retrieved from www.financial executives.org.

Posted by Dylan Beland.

One of the most talked about issues in business law news is the Wells Fargo scandal. The story behind this scandal is that the Department of Justice and many attorneys are investigating the possibility that Wells Fargo has millions of fake accounts opened at their banks. The result of the investigation was Wells Fargo had to pay a 185 million dollar fine.  Wells Fargo had to let go over 5,300 workers for fraudulent sales tactics.

From this, the concern and worry in the banking industry instigated a lot of questions about the fake accounts being opened. Employees were pushed to reach near-impossible sales targets, which in turn led to the creation of fake accounts. Mike Mayo, a banking analysist at CSLA, said the investigation “reflects pent-up frustration by the public over the lack of accountability at big banks post financial crisis.”

The people that could see some blame for this are the investors of the banks. One of Wells Fargo’s biggest investors has not spoken, since the situation has arisen. Warren Buffett is Wells Fargo’s biggest investor and he owns Warren Buffett’s Berkshire Hathaway.

On September 20, Wells Fargo is meeting with the Senate and is having John Stumpf, CEO, represent and testify at the hearing. He apologized for the fake accounts but also said he does not plan on resigning from being CEO of Wells Fargo.

Dylan is an accounting major at the Feliciano School of Business, Montclair State University.

Posted by Steven Otto.

The San Francisco rating company, Yelp, is not found liable for negative reviews posted on its site. This is because it relies on ratings posted by users, not the company itself. A federal appeals court on Monday, September 12, dismissed a libel lawsuit filed against Yelp by Douglas Kimzey, the owner of a Washington state locksmith company. The 9^th U.S. Circuit Court of Appeals ruled that, under federal law, Yelp is not liable for content it gets from its users. The features of Yelp are based on users’ input and it is not content created by the company, whose site helps guide people to anything from restaurants to plumbers and much more.

The court said that Douglas Kimzey’s business received a negative review on Yelp in 2011. Kimzey claimed that the negative review was actually meant for another business, and claimed that Yelp transferred the review to his business on purpose in an attempt to extort him. He claims that Yelp was trying to force him into paying to advertise with Yelp. The appeals court said that his allegations were not substantial and that there were no facts at all supporting Yelp fabricating content under a third party’s identity. Circuit Judge M. Margaret McKeown, writing for a unanimous three-judge panel decision, said “We fail to see how Yelp’s rating system, which is based on rating inputs from third parties and which reduces this information into a single, aggregate metric, is anything other than user-generated data.”

The appeals court previously ruled under the 1996 Communications Decency Act that “websites that provide what are known as ‘neutral tools’ to post material online cannot be held liable for libelous material posted by third parties.” Kimzey’s claim that Yelp should be held liable for distributing reviews to search engines was dismissed by this act. The appeals court stated that distributing the content does not make Yelp the creator or developer of the content.

Aaron Schur, Yelp’s senior director of litigation, said the appeals court “rightly confirmed Yelp’s ability to provide a forum for millions of consumers to share their experiences with local businesses.” Kimzey said he lost 95% of his business after getting one star on Yelp and said, “If you have a one-star rating, people won’t go near it (the business). They don’t care if you’ve been in business for one week or 25 years.” Obviously upset over what had occurred to him and the ruling, Kimzey, serving as his own attorney, plans to appeal to a larger court panel.

Steven is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2019.

Posted by Abigail Hofmann.

Francisco Garcia of the Sacramento Kings was lifting weights on a Ledraplastic exercise ball on October 9^th, 2009. The 195 pound player was lifting two 80 pound weights while on the ball when it suddenly burst beneath him. This supposed “burst resistant” ball advertised its ability to withstand weight up to 600 pounds. In the fall, Garcia suffered a fracture to his forearm, causing ineligibility for upcoming games. This injury came shortly after signing a five year, $30 million contract. Because of this, the Sacramento Kings wanted “to recoup the more than $4 million in salary, medical expenses and other costs it incurred after Garcia’s injury, as well as prejudgment interest.” (Bricketto)

Ledraplastic initially refused to reimburse the Kings or Garcia for the financial loss or issue a statement recalling the products or forewarning about potential dangers. In the Kings’ product liability case, they were able to prove that the ball burst at weights of mere 400 pounds, rather than the advertised 600 pounds, and that “for a very small expense, the ball could have been made thicker and would have provided the burst resistant capacity as represented.” (Bricketto) Eventually, a settlement was done in private, but the Kings “sought reimbursement for the salary they paid Garcia,” and “Garcia had also sought damages for pain and suffering as well as loss in future earning capacity.” (Lu)

Ultimately, this product liability case was pretty clear on who was at fault: Ledraplastic claimed to have a ball that withstood weights up to 600 pounds, yet failed to hold even 400 pounds. This caused an injury resulting in millions of dollars of damages, and up until the settlement, Ledraplastic refused to forewarn others about this potential danger. Although the settlement was private, we do know that Ledraplastic is now required to warn users of the dangers of using the ball while lifting free weights, hopefully preventing many similar injuries.

Abigail is a management, marketing, and finance major at the Stillman School of Business, Seton Hall University, Class of 2019.

Works Cited:

Bricketto, Martin. “NBA Team Sues Exercise Ball Cos. Over $4M Injury – Law360.” NBA Team Sues Exercise Ball Cos. Over $4M Injury – Law360. N.p., n.d. Web. 08 Sept. 2016.

Lu, Andrew November 1, 2012 5:54 AM. “NBA Star Francisco Garcia Settles Exercise Ball Lawsuit.” Injured. N.p., n.d. Web. 07 Sept. 2016.

Posted by Ali Paladino.

Recently, on September 1, 2016, the electric car maker Tesla Motors was called out for attempting to sell their vehicles directly to their customers in Missouri. The judge ruled Tesla’s efforts to rule out the middleman, car dealerships, violated state law.  The Missouri Revenue Department “gave the California-based manufacturer a license for a University City dealership in 2013 and a franchise license for a Kansas City dealership in 2014.” Both of these licenses allowed Tesla motors to sell their vehicles directly to their customers, disregarding any use of dealerships.

The court ruled this was not suitable, and Missouri Automobile Dealers Association agreed. The Association sued the State claiming that “it had given Tesla special privileges,” in their attempts to disregard using franchised dealerships to sell their vehicles. The court ruled that Tesla’s action was not technically unconstitutional, but held the licensing was not allowed. Tesla argued the ruling against them was going to damage the company and suppress their ability to compete with other motor vehicle companies. The company also argued the order was an “attempt” to “limit consumer choice in Missouri.” Yet, Tesla appears to be determined to try and continue to sell to their customers directly in the hopes that this will improve their bottom-line. Doug Smith, head of the Dealers Association, however, does not agree with Tesla’s actions and believes that it is not fair to other manufacturers. He believes all manufacturers should be “treated the same in Missouri.”

I have to agree with Doug Smith. I do not think Tesla should have the right to sell directly to their customers and completely bypassing dealerships, only because it puts the company on a different playing field than other motor vehicle companies. I do not believe that is fair.

Tesla has looked at other ways to get around laws in other states in order to improve their sales; however, I do not agree with this either. In this situation, the law stands blurry and unclear and it is intriguing to see how far Tesla will go in attempts to get around the law.

Ali is a finance major at the Stillman School of Business, Seton Hall University, Class of 2019.

The Second Circuit upheld Tom Brady’s suspension for the first four games of the new season and overturned the district court’s ruling.  The court ruled the arbitrator’s award was valid and should not be disturbed.

Judge Parker, writing for the majority, stated, “Our role is not to determine for ourselves whether Brady participated in a scheme to deflate footballs or whether the suspension imposed by the Commissioner should have been for three games or five games or none at all. Nor is it our role to second-guess the arbitrator’s procedural rulings.”  He continued, “Our obligation is limited to determining whether the arbitration proceedings and award met the minimum legal standards established by the Labor Management Relations Act.”

Courts are loathe to upend an arbitrator’s decision, unless for example, there was some type of fraud or corruption on the part of the arbitrator. The parties agree by contract to arbitration in lieu of bringing their case to court.

Brady can appeal to the entire Second Circuit (en banc) and to the United States Supreme Court, however, his chances either take the case are slim.

The opinion can be found here: http://www.ca2.uscourts.gov/decisions/isysquery/98c62698-d29a-4b91-98a0-5a5af0c19e88/1/doc/15-2801_complete_opn.pdf

Research proposal posted by Valentina Reyes.

Tort law carries the “no duty to rescue” principle, which establishes an individual’s freedom to choose whether to intervene in situations of peril while imposing no sanction on those who choose not to act. “While there is properly in law a duty not to harm, there is not . . . a negative duty not to allow harm to happen” (U.S. Supreme Court Justice Oliver Wendell Holmes). So long as there is no fiduciary relationship – which is defined as a relationship of trust or legal obligation of a person to another – between the two parties, an individual is not obliged to intervene, even if refraining from doing so may lead to the impending death of the other. This principle was established with the idea that people should not be held responsible for the demise of others unless they were directly involved with the causation of the incidents that led to the other’s peril, or had some established duty of care to the other, and to protect one’s freedom of choice.

In some instances, some courts may find that if a person began to rescue another and then ceased, the rescuer may be found liable if the reasonable person would have continued to rescue the victim. Under the umbrella of negligence, this is called “undertaking to act.” However, some states provide immunity from liability under specific statutes typically referred to as “Good Samaritan laws.” These statutes are put in place to protect those who, in good faith, decide to help in an emergency situation from being sued in civil court for any damage which may result from their act or omission to act. Depending on the situation, courts may wish to protect a rescuer or deem them responsible for negligent acts if the additional damage caused to the plaintiff resulted from an unreasonable act by the rescuer.

While the “no duty to rescue” principle was put in place to protect people’s liberty to choose, it also gives people power to allow others to perish. On the one hand, people are free to choose whether to get involved, but if they choose not to help when they are capable of helping and when the help may save a life, then they have the indirect power over another’s life. The principle also reinforces individualistic behavior that is already very much present in American society and culture which is often noted as being extremely averse to collectivism. Further, if a person intends another to perish by doing nothing, they may be able to get away with being the indirect cause of the other’s demise by choosing to do nothing out of a desire to cause the other harm. In this case, we have the element of mens rea without actus reus (so long as the bystander was not involved in the proximate cause of the victim’s accident or ailment), and the person intending to do harm by doing nothing could be protected under the law. In the case that the defendant was involved in the proximate cause of the victim’s accident, as was the case in Podias v. Mairs, the defendant could be found guilty for doing nothing because at that point, a fiduciary relationship is formed because but for the defendant’s actions, the victim would not have been put in danger.

Catholic social teaching teaches us that we should love everyone and show a sense of community towards our neighbors. We should treat everyone how we would like to be treated and respect and protect all forms of life. Whether we are free to choose, we should do the correct thing and provide help when we can for those who need it because if we are the difference between life and death for another, it does not take much away from us to give another what they can never get back. Gaudium et Spes states “[…] the duty which is imposed upon us, that we build a better world based upon truth and justice. Thus, we are witnesses of the birth of a new humanism, one in which man is defined first of all by this responsibility to his brothers and to    history.”

Works Cited

http://www.siue.edu/~evailat/i-mill.html

http://injury.findlaw.com/accident-injury-law/specific-legal-duties.html

http://caselaw.findlaw.com/nj-superior-court-appellate-division/1187493.html

https://www.stthomas.edu/media/catholicstudies/center/ryan/conferences/2005-vatican/Uelmen.pdf

http://www.vatican.va/archive/hist_councils/ii_vatican_council/documents/vat-ii_const_19651207_gaudium-et-spes_en.html

http://injury.findlaw.com/accident-injury-law/specific-legal-duties.html

http://negligence.uslegal.com/specific-duties/duty-to-rescue/

https://www.shrm.org/legalissues/stateandlocalresources/stateandlocalstatutesandregulations/documents/goodsamaritanlaws.pdf

Several states have statutes that make it a crime to refuse to take a breathalyzer if suspected of driving under the influence. Some states, like New Jersey, make refusal a civil offense. The High Court is reviewing statutes in North Dakota and Minnesota that make it a crime for people suspected of drunken driving to refuse to take alcohol tests. Drivers prosecuted under those laws claim they violate the Fourth Amendment’s prohibition on unreasonable searches and seizures.

The justices questioned lawyers representing the states as to why police cannot be required to get a telephonic warrant every time they want a driver to take an alcohol test. “Justice Stephen Breyer pointed to statistics showing that it takes an average of only five minutes to get a warrant over the phone in Wyoming and 15 minutes to get one in Montana.”  However, this may not be correct.

“Kathryn Keena, a county prosecutor representing Minnesota, suggested some rural areas may have only one judge on call, making it too burdensome to seek a warrant every time. She said even if a warrant were procured, a driver could still refuse to take the test and face lesser charges for obstruction of a warrant than for violating drunken driving test laws.”

Telephonic warrants have also been the rule in New Jersey since 2009. Recently, the New Jersey Supreme Court reversed itself, reverting back to the federal standard requiring police to obtain a warrant after establishing they have probable cause. Under the more stringent standard of using telephonic warrants, police were complaining it took to long to reach a judge. Police also used consent forms they carried, causing an outcry from the defense bar that such a practice may lead to further abuses. Justice Anthony Kennedy said the states are asking for “an extraordinary exception” to the warrant rule by making it a crime for drivers to assert their constitutional rights.

The problem for the states is that without the threat of a refusal penalty, the only proof available at trial as to whether someone was intoxicated while driving is the observations made by police. Observations, however, cannot prove blood alcohol level.

In a Fortune interview, Republican front-runner, Donald Trump, indicated he may replace Fed chief, Janet Yellen, although it appears he likes it when interest rates are low. Speaking from a business standpoint, he would be correct. On the other hand, he acknowledges that low rates are not good for savings accounts, “The problem with low interest rates is that it’s unfair that people who’ve saved every penny, paid off mortgages, and everything they were supposed to do and they were going to retire with their beautiful nest egg and now they’re getting one-eighth of 1%,” says Trump. “I think that’s unfair to those people.”

Trump is in favor of taking power away from the Fed and have more Congressional oversight.

Research proposal posted by Jessica Page.

Topic

The principle of double effect creates a set of guidelines to “determine when it is ethically permissible for a human being to engage in conduct in pursuit of a good end with full knowledge that the conduct will also bring about bad results” (The Principle of Double Effect). Generally, the principle states that when someone is deciding a certain conduct that has both good and bad effects, the course of conduct they choose is “ethically permissible only if it is not wrong in itself and if it does not require that one directly intend the bad result” (The Principle of Double Effect). The moral criteria for the principle of double effect generally states the action in itself must be good or indifferent, the good effect cannot be obtained through the bad effect, there must be a proportion between the good and bad effects brought about, the intention of the subject must be directed towards the good effect and merely tolerate the bad effect and there does not exist another possibility or avenue (What is the Principle of Double Effect?).

Pros and Cons

The issue with the principle of double effect is that each situation where the principle applies is different. If an act is bad, it cannot become good or indifferent by a good motive or good circumstances. If it is evil in nature, this will not change. That being said, the principle “the end justifies the means” must always be rejected. The idea that needs to be applied to each issue is the fact that a human must never do evil, but they are not bound to prevent the existence of evil. One example we can apply this to is the BP oil spill that was discussed in class. By not mandating a cut-off switch because of how expensive it was, even though the safety benefits were astronomical, when an explosion happened on one of the rigs, eleven workers were killed and seventeen were injured. Not to mention the five million barrels of oil that gushed into the ocean. Had the US mandated these switches like they wanted, even though BP lobbied against them, it could have avoided the deaths, injuries and pollution caused by the exploding rig. In this case, the deaths and havoc caused by the explosion did not justify the fact that BP was trying to save money for their own personal benefit. Another example where the principle of double effect is relevant today is the controversy of euthanasia. It is used to justify the case “where a doctor gives drugs to a patient to relieve distressing symptoms even though he knows doing this may shorten the patient’s life” (BBC). The doctor’s intention is not to kill the patient, but the result of death is a side-effect of reducing patient’s pain. One problem that people argue against this doctrine is the fact that they believe we are responsible for all anticipated consequences of our actions. Another is the fact that intention is irrelevant. A third issue, specifically in the euthanasia issue, is the fact that death is not always seen as a bad thing making the double effect irrelevant. Lastly, the double effect can produce an unexpected moral result.

Ethics and Principles

When looking at the incorporation of Catholic, one of the main issues that concerns this principle and the Catholic religion is that case where a pregnancy may need to end in order to preserve the life of the mother. The example most often given is a woman with uterine cancer. By removing the uterus, it will bring death to the fetus but the death is not “directly” intended and in turn, the mother will live. It is an issue that still is debated today (Soloman). Another similar case having to do closely with Catholic ideals is when a woman has an ectopic pregnancy and must receive surgery to remove the embryo. At a Catholic hospital, it can be questioned whether that specific procedure is considered a direct abortion, going against the Catholic ideals and morals, no matter what the means of the surgery are. “The principle of double effect enables bioethicists and Catholic moralists to navigate various actions that may or may not be morally justifiable in some circumstances” (Kockler). The idea of proportionate reasoning has also been condemned by Pope John Paul II. He categorized proportionalism as a species of consequentialism. This is condemned by the Church because no Catholic moralist would agree that a desirable end justifies any means (Kockler). These are serious issues, especially when considering the principle of double effect from a Catholic standpoint.

Works Cited:

Kockler, Nicolas. The Principle of Double Effect and Proportionate Reason. http://journalofethics.ama-assn.org/2007/05/pfor2-0705.html

“The Doctrine of Double Effect”. BBC. http://www.bbc.co.uk/ethics/euthanasia/overview/doubleeffect.shtml

“The Principle of Double Effect”. http://sites.saintmarys.edu/~incandel/doubleeffect.html

“The Principle of Double Effect”. http://www83.homepage.villanova.edu/richard.jacobs/MPA%208300/theories/double%20effect.html

“What is the Principle of Double Effect?” http://ncbcenter.org/document.doc?id=132

Research proposal posted by Jessica Thomulka.

Part One

Healthcare costs are skyrocketing in the United States. Even prior to the passing of President Obama’s Affordable Care Act, the burden on American corporations to provide healthcare to their employees was placing stress on businesses. Lifestyle control is the term given to an employer’s influence on an employee’s actions outside of the scope of their duties as an employee. Some of the most common examples of lifestyle control revolve around the preventative measures to lessen the pressure of the paying for employee medical coverage. The two most costly medical conditions are complications arising from smoking and obesity. The National Business Group on Health reports that obese employees cost employers $700 more than their average-weight employees, annually, for their healthcare. Along with healthcare, another aspect of business that employers are concerned about is productivity. In a 2002 study, the Center for Disease Control reports that productivity losses associated with workers who smoke cigarettes are estimated to be $3,400 per smoker.[1] Business owners and executives are concerned with maximizing their profits and ensuring the health of their company, and by keeping their employees healthy, they can reduce their risk of paying high medical expenses for preventable diseases. Some states like New York have passed provisions to prevent employer discrimination against an employee’s “after-hours” conduct, however there is no federal statute.

Part Two

There are both pros and cons to the idea of employers having control of the lifestyle of their employees. The stakeholders involved include the employer, the employees, the family of the employees, and even the ‘vice’ industries that the employers are safeguarding against such as the tobacco and gambling industries. The employers reap the most positive benefits out of lifestyle control provisions. They lower their cost and increase their productivity. The employees may also benefits from such provisions due to increased health, but they give up some of their freedom in the process. Some companies also impose lifestyle control upon the employee’s family if they are on the same health insurance policy so likewise, they may gain health benefits but sacrifice some of their freedom. Lastly, ‘vice’ industries suffer the most from lifestyle controls because they ultimately lose business due to embargos on acts like smoking and gambling. If enough companies impose lifestyle controls they could potentially bankrupt ‘vice’ industries.

Part Three

The biggest ethical question regarding lifestyle control is the autonomy of the employee. Should an employee be free from external control or influence by the employer? According to the United States Conference of Catholic Bishops (USCCB) there are several themes of Catholic Social Teaching.[2] Rights established in the Catholic tradition have an impact on lifestyle control. While privacy is not explicitly protected under the United States Constitution it falls under the penumbra of implied rights in the Bill of Rights due to its importance. The Catholic tradition teaches that human rights and responsibilities are at the heart of a healthy community. Within the workplace there is a basic right of workers to be respected by their employers. That is in decent wages, the right to unionize, and a productive work environment. The USCCB notes that work is more than just providing for yourself and your family because it is a way to participate in God’s work. They also suggest that a worthy measure of an institution is its ability to enhance the life of the human person. In the case of lifestyle control, Catholic Social Teaching aligns with provisions to protect the health of employees. This would support a ban on smoking and other such vices that are known to be detrimental to one’s health. If the motives behind the employer’s lifestyle controls align with what is good for society then they should be permissible under the Catholic Social Teaching.

[1] Halbert, Terry, and Elaine Ingulli. Law & Ethics In The Business Environment. 7th ed. Mason, OH: Thomson/South-Western West, 2003. Print.

[2] “Seven Themes of Catholic Social Teaching.” Seven Themes of Catholic Social Teaching. Web. 09 Mar. 2016. .

Research proposal posted by Elizabeth Donald.

Part One: Topic Explanation

Liberty of contract was originally introduced into U.S. constitutional jurisprudence through the case of Lochner v. New York, 198 U.S. 45 (1905). In this case, Joseph F. Lochner challenged a provision of the New York Bakeshop Act of 1895 that prohibited bakers from working more than ten hours per day and 60 hours per week. The Supreme Court held that this regulation failed to pass constitutional muster in violation of the Due Process Clause of the Fourteenth Amendment. In doing so, the Court found “liberty of contract,” that is, the freedom of individuals and groups to enter into contracts, to be a fundamental right under the Fourteenth Amendment.  Other Supreme Court decisions continued to build on this idea during what is now referred to as “The Lochner Era” of cases. This includes Adkins v. Children’s Hospital, 261 U.S. 525 (1923), invalidating a minimum wage law and Pierce v. Society of Sisters, 286 U.S. 510 (1925), deeming unconstitutional a regulation that led to the closing of many private Catholic schools.

Part Two: Pros and Cons

The Lochner decision was considered one of the most controversial cases of its time after being handed down in 1905. Progressive jurists, politicians, and scholars alike denounced Lochner, whether for attempting to constitutionalize laissez-faire economics or for exceeding judicial authority.[1] They believed that the conservative-leaning Lochner majority reached far beyond the scope of its powers. This is because although the U.S. Constitution does not explicitly list “liberty of contract” as a fundamental right, the court still found it to be so under the Fourteenth Amendment Due Process Clause which states, “[N]or shall any person … be deprived of life, liberty, or property, without due process of law.” U.S. Const. amend. XVI, § 1. In finding a liberty of contract within the Constitution, Progressives saw the majority as an advocate of big business that attempted to adopt policy by means of judicial decision. These Progressive jurists instead encouraged a deference to the legislature on all matters, economic and personal. Since the early 20^th century, Progressive ideology has shifted, but still views liberty of contract in a negative light.

Flashing forward to today, jurists across the political spectrum remain highly critical of Lochner. Constitutional theorist Bruce Ackerman places Lochner in his “anticanon” of cases. Unlike early 20^th century Progressives, today’s Progressive jurists typically believe in using strict scrutiny to analyze laws regarding personal rights. Yet, they now isolate personal liberties from economic liberties, which are still considered unwarranting of constitutional protection.[2] Twenty-first century conservatives, likewise, do not tend to favor liberty of contract. Conservative jurists today often advocate for a deference to the legislature on both personal and economic issues. Thus, the conservative viewpoint has also significantly shifted from the Lochner Era right-wing belief that natural rights precede positive law and that liberty of contract is one of those inherent natural rights. This leaves little room for hope for the few present-day proponents of liberty of contract. However, the idea of contractual freedom as a fundamental right might not be as bad as many make it seem. In fact, liberty of contract is really a derivative of the natural law.

The natural law, according to St. Pope John Paul II, is a law that resides within the “depths of the conscience.” It is written on the hearts of all men, according to which God will be the judge. Legal theorists have found certain rights to be inherent within this natural law. The Constitution itself was founded on the idea of natural rights. James Madison, a drafter of the Constitution, believed that man “embraces everything to which a man may attach a value and have a right; and which leaves to everyone else the like advantage…”[3] This idea was the bedrock of the Due Process Clause of the Fifth Amendment, which was eventually applied to the states through the Fourteenth. Therefore, the Court majority in Lochner simply viewed liberty of contract as one of these natural rights under due process. This reading of the Due Process Clause achieves much greater validation than suggested by Lochner’s opponents. The Civil Rights Act of 1866, 14 Stat. 27-30, which gave way to the Fourteenth Amendment, listed liberty of contract first in the rights accorded to man. In this act, the 39^th Congress wrote that, “[a]ll persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties …” This act served the purpose of enforcing the natural rights of man. Therefore, the Lochner majority’s belief in liberty of contract as a fundamental right was not unwarranted.

Part Three: Questions of Ethics

Liberty of contract is intertwined with ethics because the very idea of ethics rests on the natural law. St. Thomas Aquinas said that the natural law “constitutes the principles of practical rationality,” which are the rules by which human action is to be judged as reasonable or unreasonable.[4] It is from this ethical theory that fundamental rights were developed. Not only that, but contractual freedom is essential to business ethics as well. The significance of liberty of contract comes through in the employment-at-will rule which gives employers unfettered power to “dismiss their employees at will for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of a legal wrong.” However, because the employment-at-will theory is supported by laissez-faire economics, it too is often criticized by Progressive jurists who oppose free markets. Yet, even though early 20^th century Progressive jurists denounced the Lochner decision for its association with laissez-faire ideals, this does not invalidate the fact that liberty of contract can be viewed as a fundamental right within the natural law. Further, just because liberty of contract is an economic liberty does not mean it cannot be a fundamental liberty. Since provisions of the Constitution and the Civil Rights Act of 1866 demonstrate that both the Founding Fathers and the 39^th Congress understood liberty of contract as deriving from the natural law, it is valid to not only consider this liberty as fundamental, but also ethical.

Works cited:

[1] David E. Bernstein, Rehabilitating Lochner (2012).

[2] Ibid.

[3] Colleen Sheehan, James Madison and Our First Duty, THE CENTER FOR VISION AND VALUES (Sep. 23, 2014), http://www.visionandvalues.org/2014/09/james-madison-and-our-first-duty-by-dr-colleen-sheehan/.

[4] Aquinas, ST I-II. Q94.

Research proposal posted by Brian Kane.

In the digital age, the rights and laws regarding privacy are being contested now more than ever. Today personal privacy, both digital and physical, is being discussed. One of the earliest examples of privacy laws in the United States is the 4^th amendment. Under this amendment gives “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures” (Fourth Amendment, U.S. Constitution). This and other laws, including the Federal Wiretap Law of 1968, are designed to protect the individual against unlawful searches of personal property by an unfair government. The individual right to privacy is held sacred in this country.

However, the laws of privacy protection are not absolute. Communications and interactions in general areas, such as online chatrooms, and digital communication used for work. Surveillance monitoring by employers has been contested by employees in courts in multiple cases. In City of Ontario, California v. Quon, for example, a search was justified because there were “reasonable grounds” and done “for a non-investigatory work-related purpose” (Ontario v. Quon).

Some argue that the privacy laws are for the best interests of individuals. Individuals and consumers are protected when the monitoring parties have clearly defined limits and barriers. When the government requires search warrants and the corporations are required to obtain consent, the best interests of those being monitored are kept in mind. The constant surveillance by powerful entities removes the right for individuals to act freely and live their own lifestyle. Gratuitous monitoring dehumanizes the employee and implies guilt without any evidence.

Privacy law is not completely virtuous, however. Like all laws, some may seek to exploit privacy law and use it to shield unproductive, immoral, and unethical behavior. When employees use corporate email accounts for personal business, they often claim a right to privacy when investigation begins. Many act recklessly online in this digital age, assuming that the right to privacy is absolute and unbreakable. There are instances where there is legitimate reasons to investigate an individual. When there is probable cause, public good supersedes individual privacy.

The issue of privacy and surveillance laws raises many ethical questions. The rights of individuals and the definition of individualism is put into question when anyone is monitored by a third party. There is concern for the maintenance of human dignity, as some see these searches dehumanizing and distressing on private lives. Pope Leo XIII spoke out against increased surveillance, saying that it intruded and lead to control over individuals. In Catholicism, the holy sacrament of confession revolves around the private recounting of sins and transgressions. When discussing privacy, the matter common good is raised. Aquinas believes that law is created for the common good, “made by him who has the care of the community and promulgated” (2 Bix).

Privacy and Surveillance Law is a widely contested issue in the catholic faith and general ethics. It has its advantages and disadvantages, as any other issue in law, but it will continue to be contested as new innovations shape the information age.

Works Cited

Bix, Brian H. “Secrecy and the Nature of Law.” October 2013. University of Pennsylvania School, Center for Ethics and the Rule of Law. Web. 3/3/2016. Avaliable: https://www.law.upenn.edu/live/files/2418-bixsecrecy-and-the-nature-of-law-full

City of Ontario v. Quon. 560 U.S. 746. Accessed 3/3/2016.

Posted by Renaldo Nel.

Uber is considering leaving the state of New Jersey if a proposed bill passes. This proposed bill’s main objective is to implement tough regulations regarding commercial insurance.  There is currently an ongoing debate whether there is a gap in the insurance coverage of Uber drivers. Insurance industry experts and New Jersey law makers argue that Uber’s operations are not covered sufficiently. Currently Uber’s commercial coverage, which it buys for its drivers, kicks-in the moment the driver accepts a ride request. Lawmakers want to change this and require that the insurance is in place from the point which the driver logs onto the Uber Application. They argue that there is commercial benefit whilst the driver is waiting for someone to request a ride.

Furthermore, lawmakers assert that the personal insurance cover of the driver often does not cover any incident that occurs if the driver is logged-on to the application. They argue that it is vital that the driver is insured between the time that he logs-on and the time he or she gets a ride request. Uber disagrees.

Uber states that more often than not, personal insurance will pay for any incident that occurs between the time the driver logs-on and waits for a ride. Uber furthermore states that they have insurance in place in the event that the personal coverage of the driver does not pay. If this is true, one would not know at this stage. Uber does however claim that “rides on the platform, beginning to end, from when the driver turns on the app to when they drop a person off is insured. Any claim to the contrary is incorrect” (Mohrer). Christine O’Brien, president of the Insurance Council of New Jersey, states that “It is clear under New Jersey law that people who engage as an UberX driver are not covered by their private passenger auto policy. That is a very clear conclusion.”

I believe the problem here is to find out what the actual truth is. We need to determine whether these drivers are sufficiently covered or not. If not, then extra commercial insurance would most definitely be needed. If Uber claims that they provide insurance for the time frame in controversy, then they should provide proof of this insurance.

I understand that law makers are only trying to protect the common citizen, however, I also understand Uber’s argument that the proposed law is burdensome. Uber claims that the level of coverage proposed is higher than that of what is expected from taxi operators. Furthermore, Uber states that four states, including Washington D.C., have passed transport network regulation, and that these regulations are not nearly as burdensome as those proposed in New Jersey.

Uber is many people’s livelihood, and I understand their frustration as it can easily be seen as a vendetta against Uber drivers. New Jersey lawmakers should take into consideration what other states have done and see how they can accommodate both parties.

Renaldo is an economics major at the Stillman School of Business, Seton Hall University, Class of 2019.

Posted by Natalie Kenny.

Amazon just received a major success in a lawsuit against them. Amazon was being sued over a book sold on their website. This book was based on New England Patriots star, Rob Gronkowski. Greg McKenna, a middle-aged man, took up the pen-name Lacey Noonan and wrote a book called A Gronking to Remember. This book gained a lot of media attention and was even featured on the show Jimmy Kimmel Live. On the cover of the book, there is a photo of a couple. McKenna used this photo on the cover but did not legally obtain the rights to use the photo.

The couple shown in the photo sued Amazon for selling the book with the illegally obtained photo of the couple. The question of the lawsuit was whether or not third-parties like Amazon should be responsible for what their users distribute using their platform. After hearing the case, an Ohio district court judge said that Amazon is not responsible for what its users distribute using their website. The judge cited the Communications Decency Act, which states that “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” This rule goes the same for Amazon and Barnes & Noble when selling books.

I think that the decision made in this case to side with Amazon was the right decision to be made. Amazon and other book sellers should not have to check every single thing that is sold to make sure that there are not copyright issues. The person who should be getting sued in this particular case should have been Greg McKenna–the one who used the picture without permission. It was wrong of him to use this photo without permission but it should not be Amazon’s responsibility to make sure that whoever is selling products through their platform is doing everything they are supposed to be doing.

Natalie is a marketing major at the Stillman School of Business, Seton Hall University, Class of 2019.

Posted by Orintia Daniels.

Bankrupt: “(of a person or organization) declared in law unable to pay outstanding debts.” According to dictionary.com, this adjective simply means that a particular person or organization is in debt and owes money to another organization or person. I have came across an article called “How do I declare Bankruptcy?” which explains the various forms of bankrutpcy as well as how someone can actually declare bankruptcy.

Let’s talk chapters! No, not just any chapters; specifically, let’s review Chapters 7, 11, and 13 of the Bankruptcy Code. Let’s explain, starting with Chapter 7.

Have you ever heard the term “Everything must go?” Well, Chapter 7 of the Bankruptcy Code, states that whoever files under that chapter might lose everything. For example, a person may lose his or her home, due to not being able to pay the bank their debts. Chapter 7 “liquidates your assets to pay off as much of your debt as possible. When it is all done, you are left with the least debt possible, but you usually have to sacrifice a number of possessions along the way to make that happen.” (HG.org).

On the other hand Chapter 11 is mainly for businesses, such as corporations and partnerships, but can be available to individuals. It has no limits on the amount of debt, as Chapter 13 does. It is the usual choice for large businesses seeking to restructure their debt. Under Chapter 13, the Code:

allows the filer to reorganize their debt, making it more manageable. Under a Chapter13 bankruptcy, the debtor is able pay off their debts over a period of three to five years. For filers with consistent, predictable incomes, a Chapter 13 bankruptcy may be a great way out of debt by creating a sort of legal grace period. If the debtor makes all payments required under the bankruptcy order, and there are still debts remaining at the end of the grace period, those debts are discharged” (HG.org).

Overall, Chapter 13, is primarily for personal struggles, by anyone who may not be able to pay off their debts.

For one to declare bankruptcy, there are two main methods: as an individual, which is to voluntarily file for bankruptcy, or wait for creditors to ask the court to declare you bankrupt. To further understand the different ways to file for bankruptcy and the different forms of bankruptcy, I personally suggest that you continue your interest on the following website.

Orintia is a marketing major with a minor in economics at Montclair State University, Class of 2017.

Posted by Danielle Lindsay Feoranzo.

It was on June 4^th 2015 that the U.S Supreme Court found the State of Maryland’s system of personal income taxation violated the nondiscrimination prong of the Dormant Commerce Clause. This clause states Congress has been given power over interstate commerce, and that states cannot discriminate against interstate commerce, nor can they unduly burden interstate commerce, even in the absence of federal legislation regulating the activity. The Court found that Maryland did not grant a resident credit for county income tax paid on income earned and taxed in another state. What to keep in mind is this particular state’s personal income tax scheme is of composed of three elements:

(1) A state tax imposed on all income of Maryland residents and the income of nonresidents from sources within Maryland, (2) a county tax (collected by the state) imposed on all income of state residents, and (3) a special nonresident state tax imposed on the income of nonresidents from sources within Maryland, which tax is said to be in lieu of the county tax and is imposed at a rate equal to the highest county tax within the state (pg. 1; Bright, Schulder, Upham).

In this instance, the Wynnes were state residents and subject to tax in 39 other states because they owned a corporation that resides in multiple states. The Wynnes were able to take a tax credit in Maryland against taxes paid to other states on their corporation income but were not allowed to take a credit against Maryland county tax for taxes paid to other states on the corporation income. The Court held that:

Maryland’s personal income tax system was not internally consistent under the Commerce Clause and therefore unconstitutionally discriminatory. According to the Court, if every state imposed their personal income tax in the same way as Maryland, an individual who lived in one state and worked in another would always be subject to a higher tax burden than an individual who lived and worked in the same state. The taxing scheme gave preferential treatment to purely intrastate activities versus interstate activities.

Therefore, the Court concluded that Maryland’s personal income tax system was not consistent under the Dormant Commerce Clause, and thus, unconstitutional.

In conclusion, the Wynnes were within their constitutional right to get a tax credit not only on their state tax but also on their county tax. This because it was protected under the Dormant Commerce Clause not to discriminate wherever that income is earned.

Danielle is a business administration major with a concentration in management information and technology at Montclair State University, Class of 2016.

Posted by Randy Gomez.

In Business Law class, I learned about business ethics and how an entity should behave as a good citizen. In this article that I found online, it explains how the Federal Communications Commission fined AT&T 100 million dollars for slowing down data speeds to some customers. According to the FCC, AT&T violated a transparency rule by misleading customers saying that their plans were unlimited, when there was a maximum speed that customers would receive. AT&T is accused of not sufficiently informing its subscribers. The FCC chairman Tom Wheeler said “consumers deserve to get what they paid for,” and that, “[b]roadband providers must be upfront and transparent about the services they provide.”

It seems that the corporation was trying to maximize their short-term profits, by not being clear enough about the services provided to the consumer. As it usually happens when a corporation acts unethically to increase their profits, AT&T hurt their profits and now is receiving bad publicity. This is a great example of why companies have to take in consideration moral and ethical principles toward their decisions, instead of just trying to maximize profits.

Randy is a business administration major with a concentration in finance at Montclair State University, Class of 2017.

Posted by Yuanda Xu.

On Oct. 30, 2014, Sembcorp Marine’s finance director Wee Sing Guan was sentenced to 39 months in prison for falsifying the accounts of the group’s Jurong Shipyard, Sembcorp’s wholly owned unit. The company lost “hundreds of millions of dollars’ worth of marked-to-market losses that Wee had incurred on foreign exchange and options trades positions he held with a host of banks, including OCBC Bank, DBS Bank, BNP Paribas (BNP), Societe Generale (SocGen) and Standard Chartered Bank.”

According to criminal law, falsifying account records is an unlawful action. Falsifying records can influence the stock market by making investors believe the company’s stock is worth it to buy. But after a company goes bankrupt, people who hold the stock will lose all their money. The offenses “carry a maximum penalty of an unspecified fine and a seven-year jail term, for each charge.”

Yuanda is a business management major at Montclair State University, Class of 2017.

Posted by Yuanda Xu.

In 2003, Lucent Technologies decided to fire the CEO, COO, Financial Executive and marketing manager in China. Lucent did this because company in China bribed the Chinese officials to get more benefits. As expected, Lucent fired these four people, and paid $2.5 million to settle charges. The company paid a $1 million fine to the Justice Department and $1.5 million to the Securities and Exchange Commission.

In 1977, America enacted the “Foreign Corrupt Practices Act” to prohibit companies from bribing officials in other countries to get more benefits. What Lucent Technologies did violate the Act, because Lucent Technologies bribed the Chinese officials to get more benefits and reduced business opportunities for other companies. That violates the FCPA.

Yuanda is a business management major at Montclair State University, Class of 2017.

Posted by Danielle Lindsay Feoranzo.

In the United States, freedom of speech is protected by the First Amendment. It is a prized right and the courts have protected this right to the fullest extent. As Americans in a democratic country, we have the power to speak our minds to ensure we can voice our political opinions and criticize government actions or policies. Thus, as citizens we hold great authority for which could either positively and or negatively influence our country’s future.

In today’s world, social media has made a strong precedence in our community and the functionality of our world. This includes Twitter, Instagram, Tumbler, and the heavy-weight, Facebook. These outlets of social media can be used by famous celebrities to endorse a product, or politicians to promote themselves and their campaigns. Social media is an outlet that can connect one with the world, therefore in essence is a huge stage to express oneself and one’s opinions.

It was on June 1, 2015, the Supreme Court ruled in favor of a Pennsylvania man who posted many violent messages on Facebook (the Court raising implications of freedom of speech). However, prior to the Supreme Court hearing the case, the man was convicted under a federal threat statue and sentenced to jail time of forty-four months. The man appealed this judgment, stating the government should have been required to prove he actually intended to make a threat. The Pennsylvania man argued he was exercising his freedom of speech protected by the First Amendment. He also mentioned he was inspired by the artist Eminem and his lyrics for which is recited and had no intention to threaten anyone.

The Supreme Court ruled in his favor and stated, “It was not enough to convict the man based solely on the idea that a reasonable person would regard the communications as a threat” (Ariane de Vogue, CNN). What is important to take notice is the “reasonable person” standard was rejected by the Court. This is because the government needed to prove the defendant’s intent.

To conclude, the Pennsylvania man expressed himself on Facebook, whether it was crude to some or not, it did not uphold in court as a threat. This case is another example of how the Court will go out of its way to protect speech under the First Amendment.

Danielle is a business administration major with a concentration in management information and technology at Montclair State University, Class of 2016.

Posted by Arleen Frias-Arias.

According to NPR News.com, Ocwen Mortgage, who has been tasked by FDIC (Federal Depose Insurance Corporation) and US Department of Treasury to assist consumers that are delinquent in their mortgages, is being sued. New York State’s top financial regulator has launched an investigation into Ocwen’s practices as it turns out they are finically hurting home-owners, not helping them get out of foreclosure.

The gist of the article is that Ocwen committed fraud by preparing mortgage documents particularly on what is called a loan modification, which is a legal contract prepared to adjust the payments of loan borrowers who could not make their payments due to hardship. They are also accused of not posting payments already in their possession from borrowers until past the payment due date, deliberately causing homeowners to become late and incur fees.

In my opinion, more needs to be substantiated by regulators to determine if this was widespread, because Ocwen seems to have a reputation of consistently not adhering to the law.

Arleen is a marketing and communication/TV production major at Montclair State University, Class of 2018.

Posted by Arleen Frias-Arias.

After reviewing an article posted December 16, 2014 by Madeline Boardman for Us Magazine, I found interesting the development of this case. A singer named Mitsou is suing singers and celebrities Beyoncé and Jay Z, for mismanagement and stealing. The Hungarian singer has a song called “Bajba, Bajba Pelem,” which allegedly Beyoncé and her team took from her song and sampled Mitsou’s vocals for the single “Drunken in Love.”

The interesting part is that Mitsou has never exactly signed papers that would permit anyone to use her voice for any type of use, including trade purposes. According to New York Post’s Page Six, the voice of Mitsou was manipulated for sexual erotica purposes without her permission. According to Mitsou her voice is featured in the overall song for about 1.5 minutes. This could be a huge problem for Jay-Z’s company and Beyoncé as an artist, because after hearing both sides and songs, there is a huge similarity between songs.

In my opinion, this case will require plenty of experts to prove the guilty actions of singer Beyoncé and Jay-Z. Even though the song only has a couple seconds of the actual voice of Mitsou, there are heavy accusations being made. Beyoncé has not yet commented on the situation but I think in this situation is where we bring in copyrights and hard evidence to prove statements.

In enforcing copyrights against the defendant there needs to be a letter of warning, enlisting the acts of infringements. Now since there were not any responses by the infringing party, legal actions are acceptable at this point. According to John Hornick of Finnegan.com, the business law rules most copyrights depend on is whether or not the copyright was even registered with the United States at the time of the defendants acts.

I believe Mitsou will have to file a copyright infringement lawsuit seeking compensatory harms. This situation is a very sensitive especially if Beyoncé is found liable; there could be over thousands of dollars probably billions returned to Mitsou for her work being unfairly taken without permission.

Arleen is a marketing and communication/TV production major at Montclair State University, Class of 2018.

FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.

Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.

The High Court rendered an opinion in EEOC v. Abercrombie & Fitch Stores, Inc. The bottom line is unless the employer can show it is unduly burdensome to accommodate a religious practice, it must accommodate the person even if it has a mandatory dress code or other neutrally-applied policy. The employer is required to do so if the person asks for the accommodation or even if the employer suspects the person may need one.

Abercrombie did not hire a Muslim woman because her headscarf violated their “Look Policy.” The policy, which is described as “East Coast collegiate or preppy style,” prohibits the wearing of “caps” (an undefined term in the policy) as too informal for their image. The woman applied for a job at one of the stores. The assistant manager of the store interviewed and conditionally approved her for the job. Yet, the headscarf she wore to the interview indicated to the manager that hiring her would be a violation of their “Look Policy.” Although the woman never asked for a religious accommodation, the assistant manager assumed that she would need one if hired and deferred to the district manager. The district manager thought the scarf “would violate the Look Policy, as would all other headwear, religious or otherwise,” and directed the assistant manager not to hire the woman.

The EEOC sued on the woman’s behalf claiming Abercrombie’s action violated Title VII and won a $20,000 judgment. The Tenth Circuit reversed and awarded Abercrombie summary judgment, ruling an “employer cannot be liable under Title VII for failing to accommodate a religious practice until the applicant (or employee) provides the employer with actual knowledge of his need for an accommodation.”

Title VII makes it illegal for an employer “‘to fail or refuse to hire . . . any individual . . . because of such individual’s . . . religion.’ §2000e–2(a)(1).” Religion “includes all aspects of religious observance and practice, as well as belief, unless an employer demonstrates that he is unable to reasonably accommodate [] an employee’s or prospective employee’s religious observance or practice without undue hardship on the conduct of the employer’s business.”

There are two ways to bring an action under Title VII of the Civil Rights Act of 1964: one is for a disparate- treatment (or intentional-discrimination), and the other, disparate-impact of otherwise facially neutral policies. The “intentional discrimination provision prohibits certain motives, regardless of the state of the actor’s knowledge.” Disparate-treatment claims based on a failure to accommodate a religious practice is plain: “An employer may not make an applicant’s religious practice, confirmed or otherwise, a factor in employment decisions.”

The Court ruled: “An employer is surely entitled to have, for example, a no-headwear policy as an ordinary matter. But when an applicant requires an accommodation as an ‘aspec[t] of religious . . . practice,’ it is no response that the subsequent ‘fail[ure] . . . to hire’ was due to an otherwise-neutral policy. Title VII requires otherwise-neutral policies to give way to the need for an accommodation.”

Under the ruling, a prospective applicant is not always required, as the Tenth Circuit held, to request an accommodation from an employer. Employers that are aware or believe an accommodation is needed and are motivated to fire or not to hire someone based on that accommodation also violate the statute. As Justice Alito stated in his concurrence, however, if it is unduly burdensome to require the accommodation, then there is no violation.

But Justice Thomas in his dissent was concerned about a broad reading of the words “because of such religious practice” in that it could sweep up an employer’s policy that applies indiscriminately to everyone, yet happens to be at odds with an employee’s religious practice. He gives the following example:

Suppose an employer with a neutral grooming policy forbidding facial hair refuses to hire a Muslim who wears a beard for religious reasons. Assuming the employer applied the neutral grooming policy to all applicants, the motivation behind the refusal to hire the Muslim appli- cant would not be the religious nature of his beard, but its existence. Under the first reading, then, the Muslim applicant would lack an intentional-discrimination claim, as he was not refused employment ‘because of’ the religious nature of his practice. But under the second reading, he would have such a claim, as he was refused employment ‘because of’ a practice that happens to be religious in nature.

Justice Thomas reasoned that under a broad reading employers with no discriminatory motive would be punished because they had no knowledge of every aspect of an employee’s religious practice. It would undermine the intent element of disparate treatment and make the employer strictly liable for its conduct. Citing precedent, Justice Thomas explained “discriminatory purpose” as “‘the purpose necessary for a claim of intentional discrimination” that “demands ‘more than . . . awareness of consequences. It implies that the decisionmaker . . . selected or reaffirmed a particular course of action at least in part ‘because of,’ not merely ‘in spite of,’ its adverse effects upon an identifiable group.’”

He recognized refusal to accommodate can be discriminatory where an employer does not make a policy exception for someone for religious purposes involving a store policy that is applied to everyone, when at the same time makes the same allowance for someone of another religion or some secular practice. Yet, he explained,”merely refusing to create an exception to a neutral policy for a religious practice cannot be described as treating a particular applicant ‘less favorably than others.’” Under the majority’s view “mere refusal to accommodate a religious practice under a neutral policy could constitute intentional discrimination,” unless the employer produces evidence that the accommodation is unduly burdensome and persuades the court that it is so.

Posted by Katie Kim.

On Thursday, Martin Shkreli, a 32 year-old pharmaceutical executive, was arrested by the federal authorities on securities and wire-fraud charges stemming from an alleged Ponzi scheme he ran as a hedge-fund manager. What the young executive was doing was taking out loans from investors to start a new pharmaceutical company and using that money to pay off his debt from his hedge-fund. Martin Shkreli committed “fraud in nearly every aspect of hedge-fund investments and in connection with his stewardship of a public company,” said the director of enforcement at the Securities and Exchange Commission, Andrew J. Ceresney.

Shkreli was already notorious for price-gouging during his time at Turning Pharmaceuticals. His idea was to acquire decades old drugs and raise the price of it to $750 from $13.50 per pill. The current charges are not related to Shkreli’s work as chief executive of Turing Pharmaceuticals.

The federal authorities say that Shkreli was running three schemes that had connections to one another, he defrauded investors and used stock and cash from an unrelated pharmaceutical company to cover up the money he lost. The Brooklyn US attorney filed a seven-count criminal indictment and the Securities and Exchange Commission filed a related civil complaint on alleged securities fraud against Shkreli. Federal officials painted Mr. Shkreli’s business dealings as “a securities fraud trifecta of lies, deceit and greed.”

Shkreli was released on a $5 million bail, secured by a bank account and his father and brother. The authorities also arrested Evan L. Greebel who served as an outside counsel to Retrophin, the company Shkreli previously worked for. Shkreli treated Retrophin like his “personal piggy bank” where he used $11 million to pay back shareholders of MSMB funds.

Katie is an accounting/finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Katie Kim.

In the technology industry, two leading companies may be heading to the Supreme Court over the design of smartphones. There is no confirmation of whether or not the case will be accepted, but the Supreme Court has not taken a design patent in over a century.

A few weeks ago, Samsung agreed to pay Apple $548 million in damages over a design patent but did not agree to it as part of a settlement. Apple took Samsung to court on the grounds that Samsung intentionally and knowingly copied Apple’s iPhone designs. Apple prides themselves on their innovation and when the threat of copycats infringe on their innovations it takes away from their profits. Apple submitted evidence that showed the evolution of the Samsung product increasingly resembled the Apple iPhone

At trial, Apple convinced the jury that some of the designs Samsung used on their smartphones, like the rounded rectangular corners and touch screen made of smaller icons, were taken from and patented by Apple.

On the other hand, Samsung argued that the law under design patents was misapplied. The law is meant to protect “ornamental” features that are not part of the products intended function. Samsung lawyers feel that this should have been made clear to the jury.

On Monday, Samsung filled an appeal to the Supreme Court. The company argues that the legal framework behind designed patents is flawed and out dated for the modern digital world. “The law was written for a time long before the smartphone was invented,” said Mark A. Lemley, a law professor and director of the Stanford University program in law, science and technology. If Samsung is left to stand with a sweeping rule against it then it will “lead to absurd results and have a devastating impact on companies.”

Katie is an accounting and finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Stephen D’Angelo.

Just six hours after New York Attorney General placed a temporary injunction, which would stop sites like Fanduel and DraftKings from doing business in New York, an appellate court saved them by issuing an emergency temporary stay that will allow New Yorkers to continue to use Fanduel and Draft Kings until further notice. This stay will last at least till the end of the year which is likely when a permanent decision will be made, “Eventually, both sides will go before a panel of four or five appellate judges” Randy Mastro said, from an outside council for DraftKings.

The State of New York is likely to win the case because of the wording of their law on gambling. Fantasy football gambling sites commonly use the defense that they don’t take wagers, they take entry fees. In many states, this allows them to continue to do business. But, New York is stating that their penal law does not refer to “wagering” or “betting.” Instead it states that a person, “risks something of value.”

Although New York has the upper hand, the laws in place are very vague. The statement regarding risking something of value had no relation to online fantasy sports gambling when created. It was worded this general because that would include gambling bookies in a gambling law. I personally do not believe that Fantasy sports gambling will be shut down in New York. The NBA, NHL, and MLB all own equity in Fanduel and the likelihood of the 600,000 New Yorkers who play daily fantasy to not be able to in the New Year is very slim.

Stephen is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2017.

Posted by Stephen D’Angelo.

Friday morning, two days after the judge presiding the Uber class action lawsuit decided that drivers attempting to arbitrate can be included in the law suit, Uber sent drivers a new agreement. The document undermined the judge’s ruling by revising the arbitration clause.

Liss-Riordan and her team are filing an emergency motion that will be heard in front of Judge Edward Chen next Thursday; it asks the court to block Uber from enforcing this new driver agreement. “Uber has tried to fix the problem that Judge Chen ruled made the agreement unenforceable,” Liss Riordan told TechCrunch in an email.. The Private Attorney General Act gives “a private citizen the right to pursue fines that would normally only be available to the State of California. It also allows that private citizen to “seek civil penalties not only for violations that he personally suffered” but also for violations of “other current or former employees.”

According to Chen’s Wednesday ruling, the Uber driver agreement of 2014 and 2015 illegally waived drivers’ rights under PAGA, which informed Judge Chen’s decision that the arbitration clause could not be honored because it contained an illegal provision. This was the reason for the provision of the agreement, to quickly remove the illegality and include new provisions to the agreement.

The Private Attorney General Act protects uber drivers from what uber has tried to prevent, a large action against the company. Uber has agreed to resolve any claim against the company but only on an individual basis. Uber’s driver agreement provision also attempts to prevent workers from participating in any class collective or representative action against the company. Uber also rewrote the agreement to remove a requirement that arbitration between a driver and the company remain confidential. The language makes it clear that the agreement goes into effect only when a driver accepts it  not when a revision is published, therefore, protecting drivers who previously signed the agreement.

Stephen is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2017.

Posted by Dan Udvari.

On December 3, 2015 Donald L. Blankenship – the CEO of Massey Energy, Co. – was convicted of a single misdemeanor for conducting a conspiracy to violate safety rules in his coal mines just before the Upper Big Branch Mine disaster that occurred on April 5, 2010.

Massey Energy was the fourth largest publicly traded coal extractor by revenue ($2.69 billion) in the United States. It was founded in 1920 by the Massey family and operated in Richmond, Virginia. The company consisted of approximately 5800 employees right before Alpha Natural Resources acquired the company for 7.1 billion dollars. Interestingly, 99% of the shareholders voted in favor of the acquisition, which shows how poorly the company was governed by management. Don Blankenship took control over the company in 1992 and created a culture that favored profits over safety. In total, the coal extractor giant had around 369 citations and orders, which totaled a staggering 10.8 million dollars.

On April 5, 2015 a massive explosion in the Upper Big Branch Mine in Montcoal, West Virginia occurred that killed 29 people. This tragedy was the worst since the 1970 Hyden disaster. Massey Energy operated the Upper Big Branch Mine and later turned out that they operated the mine in a manner that was against several rules set up by the MSHA. The investigation later determined that the ventilation system in the mine did not work properly and failed to get rid of the toxic gases that caused the explosion. Massey intentionally neglected all the safety rules and citations issued by the MSHA for the purpose of increasing profits. However, this case goes deeper than one thinks. According to reports, Massey Energy is very influential on political figures and officials in West Virginia. Using this power, they were able to bribe and manipulate MSHA regulators so they look the other way when inspecting the mines.

In November 2014, Don Blankenship, was indicted by a federal jury on four criminal counts including conspiracy to violate safety laws, securities fraud, defrauding the federal government, and making false statements to the SEC. Even though he was charged with these, he was only found guilty of one on December 3, 2015. Had he been convicted of all four, he could have been sent to prison for approximately thirty years. Now, he is only serving one year in jail.

I do not believe that Blankenship should only serve one year in jail. It seems unfair to those who had lost their lives because of profits. It baffles me that people as greedy as him get away with conspiracy and murder charges. It seems that money can literally buy your freedom in the United States. All you need is a good lawyer or lawyers.

Dan is a graduate accounting student with a certificate in forensic accounting at the Feliciano School of Business, Montclair State University, Class of 2016.

Research project posted by Rafael Gabrieli.

Eminent Domain

Part I:

Eminent domain is the power to take private property for public use by a state or national government. There would be just compensation for the private property seized, however, many problems arise from this act. The way that eminent domain works is that it is backed by the Fifth Amendment to the US.  Constitution, which is that your state government has power over all property in the State, even private land. The land can be taken without the consent of the owner, as long as he or she is justly compensated. The purposes for which eminent domain vary, however, it has to be used for a public good somehow. This means that roads, courthouses, schools, or any other infrastructure that can benefit the public will come into place of the land that the government took using eminent domain. The state government or national government is able to use eminent domain for large-scale public works operations or even growing freeway systems.

Part II:

Pros:

In Houston, Texas, land was obtained by the use of eminent domain in order to create the Minute Maid Park baseball stadium, which has benefitted the surrounding community immensely. The baseball stadium brings millions of people each year to downtown Houston. What is amazing to see is to compare it with the Houston community before the stadium was built, which was very barren and unsocial.

The I-85 widening project in Concord, North Carolina will reshape the way inhabitants travel around Concord. The inhabitants are being justly compensated, and some are even getting 5%-10% more than the initial appraisal value. This new freeway widening will allow traffic to be lessened during rush hours, which posed a big problem for the city during the past couple of years. It is a necessary and responsible use of eminent domain.

Cons:

Private property could have sentimental value, like a house that has been in the family for generations. This is the case with the Keeler family from Claverack, New York, who lived in their house for four generations and were being forced out due to the state’s plan to expand power lines. Another problem with eminent domain is that the price that the owner feels he deserves is more than what is being offered to him. This happened to Rich Quam, owner of a house in Fargo, North Dakota since 1997. The town stated that his backyard could become structurally unstable, so the city offered him an amount to buy the property from him. Rich Quam declared it an insult however, because the amount did not reflect the years of hard work he put into renovating the house, adding a second level and a garage. A third problem is the simple desire to not want to abandon a profitable business, which almost occurred a couple years back to Perry Beaton, property co-owner of a Burger King that the city of North Kansas City was attempting to seize from him.

Part III:

In Economic Justice for All, it is stated that the common good may sometimes demand that the right to own be limited by public involvement in the planning or ownership of certain sectors of the economy, which is essentially the basis for eminent domain. Catholic support of private ownership does not mean that anyone has the right to unlimited accumulation of wealth, rather, it states that “no one is justified in keeping for his exclusive use what he does not need, when others lack necessities.” Thus being the Catholic Social Teaching stance on Eminent Domain: if it is for the public good, an individual should be more than willing to give up his property that is not essential to his well-being in order to further the development of society and his surroundings.

Works Cited

Clayton, Adam. “Family Rallies to save Farmland from Eminent Domain.” Columbia-Greene Media. N.p., n.d. Web. 10 Mar. 2016.

“Economic Justice for All.” Wall Common Good Selected Texts. N.p., n.d. Book. 10 Mar. 2016.

Lewis, David. “Eminent Domain: Still A Useful Tool Despite Its Recent Thrashing.” Planetizen. Planetizen, 5 Sept. 2006. Web. 10 Mar. 2016.

Messina, Ignazio. “City Threatens Eminent Domain.” Toledo Blade. N.p., 26 Jan. 2014. Web. 10 Mar. 2016.

Reaves, Tim. “Making Way for the Freeway: Eminent Domain Claims Homes.” Independent Tribune. Independent Tribune, 7 June 2015. Web. 10 Mar. 2016.

Ross, John. “Hands Off! North Kansas City Loses Eminent Domain Case « Watchdog.org.” Watchdogorg RSS. N.p., 23 Jan. 2014. Web. 26 Jan. 2014.

Posted by Sydney J. Kpundeh.

The famous over the counter drug Tylenol was at the center of a case that was brought before a Pennsylvania federal district court in early November. The case involved a lady who had taken Extra Strength Tylenol for many years to treat various conditions. In Mid-August of 2010, she underwent lumbar laminectomy surgery and afterwards she was instructed by her doctor to take Regular Strength Tylenol in conjunction with Lorcet, a prescription drug containing acetaminophen, but not to exceed 4 grams of acetaminophen in a 24-hour period. For approximately two weeks, she used the Regular Strength Tylenol, as instructed, until the bottle ran out, after which she began using Extra Strength Tylenol. At some point, she stopped taking the Lorcet due to its side effects. On August 29, she unfortunately was diagnosed with acute liver failure and died two days later.

After her passing, her sister filed a products liability lawsuit, “including claims for defective design and negligent failure to warn against McNeil, which manufactures the drug, and Johnson & Johnson, McNeil’s parent company.” Her sister insisted that the defendants knew that Tylenol could cause liver damage when taken at or just above the recommended dose. Also, she claimed defendants were liable for the her sister’s death because they had failed to warn her of the “risks of injury and/or death.” The defendants moved for summary judgment on the ground that the sister had not offered sufficient evidence to support her failure to warn claim.

Under the Alabama Extended Manufacturer’s Liability Doctrine, there are two factors that must be shown to find the scope of a manufacturer’s legal duty. The first is that there is some potential danger and the second is that there is a possibility of a different design to avert that danger. In this case, sufficient evidence was presented to show that the manufacturers knew or should have known that Extra Strength Tylenol could cause liver damage. The facts also showed that the manufacturers were working to find a substitute. Finally, the evidence also showed that the plaintiff’s sister died of acetaminophen-induced liver failure after taking Extra Strength Tylenol as directed.

Sydney is a political science major with a minor in legal studies at Seton Hall University, Class of 2016.

Posted by Sydney Kpundeh.

A disgruntled New Jersey father has brought products liability design defect and failure-to-warn claims against The New Jersey Port Authority Transit Corporation to recover for injuries arising out of a take-home asbestos exposure. The case’s premise surrounds the father’s daughter, who started to exhibit signs of mesothelioma, which he claims were a result of secondary exposure to friable asbestos fibers through direct contact with her father and while washing his asbestos-laden work clothing. The father is an employee of the Port as a train operator, yard operator, and supervisor. His job duties included the repair and maintenance of asbestos-contaminated air brake systems on the Port’s multiple unit locomotives. When his daughter’s symptoms started worsening, he filed a product liability design defect and failure-to-warn case against the Port and various manufacturers of locomotives and locomotive brake shoes. He claimed that his daughter’s injuries could have been caused by her exposure to asbestos dust created when he replaced the brakes on cars he worked on after hours.

When the case was put before the court, all parties moved for summary judgment. The Port’s argument was that federal legislation and court precedent preempted state tort claims related to locomotives. The automobile defendants argued that there was no evidence that the father’s contacts with automotive brake dust were sufficiently frequent, regular, and proximate to establish causation.

The Appellate Division of the Superior Court of New Jersey ruled that the injuries were preempted by the Locomotive Inspection Act (LIA) under the doctrine of field preemption. The court ruled in such direction because they examined a number of previous decisions that had been considered in the scope of the LIA’s preemptive effect and found that the only way to ensure uniformity is that they must rule the same way.

The failure-to-warn claims that the father filed against the various manufacturers and sellers of asbestos-containing automobile brakes were dismissed summarily because there was insufficient evidence of medical causation linking their products to second-hand exposure. “[T]he evidence showed that the father replaced brakes shoes contaminated with asbestos on four occasions over a period of eight years.”

When he was asked about these times, he could not recall the names of the manufacturers of the replaced brake shoes nor could he recount the number of times he installed new brakes manufactured by the named defendants. Therefore, “it was clear that even if the father was exposed to one of each of the automotive defendants’ products over the eight-year period in question, this exposure was so limited that it failed to meet the frequency, regularity, and proximity test that is required for this type of case.” Hence, this is why the case was dismissed.

Sydney is a political science major and legal studies minor at Seton Hall University, Class of 2016. 

Posted by Melissa Nomani.

Lawsuits filed against Lumber Liquidators claim that homeowners who put certain laminate flooring into their home are being exposed to high levels of formaldehyde. This puts them at risk and also lowers the value of their property. As of this July, the number of lawsuits filed against the company has gone up from only a mere ten in June. Many lawsuits began being filed after a 60 Minutes episode that aired on March 1, 2015, exposing the high levels of formaldehyde in laminated flooring made in China. Formaldehyde is a known carcinogen and has been linked to cancer and respiratory problems. A study done by 60 Minutes showed that 30 out of 31 of the tested flooring samples (all of the sample were Lumber Liquidators products).

According to a study conducted by 60 Minutes, 30 of 31 flooring samples from Lumber Liquidators did not meet formaldehyde emissions standards. It is estimated that thousands of people have Lumber Liquidators flooring in their homes. Some lawsuits claim that homeowners have suffered from respiratory problems after installing the laminate flooring.

Another issue that has risen is that Lumber Liquidators is being accused of false advertising and selling products comprised of particles that come from endangered habitats and trees. The US Department of Justice is investigating the company for their alleged use of wood. The wood was illegally cut down from Russia–this directly violates the Lacey Act. The Lacey Act does not allow for the importation of products made from woods that are illegally logged.

Furthermore, this past May, Lumber Liquidators CEO, Robert Lynch, resigned. During this month the company also announced that it would be suspending the sale of flooring from China. The company offered homeowners free  indoor air quality screening, if they had purchased laminate flooring from China.

The number of lawsuits against Lumber Liquidators continues to grow.

Melissa is a finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Melissa Nomani.

Farmers across the United States are filing suits against Syngenta. As stated in the article, “The lawsuits allege the biotechnology company’s genetically modified Agrisure Viptera and Duracade seeds contaminated US corn shipments, making them unacceptable for export to China.” China does not allow the importation of GMO products that it has not tested. In February of 2014, China learned that the corn shipments from the U.S. contained Viptera. Agrisure Viptera is a seed that is genetically modified (known as MIR162) to prevent damage to crops by earworms and cutworms. As a result, China has rejected corn imports from the U.S.

Over 1,800 suits have been filed. Lawsuits filed against Syngenta state that the company put seeds on the market even though there was no approval from foreign markets. This has led to some farms having great financial losses. Even farmers who do not use GMO seeds could be affected due to accidental contamination from other fields. Syngenta has tried to refute the lawsuits by stating that they are not responsible for protecting farmers from GMO seeds. This arguments were rejected in September by Judge Lungstrum, who refused to dismiss the suits.

It has been estimated by The National Grain and Feed Association that as of April 2014 almost $3.0 billion worth of losses were caused by Syngenta’s Agrisure Viptera MIT162 corn seed.

The first of the lawsuits are expected to go to trial in June 2017.

Melissa is a finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

In class, we discuss trademark and trade dress.  Ever open a can of Play-Doh and smell that distinct scent?  Well, now Hasbro has trademarked that scent.

“‘The scent of Play-Doh compound has always been synonymous with childhood and fun,’” said Jonathan Berkowitz, a senior vice president of global marketing for the Play-Doh brand. “‘By officially trademarking the iconic scent, we are able to protect an invaluable point of connection between the brand and fans for years to come.’”