Posted by Avinash Sookdeo.

On February 15^th, Southwest Airlines Co. filed a lawsuit against Aircraft Mechanics Fraternal Association (AMFA), and several of its officers, including Bret Oestreich, its National Director, in a Texas federal court. AMFA represents about 2,400 of Southwest’s mechanics and others in related fields. The lawsuit claims that AMFA allegedly helped to organize boycotts regarding mechanics working overtime shifts while in negotiations, thereby violating the Railway Labor Act (RLA). This is largely due to the fact that both Southwest Airlines Co. and AMFA have been in contractual negotiations for four years, despite the intervention of a federal labor mediator.

AMFA is being sued for three violations of the RLA, including Section 6 of 45 U.S.C. § 156, where Southwest Airlines Co. claims irreparable harm. Two counts of violation of Section 2, 45 U.S.C. § 152 was also filed, claiming that the AMFA encouraged unlawful job action and did not take necessary or reasonable steps to stop the unlawful job action. Several weeks ago, AMFA filed lawsuit in the U.S. District Court of Arizona, claiming that Southwest Airlines Co. has not maintained its status quo during its negotiations, and has communicated information to its union members directly, violating the Railway Labor Act.

Southwest Airlines Co., which is the fourth largest airline carrier, claims that the union failed in its duties “to prevent the workers from banding together to decline overtime work this month” (The Associated Press). The lawsuit comes after the company noticed a 75% decrease from average overtime shift. The company said the boycott resulted in them outsourcing extra employees, costing the company financially. According to court documents, Southwest Airlines Co. is seeking a declaratory judgement, an immediate injunction, and damages for the costs of extra staffing, amongst other things.

Avinash is a biology major in the College of Arts and Sciences and Legal Studies of Business Minor at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

http://bigstory.ap.org/article/ec39df208463495e9d077bec242581eb/southwest-lawsuit-claims-union-workers-avoiding-overtime

http://courthousenews.com/wp-content/uploads/2017/02/Southwest.pdf

http://www.dallasnews.com/business/southwest-airlines/2016/12/16/mechanics-union-files-federal-lawsuit-southwest-airlines-take-leave-negotiating-tactics

Posted by Alonso Arbulu.

In June 2016, a federal court of appeals upheld government net-neutrality rules. The Federal Communications Commission enacted this new ordinance under the past chairman, Tom Wheeler. According to this law, both the government and Internet providers should treat all data on the web as equal.

An issue arose, when T-Mobile, Verizon, and AT&T started offering zero-rating plans, in which they gave their customers free data when using certain apps. The FCC perceived that the implementation of these data plans violated the net-neutrality rules by favoring certain content owned by the internet providers. In Tom Wheeler’s words, these firms’ practices negatively affected competition through “potentially unreasonable discrimination in favor of their own affiliates.” Accordingly, the FCC under the supervision of Tom Wheeler started an investigation to determine whether or not these companies were adversely affecting consumer benefits by breaking net-neutrality rules. In response to the inquiry, the telecommunication firms claimed that their practices benefited customers by increasing competition, and provided free data and easily accessible content at a better price.

At the beginning of February this year, Ajit Pai was tapped to be chairman of the FCC. Despite the past leadership’s perspective of the zero-rating plans, Ajit Pai decided to close the investigation, dropping the charges against the Telecommunication companies. According to the FCC Commissioner Michael O’Rielly “companies, and others can now safely invest in and introduce highly popular products and services without fear of commission intervention based on newly invented legal theories.” O’Rielly’s comments highlight the benefits of zero-rating plans and endorse Ajit Pai’s decision on this issue.

Alonso is an economic and finance student at the Stillman School of Business, Seton Hall University, Class of 2019.

Article links:

https://thetechportal.com/2017/02/04/fcc-against-net-neutrality-zero-rating-schemes-t-mobile-bingeon-att-sponsored-data/

FCC suspends probes of telecommunications firms

Background information:

https://www.wsj.com/articles/fcc-approves-net-neutrality-rules-setting-stage-for-legal-battle-1424974319

Posted by Frankie Panicucci.

Wells Fargo is a corporate bank with very high and unrealistic sales targets. To meet these unrealistic sales targets Wells Fargo employees were secretly opening millions of unauthorized bank and credit card accounts for customers without their knowledge. These unauthorized accounts that were created racked up fees and allowed Wells Fargo to make more money. The accounts that were created started all the way back in 2011. The company then learned of this behavior and fired about 5,300 employees over the years. In order to pull off the scheme, the employees transferred funds from a customer’s original account into a new one without their knowledge, and it is estimated that around 1.5 million accounts were created. Customers were then being charged for over drafting or not having enough of a minimum balance in the original account. Employees also submitted over five hundred thousand applications for credit cards without the customer’s knowledge. Some of these accounts were charged over $400,000 in fees.

Wells Fargo was eventually caught committing these crimes after being investigated by the Consumer Financial Protection Bureau (CPFB). Wells Fargo is being fined with the largest fine since the CPFB’s inception; a fine of $185 million and also must refund customers $5 million. Of the $185 million, $100 million will go to the CFPB’s penalty fund, $35 million to the Office of the Comptroller of the Currency, and $50 million will go to the City and County of Los Angeles. As part of the settlement Wells Fargo also needs to make changes to its “sales practices and internal oversight.” The CPFB declined to mention how the investigation began.

The initial suspicions of accounts being created for customers began when some customers complained to Wells Fargo about unauthorized accounts that were created on their behalf. L.A. City’s Attorney, Mike Feuer, says, “Consumers must be able to trust their banks.” Feuer sued Wells Fargo in May of 2015 in relation to the unauthorized accounts. Once the suit was filed, he began to receive calls and emails from customers regarding the issue. Wells Fargo hired a consulting firm to look into the allegations after the suit was filed. After the investigation Wells Fargo released an internal statement which says, “At Wells Fargo, when we make mistakes, we are open about it, we take responsibility, and we take action.”

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

Posted by Ethan James.

There was a chemical spill into the Elk River, two years ago, that came from a storage tank owned by Freedom Industries. This spill caused a temporary shutdown of businesses within the region around the river, as well as many residents of the Charleston area needing to go to the emergency room with symptoms of rashes and nausea. The damages caused by the chemical spill hurt the local economy and people, so a class-action lawsuit was ensued.

The lawsuit was against Eastman Chemical and West Virginia American Water Co., as through the actions of both companies lead to damages against the people of the Charleston area. “The suit alleged the water company was unprepared for the spill and that Eastman Chemical didn’t advise Freedom of the dangers of the coal-cleaning agent,”(Michael Virtanen). There is a fear that Eastman did not properly warn the water company of the damage to others or how to properly contain it. In addition, the water company was said to be “unprepared for the spill”(Michael Virtanen), in both the damages that were inflicted on the tanks and how to proceed with the consequences of the spill.

The U.S. District Judge John Copenhaver approved a $151 million dollar settlement that involved both companies, splitting the settlement. West Virginia American Water Co. is going to pay $126 million, while Eastman Chemical will proceed to pay $25 million. “The money will be distributed to affected residents and businesses through an application process to be determined later,”(The Associated Press). There has been an update to proceedings within the water company in order to avoid a repeat of the damages that occurred, while the chemical company has placed new regulations on inspections in order to better advise companies of their products.

Ethan is a management, finance, and ITM Majors and legal studies minor at the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Patrick Cleaver.

Every law is made to help the public, to protect the safety of the driver, and deliver a reliable car. The car industry knows they make mistakes and are responsible for fixing the damages for free when such mistakes occur and cars get recalled. However, does a used owner know that he/she is able to get his/her car fixed for free once it had been recalled? Most people do not know that a dealer will fix the car for free after it has been recalled, so the damages are never fixed. The car, marked as dangerous, is instead sold at auctions and then sold again without ever being properly taken care off. While this may end up with nobody getting hurt, doing leaves a huge risk at the buyer’s expense.

Delia Robles was one of the unfortunate people who had been taken advantage of by this system and it ended up costing her much more than she bargained for, getting killed by a defective airbag. Ms. Robles was driving a 2001 Honda Civic on her day off from work when she hit a pickup truck. An accident that would normally end with her walking away unscathed turned into her death bed. The car she was driving has been sold five times over a fourteen-year span and was most recently bought by her son who had no idea that the car was not safe. The information which had not been released to him is that the car was never fixed after it had been recalled for problems with its airbags.

The car was equipped with Takata airbags which “have been linked to 15 deaths.” The airbags were not safe due to being made out of product that wore out over time. That meant that the airbag was a time bomb waiting to explode and Ms. Robles is the one who triggered it. When hitting the truck the Honda had released its airbags which burst and sent metal pieces flying at and killing Ms. Robles.

The issue at hand is that there are no safeguards which prevent deaths like these from occurring. The previous owner is not reliable for not fixing the car like a dealership would be had this happened to a new car. That owner is also not responsible for informing the new owner of the risks they are taking by buying the car. The auction simply sells the car “as is” and does not say whether or not the car is safe to buy.

While there are no federal laws protecting the consumer of accidents in used cars, there are state laws which are implemented in order to keep people safe. According to the New York State law, a seller is not allowed to conceal a material defect because that is a fraudulent action. Also, the New York State auctions are not allowed to sell vehicles “as is” unless they are government agencies. This is a step forward towards the right (safe) way, but does not fix the problem because the Department of Finance takes advantage of it. This department still allows clear negligence by huge companies which can lead to more incidents like the one Ms. Robles experienced. CarMax is a great example of this problem. “CarMax, one of the country’s largest used-car dealers, advertise that their vehicles pass rigorous safety tests – even if the cars have unrepaired problems for which recalls have been issued.” These companies are basically misleading the customers, making people believe that their cars are safe when in reality they could be death traps.

No malice can be proven in the case of Ms. Robles since it has had so many past owners and neither her son, nor the owner before him were aware of the recall on the Honda. Unfortunately, Ms. Robles was a victim of a broken system and now the 50 year old will never get to see her three grandchildren grow up.

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

Posted by Matthew Cassidy.

In 1988 the Video Privacy Protection Act was passed by Congress to prevent private information about tape rentals or sales records from being released to the public. The case involves a man named Mark Ellis who downloaded the Cartoon Network Application on his Android smartphone in order to watch shows on that network.

The app is able to track viewer history and an Android phone I.D.; it then sends the information to an analytics company named Bango. Bango is a very advanced organization that can not only monitor customer behavior, but also link user’s information about the user through the Android I.D.

Cartoon Network’s third party partner, Bango, violated the Video Privacy Protection App by gathering personal identification from the Android user’s I.D.  The court weighed its opinions on another case called Re Hulu Privacy Legislation that involved the Privacy Protection Act. This case helped Cartoon Network by providing the true definition of a subscriber to just visiting a website. Therefore, Ellis was not “committed” to the application, so therefore the Privacy Protection Act did not apply to him.

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

Posted by Matt Gilbert.

PepsiCo is beginning to take its health push seriously, stating last month that it plans to reduce the amount of sugar, salt and fat in its products by the year 2025. The company’s newest aspiration comes as a response to growing world obesity and its striving to be in better accordance with global health standards. It also comes in light of recent discoveries that Pepsi’s juice brand, Naked, was mislabeled to say that it included less sugar than it actually does. This was a massive roadblock in Pepsi’s success as it was marketing Naked juices as a healthy, low-sugar alternative, when in actuality it had extremely high levels of sugar.

This misinformation opens a larger can of worms as to the duty of companies to warn its customers of the dangers of its products and where the line of general knowledge and the withholding of information. Essentially where does the fault go from the customer to the company? This is not a straight forward issue by any means and both sides could be argued. If the business at fault knew the true information and knowingly withheld it from the customer, then that becomes a major issue.

It also brings up an interesting and complex discussion as to if Pepsi should be obligated to improve the overall health of their products. The general public knows and acknowledges the fact that soda as a whole is not good for one’s health, so is it really Pepsi’s obligation to attempt to make it healthier when the nature of the product is to be unhealthy? What it really comes down to is where the legal responsibility of the company ends and where its moral obligation to the well-being of its customers begins. The law places baseline guidelines on the standards that need to be achieved, but in many cases that simply isn’t enough. For example, Samsung began testing their batteries internally after the debacle with their batteries even though the law doesn’t require them to go to such lengths.

Pepsi’s commitment to reduce the amount of sugar in their drinks comes at a time when the social norm is with low-calorie healthy alternatives. That being said, the legality of the situation comes into play with whether or not Pepsi needs to make such a change and where the line between customer knowledge and company deception is drawn.

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

Posted by Charles Matta.

UPS (or United Parcel Service) is known worldwide as the world’s largest package delivery company and provider of supply chain management solutions. There is no questioning the success that this company has had, but is there a question of their morality? Recently, UPS was supposed to be looking for clues and observing its trucks thoroughly for illegal transportation of products. It was found that UPS had been illegally transporting untaxed cigarettes from Indian reservations to customers throughout the state of New York. And while they were supposedly “observing the trucks” it was in fact believed that they had “turned a blind eye” and now the tax regulators of the state of New York are asking for the judge to impose an 873 million dollar penalty.

An eight day federal civil trial occurred with closings statements regarding the issue saying that UPS “had a corporate culture that favored sales opportunities over a responsibility to help New York enforce tax law.” The article states that this happened because: “Tobacco retailers located on upstate reservations were given price discounts for shipping in volume. Delivery drivers were allowed to accept iPads and other gifts from shippers. Account executives, whose compensation was tied to keeping big accounts, ignored signs that some customers signing delivery contracts dealt in cigarettes.” The lawyers of New York City and New York State are saying that UPS must be held accountable for what they determine to be about a decade’s worth of misconduct.

On the other hand, UPS has argued that it did follow the rules and restrictions applied to the company, but they can only do so much about policing its 1.6 million daily shippers are sending in sealed packages. In its legal filings, its lawyers said the city and state have offered no proof it “knew or consciously avoided knowing that any shipper was shipping cigarettes.” Now, UPS has terminated contracts with shippers who were known to be violating these packaging rules. “The state and city impose some of the highest taxes on cigarettes in the country in an effort to halt tobacco use,” and because of this, there are 28,000 deaths annually which causes tax payers 10.4 billion in health care related costs. One account executive writes “’I wish UPS would just take the high road, and say NO TOBACCO, NO ACHOHOL (sic), PERIOD.” UPS needs to be more strict on what is or isn’t successful and must find a way to monitor their business operations better.

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

Posted by Michael Ragone.

Recently, McDonalds workers have opened up explaining in detail, sexual harassment incidents that they have experienced while at work. Until last year, under the law, McDonald’s could not be held accountable for labor violations in franchise owned stores. With that being said, McDonalds still ignored all serious instances. Most of the incidents, had to deal with employees being touched, grabbed and slapped, which of course is a clear violation of any moral values. In a video that was shared most of the statements were, “Grabbed my waist, tried to kiss me, touched my breast, grabbed my leg.” “Grab, touch, rubbing up, no, this is not okay.” Some workers were even shown pornographic images from their supervisors. Where in one case, a women’s boss offered her one thousand dollars in exchange for oral sex. This sparked an activist group, “Fight for 15” because of the 15 different claims.

In a recent study, “two in five women working in fast food reported experiencing some sort of sexual harassment ” which is an extremely high percentage. Men and women should be able to work in a safe environment with rules and codes of conduct. In a statement, McDonalds tried to distant themselves from their franchises trying to make them look independent. Fight for 15 is planning protests nationwide over McDonald’s handling of sexual harassment. When women employees went to speak up and report the incidents they were punished with their hours and pay being cut. One of the managers said, “You shouldn’t have flirted with him.” Not in any way is it the employees fault and they shouldn’t have to work in hostile working environments. When you have to live pay check to pay check and barely make enough to get by, speaking up means putting your job at risk.

If McDonalds ignores these harassment claims, their long term reputation and profit maximization will deteriorate. In order to make the work environment safer, there should be people who employees can report problems to right away. The employees affected by this harassment “aren’t seeking monetary damages” and only seek for “McDonald’s to enforce its publicly stated no-tolerance policy for sexual harassment.” This would of course mean that anyone who was proven to be harassing employees in any way would no longer be able to continue employment. When natural law is considered, these workers should all have equal rights to earn a living without worrying about a possible threat to them. This problem is even worse for “immigrant workers” says the Fight for 15 because they are not fully aware of their rights and thus leaving them more vulnerable for exploitation. It is also common that women did not want to speak out in fear of losing their jobs, and of course this would mean not being able to support themselves and possible loved ones. By re-enacting the zero tolerance policy, women will be able to go to work feeling like they are equal to everyone because harassment rates will plummet.

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

Posted by Zachary Lucanie.

Historically, presidential elections have brought Americans to their feet as they stand behind their candidate to hold the highest position in American politics. Given that the president is elected once every four years it is important to many Americans that the office is held by the candidate that will solve the issues most prevalent to them. One of the great privileges that an American has is the Constitutional right to vote, with the Fifteenth Amendment ensuring that every vote counts no matter what ones race or skin color. With that, there are still many Americans that pay no mind to elections and abstain from voting. The circumstances have changed, however, in the current presidential election between Republican nominee, Donald Trump, and Democratic nominee, Hillary Clinton. Many feel that this election has broader implications for the country and that the electing of the wrong candidate could leave the country in turmoil. Along with protesting and campaigning on behalf of their candidate, Americans feel the best way to stop the candidate that they disagree with is to get out and vote. This has brought many voters, some who have never voted before, out to the polling booths which was seen in the primaries. Now, as we close in on Election Day and as voters begin preparing to elect their candidate, many individuals are beginning to question the legitimacy of the voting process. Although this is occurring in states all over the country, there are disputes occurring in swing states especially due in part to the potential weight that their vote could hold. Whether the claims hold legitimacy is not clear cut and many have turned to the law to rectify the issues they see in the voting process.

One state that is experiencing legal trouble is Texas, where voting-rights advocates have pointed out to state officials that “several counties opened the state’s early voting period October 24^th with incorrect signs indicating that voters must show photo identification to cast a ballot” (Kendall). This was a problem to many given that earlier in August a court had determined that there would be exceptions made for people that had sufficient reasoning for not obtaining a form of government issued identification. The signs that were mistaken put out at these polling sites meant that there would be some residents who wouldn’t be able to cast their ballot. Many polling sites claimed this to be an oversight and that the placement of the signs were not intentional. With that said it is still unlawful and since shedding light on the issue the signs have been fixed.

Another state that has seen questions of voting rights was Ohio. State Democrats and a pair of homeless advocacy groups appealed to the Supreme Court in an effort to stop state requirements which they believe could lead to absentee and provisional ballots being rejected if voters make mistakes on the forms. If this problem goes unaddressed it is predicted that thousands of Ohio ballots will be disallowed. “Justice Elena Kagan has asked the state to submit a legal response by Monday” (Kendall). Secretary of State Jon Husted disagreed with the Democrats initiative saying that allowing these ballots to count would be “injecting chaos” (Husted) into the election. Husted stated that “Election officials need a way to confirm that a person is a qualified, eligible voter before counting a ballot”.

“Arizona Democrats are awaiting an appeals-court ruling on their challenge to a GOP state law that makes it a crime for get-out-the-vote operatives to collect and deliver absentee ballots filled out by voters” (Kendall). Democrats fear that if residents are unable to go out and vote that their votes will not be counted. They are also concerned that a large burden will be placed on neighbors, activists and campaigners who will have to go out and collect ballots for those that cannot get out and vote. A trial judge ruled in favor of the state, the reason being that Arizona has been known to have cases of legitimate voter fraud and ballot tampering.

Being a swing state, Pennsylvania is placed under the microscope when it comes to voting and voter legitimacy. Most recently “A Pennsylvania federal judge will consider a GOP challenge to state rules that say residents are eligible to monitor elections only in the counties in which they reside” (Kendall). Due to the power that Pennsylvania has in the deciding of an election, many Republicans feel that it would be wise to place poll watchers in heavily Democratic urban areas to make sure that elections are conducted fairly. Some people, including Democratic Secretary of the Commonwealth, Pedro Cortes feels that the Republicans could “compromise the fundamental rights of voters actually trying to cast peaceful votes.”

As the election begins to narrow down there is widespread implications of voter fraud and voter rights violations across the country. It is up to courts and lawmakers to ensure that every single American has the right to vote for who they want, it is a fundamental right that this country was founded on.

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

Posted by Nick Mitwasi.

Throughout the years, there has been numerous lawsuits towards Johnson & Johnson for their use of talcum power in their products, specifically baby powder, for women have been suing the company on claims that it is the link to their ovarian cancer. In this year alone, the company was forced to give up $55 million in May to a woman in St. Louis, Missouri and $72 million to another family also in St. Louis. In addition, just a couple of days ago, a woman was awarded $70 million in California against Johnson & Johnson. Yet, in all of these cases J&J has continued to defend that their product is completely safe.

Johnson & Johnson’s Baby Powder has dominated the market in the past, and thus is the main reason as to why it is going to defend its products in the mist of all these lawsuits they are being slammed with. In the first case in which Johnson & Johnson was involved, they were sued by Diane Berg for gross negligence and fraud; she was a frequent user of the product and never was informed that long term use of the product can cause cancer. After she sued, the company offered an “out of court settlement of $1.3 million” (Huffington Post); however, she declined and simply wanted to inform the public through her suing the company that this is something people must be informed about.

The main problem, though, with all these lawsuits is that there is no scientific evidence that the product does indeed cause cancer; it is the fact that Johnson & Johnson are not informing their customers that there is a possibility that their product will do harm. This has been damaging the company’s reputation as more and more lawsuits are being filed to different law firms about the same situation. This is still an ongoing situation and time will only tell to see how Johnson & Johnson reacts to the overflow of negativity towards one of their mainstay products.

Nick is a student at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

http://www.dailymail.co.uk/news/article-3882192/Cancer-patient-contracted-disease-using-Johnson-Johnson-talcum-powder-wins-70million-payout-company.html

http://www.huffingtonpost.com/toby-nwazor/the-talcum-powder-lawsuit_1_b_10609474.html

http://www.bloomberg.com/features/2016-baby-powder-cancer-lawsuits/

Posted by Joe Casey.

In the business world the line to remain ethical and make profit is thin. In the recent months Samsung has toed the line with the ethical standards of business due to their latest smartphone repeatedly catching fire all throughout the world. Samsung acting as swiftly as possible called for a quick recall of 2.5 million units of this phone however, the recall has gone anything but quick.

While Samsung seemed to be gaining ground on Apple in the smartphone business, they have produced their newest phone the Samsung Galaxy Note 7; the issue that has risen is that these phones are beyond unsafe and yet people still seem to be using them even after the initial recall. Due to the recall, Samsung has seemingly alleviated the possibility to be liable for any lawsuits that will come after the recall has been issued but the harm that was done prior to the recall has in estimate, “further dented Samsung’s reputation and shaved as much as $14 billion off its market value” (Times).  One of the many issues that face Samsung is that it seems they have wavered from government recall protocol and instead are trying to “save face” by venturing out on their own and advertising to bring the devices back for a change of battery when the issue is much more complex. The first recall while slow had seemed to stop the issue of their exploding phone as soon as October 1st.

Five days had passed since the recall seemed to fully become effective, until October 6^th when the first report of a replacement phone being defective hits the news. This stream picks back up and again Samsung is forced to stop producing the phone all together making it the largest smart phone recall to date. Finally, on October 11^th “Samsung announces it is stopping all sales of the phone while it investigates the problems.”(BBC). While Samsung at first was able to stay ethical, they decided to find an immediate solution due to the money they would lose and are now dealing with a larger problem all together.

This hit is only the beginning in the repercussions after this will be seen further in the court system yet their ethical standing to act as quickly as possible even though it went against the governments wishes on how to handle the recall was best for their business. Instead of staying unethical and ignoring the problem they chose to deal with it head on.

Joe is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2019.

Sources:

http://www.bbc.com/news/technology-37615496

Posted Layla Alzahrani.

Embezzlement is money stolen by an unethical person. According to the article, 40 percent of small businesses in the United States will be targeted for average loss of $ 140,000,00.00, but embezzlement is only reported two percent of the time. Most of the embezzlers are trusted and long-term employees or family friends, or relatives. Victims’ trust usually is shattered after embezzlement happened, especially if embezzlers are their friends or relatives. According to forensic psychologists, victims have lack of judgment to discover the perpetrators before embezzlement happens.

It is difficult to discover employees who follow no pattern and offer no outward signs. Embezzlement sometimes is committed by people who do not have previous criminal records and and may have reputations beyond reproach. There are warning signs, however, that can show as evidence of employees’ behavior before the theft is uncovered, such as: enthusiastic employees who ask questions about business processes and procedures; employees who have excessive debt because of divorce or drug abuse; and employees who refuse to take time of their job, and who want to work when no one is around. Usually embezzlers have a hostile attitude if they get questioned about financial transaction.

Moreover, there are three factors must be present before a person can commit fraud; they are need, opportunity, and rationalization. Some examples of need are addiction to drugs, alcohol, and gambling. Rationalization appears when an employee believes that his/her illegal action fits within a personal code of conduct or ethic, which means that an embezzler steals because they see that as situational fraud. However, embezzlement can be discovered if accountants find amounts of expenses that are not consistent with historical norms or budget, documents are missing or incomplete, problems of bank reconciliations, and documents are adjusted without adequate support.

Preventing embezzlement can be difficult because there is no sure-fire method that can prevent it. Some examples that make it difficult to prevent fraud are issuing fictitious checks, invoking products that a company does not need it, issuing cashing checks for return products that not actually returned, forging checks and destroying them, and charging patients more than a duplicate invoice. There are some precautions that clients can take to prevent fraud such as doing an extensive background check before hiring an employee, tracking a person’s checks and verifying them, making bank deposits nightly, reconciling the bank and credit card statements, and requiring vacations. Those handing funds must be closely and routinely monitored in a company to insure that all profit within the practice and not in someone’s pocket.

Layla is a graduate accounting student with a concentration in forensic accounting at the Feliciano School of Business, Montclair State University.

Source:

Tranyor, Robert M. (2016) Embezzlement Could it Really Happen to You?, Audiology Today, Vol. 28. No. 4.

Posted by Xiangni Meng.

There have been at least 16 deaths caused by a ruptured Takata air bag inflator worldwide. The first U.S. death report of a Takata inflator is a 17-year-old high school senior, who died in Texas in a moderate speed crash. The most recent death in the United States was confirmed by U.S. safety regulators. A 50-year-old California woman died in a Honda Civic that was first recalled in 2008 because of a defective airbag.

The problem is that “[t]he defective air bag inflators deploy with too much force sending metal fragments flying.” This accident spurned the search and recall for noncompliant vehicles. This deficiency covers more than 60 million air bags in vehicles from BMW, Ford, Honda, Tesla, Toyota, and 12 other corporations. That is one of every five cars on the road in the U.S. The biggest recall could affect more than 100 million vehicles around the world.

Actually, about 11.4 million inflators in the United States have been fixed, while more than 20 million were left unrepaired. Takata spokesman Jared Levy said the “tragedy underscores the importance of replacing those airbag inflators that have been recalled by automakers.” However, owners can be difficult to find. Even Honda has mailed letters, placed Facebook ads, made telephone calls, and in some instances visited owners, but some owners just refuse to get it repaired. “Safety advocates have called for laws banning the sale of any vehicle until recall repairs are made, or a national requirement that recalls be done before license plates can be renewed.” Spokesman Bryan Thomas said, The U.S. National Highway Traffic Safety Administration (NHTSA) doesn’t have legal authority to order those recalling steps.

A Senate investigation and personal injury litigation have turned up company documents suggesting that Takata executives ignored their own employees and hid the potential danger from Honda, their biggest customer, as well as from U.S. regulators. It is said Takata is seeking a financial investor to help pay for huge liabilities from the world’s biggest auto recall. Also, Takata could face $200 million fine over faulty airbags.

Xiangni is a marketing major at the Stillman School of Business, Seton Hall University, Class of 2017.

Sources:

http://www.nytimes.com/aponline/2016/10/29/business/ap-us-air-bag-danger.html?src=busln

http://fortune.com/2016/10/21/takata-air-bag-deaths/

http://www.bloomberg.com/news/features/2016-06-02/sixty-million-car-bombs-inside-takata-s-air-bag-crisis

Posted by Sarah Velez.

International business relations is a major component of the United States economy. Foreign countries send their ships to the United States to pick up shipments and deliver products. While this global trade relationship is highly beneficial, the challenges that arise as a result of compliance issues and differences in ethical standards have recently been brought to light. The article “Greek Shipping Companies Fined $1.5 Million for Pollution” written by Gene Johnson of the Associated Press, reports a case of a Greek vessel that “deliberately pumped oil-polluted water into the ocean, then repeatedly lied and falsified records in an effort to deceive inspectors with the U.S. Coast Guard.” These illegal actions led to a million and a half dollar fine to be paid by the companies that jointly own Gallia Graeca, the Greek vessel.

In October of 2015, Gallia Graeca arrived in Seattle to pick up a substantial shipment of soybeans. This ship, owned by both Gallia Graeca LTD and Angelakos SA, was routinely inspected by U.S. Coast Guard Petty Officer Daniel Hamilton once it arrived at the port. As reported by Petty Officer Hamilton, the oil was not properly cleaned and it was actually in areas where it should not have been as a result of the poor maintenance of the oil-water separator. A deeper investigation made by the prosecutors showed that the ship had discarded “5,000 gallons of oil-fouled bilge water” (Johnson). In addition to knowingly dumping this substantial amount of oil, the engineers on the ship also presented the U.S. Coast Guard with false records and feigned the functioning of the oil-water separator. According to the U.S. Attorney’s Office, company executives were aware of the entire operation which shows the unethical behavior throughout the company chain.

While the Coast Guard has reported cases of sea pollution, they consider that holding corporations, as well as individuals, criminally liable is “notoriously difficult to detect and prove” (Johnson). Not only were the two companies charged with forging log books and polluting, but other involved individuals were also held accountable and the engineers on board were sentenced to jail time. U.S. District Judge John Coughenour stated that this case “will resonate with other parties in this industry and cause them to pause when they think about creating a corporate culture that encourages deception.”

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

Posted by Lindsey Pena.

In business, ethics are strong guiding principles that aid managers, employees, and investors to correctly conduct business transactions. When ethical matters are disregarded, the end result is fraud, embezzlement, among many other illegal actions. One of these illegal actions is called a Ponzi scheme. Perhaps the most famous Ponzi scheme was devised by Bernie Madoff, a well-respected financier, who conned investors out of an estimated $65 billion. Madoff was caught in December of 2008 and charged with 11 counts of fraud, perjury, theft, and money laundering. He ultimately faced 150 years in prison as a result of his decades long Ponzi scheme.

Because of the magnitude of this Ponzi scheme, eight years later, the consequences are still being addressed. Recently, the estate of Stanley Chais, one of Bernie Madoff’s friends, agreed to pay the victims of Madoff’s Ponzi scheme $277 million to settle claims that insisted Chais profited from the scheme. Irving Picard, a trustee liquidating Madoff’s firm, has recovered more than $11.2 billion for the investors who were conned. They achieved this my suing the banks and offshore accounts that hid the money in addition to investors who profited from the fraud. In the 2009 lawsuit against Chais and his wife, Picard claimed that they “reaped about $1 billion in profit from fake securities transactions at Madoff’s firm.” Chais also reaped rewards through fees that he would earn when he gave his customer’s money to Madoff’s firm. In addition to this, Chais was also sued by the SEC in 2009 because he “steered assets from three investment funds to Madoff, “despite having clear indications Madoff was engaged in fraud.”

Chais, along with five of Madoff’s employees, were not the only ones who received consequences. Thousands of innocent investors trusted Bernie’s reputable, veteran background hoping to make profit from their investments. While reading this article, I could not help but to think about the Kantian ethics which states that a person should evaluate their actions by the consequences if everyone in society acted the same way. Bernie Madoff made the exception for himself when he decided to execute the treacherous plan and the consequences of his actions will cost him the rest of his life.

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

Posted by Enerd Pani.

During the beginning of October, there was a vast change where control of the internet source code was transported from the United States, to what most likely will be the United Nations. The result is that countries not only in Europe, but all over the world can vie for control of the internet. Arguably unscrupulous countries such as Russia, China and Iran can cause issues with human rights violations and can censor areas of the internet in other countries, not only within their own home country. The second issue is that the President did not ask Congress for approval to give a piece of U.S property to overseas forces. The following action has been criticized as going against US interests, and mitigating any form of American supremacy.

Still, some people see this as a necessary step. The National Telecommunications and Information Administration believes the chance of government intrusion to be “extremely remote” (BBC). The issue arises when multiple shareholders with many different ideas on how the internet should be maintained all vie for control of singular entity. These “stakeholders include countries, businesses and groups offering technological expertise” (BBC). One might wonder how such a important function can be put within the control of so many groups with different interests. There has even been calls by Russia and China for the Domain Naming Server to be put under the control “by the United Nations’ International Telecommunication Union” (BBC). The request put forward shows the desires countries with very shady human rights have towards getting control of such a important tool for free speech.

Many groups had argued that a delay on the acquisition should have been placed. The critics of the movement “argue that once the transition takes place it is irreversible, and that it would be prudent to temporarily maintain existing U.S. government authority” (fas 18). It would seem very controversial to transfer over such a valuable asset when there may not be any chance to change a decision. Also questions arise on how the “.mil” and “.gov” domains should be handled. These domains are sole property of the U.S Government, and cannot be used in any other way.

To conclude, the “giveaway” of ICANN is one shrouded in uncertainty. No one can be sure if the new stakeholders of the internet will continue to monitor it ethically. There has been major concern about some countries abusing the power of internet control, but many companies like the NTIA assure that they are looking to “protect U.S consumers, companies, and intellectual properties” (fas 12). It can be argued that ICANN was transferred unethically, though now the deed is done. The future will tell if this move will either effect, or mitigate personal freedoms on the internet.

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

Sources:

https://www.fas.org/sgp/crs/misc/R44022.pdf

http://www.bbc.com/news/technology-37114313

Posted by Kristina Volta.

In light of the recent events of Samsung’s Galaxy Note 7 phones setting on fire, many people have been looking to Apple as an alternative. However, the new news of Apple’s IPhone 7 catching flame has many consumers nervous. The most recent case was when an Australian surf coach, Matt Jones, left his phone under a pair of pants in his car while he taught a lesson. When he returned to his car he found that his car was full of smoke and where his phone was had been burnt up and the pants that had been on top of the phone were on fire. This is concerning for Apple whose stock has dropped .41%. This is going to be a knock to Apple’s popularity, especially after seeing the negative kickback that Samsung has been facing for a similar problem.

Apple has been investigating this report, challenging that he was not at the car when the fire started. Many people are beginning to believe that there is a possibility that Apple’s IPhone 7 has a similar Lithium-ion battery, which can become “unstable” when it’s put in certain situations. There is a chance the phone became too hot wrapped up in the pants in the car and that could have been the reason the phone caught fire.

Even though these claims haven’t been solidified yet, this could still cause a major setback for Apple and their products. Although there haven’t been many claims about Apple phones catching fire, the fear consumers now have could be significantly detrimental to their sales of the IPhone 7. Not to mention, if the case does come out to show that it was the IPhone’s battery that caught fire, Apple will be held liable for it.

When companies put out products their consumers and shareholders are putting faith in the company that they are purchasing a safe good unless otherwise mentioned. Lithium-ion batteries have been known to have issues for other products like “Tesla cars, Boeing jetliners, Hewlett Packard laptops and Hoverboards” as well as other IPhones. There was a case in March of an IPhone 6 bursting into flames on a flight to Hawaii. This is concerning for not only Apple, but also any other company who is or plans to use Lithium-ion batteries. This is a risk these companies are taking considering the clear unpredictability of the safety of these batteries.

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

Sources:

http://fortune.com/2016/10/21/apple-iphone-7-explodes/

http://www.breitbart.com/california/2016/10/21/2nd-fire-apple-iphone-7-threatens-mass-recall/

Posted by Caroline Weeks.

On November 5, 2015 a dam in the Brazilian city of Mariana collapsed, resulting in multiple causalities and irreparable damage to the surrounding cities and ecosystems. In total, nineteen people lost their lives. The collapse also “released a torrent of sludge that washed away villages, displaced hundreds of people, and traveled more than four hundred miles through southeast Brazil’s Rio Doce basin before reaching the Atlantic Ocean.” It is said that this is “believed to be the biggest disaster of its kind anywhere.” The yearlong criminal investigation into the collapse recently ended and has resulted in homicide charges being filed against twenty one people in connection with the disaster. Some of the people charged are “current and former top executives of mining giants Vale SA and BHP Billiton Ltd., and Samarco Mineração SA.” In addition, employees of a consulting firm that performed checkups on the dam were charged with “presenting false stability reports.” This disaster is an example of companies being concerned solely with short run profit maximization and an inherent lack of corporate social responsibility.

The federal prosecutor in Brazil has stated that “the motivation of the homicides was the excessive greed of the companies.” It has been detailed that the victims were killed by the “violent passage of the tailings mud” and that they “had their bodies mutilated and…dispersed across an area of 110 kilometers.” These innocent employees died a cruel and painful death at the hands of corporate greed. Samarco focused on short run profit maximization and did not take into account the effects of their actions. The prosecutor says that there is evidence that Samarco, and its shareholders, were “aware of chronic structural problems” as early as April 2009. If this is true, the company knew about critical problems with the structure for more than 6 years and chose to continually ignore the warnings. The board not only failed to make the facility structurally sound, but responded to these structural issues by “pressuring the company to extract more iron ore.” If the company had simply taken head to these warnings they would’ve prevented the loss of innocent lives, the damage of surrounding communities, and incredibly expensive lawsuits along with a permanently tarnished reputation. These findings show the goal of the company was to maximize profits as quickly as possible. They did not take into account the repercussions of a dam collapse and innocent people paid the price for their greed.

This fatal event also details Samarco’s lack of corporate social responsibility. The company chose to focus on profits and purposely chose to ignore the issues with their facility. The company did not act ethically and they certainly did not take into account the surrounding communities. As a result of the dam collapse, families have lost their homes, and even entire communities have been washed away. Not only have these villages been destroyed, but so has the surrounding ecosystem. The river “is still tainted a rusty red form the sediment” that washed through the river basin after the dam collapsed. If the company had acted ethically, they could’ve saved lives and communities. This disaster is a prime example of executives acting carelessly in the hopes of inflating their bank accounts.

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

Posted by Gurpreet Kaur.

CNN Money released an article on Well Fargo’s employees secretly withdrawing money from customers’ bank account and transferring to new accounts since 2011. The article was published on September 8th of this year and Wells Fargo bank was forced to fire 5,300 employees in Los Angles for setting up accounts for customers. This fraud was taking place without any of the customers’ knowledge. After this fraud, many customers were fumed because their bank accounts were unsafe. The employees’ fraud was unethical and illegal because they were creating credit card accounts without letting their customers know.

Brian Kennedy, a Maryland retiree, was one of the victims and he told CNN Money “he detected an unauthorized Wells Fargo account had been created in his name about a year ago. He asked Wells Fargo about it and the bank closed it.” Wells Fargo’s customers had trust in the bank. The victims of this fraud could have filed for refunds, but it wasn’t necessary because Wells Fargo agreed to refund 5 million dollars to them. The settlement in Los Angles required Wells Fargo to warn their California customers to shut down their unrecognized accounts. The fraud caused the bank to unemployed 5,300 workers over these five years.

Richard Cordray is the director of the Consumer Financial Protection Bureau and he said, “Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses.”  Those employees transferred funds from customers’ accounts without their knowledge to new accounts they created. Customers were upset because they were facing overdraft fees and insufficient fees. Wells Fargo stated, “We regret and take responsibility for any instances where customers may have received a product that they did not request.” Wells Fargo’s market valuation was the highest in America, but the fraud led to lawsuits against Wells Fargo. In May 2015, “Feuer’s office sued Wells Fargo for authorizing accounts” and “after filing the suit, his office received more than 1,000 calls and emails from customers as well as current and former Wells Fargo employees about the allegations.”

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

Posted by Anna Fintor.

Wells Fargo is currently involved in a legal scandal in which it is said to have opened bank accounts and credit cards without the costumer’s consent. According to Reuters, “The U.S. Consumer Financial Protection Bureau and other regulators ordered United States’ third-largest bank by assets to pay $190 million in fines and restitution to settle civil charges.” The scandal has been going on for several years and there were as many as 2 million accounts opened illegally.

Wells Fargo has been known for its “high-pressure” sales culture, which one of my personal friends who has worked in one of the branches can account for. The Bloomberg article I have read describes how anonymous users have been posting cartoonish videos on YouTube presenting the negative work atmosphere at Wells Fargo. The videos show how management pressured and threatened workers that if the unreasonable goals were not met the workers would be let go.  It is suspected that the videos were created by employees as far back as in 2010.

While reading the articles, I remembered one of the discussions from class of how in large corporations top executives can pressure the bottom level workers to commit the illegal activity. One of the YouTube videos shows that bankers received $5 McDonald’s gift cards for opening a new account, while the executives received generous bonuses. In my opinion that’s very unethical and just wrong.

In the recent weeks the CEO, Jhon Stumpf has resigned and Wells Fargo continues to be under investigation. I feel like this situation is going to hurt Wells Fargo not only financially but also create bad reputation. Due to the popularity of social media, the videos will spread to a vast number of the population, including to those who may not be keeping up with the news.

Anna is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2018.

Sources:

https://www.bloomberg.com/gadfly/articles/2016-10-21/psst-regulators-watch-videos-for-bank-scandal-after-wells-fargo

https://www.bloomberg.com/gadfly/articles/2016-10-21/psst-regulators-watch-videos-for-bank-scandal-after-wells-fargon fines and restitution to settle civil charges

http://www.reuters.com/article/us-wells-fargo-accounts-california-idUSKCN12J2O

Posted by Alexa Constantine.

The New York Times on October 11th of this year released the article describing Wells Fargo’s fraud scandal that was brought to the public eye last month. The ethics scandal came to light last month, but the fraud has been going on for years, maybe even a decade with the first report in 2005. Julie Tishkoff in 2005 wrote to the Wells Fargo human resources about how she saw employees setting up sham accounts, forging customer signatures, and the sending out of unsolicited credit cards. Her complaining went on for four years. Tishkoff was not the only employee who was complaining to the internal ethics hotline, the human resources department, and to the managers and supervisors.

In 2011, John G. Stumpf, the board chairman, received at least two letters from Wells Fargo employees describing the illegal activities they have witnessed. Mr. Stumpf became president the year Julie Tishkoff wrote to human resources. In September of this year, Mr. Stumpf testified in front of Congress, twice, stating that, “he and other senior managers only realized in 2013 that they had a big problem on their hands — two years after the bank had started firing people over this issue.” In 2013, Wells Fargo launched the internal investigation within their company for the fraud they realized that was happening. But by then, the prosecutors and regulators caught on and in May of 2015 a lawsuit was filed. The Los Angeles city attorney filed the lawsuit for the creation of unauthorized accounts against Wells Fargo. The case was settled this September of 2016.

After the lawsuit settled, Mary Eshet, spokeswoman for Wells Fargo said, “We have made fundamental changes to help ensure team members are not being pressured to sell products, customers are receiving the right solutions for their financial needs, our customer-focused culture is upheld at all times and that customer satisfaction is high.” And since September 8th, Wells Fargo will pay $185 million in fines for the opening about two million customer accounts and credit cards without authorization. Wells Fargo is taking responsibility for the scandal and is making changes to the company.

The scandal still continues after the settlement. Former employees whose are suing Wells Fargo state that many of the managers at the branch level and the people who heard their ethics complaints are still employed. The employees who complained and brought to light the fraud within the company lost their jobs shortly after they complained. Between 2011 and this year, Wells Fargo terminated the employment of 5,300 workers, “around 10 percent of those worked at the branch manager level or above, according to the bank, but only one — an area president — had a high-level management role.” The whistleblowers lost their jobs while the people who should have acknowledged the fraud kept their jobs. Mr. Stumpf acknowledged the outrage of former employees about how the bank should have heeded what they said were warning and taken action earlier by saying, “We should have done more sooner.” Mr. Stumpf’s answer does not satisfy former employees.

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

Posted by Kayla Caveny.

The United States and Europe both have emissions standards for their vehicles. The standards are in place to limit the amount of pollutants the vehicle may make. However, there is a way to bypass those standards, illegal of course. This certain device is called a “defeat device,” which is any apparatus that unduly reduces the effectiveness of emissions control systems under conditions a vehicle may reasonably be expected to experience.

On September 18, 2015 U.S and European officials accused Volkswagen and Audi of installing these defeat devices within numerous diesel cars made between 2009 and 2015. The U.S. Environmental Protection Agency the cars that were tampered with “included software that circumvents EPA emissions standards for certain air pollutants.” The vehicles that were effected only release the EPA’s emissions standards when the car is actually being tested. The vehicle actually produces nitrogen oxides at up to 40 times the “legal” standard. Because of these vehicles being tampered with over 11 million Volkswagen and Audie’s have now been subject to recall. Volkswagen did admit to not complying with governmental standards. However, the makers of Volkswagen and Audi told the owners of these cars that “this is an emissions issue, your vehicle is safe to drive.”

Volkswagen and Audi’s actions have now caused several lawsuits, especially within the state of Tennessee. Most of these lawsuits are against Volkswagen and many of the dealers within the United States. According to John Willis, a lawsuit in Chattanooga, Tennessee’s Federal Court included seven plaintiffs who sued Volkswagen’s parent company and a Tennessee based dealer for fraudulent concealment and violating Tennessee consumer protection law. They thought they were purchasing “green” vehicles that met or exceeded federal emissions standards.

The plaintiffs believe that once Volkswagen completes a government mandated recall to remove the illegal defeat devices, the cars will not perform as they were designed. In the end Volkswagen has a settlement of 10 billion for vehicle buybacks, lease terminations, and owner compensation, as well as a 2.7 billion dollars towards environmental programs to reduce polluting nitrogen oxides in the atmosphere. Volkswagen must also spend another 2 billion to promote zero-emission vehicles, which is even more than what they had originally planned to spend on the technology.

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

References:

http://www.bbc.com/news/business-34324772

http://www.edmunds.com/car-buying/faq-volkswagen-diesel-emissions-settlement.html

Posted by Michael Larkin.

When one checks into a hotel, one would expect to have their information stored in a company’s database, but one would not expect that database to get compromised. Wyndham Worldwide Corporation was using a property management system that stored customer’s names, addresses, and credit card number. On three separate occasions in 2008 and 2009, Wyndham was hacked and this information was pulled off of over 600,000 accounts. Damage was approximately $10.6 million and the Federal Trade Commission (FTC) brought Wyndham to trial.

Even though Wyndham was the company that got hacked, it was the customers who got hurt and that is why the FTC filed against Wyndham. The FTC argued that the hacks were caused due the very limited security that the management system used. It was found that the credit card numbers could easily be read, passwords were easy to guess, and a firewall was not deployed along with various other issues. Wyndham argued that the FTC had no right to file a suit against them and that the unfairness and deception claims were not sufficiently validated. It was founded that Wyndham didn’t provide a fair system for its customers and the court required the company to change in order to protect its customers. Mainly, Wyndham needs a more comprehensive security program in order to protect account information and also conduct annual information security audits and maintain a safeguard for its servers.

This case was a matter of protection and privacy for the company’s customers. A customer is providing personal information in order to engage in business so Wyndham has a duty to protect that information. Having a higher security will ensure that hackers will not be able to breach the system and steal information. The FTC won the trial, and in doing so, made sure that a company had a high security to protect the customers.

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

Sources:

FTC v. Wyndham Worldwide Corp.

Verdict From: https://www.ftc.gov/news-events/press-releases/2015/12/wyndham-settles-ftc-charges-it-unfairly-placed-consumers-payment

Posted by Michael Larkin.

In a case that has been around for over a decade, Richard Suen will meet in the Nevada Supreme Court for the second time with Las Vegas Sands. This case is about the Las Vegas Sands casino opening up a location in Macau, China. The argument is whether or not Suen had a major role in this transaction to be able to share in the profits that the Sands casino would make.

Macau is the world’s largest gaming market so Sands would be able to share in the profit and attempt to make money. In order to open a location there, Sands would have to have had a license authorized by the Chinese government and business officials. Suen was a Hong Kong businessman who was able to set up these relationships for Sands in order for them to get the license with a payment of $5 million and 2 percent of profits. This is where the case gets tricky as Sands argues that Suen did not have a major influence in setting up these relationships, therefore, the company owes him nothing. Suen argues that if it were not for him, then Sands would have had no chance of getting the Macau license and because of this, he wants money due to the service he did. Suen filed a lawsuit saying that Las Vegas Sands owes him $115 million. Going back to 2008, Suen won $43.8 million dollars and later in 2010, he won another $70 million. Now continuing to the present, Las Vegas Sands is fighting these awards again in the Supreme Court.

Sands’ biggest argument is that there is a lack of evidence in the previous trials. What has been proven, however, is that there were cases where Sands’ executives recognized Suen and the work that he did. It appears that Suen does have the right to receive some payment, but all of it is the real question. Las Vegas Sands was trying to expand their locations to one the biggest gaming area of the world, but because they disregarded someone who helped, they have been facing a long-run issue.

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

Posted by Joseph Papandrea.

All different opinions are being thrown around in this case between Apple and the Federal Government. Syed Farook’s phone is what the Federal Government wants to access, due to his previous activity. Farrook killed 14 people during the San Bernardino attack. His relations to ISIS is why the government wants to access his phone. The judge decided to side with Apple in not letting the Fed’s access Farrok’s phone. Apple’s argument not to unlock this phone is because it affects everyone who owns iPhones. “Apple’s lawyers argue that the government’s demands would ultimately make iPhones less safe”(Riley). Apple being able to unlock this phone would make it less safe because phones could fall into the wrong hands. Apple in the past has helped the law enforcement in a drug dealer case. In this case it is much more serious and dangerous for society. Judge James Orenstein says there is no way he can force Apple to hack and access the phone.

The Federal Government holding this phone and stressing about this case does not make sense. There has to be a way the government can hack into the phone themselves, but do not want to reveal that power. If they are able to do that without the help of Apple that could also put a lot of people in danger.

Both Apple and the Federal Government are making a lot of things difficult. Apple was faced with a big decision about whether they were going to help access Farrok’s phone. If Apple accesses the phone, it can help the government in many ways. Their view on it though is that it affects every iPhone owner. Apple’s power to access one phone will give the government access all. A lot of people would side with Apple for fear of their own privacy, but others will argue and say that it will benefit the government because there can be evidence leading to ISIS. Apple decision is probably what is best for the company. Apple wants to stay loyal to its customers and do not want to lose income. People knowing that Apple is able to unlock a phone so easy is where customers lose trust with the company.

In conclusion, both Apple and the Federal Government are stuck between what is morally right. Apple is doing what is best for the company, because if the technology falls into the wrong hands it will bring the company down. I believe the Federal Government must have someone who can find a way to access this phone., because they have the technology already and are looking for a means to protect that secret. They can listen in on anything. In my opinion Apple is not wrong for not wanting to unlock the phone, because they are only protecting the company.

Joseph is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2019.

Posted by Dalton Soffer.

Erin Andrews, a sportscaster who has worked for ESPN and currently for FOX, was recently awarded $55 million by a Nashville jury for her civil lawsuit against a Nashville, Tennessee hotel owner and her stalker Michael David Barrett. In 2008 Barrett used a hacksaw to tamper with Andrews’ peephole and secretly video taped her while she was undressed. The video was later released on the internet, and it turned in to a nightmare for Andrews. Her privacy was taken from her and she was publicly humiliated after the video surfaced. Andrews gave an emotional testimony and sent out an emotional post on twitter saying the support she has received throughout the whole process has helped her fight to hold those accountable for whose job it is to protect everyone’s security, safety, and privacy.

Andrews originally sought $75 million in her suit however the court settled for $20 million less than that. The jury found the stalker, Barrett, was 51% at fault and was ordered to pay out $28 million, while the West End Hotel Partners, which owns and operates that Nashville Marriott at Vanderbilt University, was found to be 49 percent at fault and asked to pay out more than $26 million. The West End Hotel Partners has said that Barrett is solely responsible for his criminal actions.

In my opinion, I feel like the settlement amount was fair but I do not feel that it was properly divided between the guilty sides. Barrett was more at fault than 51%, I would say he was more like 75% at fault in this and should be ordered to pay more of the settlement.

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

Posted by Joseph Papandrea.

Chipotle is a company that has had a rough year due to people getting sick from eating at the popular fast-food chain. Steve Ells and Monty Moran, two executives who share the job as CEO, were affected when people started getting sick. Just before that outbreak, the company’s stock reached an all-time high. It was going for $758 a share, but once people started getting sick it was down to a little over $507 a share. Both Ells and Moran brought in around $13.8 million each, with the based salaries increasing by just over $100,000. The outbreak of this health crisis hurt Chipotle’s sales and had a huge impact on their image. For this to happen during a time where stocks and sales were up is tragic. The company did the right thing by temporarily closing their restaurants for the safety of society. The company had to sit down and figure out what was causing this health crisis.

This was the first time the company had a decrease since opening 10 years ago. The company took in only $68 million in profit, which reflected a 44% drop. Things like this are going to happen to companies. A company that is very successful has its down falls. Chipotle did the right thing by closing temporarily. Getting their image back from this crisis will be be tough. The focus for the company should be getting the trust back from their customers. We know this breakout was called E.coli, but the cause was never determined.

The best thing the company could do is advertise to get the trust back. The customers should always come first and their satisfaction should as well. The company still did fairly well even when the health issue broke out. This is an eye opening situation for all businesses, that even though there is a downfall they could always bounce back and get the customers trust back. Customers were hospitalized, and it is best that Chipotle is able to prevent that from happening again.

Joseph is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2019.

Posted by Peyton Adams.

Avery was wrongly convicted for strangling Maryetta Griffin.  According to sources, Avery did not admit to the crime, and if he did, it was a forced confession.  However, the jury did not believe him.

The prosecution was able to sway the jury, which caused Mr. Avery to go to jail for SIX years. His image was severely damaged; he lost touch with his children and grandchildren due to being wrongfully convicted.

New DNA evidence surfaced proving that Avery was not the murderer of Maryetta Griffin.  Instead, the DNA testing was linked to Walter Ellis, a serial killer.  Avery was unjustly incriminated by the Milwaukee Police and Avery’s accusations of him not confessing, or confessing unwillingly were proved correct.

The police in this case, therefore, destroyed a man’s life by making up incriminating statements.  Avery lost touch with loved ones; his image was attacked; and he was ONLY awarded $1M.

John Stainthorp with Peoples Law Office in Chicago said, “If you think about it, six years while you’re in prison, you can’t get up when you want, you can’t see the people you want, go to bed when you want, read what you want.”  His life was ruined due to the fact that the police did not do the correct investigation to make sure that they had accused the correct man.

Mr. Avery was released after six years, but his life will never be the same AGAIN!  The Milwaukee Police should be questioned for the accusations they made in court against the plaintiff.

Peyton is a marketing major with minors in business law and nonprofit studies at the Stillman School of Business, Seton Hall University, Class of 2019.

Posted by Peyton Adams.

The Fourth and Fourteenth Amendment have been overlooked by authorities many times in the past.  The Martinez vs Denver Police case is yet another time this has occurred.

The Denver police forcefully entered the Martinez house on January 27, 2009.  Instead of allowing Mr. Martinez to fully open the door to determine why the District 1 Special Crime Attack Team (SCAT) was at his door, SCAT forced their way into the house, without a warrant, after receiving information about this home being that of a drug dealer.  This Crime Team failed to realize that a new family had taken over the home since the tip was received.

The Denver police were apparently working on “stale information about the former tenants presumably being into drugs and prostitution and some bad stuff.”  The police failed to do their background checks; failed to do some investigation; failed to show any respect; and, failed to handle the situation in a proper manner.  Instead, the police asserted their power, entered the house, abused their power, and assaulted a family of a mariachi band.

The Martinez family were wrongly accused, but does the Denver police care? The Denver police instead ignored it and didn’t punish anyone on this raid.  They merely overlooked the fact that their team did not do their job.

The jury, however, came to a conclusion.  The Martinez family sued on two accounts: one, for excessive force, and two, for wrongful prosecution.  The jury did not see enough information to determine if the officers entered the house and abused their power, although there were broken windows and injuries sustained by the family.  Nonetheless, the jury found that the Martinez family was wrongfully prosecuted and awarded the Martinez family a monetary value of $1.8 million.

The officers planned on appealing the case.

Peyton is a marketing major with a minor in nonprofit studies and business law at the Stillman School of Business, Seton Hall University, Class of 2019.

The President signed into law a bill passed by Congress banning U.S. imports of “fish caught by slaves in Southeast Asia, gold mined by children in Africa, and garments sewn by abused women in Bangladesh.” The law closes a loophole in an 85-year-old tariff law which allowed these products to be sold.

Due to high demand of certain products, the previous law allowed these goods to be sold in the U.S. regardless if they were produced by slave labor. Sen. Sherrod Brown has pressed U.S. Customs to make sure the law is enforced.  He said, “It’s embarrassing that for 85 years, the United States let products made with forced labor into this country, and closing this loophole gives the U.S. an important tool to fight global slavery.”

A district court judge has ordered Apple to unlock a cell phone used by one of the shooters in the California massacre. Apple is fighting the order, claiming that doing so could make it easier to for anyone to hack into phones.

Apple has secret keys that can open up the software that it will not give to the FBI. The FBI also wants Apple to create a program that will permit it to hack into phones at anytime. The problem lies with a toggle in “Settings” that will make the phone delete all information on it if someone fails to put in the right passcode more than 10 times. This would make it impossible for the FBI to use a program that can guess random codes.

The case has Fourth Amendment implications for various reasons, including conscripting a private entity to become a government agent.

GM will recall 200,000 Saab and Saturn cars replace Takata airbags. The airbags have been know to deploy with too much force, causing metal shrapnel to hit the driver and passengers. 10 people have died and 139 have been hurt, as a result.

A great legal mind and a humble servant of God . . . 

Eternal rest grant unto him, O Lord. And let the perpetual light shine upon him.

And may the souls of all the faithful departed, through the mercy of God, rest in peace. Amen.

Fidelium animae, per misericordiam Dei, requiescant in pace. Amen.

Posted by Sheyenne Hurt-Lewis.

General Motors created millions of vehicles with defective ignition switches. This defect is linked to more than 100 deaths and 200 reported injuries. Many lawsuits have arisen from these defective switches which makes General Motors likely to face a large sum of punitive damages which, “could amount to millions, if not billions of dollars,” as stated by Judge Gerber. Punitive damages are those intended to punish the wrongdoer and deter others from similar wrongdoing. “GM had sought to block plaintiffs, including those suing for personal injury or wrongful death, from making punitive damages claims.” The recent defects ignited numerous other complaints of other GM cars recalled in 2014 that were “equipped with a faulty ignition switch that can slip out of the run position and disable safety features including air bags.” The effects of these defects have resulted in numerous injuries and lost lives.

Robert Hillard is representing nearly 1,500 plaintiffs suing GM for the injuries and deaths that are tied to the defective ignition switch. Hillard is confident that his clients are capable of being awarded the punitive damages they are seeking. GM has already spent $575 million to settle Hillard’s cases but there are still a large number of cases that remain unsettled. In September, GM agreed to pay nearly $900 million to settle a case similar to this. In addition to this payment, they were also forced to pay a $35 million fine for failing to report the defect themselves when they were first made aware of it. The company created a compensation fund of $625 million for victims.

GM attempted to restructure, and split into “New GM” and “Old GM.” Old GM kept all liabilities but agreed to be held responsible for “future product-liability cases involving other vehicles.” Judge Gerber wrote, “New GM may be held responsible, on claims for both compensatory and punitive damages, for its own knowledge and conduct” on the basis that workers were aware of the defective switch and related accident claims. However, it was made clear by Judge Gerber that punitive damages can only be sought against New GM if and only if it’s solely on the basis of the conduct or knowledge of New GM.

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

Posted by Sheyenne Hurt-Lewis.

Customer reviews are extremely important to the reputation of a business. In today’s technological era, it is becoming imperative for businesses to manage their online reputation though social media and other outlets. Reviewing sites such as Yelp, Twitter, and Facebook can be used as means of reforming and promoting businesses. Dan Simons, a restauranteur in the Washington area expressed the importance of customer feedback by saying, “You could open a business and do everything right, but if you’re unaware of these social media you well perish. Social media can take a business and put a bullet in it.” Positive reviews generate business but the impact of negative reviews has a greater impact on businesses than one may think. The best way to keep a healthy reputation for your business is to continue providing satisfactory goods and services to consumers, and ensure that negative experiences are at a minimum, and addressed promptly if they must occur.

Monitoring what is being said about your business is the first step in ensuring that your businesses name rings satisfaction. One may do this by simply using one of the many available online resources to search yourself and tune into the varying customer opinions. Technology even goes as far as alerting a business person when the name of their business is mentioned on a social media network. Managing reviews is the next step in guaranteeing a good name for your business. Thanking customers who left good feedback and inviting them to come again is a good way to keep the customers satisfied and returning. Addressing negative reviews in a professional manner with intentions to “win back the customer” is another way to improve the business environment. It is more than likely that new customers will look at these pages before deciding whether to visit or purchase a product. Businesspeople should “try to put yourself in the customer’s place” and make certain that they are doing their very best to make sure every customer leaves pleased and willing to return.

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

Posted by Shakil Rahman.

Americans pride themselves on the idea that their country is the land of the free, where people of different parts of the world could have the equal opportunity to live as they wish, pray freely, and be free to live without being persecuted for their beliefs. It is stated in the constitution and laws are created to make sure people’s rights are not infringed upon or people are discrimination for their beliefs. But there are times when the people seem to be discriminated against because of their beliefs and it spills into the national spotlight.

Abercrombie & Fitch are multimillion dollars clothing store and in one of their stores a Muslim woman named Samantha Elauf applied for a job but she was rejected. When inquired about why she was being rejected, the company replied that the company’s dress code is “classic East Coast collegiate style” and since she wore head scarf, a headwear named Hijab that Muslim women wear, which went against the dress code, she was not hired. Ms.Elauf filed a discrimination lawsuit against Abercrombie & Fitch and the case went to the Supreme Court after being going through trial court and appeals court. The defendant claimed that since the plaintiff did not specifically state that the head scarf was worn for religious reasons they did not discriminate the plaintiff. The Supreme Court justices voted 8-1 for the plaintiff stating that the company should have understood that the head scarf had a religious significance, since it is of common knowledge and therefore the plaintiff was being discriminated and that is prohibited by the Title VII of the Civil Rights Act of 1964.

The lawsuit against the company is based around the claim that the company rejected the applicant’s application for a job due to dress code violations knowing that it had religious significance. The reasoning given by the company was that the applicant did not specifically ask for religious accommodation, therefore there was no discrimination. While it is true that the applicant did not request religious accommodation, head scarves are commonly used for religious reasons in various religions and being ignorant of the fact is not valid argument. Therefore, when the company rejected Ms.Elauf’s application due to her wearing a head scarf, they were discriminating her based on her religious practices. Being ignorant of law is not sufficient excuse either, since the company is supposed to know the laws of the land it is conducting its business in.

In the modern world where globalization has brought the world, and the business world, laws are created to make sure that people are not discriminated for their personal life choices. But sometimes the laws are not interpreted in the same manner by people. For instance, for this lawsuit, the trial court granted the Plaintiff $20000 for the lawsuit, but the appeals court saw the same case and decided that there were no signs of discrimination and overturned the ruling, only for the ruling to be overturned by the Supreme Court. Interpretation of the law is an important part of the business world that must be done in a prudent manner by the courts but also by companies and individuals in order to avoid situations where a wrongdoing does not occur due to ignorance.

Shakil is a student at the Stillman School of Business, Seton Hall University.

Posted by Kristen Czerepusko.

Recently, General Motors has been facing some lawsuits stemming from defective ignition switches in millions of their vehicles. This defect has led to over 100 deaths and 200 injuries. General Motors has decided to block those who are suing for personal injury and those making punitive damage claims. The defective car models were recalled in 2014 and were further proven to have been equipped with faulty ignition switches. With this defect, the switch can disable safety features including air bags which are vital to safety when operating a vehicle.

To make matters worse, not only did General Motors know they had a defective product, they acknowledged the fact that they mislead regulators about the defect altogether. To cope with this, General Motors invoked upon a “bankruptcy shield” to limit legal exposure on account of their defective switch. Today, there are over 1,385 individuals with death or injury claims who didn’t receive anything from General Motors. The company still faces hundreds of cases that have yet to be settled.

Punitive damages are something that should never be limited when dealing with defective products. There should never be a cap on the amount of money somebody should be allowed to receive from the careless act of a company manufacturing and selling a defective product. What makes it even worse is the fact that General Motors knew their products were defective and did not care enough to try and prevent further injuries. They acted very unethically and inhumanely with how they handled their cases by using a so-called “bankruptcy shield.” If punitive damages were ever to have a limit, companies would not care to try and make their products better but would instead continue to make harmful products. It is not yet clear how much will be awarded to the individuals who have had serious damages or to the loved ones to those who lost their lives but I hope justice is served to all who deserve it in this case.

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

Posted by Shakil Rahman.

For a car to be eligible for sale, it has to pass various tests which are placed in order to make sure that the cars for safe for use by the customers. Certain improvements are made to cars to also make sure that during an accident, there are some protections for the customer inside the car. GM motors ignition switch for the some small cars in the late 1990s and early 2000s were defective and it would shut of the engine during driving and this also prevented from the airbags from deploying during a crash. While GM executives and engineers became aware of the defective ignition switch, they did not attempt to fix the problem as it was assessed to be too costly. But by 2012, it was discovered that the defective switch also prevented the air bags from deploying. GM did not disclose the safety hazard to its customers, which led to over 120 deaths and multiple injuries. In 2014, GM started recalling cars with faulty ignition switch in order to fix it, and after the recall, multiple customers filed lawsuits against GM for the injuries caused due to the defective ignition switch. Lawsuits were filed against GM for false advertising due to not disclosing the defect to customer before buying the product. GM came to a settlement with the customers and agreed to pay $575 Million as compensation and also paid $900 million pay to US.

There are various points of interest in the case that are related to corporate responsibility, advertisements and negligence. The lawsuits that were filed against General Motors were for false advertising, and for injuries caused from malfunctioning products created by General Motors. General Motors car’s ignition switch was faulty and therefore sometimes it would shut down the engine while driving and since the engine shut down, the air bags would not deploy during an accident. So the defective ignition switch would cause the car to shut down while driving and therefore causing car accidents and also the air bags would not be deployed which would lead to the injury from the crash to be amplified. Therefore, General Motors is liable for the injuries caused by the defect, because their product is directly causing the accidents and the injuries that are related to it.

The other portion of the lawsuits was about false advertisement by General Motors about their cars. General Motors did not know about their defective ignition switch before 2005 but decided to not recall the cars after a risk assessment about the expense that will needed to fix the ignition switch. Now even if they decided to stop selling cars with faulty ignition switch, they still did not make an effort to fix the ignition switch for cars that were already sold and also did not warn the customers about the product’s defect. This is not only false advertisement but also negligence because the customers were going to be harmed even after using the product as it was intended to be used. So in conclusion, General Motors was liable for the injuries that were caused by their defective products because they did not inform the customers about the hazard of using the product and also for not attempting to fix a defect that could injure the customers.

The irony of the whole situation is that General Motors decided not to recall the vehicles in 2005 to fix the defect because of the fact that they came to the conclusion that it would too expensive. And now in 2015, their insistence on not recalling the cars back for repairs back in 2005 has led to a federal fine of $900 million and settlements of $575 million for the customers who were injured due to the cars faulty switch.

In the business world, when a company is attempting to look at the direction the company is going they need to see how their actions might affect the company in the long term. While paying for the repairs in 2005 may have been expensive, right now they have paid around $2 billion dollars in fine and are predicted to pay around $2.7 billion for repairing the recalled cars. And on top of that, the break of trust between GM and the customers are surely going to affect the company’s progress and profit.

Shakil is a business student at the Stillman School of Business, Seton Hall University.

Posted by Justin Ihnken.

For many years, especially those who found themselves in an area of economic success, investors who succeeded because they worked with a financial advisor. The roll of the advisor is to assist individuals in asset portfolio management. Investments in both fixed market vehicles, and those driven with equity in the market, have [for the majority of advisors] been the number one and two sources of financial security investments. Both of these categories are tied together with the strategic planning and goal orientations of specific individuals. This theory comes primarily because “your advisor” would allocate dollars in a way that would ultimately secure monies for specific reasons and even more so, provide an aspect of future practical growth.

As time continues, there are still many individuals that work with advisors and insist that they do planning and individual investments on their own. Coming changes in investments will show that there is a driving need for RIA’s (Registered Investment Advisor). Unfortunatly, the traditional fixed income and equity allocations are rather lacking for specific individuals that wish to diversify their portfolios accordingly. A recent study done by Bridget Bearden, director of retirement research at fund industry consultant, Strategic Insight, went as far as to say many folks do not understand that the effects of falling short on their diversification strategy may have a serious impact in the long run.

“The fund industry generally advocates a 10 percent to 20 percent allocation to liquid alternatives for risk mitigation. But many off-the-shelf asset allocation portfolios seem to fall short of that.”

Many RIA’s are of traditional thought, however the coming realization of alternative investments is proving itself to be a more prominent tool to properly advocate clients. An example of a small and “up and coming” firm that shows its mindset is multiple footsteps ahead of the curve would be that of Circled Squared Alternative Investments. Circled Squared was founded in 2014, by Jeffrey Sica, CEO and President of Sica Wealth Management. With the changing times and ability to allocate dollars properly will prove to be a huge outlet for this small powerhouse. In an interview with a Berkshire Hathaway associated press, Sica spoke on his outlook and thoughts on the future for both Circle Square and alternative investments.

Add to this the inescapable conclusion that investors are growing increasingly dissatisfied with the stagnant performance and unacceptable volatility they’re getting from traditional investments like stocks and bonds, and you have a situation in which advisors have fewer and fewer ways to provide value to their clients.

As the stock market continues to be a murky water, few dare to try to understand the various inlets and outlets of the market. With the change of alternative investments slowly phasing themselves into our everyday planning as RIA’s, we must work above and beyond the curve and enable our’ clients and potential clients alike to take advantage of the various opportunities that alternative investments withhold.

**About Circled Square Alternative Investments

“Circle Squared Alternative Investments is a firm devoted to providing independent financial advisors with access to a range of innovative alternative investments previously available only to institutions and ultra-high net-worth investors. The suite of investment products will include real estate, private equity, private credit, natural resources, private placement offerings, entertainment and media.”

Justin is a student at the Stillman School of Business, Seton Hall University.

Sources:

1. D’Allegro, Joe. “A Retirement Riddle Placing $1 Trillion at Risk.” Cnbc.com. CNBC, 10 Nov. 2015. Web. 12 Nov. 2015.

2. Healy, Andrew. “Jeff Sica Launches New Alternative Investments Firm for RIAs; Unlocks Door to ‘Real Economy’.” Business Wire: A Berkshire Hathaway Company. Berkshire

Posted by Jessica Page.

In 2008 and 2009, there was a huge salmonella outbreak traced to peanut butter produced by the Peanut Corporation of America. Nine people died from this incident and 700 were reported ill. The $30 million company was shut down and liquidated after the incident and the CEO, Stewart Parnell, was indicted and prosecuted. In late September, he was sentenced 28 years in prison.

What’s intriguing about this article is the comparison to the GM faulty ignition case. In this particular incident, the defect caused 124 deaths and over 200 injuries. GM has recently settled for $900 million and a three year prosecution agreement. The major difference between the two cases though – indictment of employees. Preet Bharara, one of the best federal prosecutors in Manhattan, explained, “it is unusually difficult to prosecute auto industry executives” and because of the national auto safety laws, there is a call for punishing the corporation as a whole, rather than any one individual.

The main conviction in the salmonella case is the fact that Parnell committed fraud by “knowingly introducing tainted peanut butter paste into interstate commerce.” The fact of the matter is though, there were GM executives who knew about the faulty ignition but failed to report it within the five-day span. The company itself was fined as a corporation for this matter, but there was not specific indictment of GM executives. The real issue at hand is how much harder it is to prosecute auto executives when it comes to cases of product liability. There is currently a bill that many senators are working to pass that would make this process easier and hold executives accountable, if they were knowledgeable of the faulty auto product or provided false statements to consumers, as GM did. This could change future product liability cases within the auto industry and as Senator Blumenthal stated, “one sentence like Parnell’s [within the automotive industry] would change auto safety dramatically and enduringly.”

Jessica is a finance and marketing major at the Stillman School of Business, Seton Hall University, Class of 2016.

Posted by Jessica Page.

General Motors Co. has recently been in the news for its faulty ignition switches in over 2.6 million of the company’s Chevrolet Cobolts and other models that were recalled in 2014. The faulty ignition switches were found to “slip out of the run position and disable features including air bags.” This product defect has been connected to over 100 deaths and over 200 injuries. In September, the U.S. Justice Department brought a criminal case against GM. They agreed to pay $900 million to settle and a $35 million fine for not reporting the defect.

On Monday, Judge Robert Gerber stated that it is possible GM will also face punitive damages to compensate consumers who were harmed by the defect, even though the company sought to block plaintiffs making these claims. Judge Gerber has suggested the punitive damages could amount to billions of dollars if the legal claims are settled or successful. This is partially due to the fact that GM admitted in the original settlement that they “[mislead] regulators about the defective switch and [failed] to recall millions of vehicles.”

Another interesting factor for this case is the bankruptcy restructuring GM went through. In the restructure, they assumed responsibility for “future product-liability cases involving older vehicles.” Since this is so broad, it is likely that GM could be held responsible for claims on both compensatory and punitive damage because of its knowledge of the defect and conduct, but only to the extent that the “New GM” holds. GM has agreed to spend over $500 million to settle these cases and over the next few months, the company is expected to face even more death and injury cases that have yet to be settled.

Jessica is a finance and marketing major at the Stillman School of Business, Seton Hall University, Class of 2016.

Posted by Michael de Andrade.

Volkswagen, one of the European auto giants, admitted to “installing defeat device software in 11 million cars.” These “defeat device software” lets carmakers to change performance settings of the engines before a pollution test. These software would not only switch the performance settings of an engine but also detect when “they were being tested for nitrogen oxide emissions.” The installation of such defeat device rose a huge debate as to whether or not Volkswagen’s “emissions-test trickery” is a violation of European testing rules. The question at hand as described by Paul Willis, top Volkswagen official in Europe, was “whether the software officially constituted a defeat device” under European Union regulations.

The Volkswagen scandal, not only questioned whether Volkswagen is cheating or not, but questioned strongly Europe’s permissive testing practices and the compatibility of American and European auto regulations. This scandal led to Trans-Atlantic trade talks to rapidly increase so the United States and European nations can agree to a mutual auto regulation rules. In Europe “the setting of the engine and of the vehicle’s controls shall be those prescribed by the manufacturer;” making Volkswagen alteration of engine settings not a clear cut violation of European rules. But what makes the debate become such a big issue is that roughly 11 million Volkswagen vehicles carry the software, which about 500,000 are in the United States alone. This can cause Volkswagen to lose billions of dollars despite the penalty enforcements by auto regulators in Europe are very passive and rare.

Volkswagen came out by stating they are “committed [themselves] to fixing the vehicles.” Volkswagen is being comprehensible and trying to fix the issue that they commenced. As stated by Ms. Caudet, “European legislation implies that a vehicle must use the same engine setting during the regulatory emission test and in real driving,” which would make Volkswagen’s actions a violation against European auto regulations. The situations at hand continued to cause tension when the Environmental Protection Agency discovered that Volkswagen used another defeat device in some larger cars and sport utility vehicles that had not previously been implicated” making the cost to fix the issue grow substantially. In the end, the European system is known for its loopholes, for “allowing automakers to test preproduction vehicles that will never be sold” but actions need to be done so auto regulation rules in Europe and the United States, through the Trans-Atlantic agreement, can become more enforced. The “phony system of testing” as described by Gerben-Jan Gerbrandy, a Dutch member of the European Parliament, must be improved and by “simply making the road emission tests easier to pass,” is simply not the right step by the European government.

Michael is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Michael de Andrade.

A threat to European nations, Facebook is being seen as a social media giant who are stripping Europeans from their freedom. Facebook is being accused of “collecting digital information about people who are not its users,” by the Belgian Court’s. Many of the “Continent’s data watchdogs,” including the European Court of Justice, have been giving Facebook and other American technology companies a difficult time for the way they “gain access to, manage and use people’s digital information” because to these European “watchdogs,” Facebook is violating Europe’s strict data protection rules that preserves individual’s privacy to the same power as the “fundamental rights, such as freedom of expression.

The hearing was held in Brussels, Belgium on Monday, November 9th, where Facebook was denied the ability to “collect and store online information from people in Belgium who do not have an account with the social network” stating that Facebook did not have “individuals’ consent to gather the information.” With this decision, the Belgian Court took further action by stating that if Facebook fails to comply with the court’s decision, they’ll receive a “daily fine worth up to $270,000.” Facebook didn’t settle and in response they stated that they have used “cookies for more than five years without facing privacy complaints,” and that they are going to appeal the decision to the Belgian Court of Appeal. As the wait continues, Facebook is being further investigated by five European privacy regulators, which are from Belgium, France, Germany, the Netherlands and Spain, to see whether or not the “company’s new privacy conditions run afoul of their countries’ domestic data protection rules.”

In the end, Facebook is trying to combat these accusations by stating that only the Irish data protection authority has jurisdiction over its new privacy conditions because Facebook’s international headquarters are in Dublin. The position grew vastly in the last month after the European Court of Justice “gave national authorities greater powers over how companies like Facebook and Google store online data.” Facebook will continue to fight for what they believe are their rights, despite the judges’ ruling that the United States do not offer sufficient protection for Europeans if their data was misused by companies or by government agencies. The issue is still recently new and there are many situations yet to be settled.

Michael is a sports management major at the Stillman School of Business, Class of 2018.

Posted by Patrick Osadebe. 

On September 17, 2014, a federal judge sentenced Timothy Cromer, a former Detroit public library official, to 10 years in prison for bribery and conspiracy to commit bribery. He was charged for accepting more than $1.4 million in bribes from contractors of the library.

Timothy Cromer, 46, was the chief administrative and technology officer for the Detroit library from 2006 to 2103. Cromer helped James Henley set up a company called “Core Consulting and Professional Services.” Cromer then made it possible for the company to win the bid to provide information technology in the library.

Cromer also collected kickbacks from another individual who was charged in the indictment. All of these crimes took place between 2008 and 2011. Hearn and Henley both plead guilty to the charges and are currently awaiting sentencing on October 28, 2014.

Patrick is a finance major at Montclair State University, Class of 2016.

The Federal Reserve Bank of New York has come under fire recently with the release of secret tapes supposedly of regulators planning to “go soft” on Goldman Sachs.  Carmen Segarra, a former employee who was assigned to Goldman, claims in a lawsuit that she was under pressure by her superiors to overlook certain findings she made concerning the company.  The Fed eventually fired her allegedly because she refused to comply and change the findings.

In the recordings, one supervisor tells Segarra that basically consumer laws do not apply to certain institutions.  Michael Lewis, best-selling author of “Flash Boys: A Wall Street Revolt,” said after listening to the tapes that, “The Ray Rice video for the financial sector has arrived.”

Segarra’s lawsuit was dismissed for failing to connect her firing with the alleged Goldman disclosures.  The suit is pending appeal.  Nevertheless, the tapes may prompt a Congressional investigation into the matter.  Sen. Elizabeth Warren (D-Mass.), a member of the Senate Banking Committee, stated, “When regulators care more about protecting big banks from accountability than they do about protecting the American people from risky and illegal behavior on Wall Street, it threatens our whole economy.”  She further stated, “Congress must hold oversight hearings on the disturbing issues raised by today’s whistleblower report when it returns in November.”

Under Article I, Section 8 of the United States Constitution, the Congress has the power to “declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water[.]”  The Founders wisely thought that the Legislature is in a better position than the President to carry out the will of the people.  Congressional debate can test the arguments for and against intervention in global problems.  Every two years members of the House are kept in check by the voters, who ought to dictate what American foreign policy should be.

James Madison, commonly referred to as “Father of the Constitution,” once said:

Of all the enemies to public liberty, war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other.  War is the parent of armies; from these proceed debts and taxes; and armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few.  In war, too, the discretionary power of the Executive is extended; its influence in dealing out offices, honors, and emoluments is multiplied; and all the means of seducing the minds are added to those of subduing the force of the people.  The same malignant aspect in republicanism may be traced in the inequality of fortunes and the opportunities of fraud growing out of a state of war, and in the degeneracy of manners and of morals engendered by both.  No nation could reserve its freedom in the midst of continual warfare.

Under the War Powers Resolution, the President can deploy U.S. forces anywhere outside the U.S. for 180 days, provided Congress is informed in writing within 48 hours.  The executive does not need Congress to declare war for the 180 days, however, that time period cannot be extended without congressional authorization.  The President has the authority to introduce American forces into hostilities only when there is:

(1) a declaration of war

(2) specific statutory authorization, or

(3) a national emergency created by attack upon the United States, its territories or possessions, or its armed forces.

The Supreme Court has never reviewed the War Powers Resolution to see if it passes constitutional muster.  Although Congress will say that it has “the power to make all laws necessary and proper for carrying into execution, not only its own powers but also all other powers vested by the Constitution in the Government of the United States, or in any department or officer . . . [,]” the Court, however, has ruled in other cases that one branch of government cannot give power away to another.

Posted by Giancarlo Barrera.

Goldman Sachs was infamously named “The Wolf of Wall Street.”   Goldman created, convinced, and sold mortgage investments that had been designed to fail in the first place.corruption at its finest.  It was corruption at its finest.  Goldman even went as far as betting against the same derivatives it was promoting and selling to their own clientele.  Goldman accepted that it misled investors the wrong way, but did not admit to any scheming or wrongdoing.

In July 2010, Goldman paid an enormous SEC fine of 550 milion dollars.  It was one fine after another.  Then in April 2012, Goldman paid a fine of 22 million dollars for allowing insider trading of non-public information to Goldman’s clients and traders since 2007.  On the link, the story goes into further detail of how much fraud and dishonesty was played under the table and behind the backs of its own clients, who the company was supposed to help invest their money in the first place.

Business is business.

Giancarlo is an economics and finance major at Montclair State University, Class of 2016.

The U.S. Attorney’s Office in Washington D.C. is the first federal office to set up a unit to identify anyone wrongfully convicted of a crime.  The Conviction Integrity Unit will review cases where defendants offer new evidence that was not available at the original trial, such as DNA evidence, to prove their innocence.  Ronald Machen, Jr., the U.S. Attorney of the Washington office said in a statement, “As prosecutors, our goal is not to win convictions, but to do justice.”  Machen further said, “This new unit will work to uncover historical injustices and to make sure that we are doing everything in our power to prevent such tragedies in the future.”

The Conviction Integrity Unit follows similar ones established in state offices.  The modus for the creation of a separate unit to review these cases arises from five convictions that were vacated by the court, including that of Donald Gates, who was convicted in 1982 of rape and murder based on hair evidence.  DNA testing made available in 2009 proved that he was innocent.

The office is working with defense lawyers and the Mid-Atlantic Innocence Project, a non-profit organization which fights wrongful convictions.  Over the last four-years, more than 2,000 files involving hair or fiber evidence have been reviewed by the FBI.

Posted by Arben Bajrami.

Sweatshops, or a workplace with unacceptable working conditions, have remained a problem up until recent years in business and in our economy.  Companies such as Nike and Adidas have workers in foreign countries sewing and producing equipment, apparel, and footwear for very little pay.  It is said that these sweatshop workers receive something called “living wage,” which is only five hundred dollars a month, or just enough money to survive.

Laborers that work in sweatshops are considered highly unethical.  Also, these items cost very little money to make but sell at outrageously high prices in retail stores.  For example, if it costs Nike four dollars and eighty cents to make a shirt, retail stores often mark up the product for eighteen dollars.

At least certain companies, such as Knights Apparel, are making a conscious effort to raise awareness to the horrors of sweatshops. Knights Apparel works closely with a program called Worker Rights Consortium.  They work “‘to combat sweatshops and protect the rights of workers who sew apparel and make other products sold in the United States.’”

Arben is a marketing major at Montclair State University, Class of 2016.

For all those who died in the terrorists attacks upon our soil:

Eternal rest grant unto them, O Lord.  And let the perpetual light shine upon them.  May the souls of all the faithful departed, through the mercy of God, rest in peace.  Amen.

Latine:

Requiem aeternam dona eis, Domine.  Et lux perpetua luceat eis.  Fidelium animae, per misericordiam Dei, requiescant in pace.  Amen.

Posted by Arben Bajrami.

The United States’ government is divided into three branches – the legislative branch, the executive branch, and the judicial branch. The legislative branch is in charge of enacting the laws of the state and handling the money needed for our government to function. The executive branch is responsible for enforcing and implementing the laws and policies made by the legislative branch. Finally, the judicial branch is in charge of interpreting the constitution and handling the controversies that are brought before them.

Our democratic government cannot function with a complete separation of powers or an absolute lack of separation of powers. This is because the powers of the government are interrelated; they are too abstract to be completely separated from on another.

“The term ‘trias politica’ or ‘separation of powers’ was coined by Charles-Louis de Secondat . . . .” To properly promote liberty, these three powers must remain isolated and act independently. The purpose is to make sure there is no concentration of power and that checks and balances are executed properly.

Arben is a marketing major at Montclair State University, Class of 2016.

The Delaware Supreme Court has recently handed a major blow to corporate directors and officers who believe the attorneys employed in their legal department necessarily have to keep everything under wraps.  The Indiana Electrical Workers Pension Trust Fund, a Walmart shareholder, filed suit against the directors and officers claiming they knew their employees may have been engaged in a sweeping bribery operation in Mexico.  But the company argued any communications made by its legal department is privileged and could not be disclosed for the purposes of the lawsuit.

The attorney-client privilege is a sacred one because it allows people to freely discuss their problems openly with their attorneys without fear that what they discuss can be used against them.  Courts, however, in extreme circumstances will allow a party to pierce the privilege and force an attorney to divulge these confidential communications.   Company officers have been abusing the privilege by using company attorneys to bounce-off ideas in order to concoct what may be tantamount to an illegal scheme and then shifting the responsibility to the legal department knowing that any communications have to be kept confidential.

Generally, the attorney-client privilege would have to apply in these situations, unless an employee is brave enough to be a whistle-blower.  But not everyone wants to step-up to the plate in these circumstances because, even though there are laws to protect them, whistleblowers fear the stigma that accompanies it.  Moreover, not all crimes are covered under the whistleblower laws, therefore, some nefarious conduct by corporations will go undetected.

Nevertheless, the Delaware Supreme Court articulated that the owners of the companies are really the shareholders; thus, the attorneys working in the legal department work for the shareholders. The court held the allegations made by plaintiffs Indiana Electrical Workers Pension Trust “‘implicate criminal conduct’” under the Foreign Corrupt Practices Act. The court further held that since the pension fund was a stockholder, the information “‘should be produced by Walmart pursuant to [an] exception to the attorney-client privilege.’”  As a result of the decision, the pension fund can now use the information to decide whether there was any wrongdoing.

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

Posted by Michelle Belvin.

Microsoft Corp. v. United States is a ruling by the United States Court of Appeals for the Second Circuit that a warrant issued under the Stored Communications Act (SCA) cannot compel American companies to produce information stored in servers outside the United States.

The warrant issued directed Microsoft to seize and produce the contents of an e‐mail account, which was believed to be used in the development of narcotics trafficking. Microsoft did deliver the customer’s non‐content information to the government as was asked, and that data was stored in the United States. However, in order for Microsoft to fully comply with the warrant, it would have to obtain customer content that is located in Ireland and then transport it into the United States. “Believing the data in Ireland to be beyond the jurisdiction of the warrant, Microsoft moved to quash the warrant.” The court concluded that Congress did not intend the SCA’s warrant provisions to apply extraterritorially. The Second Circuit “held that the government cannot compel Internet Service Providers (ISPs) to turn over data stored overseas, even with a warrant.”

The SCA also does not authorize a U.S. court to issue and enforce a SCA warrant against a U.S. based service provider for the contents of a customer’s electronic communications stored on servers located outside the United States. Therefore, the court concluded that the district court lacked authority to enforce the warrant against Microsoft.

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

Sources:

http://harvardlawreview.org/2016/12/microsoft-corp-v-united-states/

https://www.justice.gov/opa/blog-entry/file/937006/download

Posted by Ysabel Capitan.

The optimal way to study business law is to see how it is applied in the real world by seeing the myriad of legal battles under the field.  Of course, in a naturally competitive world of corporate entities, lawsuits are common defense mechanism and tactic for upholding the success and integrity of a business.  Perhaps the quintessential legal battle in business law in the technology industry can hail from the lawsuit that Apple had set out against Microsoft in 1988. Technology and business savants in Bill Gates and Steve Jobs would see their lives changed forever with this lawsuit after the latter accused the former of stealing their intellectual property.

Apple sued Microsoft in a copyright dispute for stealing their graphic user interface in their computing devices. The way a user runs a computer today is because of Steve Jobs’ and Apple’s foray into operating systems.  The symbols on the monitor, the mouse icon, the application list, it is because of Apple’s popularization of their operating system.  Bill Gates then made a similar system that we all know as Windows for Microsoft computers by using his own set of icons.  For example, instead of calling them “applications” on a Macintosh computer, Bill Gates called it a “program” to differentiate it just enough on Windows.  Apple, who was infuriated over their work being plagiarized, decided to take matters into court with a lawsuit. According to the New York Times in 1988, “Hoping to protect a key selling point of its Macintosh, Apple Computer Inc. filed a copyright-infringement suit against the Microsoft Corporation and the Hewlett-Packard Company.  Apple said software programs sold by the two companies infringed on copyrights Apple held for the way information is presented and controlled on Macintosh screens.“

Apple argued that while Microsoft did change things slightly, the overall premise was the same thing as copying. Microsoft cleverly argued that they would have to copy them entirely in order for this to be a copyright dispute. According to the Seattle Times, “Apple felt the question was too narrow. Attorney Edward Stead argued that a ‘substantial similarity’ standard taking into account small differences but considering overall resemblance – ‘look and feel’- should be applied. “We think it is important that innovative graphical computer works receive the protection to which they are entitled under the copyright law,” Stead said. But Microsoft attorney Bill Neukom countered, “In order to have a copyright infringement, you have to copy. And we didn’t copy.”

Microsoft did just enough to win the lawsuit and shows how tricky copyright law and the entire field of intellectual property is.  Because this was done in a time where computing was a brand new aspect, the courts believed that Microsoft changed enough in order for them to win the lawsuit. It would be interesting to see how a court ruling would have been done today in a time where technology has so clearly advanced to the public. Regardless, this court cases shows the inherent subjectivity of copyright law and how the entire field is truly in a gray area — and not in black or white.

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

Posted by Marina Tesoriero.

On March 14, federal courts unsealed documents that question the safety of Monsanto’s lead product, Roundup weed killer. Monsanto’s products, including Roundup, are used everywhere, from commercial farms, to the seeds in your backyard. Previous research has found this product and other similar products to be reasonably safe to use. That was until recently, a federal court case in San Francisco disputed that “Roundup’s main ingredient might cause cancer.”

Judge Vince Chhabria is ruling over litigation brought by people who claim to have developed non-Hodgkin’s lymphoma as a result of exposure to glyphosate, the main ingredient found in Roundup (Hakim, Monsanto Weed Killer). Chhabria is also accountable for unsealing documents. In one unsealed email, William F. Heydens, a Monsanto executive allowed other company executives to hire academics to write their name on the research ghostwritten by Monsanto. Monsanto denied having scientists ghostwrite papers and insists glyphosate is not a carcinogen.

Documents attained by federal courts show emails show between Monsanto and federal officials that suggest, “Monsanto had ghostwritten research that was later attributes to academics” (Hakim, Monsanto Weed Killer). These emails also suggested that an officer at the Environmental Protection Agency (EPA) made efforts to abolish negative reviews conducted by the United States Department of Health and Human Services about glyphosate. The documents also show that the safety assessment performed by the EPA caused disagreements within the agency itself. Robin Greenwald, a lawyer at Weitz & Luxenberg, and is also part of the litigation says, “There are superb scientists in the world who would disagree with Monsanto, even the EPA has disagreements within the agency.” These actions leave users uneasy and concerned for their health.

Marina is a business student at the Stillman School of Business, Seton Hall University.

Posted by Chris Jaramillo.

This article from CNBC dated February 1, 2017 states Volkswagen rigged many of their automobiles that have larger diesel engines to cheat and pass emissions tests. Wolfsburg-based Volkswagen has admitted it equipped diesel engines with software that turned the emissions controls off during every day driving which resulted in cars emitting 40 times the US limits of nitrogen oxides. This pollutant is very harmful to people and about 11 million cars worldwide have the deceptive software.

In a settlement Volkswagen has agreed to pay anywhere from $1.2 billion to as much as $4 billion in buybacks and compensation to settle the claims.  About 78,000 Audi’s, Volkswagen’s, and Porsche’s with 3.0-liter diesel engines are involved. The proposed settlement was filed before Judge Charles R. Breyer in US District Court in San Francisco. Previously, about 500,000 smaller 2.0-liter diesel engines were also rigged to cheat and pass emissions tests and Volkswagen agreed on a $15 billion in that settlement. The head of Volkswagen Group of America, Hinrich J Woebcken stated “all of our customers with affected vehicles in the United States will have a resolution available to them.  We will continue to work to earn back the trust of all our stakeholders.”  Owners of older models from 2009-2012 will be offered buybacks or trade-ins because they cannot be fixed to pass the emissions tests. They will also be monetarily compensated according to a statement from the owners’ attorneys.

The US environmental authorities must approve Volkswagens proposed repair and the deal must still get court approval to take effect. Many German investors are suing the company saying that were not informed in a timely manner and Volkswagens shares plunged drastically.  Even though the company’s reputation took a beating sales didn’t stop and they passed Toyota last year to become the world’s largest carmaker by sales.

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

Posted by Nicole M. Encalada.

After Volkswagen faced its emissions scandal in back in 2015, German police have decided to further the criminal investigation by searching Audi’s German headquarters and offices in Ingolstadt. Back in March, Audi had been placed under a fraud investigation in regards to its parent company, Volkswagen. The main goal in this investigation was to determine who was responsible for the corrupt actions, which released an illegal amount of emissions. Moritz Dreschel, Audi spokesperson stated, “Audi is fully cooperating with authorities as we have the highest interest in clarifying matters.” He also went on to say that the raids were not only held in Igoldstadt, but in their plant in Neckarsulm.

Last year, Volkswagen admitted to having equipped its engines with a software that was able to detect when the vehicle itself is being tested. Once detected, emissions controls would shut off. The software would release the solution that would neutralize the emissions, making the high levels undetectable. The result; Volkswagen’s cars would emit 40 times more emission than the EPA allows of nitrogen oxide. It is not only a danger to the environment, but it garners concerns for the public’s health. Unfortunately, over 2 million of the company’s vehicles used this software.

The parent company has since pleaded guilty to all fraud charges in the United States. Volkswagen has now agreed to pay $22 billion in penalties and settlement charges in the U.S. Now, there are six executives facing criminal charges, although prosecutors have not yet released any names of those executives. While top managers have assured the public that they are not responsible for the company’s wrongdoings, investigators are looking for any evidence of criminal behavior or any violations by Audi or its parent company. Both companies are now subject to different penalties as both companies are based in different German jurisdictions.

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

Sources:

https://www.usatoday.com/story/money/cars/2017/03/15/audi-german-headquarters-searched-emissions-probe/99199964/

Posted by Varundeep Singh.

Over the past few years Wells Fargo employees have been secretly scheming customers and breaking rules and crossing ethical boundaries that should not be crossed. Wells Fargo employees were making “dummy accounts,” or best described as fake accounts, to meet their sales quotas and receive bonuses. These accounts were not authorized, but they still somehow made the bank a lot of money because Wells Fargo customers were being charged random fees that were not rightfully associated to them. The employees went as far as making fake emails and fake pin numbers to make these accounts look real and make them work. In the article it states, “The scope of the scandal is shocking. An analysis conducted by a consulting firm hired by Wells Fargo concluded that bank employees opened over 1.5 million deposit accounts that may not have been authorized.” This shows how huge the scandal really was and how far the employees at Wells Fargo went just to meet their quota.

In many cases, the employees would take money out of customers accounts and put it into the fake accounts. This would lead to over draft fees because customers would not have enough money in their account. Wells Fargo was charging these fees and making money off of their customers who did nothing wrong. This dilemma with Wells Fargo shows how corrupt big banks can be and how much stricter they need to be on their employees. 1.5 million fake accounts is a lot of illegal activity and the fact that the company took so long to catch on shows that their management was really weak and careless. This is morally wrong and Wells Fargo should have been fined more than they did get fined.

Wells Fargo’s agreed to pay $185 million in fines and $5 million in refunds to their customers. Many people feel that they were let off too easy because the scope of this scandal was much more humongous and impacted people more. With all these dummy accounts, it is evident that Wells Fargo definitely schemed more than $5 million from customers.

I believe that a big bank such as Wells Fargo should know where they stand and by letting a scandal like this happen; they have shown that they cannot be trusted. In my opinion Wells Fargo should have faced much bigger consequences and by paying such a small amount of money and firing 5300 employees within two years they were still let off very easily. All in all, the Wells Fargo scandal will forever be an example of how big banks cannot be trusted and how there should be stricter regulations towards these banks. Something like this should be avoidable in the future if the right actions are taken now.

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

Posted by Michael J Underkofler.

Immense controversy erupted during the election of 2016 with Donald J. Trump surrounding various issues. However, one of the biggest had to have been the various suits brought up against him regarding ample amounts of students enrolled at the infamous Trump University. “The suits contended that Trump University students had been cheated out of thousands of dollars in tuition through high-pressure sales techniques and false claims about what they would learn.” Trump and his lawyers agreed to a settlement with the student body, but one individual wanted more than just a large dollar amount.

Sherri Simpson, one of the students affected, tried objecting to the $25 million agreement to settle the fraudulent claims, saying she wants Donald tried on “criminal racketeering charges” and would not be satisfied until she received an apology. One of the lawyers, Patrick Coughlin, is quoted saying, “What she is looking for is an apology, and you can’t get that.” Ms. Simpson later responded by saying, “For him to go out there and say, well, ‘I didn’t do anything wrong,’ it’s disgusting.”

The federal judge overseeing the case, Gonzalo P. Curiel, ultimately denied the objection after deeming the amount of money more than fair. Countless other students who would have been deprived of the money if the objection had gone through, not to mention an indefinite timetable. In the article it even describes how the woman’s own lawyers were surprised and disappointed that Ms. Simpson would even bother to object to the settlement.

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

Posted by Griffin Mehl.

Up until recently the idea of a self-driving car has simply been a dream. The whole concept surrounding the thought that a car could be capable of operating on its own was just too much for people to handle. However, over the past several years this notion has changed. People and companies have begun to invest a significant amount of time and money into the exploration and discovery of this technology. As can be imagined, this idea has become less futuristic and more realistic a rivalry has begun to develop between companies trying to create these cars. As can be inferred from the article, two of the big names that have made a statement in this field are both Alphabet (“an American multinational conglomerate founded on October 2, 2015 by the two founders of Google”-Wikipedia) and Uber (“ transportation network company headquartered in San Francisco” –Wikipedia). In fact these companies are currently involved in a lawsuit. A vital person involved in this whole ordeal is “Anthony Levandowski, an engineer who left Waymo and launched self-driving truck company Otto.” For those of you who don’t know Waymo is simply “Google’s self-driving car company.”

As can be gathered from the article, there is currently an issue that has risen between Uber and Alphabet. More specifically Waymo is the one who “brought a lawsuit against the embattled ride-hailing service, alleging that Uber stole the proprietary design of a system built in its vehicles.” This all stems back to Mr. Lavandowski the engineer who used to work at Waymo. While he was under employment there, he decided to download a trove of data and self-driving technology onto his personal computer. This was done that way he could work from anywhere and wouldn’t have to be in the office to access this vital information/technology/drawings/specs for self-driving cars. After working with Waymo for a stint of time Lavandowski decided to split and create his own company “Otto” as I mentioned before. After this divide “Waymo alleged that Levandowski used that information to build his company.” All this would have been missed had it not been for a simple erroneous email that a Waymo employee received. In that email a Vendor thought he was reaching out to Uber, but instead he was mistakenly reaching out to Waymo. The email contained “specs for Otto’s circuit board technology — a central system for the self-driving vehicles — that Waymo alleges looks very similar to the tech it’s developing”. Basically, what Waymo was able to realize was that “Otto” (and the man behind it) which is now under contract by Uber had been using information and technology that was initially created by Waymo.

So, what can be taken away from this? First, if you or even the company you are a part of is working with patented information and critical data (like Waymo was) it is important to make the procedures for sharing that information known. It is very hard to blame someone for violating a procedure if they are not well informed about the rules in the first place. Second, if you or the company you are a part of deal with sensitive materials there are many preventive steps that can be taken in order to avoid that information from getting into others hands. An example of this would be a nondisclosure agreement. By signing one of these, it makes it clear that people who are in contact with classified information know they cannot share that information with anyone else. Finally, the most basic point is to make sure you are sending your messages/emails to the right people. I can’t tell you how many times I have mistakenly sent an email to the wrong person. If there is some classified information in your email that you wouldn’t want anyone but your intended audience to see it wouldn’t hurt to check who it’s going to twice.

Sources:

“Alphabet Inc.” Wikipedia. Wikimedia Foundation, 27 Mar. 2017. Web. 31 Mar. 2017.

“Uber (company).” Wikipedia. Wikimedia Foundation, 29 Mar. 2017. Web. 31 Mar. 2017.

https://www.entrepreneur.com/article/290792

Griffin is a finance major with a minor in accounting and certificate in entrepreneurial studies at the Stillman School of Business, Seton Hall University, Class of 2019.

Posted by Krista Cerpina.

Last week the Department of Homeland Security placed a ban on large electronics during non-stop flights to the US from airports in North Africa and Middle East. The ban forbids passengers to carry on board any electronic devices larger than a cell phone. Many passengers traveling for business are almost “inseparable” from their laptops because many prefer to use travel time for work, so the new ban has been a headache not only for the airlines but also for their customers. Corporate business travelers are the most important block of costumers to the affected airlines, therefore airlines are cleverly defying the ban to keep their customers satisfied.

The travel industries well known airlines such as Emirates, Qatar Airways, Etihad, and Turkish Airlines have all been coming up with creative ways to counter the ban. To minimize the time passengers have to spend apart from their electronic devices, Emirates announces a service on March 23, that will allow the passengers to not check their devices in their luggage, rather the staff members will collect them at the gate. The laptops and other electronic devices will then be packed in secure boxes before storing them in cargo hold. Emirates Airline President Sir Tim Clark spoke to Business Insider and addressed the new operations regarding the ban. “Our aim is to ensure compliance with the new rules, while minimizing disruption to passenger flow and impact on customer experience,” Clark said in a statement. “Our new complimentary service enables passengers, particularly those flying for business, to have the flexibility to use their devices until the last possible moment.”

Other airlines such as Etihad Airways have also been trying to find ways to compromise with their costumers while not disobeying the new ban. “To help guests keep in touch with work, friends and family, we are offering First & Business Class guests free WiFi and iPads on all our US-bound flights, beginning Sunday, April 2,” Etihad said. The airlines and their passengers are still adjusting to the new ban, but according to Tim Clark, the airlines do not have any conclusive data on the long-term effect the laptop ban will have on their business and they do not expect to see any changes until May.

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

Posted by Keith DeYoung.

On Thursday, March 23^rd, The Justice Department ended its antitrust lawsuit against AT&T’s DIRECTV with a settlement. In early November 2016, The Justice Department filed the lawsuit, after they claimed DIRECTV was in talks with three of its rivals, then AT&T, Charter Communications, and Cox Communications. These communications allegedly contained confidential information about whether or not to carry Sports Net LA, the sole provider of Dodger games. Time Warner Cable in a deal believed to be worth 8.35 million dollars, acquired the rights to distribute the channel, and thus the other companies would have to pay Time Warner Cable in order to provide it to their viewers. However, the other cable providers believed that Time Warner Cable was charging too much for its product, and thus did not buy the rights.

In the Justice Department’s view, they broke the law when they allegedly discussed that none of them would buy the channel, in order to make sure that each company would not lose customers if one company bought the channel and the others did not. However, DIRECTV claims they did not communicate with any other company, and reason that no one accepted the channel was solely due to its price.

By allegedly agreeing not to buy the sports channel amongst themselves, and ensuring none of them would lose viewers, the Justice Department argues that the companies were in fact violating antitrust law because they were sharing confidential information amongst themselves in order to seek financial gain and stability. Antitrust laws seek to prevent vast amounts of a certain market from being held in the hands of a few, as well as promotes competition, and an overall free marketplace. This prevents monopolies and total control over a market, which often ends in unfair prices for consumers. Although DIRECTV, AT&T, Charter Communications, and Cox Communications were four different companies at the time, by collaborating and making the agreement not to carry the sports channel, it can be argued that they resembled a trust by acting as a group, and thus prompted the Justice Department to file this suit. However, by settling the case, the Justice Department instead of taking severe legal action, gave AT&T’s DIRECTV an agreement that they do not illegally communicate with other companies over confidential matters.

Now that the case is settled, AT&T who owns DIRECTV can now legally focus on their pending acquisition of Time Warner Cable. Many are critical of this deal and similarly to antitrust law, claim that it is concentrating the power of this particular market into the hands of too few, and thus creating a monopoly. Hopefully, learning legal lessons from their antitrust case, AT&T and DIRECTV can successfully tread the thin line between strategic move, and totally and unethically taking over of an entire market.

Keith is a finance major at the Stillman School of Business, Seton Hall University.

Sources:

https://www.wsj.com/articles/justice-department-settles-antitrust-claim-against-directv-1490312878

https://www.wsj.com/articles/justice-department-sues-directv-for-collusion-during-dodgers-tv-talks-1478105262

Posted by Brendan Finnegan.

Research into driverless cars has boomed over the past few years, which has naturally brought about competition in the market. Two of the major players in this emerging market are Uber and Alphabet, the parent company of Google. Waymo is a subsidiary of Alphabet that works on building technology that will enable cars to be self-driven in the not so distant future. Anthony Levandowski is a prominent engineer who left Waymo to start his own tech firm Otto. This move was not controversial until Uber bought Otto and Levandowski became one of the top engineers in the company.

While working for Waymo, Levandowski had the desire to work out of the office. In order to do this he downloaded blueprints for the systems being created by Waymo. While still at Waymo, no one knew that he did this but once he created Otto, Waymo claimed that he was using their designs to build his company. A Waymo employee recently received an email from a vendor that was meant for Levandowski. The contents of the email, in Waymo’s eyes, made it clear that Otto now owned by Uber was using data that was developed by Waymo.

If business law is followed properly, incidents like this can be easily avoided. Every company has a different protocol on file sharing. Complying with company policy will protect employees from being caught in scandal, especially once one leaves the company. This is especially important if one is going to work for a competitor. However, the burden is not just on the employee. Companies need to assess what information is of utmost importance to their company. Once they identify their most sensitive information the company should make all of their employees who deal with the sensitive information sign non-disclosure agreements, in case their employees part ways, go, and work for a competitor. This will protect the individuals in a company and the corporation itself. The issues between Alphabet and Uber illustrate the need for internal controls when dealing with sensitive material.

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

Posted by Aitana Robinson.

The battle between Spirit and Led Zeppelin continues in the copyright infringement case over “Stairway to Heaven.” This past July 8th the District Court of California- Western Division, found in favor of the defendants, Zeppelin.  On the 15th of March, Attorney Francis Malfoy filled in the Ninth Circuit Court of Appeals representing Michael Skidmore, the Spirit guitarist, in the hope that the appeals court will correct the mistakes of the trial court.

At the heart of the lawsuit is the accusation that Led Zeppelin copies a riff found on Spirit’s song “Taurus,” which proceeded “Stairway to Heaven.”  Skidmore’s appeal is based off the assumed error that “the trial court refused to let the jury hear the full and complete composition of ‘Taurus’ embodied in the sound recordings…”

Skidmore’s attorney complained about the court “making a series of erroneous instructions on the scope of copyright protection[,] . . . limiting plaintiff’s trial time to 10 hours violated due process and was not even close to an adequate about of time to try this case,” and finally, that “the court seriously erred when defining originality.”  Skidmore has asked the 9th Circuit court to reverse the verdict and call for a retrial.

Aitana is a communications major at the School of Communications and the Arts, Seton Hall University, Class of 2019.