Posted by Steven Doolittle.

Daily fantasy sports are a huge part of the culture in the United States. DraftKings and FanDuel are two of the largest providers of daily fantasy sports and the New York State attorney general on Tuesday ordered those two fantasy sports companies to stop accepting bets from New York residents, due to their games constituting illegal gambling under the current state law. This decision has caused a major problem for the multibillion dollar industry, which has created a demographic of young people and partnerships with professional sports teams. Belief that this decision will continue into other states, a downward spiral for this industry is possible.

In 2006, fantasy sports that involved gambling were exempted from a prohibition against processing online financial wagering, because it was decided the games took more skill than luck. However, now with the offering of huge prizes on more individual sports leads to it being more luck- based, and therrfore, the decision is being questioned. As stated in the article, “The two companies can challenge the attorney general’s order in court. According to Joseph M. Kelly, a professor of business law at the State University College at Buffalo, the state would have to prove that chance is a material factor in fantasy sports, which would make it gambling.” There is a lot the needs to happen to finalize whether it can be classified as illegal.

“The attorney general’s office said daily fantasy sports ‘appears to be creating the same public health and economic problems associated with gambling.’” FanDuel and DraftKings argue that fantasy sports is a game of skill and legal under New York state law. Politicians are saying people are not allowed to play a game they love. It is a debate that will change the world of fantasy sports.

Steven is a student at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Mary Bonatakis.

With a number of lawsuits against Uber and other applications that beckon workers at the touch of an app, Miss Shannon Liss-Riordan has become one of the most important figures in Silicon Valley. Ms.Liss-Riordan is the Boston lawyer who is putting Uber on trial. The Uber case will come down to whether Uber can convince a jury that its classification of drivers as independent contractors and not employees of Uber, is suitable.

Ms.Liss-Riordan is representing drivers who say the car service company has illegally classified their field of work. Uber is claiming employees are considered “freelancers” and not actual Uber employees. A freelancer is someone who is self-employed. Since Uber is not declaring them as employees, they are not required to reimburse drivers for their expenses such as gas, or car damages. Ms.Liss-Riordan is also suing Lyft, Postmates and other applications like Uber. This huge lawsuit is putting Ms.Liss-Riordan in the middle of the debate over the standing of on-demand workers in the United States.

This case has been closely watched and will be continued in trial as early as next year. “A final verdict against Uber in this case could change how the firm does business with its drivers and send shocks through the on-demand economy” (Weber, Silverman). Uber’s lawyers have made it clear that they have no plans of settling and are willing to fight this case all the way to the Supreme Court. The lawyers are arguing that their app is used to connect car owners to people seeking rides and is not in charge of the fleet of drivers.

Ms.Liss-Riordan opposes by saying there is no reason Uber can’t provide its drivers the basic labor protections. “She has logged victories in the field of wage and hour law, bringing employers including Starbucks Corp. and her alma mater, Harvard University, into compliance with state and federal laws governing workers’ pay and employment status. Strategically using each ruling to build the next, her cases have targeted FedEx Corp., cleaning firms, and a strip club called King Arthur’s Lounge over the classification of their workers” (Weber, Silverman). Ms.Liss-Riordan is using all of her resources to prove Uber wrong in their classification of workers. Ms.Liss-Riordan’s goal is to shape the definition of employment with all of our advancements in technology.

Ms.Liss-Riordan doesn’t believe this case will take out Uber completely but just reclassify drivers to get the benefits and reimbursements that they deserve. “The Uber case will be a key test of Ms. Liss-Riordan’s belief that New Deal-era labor laws are adequate to respond to the emergence of an on-demand economy” (Weber, Silverman). Although this case is only going to affect California Uber drivers Ms.Liss-Riordan hopes that this case will expand to the rest of the country.

Mary is an accounting and information technology major at the Stillman School of Business, Seton Hall University, Class of 2018.

Posted by Philip Lacki.

Trump’s tax plan will make it simpler to pay the government. After graduation, I plan on moving to Atlanta, GA and work for Delta Air Lines. Why am I getting into my future? Well because, U.S. companies pay the highest corporate taxes in the world, and as an aviation geek and enthusiast, U.S. Airlines pay some of the highest tax rates in the United States. U.S Airlines pay 38% in taxes, the highest in the industry. These numbers are ridiculous; only alcohol and tobacco companies pay these fees.

Delta Amsterdam, which is a foreign subsidiary based in the Netherlands of course, has a corporate tax rate of 25%. Delta has a large presence and hub at Schiphol Airport in Amsterdam and has brought some parts of its operations into the Netherlands. Donald Trump’s tax plan will help companies such as Delta come back into the United States and compete fairly.

Trump’s 15% tax rate will allow many U.S. based companies to be more competitive, provide more jobs, and operate more efficiently. Rates this high should be against the law and they need to be brought down. This post applies to business law because it applies to the laws of corporations and in this case, these companies aren’t being treated in a lawful way.

Philip is a public relations major at Seton Hall University with a minor in business administration at the Stillman School of Business, Seton Hall University, Class of 2017.

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 Lee Luu.

A federal grand jury indicted a man from Scotland for securities fraud after prosecutors said he manipulated stock prices using the social media application Twitter. James Alan Craig set up fake Twitter accounts in 2013 associated with real market research firms. Craig sent out false Tweets that would make the companies’ stock prices decrease, according to prosecutors. This would affect the shareholders on their purchase of stocks. After this atrocity, he would then buy the companies’ down-trending stock to make a profit when the stocks regained. According to prosecutors, shareholders’ stocks lost more than $1.6 million due to Craig’s illegal act.

The article quotes “This investigation dismantled a stock market manipulation scheme that operated with one goal in mind — to falsely defame a company in order to destroy its stock value for financial gain,” FBI Special Agent in Charge David Johnson said in a statement. Destroying a stock value for financial gain is unethical for it is detrimental to businesses. James Allen Craig committed a security fraud which meant inflating the price of stocks by brokers so that buyers can purchase a stock on the rise. Making profit from this was Craig’s only desire. He was accused of using his girlfriend’s online stock broker account to buy the stocks and sell them for a higher price.

Lee is finance major at the Feliciano School of Business, Montclair State University, Class of 2018.

Posted by Kirill Ivanov.

Tesla, a popular tech firm, is commonly known for its production of electronically-powered cars and batteries. Tesla Motors is among many ventures pioneered by Elon Musk, who has commanded the SpaceX programs as well as many other development projects. Tesla vehicles are not as popular as those produced by Honda or Toyota; while one may occasionally spot a Tesla model out on the road, sightings are few and far between. In order to expand their sales and drive more Tesla vehicles out onto the roads, Tesla Motors initiated a referral program. This referral program, which was based on rewarding customers for purchasing the company’s products, boasted many incentives for potential Tesla buyers as well as current owners.

According to Tesla Motors, anyone who ordered a brand new Tesla Model S before October 31st using a referral link from a current Tesla owner would get $1,000 off the listed purchase price. In return, the current owner providing the referral would receive a $1,000 voucher for a Tesla service center visit or a Tesla accessory. The offer went on to offer a $25,000 discount for a new Tesla Founder Series Model X, which is not available to the public, when a person provides ten referrals. Why was this program illegal? Tesla Motors simply created a way to thank its customers for building the Tesla community while simultaneously reeling in new customers to expand the existing community.

Unfortunately, Tesla’s referral program happened to violate a California State Law, which is quite ironic due to the fact that the company’s headquarters are located in Palo Alto, California. The company’s referral program violated the California Automobile Sales Finance Act, which states the following:

It is unlawful for any seller to induce or attempt to induce any person to enter into a contract subject to this chapter by offering a rebate, discount, commission, or other consideration, contingent upon the happening of a future event, on the condition that the buyer either sells, or gives information or assistance for the purpose leading to a sale by the seller of, the same or related goods.

As a result of its failure to comply with California State Laws, the Tesla Motors referral program did not attract the customers the company had hoped it would. Many businesses use referral programs to benefit loyal customers while simultaneously attracting new ones, but it is extremely important for such business to be aware of local laws. Ignorance on a company’s part can result in catastrophic legal damages, but lucky enough for Tesla the company only received a written warning from the California Department of Motor Vehicles.

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

Source: 

Title: DMV warns Tesla it’s referral program is unlawful

Author: Mark Glover

Published: October 15, 2015

Link: ( http://www.sacbee.com/news/business/article39309483.html )

Posted by Wing Sze Yu.

This article talks about China’s leading online marketplace, Alibaba, being sued by the owner of Gucci, Yves Saint Laurent, Puma, Kering Group, and other fashion brands for selling fake goods. This is not the first time that Alibaba is being complained about selling fake goods. The company states that it is taking action to fight against fake goods on its various websites.

Kering took legal action against Alibaba last, but the case was later dropped. However, Alibaba insisted that “it was enforcing a zero tolerance policy towards fakes.” To help customers to figure out if the products are authentic or not, Alibaba has recently announced a new anti-counterfeit technology. “The firm has announced a tie-up with an Israeli start-up to offer visual markers – similar to but less obtrusive than QR codes – that can be scanned with its Taobao app to prove that goods are genuine. Manufacturers are being invited to add the ‘dotless visual codes’ to their labels to help prove they are authentic.”

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

Posted by Alyssa Cohen.

This year, JPMorgan Chase will settle the charges made against it for the use of illegal debt-collection practices made between 2009 and 2013. The lawsuit follows “a national settlement over similar allegations.” The nation’s largest bank miscalculated the amounts owed by customers, and sold debt to collectors that had been filed improperly against 125,000 Californians. It also obtained default judgment against active military personnel, which is against state and federal laws. While it is not illegal for a bank to attempt to collect overdue debt, the methods used by JPMorgan Chase were unethical and considered illegal by all states, as well as the federal government.

“In addition to other state penalties, Chase will pay $50 million in restitution to customers who were victims of its debt-collection practices.” It also agreed to conditions governing how they can collect or sell consumer debts to outside companies.

It just is not fair to customers who have not been able to notify the bank of their inability to pay. However, I believe that default judgment should be made against customers who were actively avoiding to pay back their debt. Dismissing the lawsuits that were filed improperly was a great sign of the progress that the bank has made to take responsibility for their wrongdoing, as well as not filing “any credit card debt suits against customers” since 2011.

Jumping ahead to filing lawsuits against a bank’s customers will no doubt hurt JPMorgan’s reputation. As with most lawsuits brought by the government, the majority of the fines collected went to the Consumer Financial Protection Bureau in order to help consumers take control of their own financial decisions. Protecting the consumer by educating and enforcing federal laws can make a great difference in the health of our economy.

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

Posted by Amber Piskunov.

GNC is a widely known and trusted nutritional health retailer that is now being sued for allegedly selling products known to contain an illegal amphetamine-like stimulant. The two chemicals are called Picamilon and BMPEA. In addition to selling the illegal drug, GNC clearly intended for it to be hidden because the chemical was not listed under the nutritional facts or ingredients. In today’s world, many people want to see fast results, such as losing weight or gaining muscle. Stimulants can do that by reducing digestion and hunger, while also increasing your energy output. However, it should be known that these drugs are illegal, addictive, and sometimes deadly. GNC didn’t properly label the product, making it dangerous for the consumers without prior knowledge of purchasing. The investigation is being aided by the US Food and Drug Administration; they have announced that the chemical is illegal and should not be sold to consumers. After this was found by the FDA, GNC has taken all products containing the chemical off the shelves for sale.

The lawsuit states that “GNC sells products obtained from third-party vendors that GNC knows or should have known it contained unlawful and potentially unsafe ingredients.” Being a previously trusted 2.6 billion dollar retailer of “nutritional and healthy supplements,” GNC has now publicly hurt their name because of the chemicals found. Consumers are most likely going to be worried about buying products from GNC because of the secret ingredients that were previously hidden. GNC has since denied any knowledge of the drug in their products or on their shelves, and the ones in question have been removed. They have also mentioned they are protected by federal regulations. The company is denying the claims against them and is strongly defending themselves against the lawsuit.

GNC has caused their company to have bad publicity, a decline in stocks, and also a decline in profits. This is a serious lawsuit regarding consumer safety. GNC was not properly selling their product and did not have the best intentions for the well being of the consumers. With that being said, GNC is now trying to gain sales back by promoting lower prices and a better store experience. This is a way for the company to try to stay stable while dealing with the negative attention the lawsuit has brought. The warning made by the FDA stated the product is, “a substance that does not meet the statutory definition of a dietary ingredient.” The laws were not followed when the company decided to not only put the chemicals in the product but to also not have it labeled for consumer knowledge. The public will now be safer with the product being off shelves. GNC ended up losing profits instead of gaining profits because statutory laws were not met.

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

Sources used:

http://www.bidnessetc.com/56383-gnc-holdings-inc-gnc-hits-new-52week-low-whats-instigating-the-crash/

http://money.cnn.com/2015/10/22/news/companies/oregon-ag-lawsuit-gnc/

http://www.bizjournals.com/pittsburgh/blog/the-pulse/2015/11/gnc-targeted-in-5m-class-action-lawsuit.html

Posted by Amber Piskunov.

The well known German car maker, Volkswagen, has made headlines regarding a scandal involving software that cheats diesel emissions testing. This software has affected over 11 million diesel fueled cars creating many lawsuits. The cheating software covered up nitrogen oxide emissions and underestimated greenhouse gas emissions and also fuel consumption. This scandal has created many more lawsuits against the car maker regarding the violations of the US environmental laws. Volkswagen has admitted to installing the software due to the investigation which also involves whistle-blowers of the company. There has been a lack of progress with this lawsuit because there is not a valid explanation as to whom allowed the decision for the cheating software.

The investigation is still ongoing; the EPA has called for the employees of Volkswagen to come forward with any information regarding the matter. They have until November 30th to provide information regarding the truth to the scandal. A statement was made by US law firm Jones Day stating, “Those who come forward before the deadline have nothing to fear from the company in the way of repercussions on the job such as being fired or held liable for damages.” However, this offer is only for those protected by the collective bargaining pact. This is a way for workers to feel less threatened by the scandal and to help the law firm gain information to further reach a decision. Volkswagen has said they have no influence over decisions made by other employees who decide to come forward. Volkswagen is trying to cover up as much information as they can to prevent further actions against them.

Volkswagen has been under the spotlight since the scandal was announced. Following the announcement, Volkswagen has had a drop in sales from all around the world. The company also announced they will begin fixing the emissions problem in January. Not only is Volkswagen beginning to fix the problem, they are also offering gift cards as a form of goodwill in hopes to help maintain their reputation. Compensation to car owners is still being discussed as the lawsuit continues.

The impact this has had on the car maker should have been looked upon before the decision was made to install the software. Volkswagen clearly knew this was an issue and still decided to produce the vehicles in hopes of profits. Not only did they get caught with illegally installing software that goes against the Environmental Protection Agency, they now have a massive lawsuit causing bad publicity and a decline in sales. All in all, Volkswagen has affected many aspects of their company along with the public and environment.

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

http://www.theguardian.com/business/2015/nov/13/volkswagen-car-sales-fall-october-emissions-rigging-scandal

http://www.wsj.com/articles/volkswagen-to-offer-whistleblowers-impunity-on-emissions-cheating-scandal-1447317337