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.

December 6, 2015 · Victor N. Metallo, MAE, MBA, MLIS, JD

Posted by Sydney J. Kpundeh.

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

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

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

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

Posted in Blog Business Law, Student Posts | Tags: Extra Strength Tylenol, Johnson Johnson, Regular Strength Tylenol, sydney | Leave a comment |

The Justice Department may soon reveal the details of a criminal settlement with GM over its failure to recall vehicles with defective ignition switches. The deal will require GM to plead to wire fraud and pay a penalty of approximately $1 billion. “GM is expected to enter a deferred prosecution agreement under which the government will eventually seek to dismiss the case if the company abides by the deal’s terms, according to the people familiar with the matter.”  Corporations, even though they are not natural persons, can be found guilty of crimes and be fined.

The claim is over the ignition switch, which can slip out of the run position and disable airbags, power steering, and brakes. The Justice Department alleged GM failed for over a decade to warn drivers of the safety issue even though GM knew about the problem. In one estimate, more that 100 people died and more than 200 were injured as a result of the switch failing.

Posted by Daniel Perez.

The demand for forensic accountants has been growing rapidly in recent years, especially in divorce cases of the ultra-wealthy. In an article published in Forbes in September, Russ Alan Prince cites divorce by the wealthy as being a key area that drives the need to hire forensic accountants. The rationale behind this drive in demand is that the services provided by forensic accountants is best in the market in determining the true economic value of a couple’s financial assets.

In most wealthy divorce cases, spouses often attempt to conceal assets and inaccurately state their income. This foul play is a common practice in the today’s landscape says practicing forensic accounting James DiGabriele:

It’s impossible to appropriately divide marital assets if everyone doesn’t know just what those assets are and what they’re worth. High-net-worth couples generally have a number of types of assets such as investment portfolios, businesses, collectables, partnerships, and the list goes on. Divorce lawyers are not the professionals that are going to be able to determine the value of all the different assets. That’s the job of the forensic accountant.

The fundamental analytical skills used by forensic accountants qualify them as key players in attempting to circumvent tactics used by spouses to hide assets and income. Forensic accountants investigate these divorce cases in their fundamental training and continuing education in order to meet the prevalence of these cases in practice.

Director of Geltrude & Company’s divorce practice, Ellen Rabasca reaffirms just how common it is for spouses to conceal marital assets in order to reduce their financial liability after the divorce: “When assets are held in trusts or partnerships, or located in different jurisdictions, getting a valuation can be complicated. Also, the valuation of retirement plans, deferred compensation arrangements, and life insurance programs all require the expertise of a qualified accountant.” Forensic accountants offer the services of reviewing tax returns, confirming bank balances, tracing financial transactions, and most importantly, maintaining a high degree of professional skepticism and inquiry in order to determine the true value of assets spouses possess.

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

Posted by Kimberly Culcay.

In the article, “What the PCAOB’s new related-party standard means for auditors,” Maria L. Murphy captures the new standard put in place by the Public Company Accounting Oversight Board (PCAOB). The new standard will require auditors to perform specific procedures that are intended to strengthen auditor performance in high-risk areas, such as significant unusual transactions and financial relationships, and transactions with executive officers. The reason behind the new standard is that in the areas of accounting mentioned above there was a lack of guidance on how to report or treat certain transactions.

The Auditing Standard (AS) No. 18 requires auditors to understand the relationships and transactions with related party transactions as if they were someone working in the company. The auditors must also understand and document the process of understanding the relationships and transactions of the company just as the internal controls of the company itself. The auditors not only have to record how they gained understanding of the relationships and transactions but the auditors must properly account for the transactions, perform procedures to test that the company’s related parties and transactions with those parties have been completely and accurately identified, accounted for, and disclosed. Before this standard, there was a vague and unstructured way of handling related party transactions. Related party transactions are a way that a company can commit fraud by transferring property to a related party thereby creating a conflict of interest. In the article, it also states that the AU Section 316, Consideration of Fraud in a Financial Statement Audit, was amended to require specific procedures to identify and evaluate significant unusual transactions. The main point of amending the standards is for the professional auditors to be able to identify procedures quickly if a situation of fraud exists.

I think amending the standards of accounting to include specific procedures to prevent fraud from happening rather than a professional figuring out what to do if fraud is already done is way more useful. I also think that with the incentive to have these procedures in place, it eliminates some of the gray area of accounting. The need for Forensic Accountants has increased ever since the recession in 2008, with all of the fraud that was done due to the lack of strict standards and procedures to be able to detect fraud early. I am currently a graduate student at Montclair State University; I have been striving to complete my combined program in Accounting BS/MS with a Certificate in Forensic Accounting. Personally, I find that in the emerging economy people have learned from the mistakes made in the past with the scandals, fraud and so on. I think it is important to be a Forensic Accountant in order to apply sophisticated set skills in other aspects of accounting and litigation. I think that if you already know how to be an accountant and with some background knowledge on Forensics, then it could be easier to detect some of the common problems that lead to fraud.

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

Reference:  Murphy, Maria L. “What the PCAOB’s New Related-party Standard Means for Auditors.” Journal of Accountancy. 22 July 2014. Web. 20 Oct. 2015. .

Posted by Katherine Gurski.

The Supreme Court had spent an hour debating when a design of clothing becomes eligible to be copyrighted, and this issue is particularly a problem in the cheerleading uniform industry. Varsity Brands Inc., which is a leading producer of cheerleader uniforms, claims that its designs are unique and original to the uniforms. The company sued another leading manufacturer, Star Athletica, for copyright infringement back in 2010. Star Athletica responded by claiming that the striped and zigzag designs were signals to the public that those wearing the uniforms were cheerleaders. Star Athletica accused Varsity of “improperly seeking a century-long copyright monopoly on cheerleader-uniform designs” (Kendall).

Chief Justice John Roberts responded to this argument by giving an example and comparing the issue at hand to a lunchbox. Roberts stated, “The design on a lunchbox doesn’t make the lunchbox a lunchbox. It’s still a lunchbox. But the design on a cheerleading uniform is what makes it a cheerleading uniform, as opposed to a plain dress.” However, from another perspective, Justice Ruth Bader Ginsberg believed the designs to just be “two-dimensional artwork.” The designs are not crucial to the uniforms because they are simply printed on.

Fashion designers support Varsity Brands by stating that copyrights protect creativity. On the other hand, library associations and costume hobbyists support Star by stating that copyrighting extensively for just the appearance of an item could potentially harm creativity and put a limit to expression.

There is no ruling to the issue yet, and one will be expected by the end of June; but a few justices have commented on the potentially lasting consequences that the case could result in. For example, Justice Stephen Breyer stated, “If suddenly in this case we say that dresses are copyrightable, and they are because every one of them has some design, perhaps we’ll double the price of women’s clothes.” Justice Sotomayor also commented on the consequences by stating, “We are now going to use copyright law to kill the knockoff industry.”

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

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

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

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

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

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

Posted by France Jennica Osmann.

As the holidays are approaching, Cyber Monday is the main day of the year where families are out for great deals for Christmas shopping online. A recent article in the San Jose Mercury News stated:

Cyber Monday is not the only day to find good deals online during the holiday season. If you miss an online special, don’t sweat: Chances are that you’ll be able to get a reasonable deal later in the holiday season or even after Christmas. Be aware of sales tax and any other fees. Depending on whether the merchant has an in-state ‘presence,’ it may or may not add sales tax — Amazon does, along with all merchants that have brick-and-mortar stores in California. California residents are supposed to declare any tax-free online purchases on their state tax returns and pay the sales tax, though I’m not sure how many people actually comply with that law.

For those who decided that they would shop on Cyber Monday, they should also be cautious of scams throughout the holidays. And don’t forget to protect yourself when shopping offline. “Credit card scams and hacks are on the rise so, again, check your recent activity frequently during the holiday season report any suspicious activity.”  The author of the article stated, “I was reminded of this the other day when my bank called to tell me that my Visa card was used to buy gas and groceries in Georgia. I haven’t been to Georgia since I got that card, so it probably resulted from a merchant being hacked.”

Finally, as you try to minimize the risk of online shopping scams, don’t forget that all shopping has risks. Personally, I’m just as worried about pickpockets in malls and fender benders in parking lots as I am about online scams.

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

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 Melissa Nomani.

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

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

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

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

The number of lawsuits against Lumber Liquidators continues to grow.

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

Posted by Kyle Gatyas.

The US vendor of Chinese flooring products, Lumber Liquidators, has been facing an array of lawsuits ranging from allegations of stock price affectations to defective products. More recently, the company not only failed to meet California’s CARB-2 safety standards, but plaintiffs have also claimed exceeding levels of formaldehyde in their products. On March 5, 2015, a class action lawsuit was filed by John and Tracie-Linn Tyrrell because of certain symptoms they were experiencing shortly after John Tyrrell’s son-in-law installed the laminate flooring. They claimed they began having shortness of breath, weakness, fatigue, and incessant coughing and sneezing (Gibb). The lawsuit stated, “despite repeated medical tests, his doctors have not been able to identify the cause of these symptoms.” (Gibb).

The report aired on CBS News on 60 Minutes; it was said that the reason for higher levels of formaldehyde in their products was used to keep the cost down (Gibb). “According to an interview done by 60 Minutes, the amount of formaldehyde in the products is a serious threat because the toxins can escape into the air, making homeowners extremely ill.” (Gibb). The class action lawsuit permits representing any consumer who purchased the Chinese flooring products in the last four years and has had any medical complications. Reimbursement for the material and installation will also be included as damages in the lawsuit.

Kyle is currently undeclared at Montclair State University, Class of 2017.

Research proposal posted by Valentina Reyes.

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

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

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

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

Works Cited

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

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

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

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

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

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

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

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

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.