Defect Found in Apple Watch

Posted by Marlon Javier Tatis.

As roughly a million Apple customers impatiently wait for their watches to arrive, they now have an answer as to what’s the holdup. Apple claims to have found a defect in the “taptic engine of the watch, which mimics the sensation of being tapped on the wrist, the newspaper said Wednesday.” With record orders already in the smart watch category, Apple has a lot of work to do to keep up supply. They are jumping into a different market aside from cellphones, which they try to dominate.

Ever since the watch was announced last year, millions of customers have been anxiously waiting for the release date to order the device. Hundreds of thousands of people lined up outside Apple stores across the nation waiting to order their watch and be amongst the first to own the next piece of technological innovation.

With Samsung, LG, Motorola and plenty of other top companies already in the smart watch business, Apple has a lot of catching up. They are entering the market a little late, and having delivery of so many watches delayed isn’t the best way to enter a new market.

Marlon is a business administration student with a concentration in finance at Montclair State University, Class of 2016.

AT&T Fires President Aaron Slater Over Racist Text

Posted by Jenifer Canas-Benavides.

What’s worse than saying something racist? Sending something racially inappropriate with not only your personal phone, but also the business work phone. President of AT&T Aaron Slater was sued for sending a racist photo to a co-worker. The co-worker, Knoyme King, is of African descent. The photo was of an African child dancing with a caption that included an offensive term. How was the photo discovered? An assistant was transferring data to a new phone and discovered the images during the transfer.

The company did not take action when they first heard about the incident, which is why the lawsuit will continue to take place. So exactly how much is this lawsuit going for? It is a $100 million discrimination lawsuit, which names Slater, the company, and other members as the defendants. According to King, she was passed over promotions and raises because of her race. She said she was mistreated and attempts were made to get her to leave the company. She is still employed there after 30 years. Not only is Aaron Slate the problem, but so is the company because the failed to report it right away.

Jenifer is a business administration student at Montclair State University, Class of 2017.

Tesla Can Sell Directly to Consumers in NJ

It is now legal for Tesla and other manufacturers of zero-emission cars to sell directly to customers in New Jersey. Tesla’s business model includes selling its battery-driven cars from its boutique stores. One of them is located in Short Hills Mall, Short Hills, NJ.

Customers are free to learn about the vehicles through interactive displays and test drives. Tesla does not want to sell its cars through franchises because they sell mostly gas-powered vehicles. Since most of their revenue comes from gas-powered sales, franchises would not be encouraged to sell zero-emission cars.

About Blog Business Law

Blog Business Law is an educational resource for Business Law students on the university level. Its purpose is to present current issues in business law and provide commentary and opinion. Both graduate and undergraduate students of Seton Hall University, Stillman School of Business, and Montclair State University, Feliciano School of Business post on a wide variety of topics. Some of the areas covered are contracts, business torts, white collar crime, cybercrime, and First Amendment law.

Professor Victor Nicholas A. Metallo, MAE, MBA, MLIS, JD, LLM (canid.) teaches at Seton Hall University, Stillman School of Business, Department of Economics and Legal Studies, and Montclair State University, School of Business, Department of Accounting, Law and Taxation. He developed “Blog Business Law” to inspire students to be aware of the legal environment in business through researching current events and practice writing in a concise manner.

This blog/website is for educational purposes and general information only and not to provide specific legal advice. By using this blog site, you understand that there is no attorney client relationship between you and the blog/website publisher(s). The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. This site is not affiliated with Seton Hall University or Montclair State University.

All rights reserved. © 2014 – 2019

Recent Posts

Posted by Anirudh Ramesh. Companies need to provide high quality services. If companies provide defective or unsatisfactory services, they may be subject to legal action. Tesla is an automotive manufacturer. They specialize in building electrical cars and solar panels. Tesla had failed to provide reliable equipment to Walmart. Thus, the company opened itself to legal […]

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https://www.msn.com/en-us/news/crime/dna-on-cigarette-butt-leads-to-mans-arrest-for-1994-murder-of-26-year-old-mom/ar-AAAM3TE?li=BBnb7Kz

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Posted by Frank Volturo. Over the past two decades, the New England Patriots have been a force to be reckoned with in the NFL. They have won 6 Super Bowls since 2001, all with the same head coach and quarterback. However, as successful as they have been, they have had their fair share of scandals. […]

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Posted by Ethan Atiles. This past week news had broken that Honda would be contacting 106,683 Ridgeline owners about an issue regarding their mid-size pickup truck’s fuel pump. It was made known that contact with various cleaning solutions or other acids could potentially cause a crack in the fuel pump feed port to crack, such […]

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Posted by William Steck. Huawei, a multi-national, Chinese-based telecom company has again found itself in the headlines for the wrong reason. This time the corporation is facing several new lawsuits accusing it of corporate espionage. For years, Huawei has been seen as an industry leader, recently producing some of the first 5G compatible phones, but […]

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Business Law Blogs Archives – Blog Business Law – a resource for business law students

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

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

President Trump blocked the impending merger between Singapore-based, Broadcom, and U.S.-based, Qualcomm, over concerns that it would affect national security. The Committee on Foreign Investment in the United States investigated “the national security implications of the deal last week over concerns that it would hamper U.S. efforts to develop 5G wireless networks and other emerging technologies. CFIUS on Monday recommended that the president veto the deal.”

The President cited “‘credible’” evidence of risk to our national security. We would lose a company with the ingenuity and technology to build the next-generation of wireless networks.

The craze over cryptocurrencies, particularly Bitcoin, calls into question as to how things are valued in this space. This article and video help shed some light on the issue as to whether Bitcoin is a bubble or something with real world value.

Source:

https://www.forbes.com/sites/nathanlewis/2017/12/07/what-is-the-fundamental-value-of-bitcoin/#6527eb19545a

A case involving a fan who claims he was overcharged for tickets to the Seahawks-Broncos game is headed to the NJ Supreme Court. He paid $2000 each for two tickets worth no more than $800.

NJ law protects plaintiff and consumers like him against inflated prices by requiring at least 95% of the tickets to be sold to the general public. According to plaintiff, the NFL only sold 1% in a nationwide lottery.

Plaintiff expects the class action will result in the NFL paying millions to those fans who paid more than the face value of their tickets.

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

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

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

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

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

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

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

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

In class, we discuss the American legal system’s doctrinal foundation of presumption of innocence, based on Blackstone’s formulation, and even deeper, its Biblical roots. A Kansas man was recently released from prison for a crime he did not commit. His brother confessed to killing his niece and then committed suicide.

Kansas has no law helping those who are released from prison.  Other states, such as Texas, would have given him $1.8 million, or $80,000 for every year lost, “not including a yearly compensation afterward.” Colorado would provide $70,000 for each year, and Alabama, $50,000 per year.

As a remedy, it is possible to sue state officials under federal law. Section 1983 of the code in part states, “Every person who … subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law.”

These cases are difficult, but not impossible, to prove. Police have “conditional immunity” from prosecution, and prosecutors have absolute immunity, where a case can go forward if there is evidence of intentional misconduct.

Microsoft Corp. v. United States

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

Stella Liebeck Archives – Blog Business Law – a resource for business law students

Posted by Paul Kikta.

The lawsuit that I decided to evaluate was Liebeck vs. McDonalds. Liebeck vs. McDonalds is a 1994 product liability lawsuit about the hot coffee McDonalds sold. On February 27, 1992, Stella Liebeck, a 79-year old woman from Albuquerque, New Mexico accidently spilled coffee on herself. This coffee was dangerously hot to the point where it caused her third degree burns through her clothes in seconds. She endured burns that covered six percent of her body. Because of this, she recovered for two years after being hospitalized for eight days.

This arrived to higher-level court through a lack of a compromise. At first, Mrs. Liebeck wanted $20,000 to settle the case, but McDonalds refused and countered with $800. That money is not enough for Mrs. Liebeck because it does not cover her medical expenses. When it went to court, the jurors saw her third degree burns, facts that McDonalds served their coffee 30 to 40 degrees Fahrenheit hotter than the industry average, and other testimonies that McDonalds’ coffee have burned hundreds of adults and children. Liebeck’s lawyer, Kenneth Wagner, claimed McDonalds’ coffee way too hot in comparison to other competitors. The average temperature of coffee served is between 135 and 140; however, McDonalds was at 190, which means that burns happen at a significantly faster rate. The plaintiff also learned that “McDonalds had faced over 700 claims by people who had suffered burns from the coffee from 1982-1992. Some of these claims involved full-thickness burns similar to those suffered by Ms. Liebeck” (Welman). After admitting a claim such as that, it looked very good for Mrs. Liebeck to achieve victory.

In her case victory, the jury granted 2.7 million dollars for spilling coffee on herself. After the case ended, many authors published articles about her victory, agreeing or disagreeing with its result. To me, it does not seem fair that she won that much money unless her hospitalization bills and recovery costed that much. She just became a millionaire because of an action that she could have avoided if she paid attention. I think that the lawsuit also took into account for the hundreds of other cases with coffee burns- the lawsuit punished McDonalds to lower their coffee temperate and Mrs. Liebeck was the fortunate one on the other end. Due to many political and public statements on the case, “Ms. Liebeck … entered into a settlement with McDonalds … which the parties agreed would remain secret, has never been revealed to the public despite the fact that the case received extensive public reporting” (Welman). The result of a very controversial case that the public pressured showed that it helps to create more fairs results of the case. Everyone agreed that Liebeck should win but not to the extend she got.

Paul is an economics/ mathematical finance major at the Stillman School of Business, Seton Hall University, Class of 2020.

Source:

https://www.huffingtonpost.com/darryl-s-weiman-md-jd/the-mcdonalds-coffee-case_b_14002362.html

Posted by Leonardo Terzulli.

McDonald’s has recently been involved in a case of a customer, Lynn Gipson, having hot water spill on her at a McDonald’s drive-through. The incident happened in 2012 when a cup’s lid popped off, “spilling the scalding water and causing second-degree burns on Ms. Gipson’s thigh and stomach,” a quote from the court documents. This incident is similar to the 1994 incident when Stella Liebeck sued McDonald’s in the case Liebeck v. McDonald’s Restaurants in which a top to a coffee lid came off in between Liebeck’s legs causing severe burn injuries with resulted in skin grafting. The turnout for this case was Liebeck was awarded $2.86 million. Gipson is alleging that McDonald’s drive-through employees delivered tea and other hot liquid substances in a negligent matter.

Unlike the case the in 1994, McDonald’s is most likely opting to not take the case to court and settle. The turnout for the 1994 case ended in the jury calling for McDonald’s to pay punitive damages. Knowing that they have faced a few court cases already this year, and that they will probably lose this case again, they feel the best choice for them is to just settle with Gipson’s terms. Although the case is still not fully resolved, it is safe to say that McDonald’s is going to lose. Similar to the 1994 case, this is a case that might seem a little obscure but, Lynn Gipson exerted all of her options, taking into account all actions by both parties, and taking the educated step to ensure she was given justice.

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

How I Fought a Cell Phone Ticket and Won!

Posted by Chris Widuta.

Did you ever stop to notice how busy life can be? Either you’re on your way to your parents, maybe going to class that meets twice a week during rush hour, or off to the gym to see your friends. Life got busy really quickly for me and I am still managing to handle the responsibilities that come with it, which includes bills, an apartment, a relationship, and most importantly my future.

On a Wednesday at nine o’clock in the morning, I was headed down the highway doing a steady 20-mile per hour in light traffic. I was headed to meet with my college professor to discuss statistics before the final examination. The entire drive was very smooth with no one cutting me off. At the same time, I thought the slow moving traffic would make for a great time to multitask. Isn’t it true that more and more people getting more done by doing two things at the same time? Walking and talking is more than simply talking, obviously. For me, that Wednesday morning I was working with my television provider to opt-out of the TV service I thought I didn’t need. Cable is expensive and those types of calls are stages of perpetual holds. I was multitasking.

I was just a few feet away from my exit, blinker on, driving with both hands on the wheel, using my cell phone by holding it with my shoulder. The state trooper was already conducting his business that morning in the emergency lane, when he turned and saw me, communicating. I thought nothing of it as I knew I was within the law. I continued to proceed off my exit, slowly accelerating since traffic was clearing up and all of a sudden, red and blue lights jumped right into my rear-view mirror. This trooper was able to do two things at once, too! The amount of time it took him to leave that scene and open another had to be less than 30 seconds, and quite frankly I was impressed.

He pulled me over and asked for all the necessary documents. I always ask why I was pulled over, because I know that by most tickets are written by the discretion of the officer. He stated that I was on my phone and quite frankly I agreed. I was on my phone, and I stated to him that I was not holding it in my hand. I stated that I had both hands on the wheel, and I asked the officer if he saw me holding the wheel with both hands, at the 10 and 2 position. I believed that if he was able to see my head and phone, he must have been able to see both hands, which would be unmistakable, being about chin level from his vantage point.

At this point, the officer started to look like a State Trooper. He had the hat and was very serious, more serious than a local police officer. I knew that he had to be in a bit of a hurry when he gave me my insurance and registration back immediately and held my license. The trooper then stated that it didn’t matter how I was holding the phone, but the fact that I was on my phone was worthy of a ticket and illegal. I didn’t make a fuss of it and proceeded to my stats lesson.

It took me only a few minutes to research the most recent statue description for 39:4-97.3, or “Operation of a motor vehicle while using cell phone.” The statue number was right on the ticket, and a quick Google search pulled up some results. I proceeded to the 215th Legislature because that lead to the most recent additions to the law. I know how important it is to know current law rather than outdated information from the Internet. After reading through the entire statute, I came up for air and formed a judgment. The statute clearly stated in Article 2 Section 1: “The use of wireless telephone . . . device by an operator of a moving vehicle on a public road or highway shall be unlawful except when the telephone is hands-free wireless telephone or the electronic communication device is used hands-free.” That line right there gave me great hope that I was within the law, and hope that my day in court I could prove that. I was mentally preparing for a trial, pro se.

My first appearance in Municipal Court came 11 days later. Due to the fact that the situation was minor, and really only a monetary fine, I knew that the “ball was in my court.” You see, most municipal courts just love these kinds of evenings. People who are “money right and time poor” just plead guilty, pay the fine, and go on with life. The municipal court makes hundreds of thousands of dollars on these court nights, especially since the average fine that night was around $290 a person. These fines are like a tax on a poor decision.

This situation is the exact opposite. I am a student with a part time job, 15 credits, and financially responsible, who has some extra time to save some money. The fine was $200, a pretty large amount, and something I couldn’t lose. I was charged to go in with the prosecutor and plead my case. The first step I took was to sit down with the prosecutor and told him I plead, not guilty. He told me that by pleading not guilty I would request to have a trial, acting pro se. The prosecutor aggressively asked me if I was ready for “trial” as if it was a big and scary event. Of course, I knew this meant a trial so I was prepared. I also told him that I would be sending an “order” for discovery, which was my Constitutional right. He repeated what I said in a joking manner as if I was doing something wrong, but I confirmed that was what I wanted and thanked him for his time. I proceeded to sit down in the court room, second row from the font. I chose the second row because I wanted the judge to see my face and I wanted to be in the right position to hear the lawyers around me and the cases being presented that night. It was important to hear everything that was said because I was going to eventually head to the bench.

I took notes, studied, and remembered what the judge and prosecutor said for over 4 hours before I had the chance to speak. They called my case. The judge read the statute, told me the fine, and asked how I plead. After a moment or two of silence, I clearly stated “not guilty.” I may have been trembling a little on the inside, but it was important that he heard no wavering in my voice. The judge stated that I should prepare for a trial, but included a certain lead that gave me great hopes; the judge said, “If that phone was in your hand, you’re breaking the law.” I thanked him, and listened to him say that I would be getting a trial date. I walked out of the court room almost 5 hours later.

I quickly wrote up an request for the prosecutor. This official letter included my summons number, the date and who I was. In the order, I reminded him that it was my constitutional right for this discovery. I asked for all recordations of the interaction, including but not limited to, officers notes, audio, and dash cam video.

Preparing for the case was a matter of determining what facts were going to be most important to getting the charges dismissed. It was imperative that I used the officer’s comments against statute and the judge’s interpretation of the law. I truly believed that I was within the law, so it was relatively easy to find good reasons to throw this charge out. It was also clear to me that I would be making decisions based on political decisions; to be exact, I realized that the courthouse was making a bet that the State Trooper would be a witness and testify, but more on that later.

Weeks went by and a discovery packet was never sent. It was the day before the trial date and I called the courthouse to speak with the court clerk. I had told her I have not received discovery and asked for a new date. She said that she could not give one and trial will still go on tomorrow. This was actually good news. Because it is my Constitutional right to have discovery, I knew that the court would not judge against me, and at this point, the worst that could happen would be a new trial date. I could live with that.

I appeared to the court house dressed well. I went to the prosecutor’s office to speak with him, mainly on the fact that I have not received discovery. He was surprised to hear that I sent an request and he never received it. I reminded him of his words and what address to use. He also included a very important hint of what was to come. The prosecutor told me that the witness, the trooper, was not at the trial. This means that the only witness that the State has did not show up! I knew my rights under the Confrontation Clause of the 6th Amendment that, “in all criminal prosecutions, the accused shall enjoy the right . . . to be confronted with the witness against him.” These new facts greatly swayed my emotions to believe that I had a chance to get this dismissed that night. I was excited to sit in the court room.

Surrounded by lawyers, I was attentive and engaged. Every poor soul that stood up there took the charge and paid the fine. I prepared and thought of a response for what I would say for every one of the questions that the judge asked. Many other people had trials that day, and most if not all led the accused to lose their case. I did not give up hope, as I knew I had a different tactic. Instead of arguing the law, I planned to argue why the rules of the court should sway the judge to dismiss this case. They called my name and I felt much more confident this time around. All the possible scenarios played through my head already and I was ready.

The judge read the charge as I laid my papers on the table. Before I looked up, the judge quickly and effortlessly offered to cut the fine in half. This was completely arguable, I thought to myself. I said was that I was not granted my Constitutional right because I did not receive discovery. Before he said anything, I handed the officer a copy of the letter I sent to the prosecutor. He read it and asked a few questions about what I was requesting. The judge specifically asked how I knew that the interaction with the officer was recorded. Quite frankly, I assumed that it was recorded, I didn’t know for a fact, but I didn’t let him know that. I answered his question by referring to the fact that this was a state trooper and I believed the State installed video long ago, and how important it is to have video for more important interactions. He proceeded to ask about recordations, which I also requested.

The prosecutor followed up with a statement that the officer, who was their sole witness, was not present. He asked if it would be okay to reschedule for another date. I quickly returned his comment by asking for a dismissal. The judge rebutted with some guilt tripping remarks, including that ever since 9/11, State Troopers are very busy, and that certain arrangements for special occasions are required. I wasn’t going to fall for this guilt trip. It is important for the witness to be present at any trial, especially this one. I responded with the fact that this was a trial and asked if a trial is important enough to request their witness to be present. I also stated that he should have been subpoenaed for the trial. The judge did not respond. I asked to kindly accept my motion for a dismissal.

After what seemed to be an eternity, the judge looked up and said, “Case dismissed.” His words were truly the most relieving and gratifying two words I could have possibly heard. All of the hard work and time I put in to this exercise, not only saved me the $200 fine, but I confirmed to myself that I could stand up to my opponents and be victorious. The best part of this was, I didn’t even have to argue the law, I used the law in my favor and the judge nor could the prosecutor do anything to stop me.

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

Johnny Depp Files $25 Million Lawsuit Against Business Managers for Fraud

Posted by Courtney McCardle.

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

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

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

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

Source:

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

Liebeck v. McDonalds Revisited

Posted by Paul Kikta.

The lawsuit that I decided to evaluate was Liebeck vs. McDonalds. Liebeck vs. McDonalds is a 1994 product liability lawsuit about the hot coffee McDonalds sold. On February 27, 1992, Stella Liebeck, a 79-year old woman from Albuquerque, New Mexico accidently spilled coffee on herself. This coffee was dangerously hot to the point where it caused her third degree burns through her clothes in seconds. She endured burns that covered six percent of her body. Because of this, she recovered for two years after being hospitalized for eight days.

This arrived to higher-level court through a lack of a compromise. At first, Mrs. Liebeck wanted $20,000 to settle the case, but McDonalds refused and countered with $800. That money is not enough for Mrs. Liebeck because it does not cover her medical expenses. When it went to court, the jurors saw her third degree burns, facts that McDonalds served their coffee 30 to 40 degrees Fahrenheit hotter than the industry average, and other testimonies that McDonalds’ coffee have burned hundreds of adults and children. Liebeck’s lawyer, Kenneth Wagner, claimed McDonalds’ coffee way too hot in comparison to other competitors. The average temperature of coffee served is between 135 and 140; however, McDonalds was at 190, which means that burns happen at a significantly faster rate. The plaintiff also learned that “McDonalds had faced over 700 claims by people who had suffered burns from the coffee from 1982-1992. Some of these claims involved full-thickness burns similar to those suffered by Ms. Liebeck” (Welman). After admitting a claim such as that, it looked very good for Mrs. Liebeck to achieve victory.

In her case victory, the jury granted 2.7 million dollars for spilling coffee on herself. After the case ended, many authors published articles about her victory, agreeing or disagreeing with its result. To me, it does not seem fair that she won that much money unless her hospitalization bills and recovery costed that much. She just became a millionaire because of an action that she could have avoided if she paid attention. I think that the lawsuit also took into account for the hundreds of other cases with coffee burns- the lawsuit punished McDonalds to lower their coffee temperate and Mrs. Liebeck was the fortunate one on the other end. Due to many political and public statements on the case, “Ms. Liebeck … entered into a settlement with McDonalds … which the parties agreed would remain secret, has never been revealed to the public despite the fact that the case received extensive public reporting” (Welman). The result of a very controversial case that the public pressured showed that it helps to create more fairs results of the case. Everyone agreed that Liebeck should win but not to the extend she got.

Paul is an economics/ mathematical finance major at the Stillman School of Business, Seton Hall University, Class of 2020.

Source:

https://www.huffingtonpost.com/darryl-s-weiman-md-jd/the-mcdonalds-coffee-case_b_14002362.html