Posted by Derek Diskant.

This article talks about artificial intelligence and the laws and regulations that should be put into place. Different parts of artificial intelligence are creating problems for law and society. For example, it mentions that “Generative AI creates not only new text, code, audio, or video, but problems with deepfakes, plagiarism, and falsehoods presented as convincing facts” (Theodore Claypoole). There are people that don’t understand how to use artificial intelligence responsibly and effectively. Instead, some people abuse it for what it can do and don’t understand the problems with that. The article states, “We need to think differently about AI before determining how to treat it” (Theodore Claypoole). Bad things could happen if people don’t think about AI differently and don’t consider the problems it could cause. Rules and regulations must be put in place to prevent these kinds of things from happening. However, the article mentions that “Passing a law to “restrict artificial intelligence” is a dangerous exercise under current definitions” (Theodore Claypoole). A law that restricts the use of artificial intelligence should not be passed because AI still has so much potential and is very beneficial. The article is trying to say that there needs to be laws and regulations put in place to prevent the problems artificial intelligence can cause and what people use it for instead.

The article talks about different categories of artificial intelligence and how they should be used. It proposes a list of different categories, which is meant to persuade legislators and regulators to consider the potential of artificial intelligence and help them make effective rules and laws. It mentions “Some of these lines blur, and certain technical or social problems are shared across classifications, but thinking of current AI solutions in legally significant functional categories will simplify effective rulemaking” (Theodore Claypoole). This should be taken into consideration because artificial intelligence could have a huge impact on the world. The different categories of artificial intelligence include Automating AI, Generative AI, Physical Action AI, Strategizing AI, Decisioning AI, Personal Identification AI, Differentiating AI, and Military AI. These kinds of artificial intelligence are used for different reasons and are meant to have a positive impact on the world, but in a safe manner. The article also mentions “The above categorizations provide a safer place to start if we wish to regulate a vast shifting technology. By adopting this thinking, AI management becomes less daunting and more effective” (Theodore Claypoole). This proposal is a great place to start if we want artificial intelligence to have a huge impact. It also provides a safe environment and ensures that effective laws are put in place to prevent anything bad from happening.

Overall, I agree that there should be laws and regulations put in place to prevent the problems that artificial intelligence can bring. These problems can include deepfakes, plagiarism, potential harm, taking over or replacing people’s jobs, etc. There are also people that abuse AI and take it for granted instead of using it responsibly. If people don’t use it responsibly, then bad things could happen and there are consequences that follow. However, I also agree that passing a law that restricts the use of artificial intelligence would be a bad idea because AI still has a lot of potential and can positively impact the world. There is still a lot to learn from AI and it can dramatically benefit people’s lives in so many ways. There are different types of AI’s, each having different uses and their own benefits. To stop the problems artificial intelligence can cause, there must be certain laws and regulations put in place to prevent these things from happening, while allowing AI to be used responsibly for any situation. I believe that this would be a great start because it allows us to use AI as a second-hand tool. While these different rules and regulations apply, AI can be used responsibly and as a second-hand tool to help us with any kind of situation. Furthermore, I agree that having effective laws put in place to stop the problems or harm artificial intelligence can bring would provide a safe environment for people to use it responsibly and effectively, and be served as a tool when necessary.

Derek is a finance major at the Stillman School of Business, Seton Hall University, Class of 2025.

Work Cited

Claypoole, Theodore. “AI Classifications for Law and Regulations.” American Bar Association Business Law Section, 15 September 2023, https://businesslawtoday.org/2023/09/ai-classifications-for-law-and-regulation/Links to an external site.

Posted by Nasser Coutinho.

The closure of the McDonalds on Front Street in downtown San Francisco signifies more than just the shutdown of a fast food outlet. It serves as a testament to the transformations occurring in urban areas following the COVID-19 pandemic. Having been in operation for thirty years, this establishment ultimately fell victim to the shifts within its surroundings. According to Scott Rodrick, from Rodrick Management Group “The economics of running a franchised restaurant in San Francisco continue to be a challenge” due to the high vacancy rates of downtown office buildings and the slow resurgence of tourism (Aitken, 2023). It’s clear from the article that the closure was not a matter of if, but when, as the “level of vibrancy” necessary to sustain such businesses has diminished since the pandemic (Aitken, 2023).

In a city once teeming with office workers and tourists, the quieted streets and empty offices have created an unsustainable situation for businesses that thrived on foot traffic. The decision to close was likened to a “gut punch” by Rodrick, a sentiment that underscores the distress many business owners feel as they navigate the post-pandemic economy (Aitken, 2023). The shift in the commercial real estate market is palpable, with properties changing hands at “steep discount” and a “full-on buyer’s market” emerging, revealing the extent of the economic downturn in these urban areas (Aitken, 2023).

The new wage law in California, which aims to increase the minimum wage for fast food workers to $20 by April 2024, is posing challenges for businesses like McDonalds. Chris Kempczinski, the CEO of McDonalds has voiced his concerns about the impact this will have on franchisee operations. “there will certainly be a hit in the short term to franchisee cash flow in California” (Aitken, 2023). These ongoing difficulties demonstrate the equilibrium between guaranteeing wages for employees and upholding a thriving business atmosphere in cities such as San Francisco, where the past vitality of the economy appears to be fading further away.

Nasser is a business student at the Stillman School of Business, Seton Hall University, Class of 2025.

Article Link: https://www.foxbusiness.com/fox-news-food-drink/downtown-san-francisco-mcdonalds-location-closes-30-years-not-recovered-pandemic

Posted by Angelina Carlisle.

There has been debate going around about whether or not social media companies are a result of the increase in mental health issues amongst the youth. Now, there are numerous laws that defend against this allegation, specifically Section 230 of the Communications Decency Act, which protects online platforms from what content is posted by its users and if these platforms decide to take it down. But if a company takes the content created by its users to target specific groups of people, particularly children and teens, preying off their insecurities and time to profit off them, it could be seen as a possible violation of this law.

An article posted by Fox Business discusses how several states across America are putting together a lawsuit to protect the mental well being of teens and children from these large companies.

“The lawsuit, which involves at least 32 states so far, alleges Meta “misled its users and the public by boasting a low prevalence of harmful content,” while being “keenly aware” its platforms’ features “cause young users significant physical and mental harm.” The filing says that Meta’s recommendation algorithm promotes “compulsive use,” which the company does not disclose. The lawsuit claims that social comparison features like “Likes” promote mental health harms for young users, while visual filters are known to promote body dysmorphia and eating disorders.” (Fox Business).

Therefore, social media companies are allegedly posting content to make people feel more self conscious of how they look and feel about themselves. But it also targets them socially, these platforms revolve around the mission to help create new connections, as well as strengthen new ones with people from anywhere around the world which increases the amount of time users spend on its platforms, but also means more money for these corporate giants.

Cases like these question the ethics of business and the effectiveness of the laws of Capitalism. For instance, it is seen to be unethical to sell someone a product you know does not work for your own profit, and depending on the product can scam them out of their money or potentially put them at risk. But under the ethics of Capitalism, that could be viewed as a flaw of the consumer for not knowing enough about the product they are purchasing to see it was a flop. Nowadays, this type of behavior is rewarded and we see it occur more often within big pharma. To put into perspective a pharmaceutical company send out medication with either lack of research/testing and being well aware of what will happen to the consumer by taking their product, but instead of their message saying “This will help cure you of illness A, B, and C”, it says “This might help cure you of illness A, B, and C”, therefore making them aware of their drug not working as promised, but making them less liable for the outcomes of its failure. So by the time a lawsuit comes around, all they will have to do, if that, is pay a small fine and might possibly have to take their product off of the market.

The point is social media companies work the same way. They promise you a fun, personalized experience, by collecting your personal information and feeding it to their algorithm in which case you are acknowledging and giving it permission to do so by accepting the terms and agreements in the beginning of the app. At this point you know that you could be setting yourself up to potentially being hooked into using the app, and are willingly sacrificing your time to use it. If and when it is brought to the companies attention of the potential downsides of this product, such as the increase in mental health issues of children, they can alter their code to help lessen this issue. But when the issue is addressed in court, they can make an argument stating that the user willingly accepted to use this app, acknowledging that it will be collecting personal information about its user to make it a more unique and enjoyable experience, and therefore cannot be held responsible for the amount of time users spend on the app. They can also turn around and blame it on the parents for not placing time restrictions on their children’s devices, which are available for them to use.

It is possible that we have hit a point in history where capitalism has hit its peak, by finding small loopholes within the areas of business law and business ethics to make the company either less liable or entirely unreliable for their attempt to misguide the promise it has made to its consumers. It will be intriguing to find out what happens to the case against Meta as if they will be found liable of promoting content which causes mental health issues to children and teens; it can be a huge turning point in the history of technology, business law, and how our personal information is being collected.

Angelina is a student at Seton Hall University, Class of 2025.

https://www.foxbusiness.com/technology/dozens-states-sue-meta-alleging-social-media-profoundly-altered-mental-social-realties-american-youth

Posted by Avery Smith

This is the Business Law breakdown and today I will be talking about the article After a year in FTX’s shadow, the crypto industry is delighting in Bankman-Fried’s conviction written by Allison Morrow of CNN. The article was updated on Saturday November 4th, 2023. It is about the downfall of FTX founder Sam Bankman-Fried, who was recently convicted for fraud after it was found that the crypto company was based on fraud. The company has gone bankrupt and some say that the findings have sent the once trending crypto community back a few years. 

With the recent conviction of Bankman-Fried the most interesting part the article had pointed out is that “No one is happier about that than the professionals in the industry that made him, for a time, a rock star.”. This specific quote brings out how everything changed with findings of fraud. It’s very serious in the world of business especially crypto as it shows that the company wasn’t ethical as one thought. Crypto is struggling now after with questions about what is being done with money and where it is coming from. The SEC has attacked FTX with hostility lately even with the company filing for bankruptcy as that is the way it will attack digital currency for now on because of the unknown. 

This article was very interesting to me based on the fact that I remember how significant the news was when FTX initially had been called for fraud. FTX had multiple celebrities that were advertising it as well so the name was familiar. With this being non-ethical Bankman-Fried being convicted for fraud makes sense as he didn’t follow appropriate laws or clean funding. It sends things into an unknown for the Crypto community of how it will be able to grow with situations such as these the reason why it might not be able too.

Article link: https://www.cnn.com/2023/11/04/business/crypto-industry-bankman-fried-guilty/index.htmlLinks to an external site.

Avery is a sports management major at the Stillman School of Business, Seton Hall University, Class of 2026.

Posted by Navith Rangel

It is no secret that the FTX debacle has been rather scandalous to say the least. Defrauding millionaires and enlisting in A-List celebrities to promote his cryptocurrency, Sam Bankman-Fried definitely did not think that being convicted of fraud was in his list of possibilities. Oftentimes in America, white collar crime goes unpunished, but in the case of Bankman-Fried, this is a twisted and conniving tale. The article that I decided to choose details the case and provides background knowledge surrounding Bankman-Fried, especially his pretrial antics.

FTX was a company that had a meteoric rise, confiding in the likes of Tom Brady and Stephen Curry to help promote this new cryptocurrency. However, just as fast as the rise, the collapse began and it turned out that this new cryptocurrency was actually broke, and could not pay their investors. As a result, the company went bankrupt and all fingers got pointed to founder Bankman-Fried, as the alleged exuberant amount of money being made just somehow disappeared. In turn, Bankman-Fried was then indicted on fraud charges and put behind bars for his crimes. In the article it details that Bankman-Fried performed multiple “antics” which ultimately will haunt him following this massive sentencing. After being arrested in the Bahamas last December, the article states, “The FTX co-founder has ‘shown a willingness and a desire to risk crossing the line in an effort to get right up to it, no matter where the line is,’ Kaplan said during a July hearing. Prosecutors had previously raised concerns about Bankman-Fried’s use of encrypted messaging app Signal to contact FTX’s US general counsel and suggest they “vet things together.” Kaplan called it an attempt at witness tampering” (Bultman 2023). These wild tactics thus has put Bankman-Fried into hot water with prosecutors and the judge and can ultimately affect his final sentencing. The enormous amounts of money additionally tied into the case can also result in a bloated sentencing and the article predicts it to be the maximum amount of life sentences. The article then compares this case with other high-profile white collar crime cases and the sentencing given out. In the case of Enron and their CEO Jeffrey Skilling, he was sentenced to 24 years, but after an appeal was brought down to 14 years. Another example the article uses is the case of Bernie Madoff and his billion dollar Ponzi scheme which yielded a sentencing of 150 years, the maximum. By bringing up these examples, the article’s author helps paint the sentencing picture and try to predict where Bankman-Fried could fall after all this.

Ultimately, I chose this blog post for the mere fact of the refreshing sight of a millionaire being held accountable for their crimes. Too often have we seen white collar criminals get off with lenient sentences and Bankman-Fried’s condescending and smug actions have resulted in him now paying the price. Although at the end of the article it states that the Judge presiding over the case has no empirical basis and in many cases has given lenient sentences, I have no doubt in my mind that Bankman-Fried will most likely see close to a maximum sentence. The high profile nature of the case and the amount of money lost, culminated with Bankman-Fried not doing himself any favors with his antics, the sentencing should be a lengthy one.

Navith is a political science major at the College of Arts and Sciences, Seton Hall University, Class of 2024.

https://news.bloomberglaw.com/securities-law/bankman-frieds-pre-trial-antics-haunt-him-before-sentencing-1Links to an external site.

Posted by Alessia Goncalves

Several leading US teaching hospitals are under scrutiny due to allegations made by doctors about a risky practice: surgeons scheduling multiple operations simultaneously and then billing Medicare for work they didn’t do. These claims have emerged from various federal and state lawsuits, shedding light on concurrent surgeries, bribery, kickbacks, and improper compensation. Hospitals such as the University of Southern California’s hospital system and the University of Pittsburgh Medical Center have been accused of leaving patients unattended during critical parts of surgeries, leading to concerns about patient safety and ethical standards.

Concurrent surgeries involve surgeons delegating tasks to residents without adequate supervision, breaching Medicare rules that require the lead surgeon to be present during crucial stages of an operation. Allegations suggest that surgeons often leave the operating room to perform other procedures, sometimes in different facilities. Hospitals are accused of manipulating billing records and engaging in fraudulent practices to maximize profits, putting patients at risk in the process. “At a teaching hospital, you have to make sure they are ready to do surgery on their own at the end of five years,” said Dr. Seth Leopold, professor of orthopedics and sports medicine at the University of Washington. “There has to be a progression, to let somebody have the stick at a certain point, but you have to be in the room observing and training them, both for their sake and the patient’s. I watched them like a hawk” (Holland, 5).

The issue gained prominence with lawsuits against Massachusetts General Hospital, where orthopedic surgeons voiced concerns about overlapping surgeries leading to unnecessary procedures and patient risks. Healthcare professionals at various hospitals, including Erlanger Health System and USC Keck Hospital, have faced repercussions for raising these concerns, resulting in legal battles and wrongful termination lawsuits. These cases, filed under the False Claims Act, highlight the need for transparency, accountability, and adherence to medical ethics in healthcare institutions. Upholding ethical standards is essential to ensuring patient safety and maintaining the integrity of the medical profession.

Article Link: https://news.bloomberglaw.com/us-law-week/doctors-ghost-patients-charge-for-surgeries-left-to-residents

Alessia is a finance major at the Stillman School of Business, Seton Hall University, Class of 2026.

Posted by Maria J. Gomez.

In a world where Artificial Intelligence is taking a big hit and influencing many fields, I don’t believe that many thought it would also take on the legal field. For some context, after the AI scared many by showing how easily it could come up with well acquired things within seconds, it scared the people, but most definitely the working force. Given that for the longest time we have lived in a society where one of the major potential conflicts is being overruled by artificially run robots. That being said, many thought that with the new implementation of AI the world would shift drastically from a workforce mostly led by humans, to a workforce that would simply be made up of technological machinery and AI. Although that has not happened as soon as people expected it to, it does not necessarily mean that it is still out of the picture. And now, seeing that it is possible for it to take over the legal field where it is mostly led by the “exercise of professional judgment and interpersonal engagement” it has been proven, as it is said in this article, that AI can do the same (Magdinier).

This article explains how there are four professional competencies for lawyers and any professional that can be narrowed down to. They are the following: knowledge being in the center core, judgment, content creation and persuasion. Looking at each one individually, knowledge covers the applicable laws and regulations, as well as the client’s business and their market and industry practice. After knowledge comes judgment, or the ability of a person to make the right decisions around things such as content look and feel, interpersonal and organizational dynamics and how to balance commercial and operational drivers. Later on comes content creation which are things like the writings made, graphic slideshows, spreadsheets with statistics, etc.. Lastly, comes persuasion. According to what Magdinier stated in the article, persuasion is and has “always been the lawyer’s superpower. Persuasion is the competency that executes with maximum effectiveness the delivery of all that knowledge, judgment, and content.” 

Now, where does Artificial Intelligence come into play? And how exactly can a digital machine create arguments that carry such humane characteristics? At the current moment, AI excels at the performance of knowledge and content creation; however, it is expected that it will increase its performance on the rest of the competencies. The reason for this is because of how fast the datasets grow and the way that service providers and practitioners invest in the design and build of new use cases. If the situation keeps progressing the way it seems, soon enough AI systems will be able to” accumulate, organize, summarize, extract, and pattern-shift information…” that will “…augment how lawyers come to form their judgements and the tools available for persuasion” (Magdinier). Ultimately, the article ends on advice given to the younger upcoming lawyers. It claimed that those who are entering a world of AI-enabled lawyering, should consider thinking about the current limitations of generative AI tools and use that to their advantage. It ends it by saying that AI is not self-aware and it doesn’t exercise its own judgment. Therefore, it has no idea what a person intends to do with the outputs that a person gives them. Yet, its ability to inform a person’s judgment and enhance their persuasiveness will definitely transform the law field moving forward. 

Maria is a student in the College of Arts and Sciences at Seton Hall University.

https://setonhall.instructure.com/courses/6067/discussion_topics/11406?module_item_id=78113

Posted by Alivia Confessore.

The Stain on forced labor on Nike Shoes- Extra Credit Blog Post 1
The article “The China Challenge: The Stain of forced Labor on Nike Shows”, by Amelia Pang, is about how Nike’s shoe factory is forcing young women and child to work. Nikes largest shoe supplier factory is owned by south kora in Taekwang, 8 million pairs of shoes are produced a year. It has partnered with the chinses government forced labor programs, which is why young women and children are being forced to work in the factories.

Theses programs are linked to crimes against humanity. One of the programs takes Turkic residents and forces them to leave behind their children and families to work in factories across China. Victims can’t even return home after finishing their work in the factories as the government relocated them. After arriving to the factors and working all day making shoes, they have to attend a “military style management” classes at night for “patriotic education”.

Nike has claimed they don’t use forced labor anymore. After multiple reports of the way theses factories are ran and how connected they are with Nike, do we believe their statement? In the article it states, “When I asked Nike to provide a general description of its new auditing protocol, its communications department declined to provide any comment beyond a link to a vague statement on its website”(Pang). Nike declining to comment on this issue is suspicious and make me believe this situation is still going on.

Alivia is a business administration major with a minor in criminal justice at the Stillman School of Business, Seton Hall University, Class of 2025.

Works Cited
Pang, amelia. “The China Challenge: The Stain of Forced Labor on Nike Shoes.” Www.discoursemagazine.com, 5 Jan. 2022, www.discoursemagazine.com/p/the-china-challenge-the-stain-of-forced-labor-on-nike-shoes.

Posted by Red Beyer.

Mike Jeffries, former CEO of the Abercrombie & Fitch brand, has recently been accused of running a sex-trafficking operation involving abuse of the company’s male models. On Friday, October 27th, 2023, a lawsuit was filed claiming that “the CEO allegedly used promises of a job at Abercrombie to lure young men to locations around the world and coerced them to have sex with him and others” (Fox Business).

Actor and model David Bradberry, who initiated the lawsuit, claims that the former-CEO would purposely seek out college-aged men, coercing them into sexual activity and subjecting them to various forms of assault. In regards to his personal experience with the company, Bradberry was approached by Jeffries himself in 2010, where he was told he would not be allowed a meeting with the brand’s modeling scout unless the two were to engage in an act of ‘oral sex.’

Even after this event took place, Bradberry alledgedly continued to be forced into sexual situations in promise of a job. However, even after allegedly being drugged, raped and sexually abused by Jeffries and his team, Bradberry’s lawyer states that he was still never hired for the job.

Jeffries stepped down from his position in 2014, just four years after his encounter with David Bradberry due to a “a string of poor results” within the company. However, despite his current lack of authority, Bradberry is still determined to take legal action against Jeffries for the abuse he imposed upon his workers.

Red Beyer is a business and finance major attending the Stillman School of Business in Seton Hall University, Class of 2026.

Link to the original source: https://www.foxbusiness.com/markets/abercrombie-sued-former-ceos-alleged-abuse-male-models Links to an external site.

Posted by Onyekachi Ajaero

The blog discusses how the Delaware Court of Chancery’s jurisdiction over claims involving the release of escrowed funds is evolving. The court’s limited jurisdiction is first outlined, with a focus on the significance of equitable character or relief in determining the court’s subject matter jurisdiction. The Xlete case, which first established the Court of Chancery’s recognition of equitable jurisdiction over claims for the release of funds held in escrow, is cited by the author as a historical precedent. Recent rulings from the Court, which point to conflicts between the availability of sufficient legal remedies and the need for equitable relief, have cast doubt on the precedent’s ability to be applied going forward.

The blog then delves into specific cases, such as Elavon v. Electronic Transaction Systems Corp., ISS Facility Services, Inc. v. JanCo FS 2, LLC, and Buescher v. Landsea Homes Corp., where the Court of Chancery dismissed claims for lack of subject matter jurisdiction, challenging the traditional reliance on the Xlete precedent. Vice Chancellor Glasscock’s opinions highlight the need for a more nuanced interpretation of claims involving the release of escrowed funds, emphasizing the availability of declaratory judgments as adequate legal remedies and questioning the necessity of equitable relief. The author urges practitioners to consider the implications of these recent decisions, including the potential transfer of cases to the Delaware Superior Court’s Complex Commercial Litigation Division (CCLD), which has proven to be a reliable alternative for resolving complex business disputes.

The blog, taken as a whole, highlights how the Court of Chancery’s handling of cases involving the release of escrowed funds is changing and warns practitioners not to rely solely on previous decisions. The Court’s recent rulings appear to indicate a change in its position on equitable jurisdiction, which should cause parties and their attorneys to carefully consider which courthouse is best for their particular claims. The blog also emphasizes the CCLD’s increasing acceptance as a substitute forum for handling complicated business conflicts, stressing the significance of taking into account both courts’ qualifications and capacities when pursuing legal action concerning post-closing disagreements over escrowed funds.

Onyekachi is a finance and accounting major at the Stillman School of Business, Seton Hall University, Class of 2026.

Blog link: https://www.americanbar.org/groups/business_law/resources/business-law-today/2023-november/delaware-court-of-chancery-calls-into-question-equitable-jurisdiction/