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 Joseph Papandrea.

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

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

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

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

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

Posted by Matt Gilbert.

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

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

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

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

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

Posted by Yacheng Xu.

Federal Reserve Bank of New York President William Dudley “warned that investing in privately issued digital money such as bitcoin could end in big financial losses for those involved.” He opined, “There is a bit of a, I would say, speculative mania around cryptocurrencies in terms of their valuations, which I view as pretty dangerous, because I don’t really see what the actual true underlying value of some of these cryptocurrencies actually is in practice.”

The Fed’s vice chairman for supervision, Randal Quarles, said, “While these digital currencies may not pose major concerns at their current levels of use, more serious financial-stability issues may result if they achieve wide-scale usage.”

From my perspective, with the gaining popularity of cryptocurrency like Bitcoin, more risks such as hacking and scandals will in crease.  Bitcoin proves to be a highly speculative asset. Nevertheless, the Fed failed to enforce any rules, and the SEC merely issued some warnings regarding Bitcoin and future ICOs. The cryptocurrency is basically free of government regulations, which easily can trigger an investment bubble, illegal fund-raising, and undermining the market economy. Hence, in China, the government has shut down the cryptocurrency exchanges in September, 2017 and prohibit new ICOs.

It is indisputable that the virtual money is a great way to avoid the control by a central bank. Given the pros and cons of cryptocurrency, we should have a compromise solution, allowing the existence of exchanges but setting regulations at the same time.

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

Sources:

https://www.wsj.com/articles/feds-dudley-says-puerto-rico-has-difficult-recovery-process-ahead-of-it-1519311605?mod=searchresults&page=1&pos=8

Posted by Avinash Sookdeo.

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

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

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

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

Sources:

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

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

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

Posted by Charles Matta.

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

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

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

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

Posted by 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 Joe Casey.

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

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

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

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

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

Sources:

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

Posted by Yacheng Xu.

Federal Reserve Bank of New York President William Dudley “warned that investing in privately issued digital money such as bitcoin could end in big financial losses for those involved.” He opined, “There is a bit of a, I would say, speculative mania around cryptocurrencies in terms of their valuations, which I view as pretty dangerous, because I don’t really see what the actual true underlying value of some of these cryptocurrencies actually is in practice.”

The Fed’s vice chairman for supervision, Randal Quarles, said, “While these digital currencies may not pose major concerns at their current levels of use, more serious financial-stability issues may result if they achieve wide-scale usage.”

From my perspective, with the gaining popularity of cryptocurrency like Bitcoin, more risks such as hacking and scandals will in crease.  Bitcoin proves to be a highly speculative asset. Nevertheless, the Fed failed to enforce any rules, and the SEC merely issued some warnings regarding Bitcoin and future ICOs. The cryptocurrency is basically free of government regulations, which easily can trigger an investment bubble, illegal fund-raising, and undermining the market economy. Hence, in China, the government has shut down the cryptocurrency exchanges in September, 2017 and prohibit new ICOs.

It is indisputable that the virtual money is a great way to avoid the control by a central bank. Given the pros and cons of cryptocurrency, we should have a compromise solution, allowing the existence of exchanges but setting regulations at the same time.

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

Sources:

https://www.wsj.com/articles/feds-dudley-says-puerto-rico-has-difficult-recovery-process-ahead-of-it-1519311605?mod=searchresults&page=1&pos=8

The United States Supreme Court has denied certiorari leaving in place a ruling by the D.C. Circuit that a fee cap set by the Federal Reserve Bank at $.24 per transaction. Each time a customer swipes his or her debit card, a retailer is charged the fee.

Retailers complained when the Fed appeared to be abusing Congress’ mandate to create a ceiling on debit card swipes. The Fed originally proposed a $.12 cap, but retailers claim it was under pressure by bank lobbyists to double that amount and include fees and expenses that are not permitted under law.

The D.C. Circuit rejected that argument and determined the Fed’s interpretation of the law was reasonable. “The Fed rule doesn’t apply to credit cards, government-issued debit cards, prepaid cards or cards issued by banks and credit unions with assets under $10 billion.” Retailers vowed to “continue to press the issue in the courts over the ‘anti-consumer and anti-competitive practices of the card industry.’”

Posted by Peyton Adams.

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

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

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

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

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

The officers planned on appealing the case.

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