Posted by Mario Damasceno.

In mid-February of 2015, federal prosecutors investigated United Airlines and its close relation with then chairman of the Port Authority of New York and New Jersey, David Samson. The investigation arose shortly after Samson’s resignation, resulting from emails released that showed aids to Governor Chris Christie had intentionally organized lane closures on the George Washington Bridge. This is particularly significant because during his time in office, Samson would spend his weekends in Aiken, SC, which was located 50 miles from the Columbia, South Carolina airport, however, United never initially offered that route from its New Jersey hub.

The New Jersey paper known as the Record reported, “Federal aviation records show that during the 19 months United offered the non-stop service, the 50-seat planes that flew the route were, on average, only about half full,” and “was reportedly money-losing,” (The Economist). This, in turn, lead to the route being named, “The Chairman’s Flight.” The route itself “left United Airlines’ Newark hub each Thursday night bound for Columbia, S.C. On Monday mornings, United Express flew back to Newark,” (Bloomberg Business). Furthermore, federal prosecutors argued that, not by coincidence, “United cancelled the flight on April 1st, 2014—just three days after Mr. Samson resigned from the Port Authority” (The Economist).

The entire situation is worth looking into, and in fact, the Port Authority along with United Airlines have been issued subpoenas examining the communication between David Samson and the airline. Mary Schiavo, a former federal prosecutor and Department of Transportation inspector general stated, “If United realized they were offering this flight to curry favor with a public official, then United’s in the soup—it’s a bribe,” (Bloomberg).

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

Bachman, Justin. “Did United Put a Whole Route in the Sky for One Very Important Passenger?” Bloomberg Business. N.p., 25 Feb. 2015. Web. 27 Oct. 2015. .

Gulliver. “The Chairman’s Flight.” The Economist. N.p., 10 Feb. 2015. Web. 27 Oct. 2015. .

“United Airlines: The Chairman’s Flight.” Reinventing the Company 12 Sept. 2015: n. pag. Web. 27 Oct. 2015. .

Posted by Patrick Osadebe. 

On September 17, 2014, a federal judge sentenced Timothy Cromer, a former Detroit public library official, to 10 years in prison for bribery and conspiracy to commit bribery. He was charged for accepting more than $1.4 million in bribes from contractors of the library.

Timothy Cromer, 46, was the chief administrative and technology officer for the Detroit library from 2006 to 2103. Cromer helped James Henley set up a company called “Core Consulting and Professional Services.” Cromer then made it possible for the company to win the bid to provide information technology in the library.

Cromer also collected kickbacks from another individual who was charged in the indictment. All of these crimes took place between 2008 and 2011. Hearn and Henley both plead guilty to the charges and are currently awaiting sentencing on October 28, 2014.

Patrick is a finance major at Montclair State University, Class of 2016.

Posted by Abier Mustafa.

Stryker Corp., a device maker company, recalled its Rejuvenate and ABG II hip implant devices in July 2012 after warning surgeons they could harm tissue around the hip and cause other health problems to its patients. Patients have complained of severe pain, unusual swelling and excessive metal debris in their blood, blaming all these symptoms on the Stryker devices. There are at least 1,800 cases Stryker consolidated before U.S. District Judge Donovan Frank in St. Paul, Minnesota. After facing more than 4,000 suits consolidated in the New Jersey state court and federal court in Minnesota alone, Stryker will pay a base amount of $300,000 per patient’s case. This settlement to patients who had the devices surgically removed prior to November 3^rd.

Stryker Corp. has reported more than $9 billion in revenue in 2013 on the advertisement of their hip implants lasting for years. After the devices failed patients within a short amount of time, the company has now agreed to pay more than $1 billion to resolve these lawsuits. However, “the company said that it set aside more than $1.4 billion to cover costs of handling cases over the recalled hips so the settlement fell into the “‘low end of the range of probable loss.’” “This settlement program provides patients compensation in a fair, timely and efficient manner,” Bill Huffnagle, a spokesman for Kalamazoo, Michigan-based Stryker, said in an e-mailed statement. A source also reveals that a majority of the payments will be made by the end of 2015.

Abier is a finance major at Montclair State University, Class of 2016.

Posted by Tommy Donofrio.

Every motor vehicle must display a license plate signifying that it has been properly registered with the appropriate state or local government. Symbols, colors, or slogans representing the cultural heritage of each state are typically included in the license plate design of each state or jurisdiction. Upon registration, a unique alphanumeric identifying number is assigned to the user. Sometimes, individuals, businesses or organizations remit additional fees to be able to display custom or personalized license plates. These plates, which may help raise awareness and funds for specific causes or groups, must adhere to particular guidelines. That is, perhaps, until now. Recently, the Supreme Court was called on to decide if the “decision to exclude the Sons of Confederate Veterans (SCV) from the specialty license plate program violated the organization’s free speech rights under the First Amendment.”

Not surprisingly, this is the first time the Supreme Court is called on to clarify the law surrounding specialty license plates. The Supreme Court will determine if a message on a specialty plate is considered to be a form of “private” or “government” speech. If it is private, then the First Amendment protects the message. For the Sons of Confederate Veterans, this means that they have the right to display the confederate battle flag to “honor the reputation of soldiers who fought for the Confederacy during the Civil War” even though the state of Texas finds this message racist and offensive. Conversely, if the Supreme Courts determines that specialty plates are a form of government speech, as Texas officials claim, then the state “is allowed to select the message that it is willing to publicly support.” The Sons of Confederate Veterans will not be able to freely express their message.

Although it may seem a trivial issue, it has far reaching ramifications. The Supreme Court’s decision is important because it will influence every state and local jurisdiction going forward. According to Richard W. Garnett of Notre Dame Law School, the ruling will effect “all of the many, many ways that government property and funds facilitate expression and communication.” If the court sides with the state, both individuals and businesses may be hindered from raising awareness and revenue through the use of personalized plates in the future. A decision is expected by early summer.

Tommy is a business administration major with a concentration in management at Montclair State University, Class of 2017.

Posted by Joe Zichelli.

The entrepreneurial spirit that was once a driving force in America is under attack due to egregious government overreach and licensing requirements that are putting hard-working and dynamic Americans out of work – even in some cases costing them their livelihood as well as thousands of dollars in fines. Occupational licensing – the need to secure a government permission slip to perform a specific job – is an oppressive force on small businesses and the backs of countless Americans trying to make an honest living. This unconstitutional overreach must be corrected and the government must once again recognize economic liberties as a substantive right and one that cannot changed.

Occupational licensing is a problem that is morally disturbing and a direct impediment to the success of various businesses throughout the United States. Occupational licensing can be summed up as “permission slips” from the government allowing one to work, as defined by the Institute for Justice, a libertarian law firm concerned with defending civil rights from government infringement.[1]   In addition to this simply making it harder to succeed, more often than not, poorer people as well as minorities and immigrants are more adversely impacted as a result of these licensing requirements because they are the ones who are unable to pay for the required education or even the license in order to comply with the laws promulgated by various states. Since they cannot afford the license or education requirements, they are subjected to a fine, imposing another financial burden – and yet another road bump on the path to success.

The number of industries that require licensing is absurd and only growing. These industries include but are not limited to, florists, casket builders, hair braiders, barbers, and eyebrow threaders. In analyzing something like hair braiding or eyebrow threading, many times people emigrate from other countries and work doing the aforementioned tasks as a way to earn an honest living. Quite often the state in which they work requires them to obtain a cosmetology license, even though while attending beauty school the type of braiding or eyebrow threading is not taught. This is a process that can cost thousands of dollars and consume hundreds, if not thousands, of hours. There are countless examples of professions that require licenses as an arbitrary means to protect an industry; the funeral business and florists are two that are frequently impacted as well. [2]

One of the most upsetting cases of occupational licensing happened recently in the bustling city of Memphis, Tennessee. On January 18th, 2017, Elias Zarate was cutting hair in his barber shop when “the barber police” entered and found that the license he had on display was not authentic. Although Zarate believed the license was authentic, the barber police shut his operation down and began legal proceedings against him, simply because he did not possess a piece of paper to cut hair. Eric Boehm, who published the story in an online article, describes the situation that landed Zarate in the barber shop, writing:

Zarate had dropped out of high school. He’d made it to the 12th grade, but he had a failing GPA and spent most of the school day sleeping through classes because he was exhausted from working a series of after-school and weekend jobs. His mother had died when he was just 10 and his father had left the family soon after, leaving Elias and his two younger siblings in the care of relatives. [3]

Because Elias did not complete high school or obtain a GED, under an amended law in 2017, he would be unable to attempt to get a barbering license because he did not complete high school. As frustrating as this is to lovers of liberty and entrepreneurs, Elias was equally frustrated, noting that “I don’t feel like anything in my entire schooling from grade school through senior year had anything to do with my barbering skills”[4]. The truth of the matter is neither Elias nor any other student in any public high school learned the skills necessary to be barber. For Tennessee to require a high school degree in order to obtain a “certificate of registration as a master barber” is an example of the government prohibiting someone from earning an honest living. It is wrong, unjust, and must be changed.

In addition to being inundated with fear from the barber police, Elias was not afforded any legal representation in his hearing before the administrative law judge and was left to fend for himself – much like he was left to do when his mother passed away and his father abandoned the family, – except this time it was to defend his right to earn a living. In addition to the fines, Elias could face a Class A misdemeanor, which could impose a penalty of up to 11 months and 29 days in jail – all for working without a government permission slip.

The Declaration of Independence reminds us of our inalienable rights to life, liberty, and the pursuit of happiness. These are rights that cannot be infringed upon – and this is exactly what is happening to Elias. His rights to ensure his own happiness and to secure his own liberty, as well as his right to earn an honest living and provide for his family, are being grossly trampled upon by an overreaching government that has no business or constitutional authority to do so. It is time for a change to licensing requirements and it is imperative for states to get out of the way of small business owners and entrepreneurs. Until these changes are enacted, thousands of people like Elias will face the burden of a government that is anti-business and in favor of arbitrary “protections” that effectively monopolize industries. This is not the American way…
Joe is a political science/pre-law major at the College of Arts and Sciences, Seton Hall University, Class of 2018.

http://reason.com/archives/2018/01/19/barber-cops-bust-high-school-dropouts

[1] http://ij.org/issues/economic-liberty/occupational-licensing/

[2] http://ij.org/report/license-to-work/

[3] http://reason.com/archives/2018/01/19/barber-cops-bust-high-school-dropouts

[4] Ibid.

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 by Kimberly McNamara.

A former controller of the Hereditary Disease Foundation, a nonprofit group out of New York that encourages and contributes to studies and other research dealing with congenital diseases, has been indicted, this year, for embezzlement of over $1.8 million. The organizations former controller, Karen Alameddine, who was responsible for managing finances from 2005 through January 2014, began “‘to make what in reality were transfers to her personal bank account appear as if they were wire or bank transfers to grant recipients,” according to Manhattan Federal Prosecutors.

Alameddine, who also went by the name Karen Dean, made a fake business called “Abacus Accounting,” “Chez Cheval Ranch,” “Dean & Co,” and “Karen Dean Exports,” to try and cover her tracks. She was not so successful. On November 17 of this year, she was arrested in Boston, and the following day, made an appearance in federal court and is now awaiting a transfer to Manhattan, says The NY Times.

Suspicions were raised when a complaint was made after Alameddine left the nonprofit this past January, stating that an account holder never received their check from the group.

In a statement given by the organization, “this loss was confirmed through internal investigation and a forensic audit conducted by outside legal counsel retained immediately by the foundation. . . . Although the theft was substantial, only a small amount of grant monies committed before 2104 was compromised.”

Alameddine was charged with five counts of tax evasion and one count of wire fraud.

Kim is a business administration major at Montclair State University, Class of 2016.

Posted by Katie Kim.

In the technology industry, two leading companies may be heading to the Supreme Court over the design of smartphones. There is no confirmation of whether or not the case will be accepted, but the Supreme Court has not taken a design patent in over a century.

A few weeks ago, Samsung agreed to pay Apple $548 million in damages over a design patent but did not agree to it as part of a settlement. Apple took Samsung to court on the grounds that Samsung intentionally and knowingly copied Apple’s iPhone designs. Apple prides themselves on their innovation and when the threat of copycats infringe on their innovations it takes away from their profits. Apple submitted evidence that showed the evolution of the Samsung product increasingly resembled the Apple iPhone

At trial, Apple convinced the jury that some of the designs Samsung used on their smartphones, like the rounded rectangular corners and touch screen made of smaller icons, were taken from and patented by Apple.

On the other hand, Samsung argued that the law under design patents was misapplied. The law is meant to protect “ornamental” features that are not part of the products intended function. Samsung lawyers feel that this should have been made clear to the jury.

On Monday, Samsung filled an appeal to the Supreme Court. The company argues that the legal framework behind designed patents is flawed and out dated for the modern digital world. “The law was written for a time long before the smartphone was invented,” said Mark A. Lemley, a law professor and director of the Stanford University program in law, science and technology. If Samsung is left to stand with a sweeping rule against it then it will “lead to absurd results and have a devastating impact on companies.”

Katie is an accounting and finance major at the Stillman School of Business, Seton Hall University, Class of 2018.

Hacking into computer systems is nothing new, and government and businesses alike have always been aware that they must be one step ahead of computer criminals. But the attack on Sony Pictures Entertainment was more than that. It was a shot across the bow in what appears to be a potentially rampant future form of warfare. As a result, every cyber attack on government or business systems must now be carefully examined to see whether it is either criminal or an act of war.

In the face of evidence from the FBI that North Korea was responsible for the Sony attack, senior Republican senators disagree with the administration that it was only a form of “cybervandalism.” Sen. McCain stated this attack “is a new form of warfare, and we have to counter that form of warfare with a better form of warfare.” Sen. Lindsey Graham called “the cyberhacking ‘an act of terrorism’ and suggested re-imposing sanctions on North Korea and adding the country to the terrorism list.” In 2001, President George W. Bush called North Korea part of the “Axis of Evil,” along with Iran and Iraq.

The FBI concluded the attack on Sony was evidenced by IP addresses directly linked to North Korea. This attack was similar to those that occurred last year against South Korean banks and media outlets. The FBI stated:

We are deeply concerned about the destructive nature of this attack on a private sector entity and the ordinary citizens who worked there. . . . Further, North Korea’s attack on SPE reaffirms that cyber threats pose one of the gravest national security dangers to the United States. Though the FBI has seen a wide variety and increasing number of cyber intrusions, the destructive nature of this attack, coupled with its coercive nature, sets it apart.

North Korea’s actions were intended to inflict significant harm on a U.S. business and suppress the right of American citizens to express themselves. Such acts of intimidation fall outside the bounds of acceptable state behavior.

There will most likely be more cooperation between business and government in sharing information and technology. Only together can this new threat to our national security and economy be defeated.

Posted by Dan Udvari.

On December 3, 2015 Donald L. Blankenship – the CEO of Massey Energy, Co. – was convicted of a single misdemeanor for conducting a conspiracy to violate safety rules in his coal mines just before the Upper Big Branch Mine disaster that occurred on April 5, 2010.

Massey Energy was the fourth largest publicly traded coal extractor by revenue ($2.69 billion) in the United States. It was founded in 1920 by the Massey family and operated in Richmond, Virginia. The company consisted of approximately 5800 employees right before Alpha Natural Resources acquired the company for 7.1 billion dollars. Interestingly, 99% of the shareholders voted in favor of the acquisition, which shows how poorly the company was governed by management. Don Blankenship took control over the company in 1992 and created a culture that favored profits over safety. In total, the coal extractor giant had around 369 citations and orders, which totaled a staggering 10.8 million dollars.

On April 5, 2015 a massive explosion in the Upper Big Branch Mine in Montcoal, West Virginia occurred that killed 29 people. This tragedy was the worst since the 1970 Hyden disaster. Massey Energy operated the Upper Big Branch Mine and later turned out that they operated the mine in a manner that was against several rules set up by the MSHA. The investigation later determined that the ventilation system in the mine did not work properly and failed to get rid of the toxic gases that caused the explosion. Massey intentionally neglected all the safety rules and citations issued by the MSHA for the purpose of increasing profits. However, this case goes deeper than one thinks. According to reports, Massey Energy is very influential on political figures and officials in West Virginia. Using this power, they were able to bribe and manipulate MSHA regulators so they look the other way when inspecting the mines.

In November 2014, Don Blankenship, was indicted by a federal jury on four criminal counts including conspiracy to violate safety laws, securities fraud, defrauding the federal government, and making false statements to the SEC. Even though he was charged with these, he was only found guilty of one on December 3, 2015. Had he been convicted of all four, he could have been sent to prison for approximately thirty years. Now, he is only serving one year in jail.

I do not believe that Blankenship should only serve one year in jail. It seems unfair to those who had lost their lives because of profits. It baffles me that people as greedy as him get away with conspiracy and murder charges. It seems that money can literally buy your freedom in the United States. All you need is a good lawyer or lawyers.

Dan is a graduate accounting student with a certificate in forensic accounting at the Feliciano School of Business, Montclair State University, Class of 2016.