Research proposal posted by Elizabeth Donald.

Part One: Topic Explanation

Liberty of contract was originally introduced into U.S. constitutional jurisprudence through the case of Lochner v. New York, 198 U.S. 45 (1905). In this case, Joseph F. Lochner challenged a provision of the New York Bakeshop Act of 1895 that prohibited bakers from working more than ten hours per day and 60 hours per week. The Supreme Court held that this regulation failed to pass constitutional muster in violation of the Due Process Clause of the Fourteenth Amendment. In doing so, the Court found “liberty of contract,” that is, the freedom of individuals and groups to enter into contracts, to be a fundamental right under the Fourteenth Amendment.  Other Supreme Court decisions continued to build on this idea during what is now referred to as “The Lochner Era” of cases. This includes Adkins v. Children’s Hospital, 261 U.S. 525 (1923), invalidating a minimum wage law and Pierce v. Society of Sisters, 286 U.S. 510 (1925), deeming unconstitutional a regulation that led to the closing of many private Catholic schools.

Part Two: Pros and Cons

The Lochner decision was considered one of the most controversial cases of its time after being handed down in 1905. Progressive jurists, politicians, and scholars alike denounced Lochner, whether for attempting to constitutionalize laissez-faire economics or for exceeding judicial authority.[1] They believed that the conservative-leaning Lochner majority reached far beyond the scope of its powers. This is because although the U.S. Constitution does not explicitly list “liberty of contract” as a fundamental right, the court still found it to be so under the Fourteenth Amendment Due Process Clause which states, “[N]or shall any person … be deprived of life, liberty, or property, without due process of law.” U.S. Const. amend. XVI, § 1. In finding a liberty of contract within the Constitution, Progressives saw the majority as an advocate of big business that attempted to adopt policy by means of judicial decision. These Progressive jurists instead encouraged a deference to the legislature on all matters, economic and personal. Since the early 20^th century, Progressive ideology has shifted, but still views liberty of contract in a negative light.

Flashing forward to today, jurists across the political spectrum remain highly critical of Lochner. Constitutional theorist Bruce Ackerman places Lochner in his “anticanon” of cases. Unlike early 20^th century Progressives, today’s Progressive jurists typically believe in using strict scrutiny to analyze laws regarding personal rights. Yet, they now isolate personal liberties from economic liberties, which are still considered unwarranting of constitutional protection.[2] Twenty-first century conservatives, likewise, do not tend to favor liberty of contract. Conservative jurists today often advocate for a deference to the legislature on both personal and economic issues. Thus, the conservative viewpoint has also significantly shifted from the Lochner Era right-wing belief that natural rights precede positive law and that liberty of contract is one of those inherent natural rights. This leaves little room for hope for the few present-day proponents of liberty of contract. However, the idea of contractual freedom as a fundamental right might not be as bad as many make it seem. In fact, liberty of contract is really a derivative of the natural law.

The natural law, according to St. Pope John Paul II, is a law that resides within the “depths of the conscience.” It is written on the hearts of all men, according to which God will be the judge. Legal theorists have found certain rights to be inherent within this natural law. The Constitution itself was founded on the idea of natural rights. James Madison, a drafter of the Constitution, believed that man “embraces everything to which a man may attach a value and have a right; and which leaves to everyone else the like advantage…”[3] This idea was the bedrock of the Due Process Clause of the Fifth Amendment, which was eventually applied to the states through the Fourteenth. Therefore, the Court majority in Lochner simply viewed liberty of contract as one of these natural rights under due process. This reading of the Due Process Clause achieves much greater validation than suggested by Lochner’s opponents. The Civil Rights Act of 1866, 14 Stat. 27-30, which gave way to the Fourteenth Amendment, listed liberty of contract first in the rights accorded to man. In this act, the 39^th Congress wrote that, “[a]ll persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties …” This act served the purpose of enforcing the natural rights of man. Therefore, the Lochner majority’s belief in liberty of contract as a fundamental right was not unwarranted.

Part Three: Questions of Ethics

Liberty of contract is intertwined with ethics because the very idea of ethics rests on the natural law. St. Thomas Aquinas said that the natural law “constitutes the principles of practical rationality,” which are the rules by which human action is to be judged as reasonable or unreasonable.[4] It is from this ethical theory that fundamental rights were developed. Not only that, but contractual freedom is essential to business ethics as well. The significance of liberty of contract comes through in the employment-at-will rule which gives employers unfettered power to “dismiss their employees at will for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of a legal wrong.” However, because the employment-at-will theory is supported by laissez-faire economics, it too is often criticized by Progressive jurists who oppose free markets. Yet, even though early 20^th century Progressive jurists denounced the Lochner decision for its association with laissez-faire ideals, this does not invalidate the fact that liberty of contract can be viewed as a fundamental right within the natural law. Further, just because liberty of contract is an economic liberty does not mean it cannot be a fundamental liberty. Since provisions of the Constitution and the Civil Rights Act of 1866 demonstrate that both the Founding Fathers and the 39^th Congress understood liberty of contract as deriving from the natural law, it is valid to not only consider this liberty as fundamental, but also ethical.

Works cited:

[1] David E. Bernstein, Rehabilitating Lochner (2012).

[2] Ibid.

[3] Colleen Sheehan, James Madison and Our First Duty, THE CENTER FOR VISION AND VALUES (Sep. 23, 2014), http://www.visionandvalues.org/2014/09/james-madison-and-our-first-duty-by-dr-colleen-sheehan/.

[4] Aquinas, ST I-II. Q94.

Posted by Da’Naysia Aarons.

In an article called, “Lawsuits and Consumer Reporters Fight Home Warranty Companies,” Heidi Turner discusses how home warranty companies are being sued by consumers. An investigative reporter was asked to look into a company called Sensible Home Warranty who was allegedly selling consumers a warranty policy. However, when one consumer asked for a new microwave, Sensible Home warranty refused to pay out her claim. While investigating the company, a reporter name Michelle Mortensen found that Sensible Home Warranty has more than 1,950 complaints. In the article it states, “An investigation into the company was undertaken by the Nevada Division of Insurance but in the meantime, the company reportedly went out of business.”

Due to the fact that the company was mistreating their consumers and taking advantage of their money, the company was fined $5,000 dollars for not complying with the state’s Service Warranty Act. In the article it further states, “The business failed to pay legitimate claims made on home warranty contracts sold in the State of Utah, or to pay them in a timely manner, and the business failed to respond to inquiries of the commissioner.”

Since many other home warranty companies have been taking advantage of other consumers, lawsuits have been filed against them.

Da’Naysia is an international business major at Montclair State University, Class of 2017.

Posted by Keith Cleary.

A lawsuit has erupted between Exxon Mobile and the state of New Jersey, particularly two industrial sites in New Jersey, Union and Hudson counties, according to the New York Times (Sullivan). The lawsuit, “which has been filed in 2004 and litigated by four administrations, is a $8.9 billion dollar lawsuit.” (Sullivan). The lawsuit is about the contamination that Exxon left on the marshes and forestland, and New Jersey is willing to pay $250 million dollars to clean up the 1,500 acres of petroleum contaminated fields. The $250 million dollars that Exxon offered to pay is not nearly enough to pay the amount it would actually take to clean the fields.

The amount that Exxon offered to clean up the fields, “infuriated environmentalists and a state lawmaker, after experts determined that it would cost billions to clean up the properties in northern New Jersey.” (Sullivan). In particular, the areas that the lawsuit covers are the facilities of the Bayonne and the Bayway sites, where surprisingly, the use of chemical production and petroleum refining goes back to a hundred years. Those years of spills also contributed to the contamination of the lands. “A report compiled for the state by Stratus Consulting of Colorado determined that it would take $2.5 billion to clean the site up, and an additional $6.4 billion to restore enough wetland and forestland.” (Sullivan).

Many people are questioning why the state decided to settle for such a low amount of money. Debbie Mans, head of NY/NJ Baykeeper, said, “I think it’s criminal to settle so low.” (Sullivan). Settling an almost $9 billion dollar lawsuit with $250 million is by far criminal. It is like paying $500 dollars for a $250,000 Ferrari. However, along with making the state accountable for the cleanup of the area, they were trying to “reimburse taxpayers for the years of lost use—the same way a victim of a car accident can seek lost employment wages from the responsible driver.” (Sullivan). So, not only are they trying to make up for the damages but also lost time.

There was also speculation about donations made from Exxon to the Republican Governor’s Association while Christie was chairman of the organization. “The Exxon Mobile Corporation contributed more the $500,00 to the association in 2014 during Christie’s tenure, and $200,00 in 2013.” (Sullivan). Even though all of these contributions were made, apparently none of it had anything to do with Christie being chairman. With the small settlement, it was called into question what it would be used for. Prior to this, Christie’s administration used $130 million of a $190 million settlement with a Passaic River polluter to the state’s general fund.

Keith is a business law student at Montclair State University, Class of 2017.

Posted by Milan Rana.

Finally, SEC’s one of the biggest insider trading case reached a settlement on May 18, 2017. This case is no different than other wall street insider trading cases. However, the important thing to note here is unlike other hedge fund managers, Mr. Cooperman did not plead guilty to the charges against him. In an interview with CNBC he said, he would have won the case had it gone forward. Fortunately, he learned from his lawyers that settling the case would cost him far less than dragging it a long way, even though he knew he would have won regardless. Upon reading the details of the case, we realize that the defense seemed to be weak and hard to prove. Yet, it is surprising that how court let him go with a penalty of couple million dollars. On September 21, 2016, the SEC charged hedge fund manager Leon Cooperman and his firm Omega Advisors with insider trading based on the nonpublic information received and used by Mr. Cooperman.  The SEC alleged that in 2010 Mr. Cooperman generated significantly large profits by trading securities of APL (Atlas Pipeline Partners L.P.) based on the information that he received from the APL senior executives. The Venue for this case was carefully selected as the violations of the securities occurred in the Eastern District of Pennsylvania.

After spending 23 and a half years at Goldman Sachs, with last 1 and a half year serving as a Chief Investment Officer, he decided to move on and start his own hedge fund company. He had learned and practiced many client building and maintaining tactics while working at Goldman Sachs. One of the powerful strategies of Cooperman was to accumulate large positions in the publicly traded companies and develop close relations with the company executives. By December 2009, Cooperman held over 9 percent shares APL, valued at approximately $46 Million. As a result of this, he developed such close relationships with company executives that led him access to various information that other smaller shareholders had no access to. On July 7, 2010, Cooperman learned from one of the APL executives that APL was negotiating the sale of Elk City(One of the APL’S largest pipeline plant) for approximately $650 million. He knew that if the deal goes through, APL stock prices would rise significantly.

According to the SEC report filed with the court, Cooperman promised the executive to keep the information secret and would not use it to trade the securities. However, he did not abide by the promise and that same day he started buying APL securities. He bought every security he could – Stocks, Bonds, Call Options. The report also states that until July 7, 2010, there was not a single day on which Cooperman’s Offshore Account, Hedge Fund Accounts, Managed Accounts and Family Accounts traded in APL securities. However, between July 7 – July 28, 2010, Cooperman and his accounts had purchased 343,600 Stocks, 4,500,000 Bonds and 6,781 Call options of APL. On July 27, 2010, Cooperman spoke to one of the executives again and confirmed the sale for $680 Million. Mr. Cooperman allegedly collectively generated $4.09 Million by trading in APL securities. The report also states that in breach of a duty of trust or confidence, Cooperman and Omega knowingly or recklessly traded APL securities on the basis, and while in possession of material nonpublic information related to APL’ s Elk City sale that Cooperman obtained from APL Executive.

According to the article titled “The SEC’s Biggest Insider Trading Case Is Heating Up” in Fortune magazine, stated that in his one of the television appearance Cooperman uttered the words, “These charges are total without merit.” This case has largely impacted his reputation as a hedge fund manager. Two years ago, his firm Omega had $10.4 Billion in assets, which slid to $3.4 Billion now. Moreover, he had also decided that if the case would drag long enough, he would consider closing the business. After all it’s all about the hard-earned respect and reputation he has earned being in this industry.

A Forbes article titled “Hedge Fund Billionaire Leon Cooperman Settles With SEC On Insider Trading Charges.” States that SEC had offered Cooperman the opportunity to settle the case agreeing to five-year industry ban. He instead chose to contest the charges in order to keep his reputation intact. Months after when the case was set for trial, the court approved the settlement of $4.9 Million in fines and penalties and agree to have an independent compliance monitor at his funds. The SEC has also provided the phone conversation of Mr. Cooperman and Executives in their report. Also looking at the transactions that Mr. Cooperman and his firms made, it clearly shows that he has received some kind of tip that he suddenly started buying APL securities. Yet, it is very hard to believe that he got off the hook without pleading guilty, with a smaller fine than expected, and still in business. 

Milan is a graduate student in the Feliciano School of Business, Montclair State University.

Bibliography

Celarier, Michelle. “The SEC’s Biggest Insider Trading Case Is Heating Up.” Fortune Finance. Fortune, 18 Jan. 2017. Web.

Gara, Antoine. “Hedge Fund Billionaire Leon Cooperman Settles With SEC On Insider Trading Charges.” Forbes. Forbes Magazine, 19 May 2017. Web.

SEC VS LEON G. COOPERMAN. No. 2:16-cv-05043-JS. The Eastern District of Pennsylvania. 20 Mar. 2017. Web.

Posted by Ovais Ahmed.

An article posted on bloomberg.com talks about an appeal made by ex-Goldman Sachs trader Deeb Salem to get an extra $5 million he thinks he deserves in bonus money. He has already received $8.25 million and still wants to get more money out of his former company. I don’t understand why the trader can’t settle with the money he has already made, which is more than the average American would probably ever make. To me, it spells out nothing but greed. Salem states he helped Goldman Sachs earn $7 billion in profit and was sought after by many investment professionals in his industry. The article states:

In September, Justice Eileen Bransten denied Salem’s request to set aside a Financial Industry Regulatory Authority panel decision to dismiss his claim, and granted Goldman Sachs’s request to seal portions of the dispute with the former trader. Salem told a state appeals court in Manhattan today that the judge erred in her decision, according to a filing. Salem claimed he helped the bank earn more than $7 billion, and told the arbitration panel Feb. 25 that he was one of the most sought-after investment professionals in the mortgage industry. The panel, described by Salem’s lawyer as a ‘kangaroo court,’ didn’t let Salem call some of Goldman Sachs (GS)’ top trading executives as witnesses, resulting in a miscarriage of justice, according to his original petition.

Goldman Sachs claimed they gave Salem the opportunity to give his evidence, and followed through fully with the law in denying his award claim. Therefore, Salem has appealed the decision is continues his fight for the extra $5 million he believes he deserves due to his efforts at Goldman Sachs.

Ovais is a business administration major with a concentration in management at Montclair State University, Class of 2015.

Posted by Giancarlo Barrera.

Goldman Sachs was infamously named “The Wolf of Wall Street.”   Goldman created, convinced, and sold mortgage investments that had been designed to fail in the first place.corruption at its finest.  It was corruption at its finest.  Goldman even went as far as betting against the same derivatives it was promoting and selling to their own clientele.  Goldman accepted that it misled investors the wrong way, but did not admit to any scheming or wrongdoing.

In July 2010, Goldman paid an enormous SEC fine of 550 milion dollars.  It was one fine after another.  Then in April 2012, Goldman paid a fine of 22 million dollars for allowing insider trading of non-public information to Goldman’s clients and traders since 2007.  On the link, the story goes into further detail of how much fraud and dishonesty was played under the table and behind the backs of its own clients, who the company was supposed to help invest their money in the first place.

Business is business.

Giancarlo is an economics and finance major at Montclair State University, Class of 2016.

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 Issam Abualnadi.

Tax is a sum of money levied on incomes, property, sales, etc., by a government for its support or for specific services. (The American Heritage Dictionary). According to the IRS website, the origin of the income tax on individuals is generally cited as the passage of the 16th Amendment, passed by Congress on July 2, 1909, and ratified February 3, 1913; however, history, it actually goes back even further. During the Civil, War Congress passed the Revenue Act of 1861, which included a tax on personal incomes to help pay war expenses. The tax was repealed ten years later. In 1894, however, Congress enacted a flat rate Federal income tax, which was ruled unconstitutional the following year by the U.S. Supreme Court. The Court held it was a direct tax not apportioned according to the population of each state.

The 16th amendment, ratified in 1913, removed this objection by allowing the Federal government to tax the income of individuals without regard to the population of each State. (IRS Website). The sole purpose of income tax is based economics and social goals.( Income Tax Fundamentals 1-2). While the government tries to maximize its revenue, at the same time, Congress tries to make the tax law suitable and fair for each individual. Therefore, the tax law not only divides the taxpayers into categories upon their income, but also it allows them to minimize their taxes due by structuring their tax return in different methods. Unfortunately, not every citizen is law-abiding in this respect, and accordingly, some taxpayers break the tax law. In the foregoing, I will discuss the differences between tax avoidance, tax fraud, and tax evasion.    Avoidance of tax is not a criminal offense. According to the IRS, taxpayers have the right to reduce, avoid, or minimize their taxes by legitimate means. One who avoids tax does not conceal or misrepresent, but shapes and preplans events to reduce or eliminate tax liability within the parameters of the law. Take for example, Warren Buffett. Buffett wrote in The New York Times in 2011 “ Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent” ( The New York Times). But how Buffett can do that?

Buffett and many other super rich people use different tax rules to avoid paying taxes, like the “cash-rich split-off.” This code mechanism is used when Company (A) puts cash or other “investment assets” plus a business into a subsidiary that it then swaps tax-free to Company (B) in return for B’s holding of A’s stock. In 2010 Graham Holdings and Berkshire (Warren Buffett’s corporation), saved a total of about $675 million in federal and state income taxes by going the “cash-rich split-off” route. Graham Holdings is trading cash, Berkshire stock that it owns, and a TV station for most of Berkshire’s 23 percent stake in Graham Holdings. Tax avoidance matches the well-known saying, “Work smarter not harder.” Also, it is worth mentioning that massive tax avoidance draws attention to the notion of the efficiency of the tax codes, and the need to produce new rules or restrictions prevent such legal tax evasion. (The New York Times).

Tax fraud is another way some taxpayers use to minimize their tax liability. According to the IRS website, tax fraud “is deception by misrepresentation of material facts, or silence when good faith requires expression, which results in material damage to one who relies on it and has the right to rely on it. Simply stated, it is obtaining something of value from someone else through deceit.” (IRS Section 25.1.1.2). According to IRS’s definition of tax fraud, not all the mistakes in preparing a tax return are considered a fraud, and in order to consider a case as a fraud, two elements should be presented:

1. An additional tax due and owing as the result of a deliberate intent to evade tax; or

2. The willful and material submission of false statements or false documents in connection with an application and/or return. (IRS Section 25.1.1.1). Generally the expression “Tax Fraud” used for civil and criminal cases.

The third area is tax evasion. Tax evasion, “Involves some affirmative act to evade or defeat a tax, or payment of tax. Examples of affirmative acts are deceit, subterfuge, camouflage, concealment, attempts to color or obscure events, or make things seem other than they are” (IRS Section 25.1.1.2.4). “It is typically used in the criminal context, and it is a subset of the tax fraud.”

Tax fraud and tax evasion are very close in their meaning; both are illegal way to reduce the tax liability. The IRS indicates tax fraud by two major indicators. The first indicator is when the taxpayer knowingly understates their tax liability often leaving evidence in the form of identifying earmarks. The second indicator is that serve as a sign or symptom, or signify that actions may have been done for the purpose of deceit, concealment or to make things seem other than what they are. Usually the IRS cannot prove that to court, because taxpayer can easily claim a good faith misunderstanding of the law or good faith belief that one is not violating the law negating willfulness. Therefore, the IRS chooses to prosecute the taxpayer civilly for underpaying taxes. In such cases, the IRS can impose a tax fraud penalty, which is 75% of the tax owed plus the interest on this penalty. On the other hand, tax evasion is a subset of tax fraud. In tax evasion cases, the very difficult burden for the IRS is to prove the willfulness, which means a voluntary, intentional violation of a known legal duty. (IRS, Section 25.1.1.1) To prove fraud, they must show the court that the taxpayer did the act deliberately for the purpose of deceit. Examples include omissions of specific items where similar items are included; concealment of bank accounts or other assets. (ISR Section 25.1.1.3). So if the IRS can prove that, then it is a tax evasion case. In tax evasion cases, the penalty range is up to five years in jail plus a big fine and plus the costs of prosecution for each separate tax crime.

In conclusion, the tax law was created to enable the government to support the economical and social activities in the American society. The lawmaker enacted some tax codes to help eligible taxpayers reduce their tax liability under exact conditions, but some still try to deceive the government by using illegal means.

Issam is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2017.

Works Cited

“Sixteenth Amendment.” West’s Encyclopedia of American Law, edition 2. 2008. The Gale Group 17 Nov. 2014. http://legal-dictionary.thefreedictionary.com/Sixteenth+Amendment

tax.” The American Heritage® Dictionary of the English Language, Fourth Edition. 2003. Houghton Mifflin Company 23 Nov. 2014 http://www.thefreedictionary.com/tax

“Brief History of IRS.” Brief History of IRS. Web. 10 Oct. 2014. .

Whittenburg, Gerald E., and Ray Whittington. “The Individual Income Tax Return.” Income Tax Fundamentals. 2014 ed. St. Paul: Cengage Learning, 2014. 1-2. Print.

“Internal Revenue Manual – 25.1.1 Overview/Definitions.” Internal Revenue Manual – 25.1.1 Overview/Definitions. Web. 23 Nov. 2014. .

BUFFETT, WARREN. “Stop Coddling the Super-Rich.” The New York Times 14 Aug. 2011. Web.

Posted by Nadia Haddad.

“Intellectual Property law works, until it is stretched.” According to a New York Times article, the problem with intellectual property law is that lawyers try to push the idea of I.P. too far in other areas, like software development, because they believe more the better. The article states that a software patent is a good example of a failed “experiment” because no one today can name a major software innovation whose investments relied on a patent. Some software innovations such as Lotus 1-2-3 spreadsheet, Netscape’s browser, or Google’s search are not responsible for their existence because of a patent. The article mentioned how software patents are expensive, threaten competition, and are occasionally used for accounting fraud.

Intellectual Property plays an important role for all humans in society. In general terms, intellectual property is any product of the human intellect that the law protects from unauthorized use by others. Intellectual property is important because it drives economic growth and competition, as well as creating and supporting high paying jobs.

The mind is the most important thing a human possesses, because that is the root of who you are and what you want to do. We live life through people’s intellectual properties or inventions, which is why we need to protect them.

Nadia is a business administration major with a minor in international business at Montclair State University, Class of 2016.

Posted by Keith Cleary.

For almost a half of a decade now, over 40 patent lawsuits have been going on between “the two largest smartphone companies, Apple and Samsung.” (Chowdhry). However, the two companies came to terms on ending all of the patent lawsuits that are outside of the U.S. These countries are all over the world including Britain, Spain, Germany, and Italy. Even though these two technology giants are dropping their lawsuits against each other internationally, they still have not ended their lawsuits against each other in the states. A few years ago, “a jury in California awarded Apple with $119 million out of a $2.2 billion lawsuit against Samsung three months ago”(Chowdhry). Even, though they settled their disputes overseas, the two competitors are still relentless with their lawsuits.

Some of the lawsuits are driven by a patent lawsuit filed in 2011. Steve Jobs was actually behind the lawsuits in 2011 saying, “I’m willing to go thermonuclear war on this.” (Chowdhry). “This” meaning the lawsuits filed in 2011 were over Samsung’s Android. The two companies have tried to work out their differences through a mediator but to no avail. Judge Lucy Koh of the U.S. District Court was actually really hoping for a resolution. She stated, “If all you wanted is to raise awareness that you have I.P. (Intellectual Property) on these devices, messages delivered. In many respects, mission accomplished. It’s time for peace.” She further stated, “If you could have your CEOs have one last conversation, I’d appreciate it.”(Chowdhry). She realizes that the two companies do not want each other copying off their designs and property.

The comical part about all of this is that, with all the lawsuits going on, Samsung and Apple are business partners. Samsung supplies major components to Apple’s products, such as memory chips and processors. However, it does not look like this relationship will last forever. While Apple is one of Samsung’s biggest customers, it looks like their taking business elsewhere—“Taiwan Semiconductor Manufacturing Company,” to be exact. (Chowdhry). Apple buys chips and other components from them.

The good news is that Apple is reducing the amount of lawsuits against Samsung. Apple dropped one of their lawsuits for patent infringement and the two companies settled another lawsuit with the U.S. International Trade Commission regarding an important ban on Samsung’s products (Chowdhry). With the dropped lawsuits, there is a chance for amends and a new relationship between them.

Keith is a business law student at Montclair State University, Class of 2017.

Research proposal posted by Jessica Thomulka.

Part One

Healthcare costs are skyrocketing in the United States. Even prior to the passing of President Obama’s Affordable Care Act, the burden on American corporations to provide healthcare to their employees was placing stress on businesses. Lifestyle control is the term given to an employer’s influence on an employee’s actions outside of the scope of their duties as an employee. Some of the most common examples of lifestyle control revolve around the preventative measures to lessen the pressure of the paying for employee medical coverage. The two most costly medical conditions are complications arising from smoking and obesity. The National Business Group on Health reports that obese employees cost employers $700 more than their average-weight employees, annually, for their healthcare. Along with healthcare, another aspect of business that employers are concerned about is productivity. In a 2002 study, the Center for Disease Control reports that productivity losses associated with workers who smoke cigarettes are estimated to be $3,400 per smoker.[1] Business owners and executives are concerned with maximizing their profits and ensuring the health of their company, and by keeping their employees healthy, they can reduce their risk of paying high medical expenses for preventable diseases. Some states like New York have passed provisions to prevent employer discrimination against an employee’s “after-hours” conduct, however there is no federal statute.

Part Two

There are both pros and cons to the idea of employers having control of the lifestyle of their employees. The stakeholders involved include the employer, the employees, the family of the employees, and even the ‘vice’ industries that the employers are safeguarding against such as the tobacco and gambling industries. The employers reap the most positive benefits out of lifestyle control provisions. They lower their cost and increase their productivity. The employees may also benefits from such provisions due to increased health, but they give up some of their freedom in the process. Some companies also impose lifestyle control upon the employee’s family if they are on the same health insurance policy so likewise, they may gain health benefits but sacrifice some of their freedom. Lastly, ‘vice’ industries suffer the most from lifestyle controls because they ultimately lose business due to embargos on acts like smoking and gambling. If enough companies impose lifestyle controls they could potentially bankrupt ‘vice’ industries.

Part Three

The biggest ethical question regarding lifestyle control is the autonomy of the employee. Should an employee be free from external control or influence by the employer? According to the United States Conference of Catholic Bishops (USCCB) there are several themes of Catholic Social Teaching.[2] Rights established in the Catholic tradition have an impact on lifestyle control. While privacy is not explicitly protected under the United States Constitution it falls under the penumbra of implied rights in the Bill of Rights due to its importance. The Catholic tradition teaches that human rights and responsibilities are at the heart of a healthy community. Within the workplace there is a basic right of workers to be respected by their employers. That is in decent wages, the right to unionize, and a productive work environment. The USCCB notes that work is more than just providing for yourself and your family because it is a way to participate in God’s work. They also suggest that a worthy measure of an institution is its ability to enhance the life of the human person. In the case of lifestyle control, Catholic Social Teaching aligns with provisions to protect the health of employees. This would support a ban on smoking and other such vices that are known to be detrimental to one’s health. If the motives behind the employer’s lifestyle controls align with what is good for society then they should be permissible under the Catholic Social Teaching.

[1] Halbert, Terry, and Elaine Ingulli. Law & Ethics In The Business Environment. 7th ed. Mason, OH: Thomson/South-Western West, 2003. Print.

[2] “Seven Themes of Catholic Social Teaching.” Seven Themes of Catholic Social Teaching. Web. 09 Mar. 2016. .

Posted by Serkan Saka.

Have you ever thought how important it is for universities to receive government research support? As we know that reputation is also very important for all the universities. Columbia University one of the best universities in the world and a top university for medical research. Recently, however, Columbia requested research funds from National Institutes of Health (NIH) for medical research but was caught in related fraudulent activity.

According to Danielle Douglas-Gabriel’s article in The Washington Post, Columbia’s research costs were lower than what they actually received from NIH. One of the reasons is that Columbia University conducted their research off campus, but misinformed NIH that the research would be conducted on campus, which would make the research more expensive. After government investigation, Columbia University will pay $9.5 million to NIH to cover false charges (Douglas- Gabriel, 2016).

The school officially released a statement by Caroline Adelman, a spokeswoman says, “The government disagreed with the university’s approach and took the position that a lower indirect cost rate was appropriate.”(Douglas-Gabriel, 2016). On the other side the NIH’s statement says “ Money gained by such behavior deprives other research programs of funds that could yield life-altering new treatments”(Douglas-Gabriel, 2016). It is very important to inform correctly in any case. It is not important if you are a big institution or small business, as either could be involved in white-collar crime.

Serkan is a MS accounting student in Feliciano School of Business, Montclair State University, Class of 2018.

Source:
Douglas-Gabriel, Danielle. (2016, July 14). [Columbia University to pay $9.5 million to Settle Fraud Charges]. The Washington Post. Retrieved from https://www.washingtonpost.com/news/grade-point/wp/2016/07/14/columbia- university-to-pay-9-5-million-to-settle-fraud-charges/?utm_term=.f974cc316f05

Posted by Briana Brandao.

This article, written by Jenna Pizzi, on March 02, 2015, argues whether or not a union of New Jersey business groups should be mandated to provide paid sick leave to its employees in Trenton. As of now, seven New Jersey municipalities possess a local paid sick leave law. A lawsuit was filed in state court on behalf of these New Jersey business groups on Monday, March 2nd. They claimed that the new law was unconstitutional. As stated by the business groups, “The ordinance allows the city to reach outside its given powers by forcing requirements on employers.” They also asked that the law be banned from taking effect within the upcoming week.

The reasoning behind this possible injunction is that business groups feel the new law tries to reach outside the boundaries of Trenton. As stated per the lawsuit, “The law as written seeks to reach outside the city boundaries to impose the law on business owners that are not located in Trenton but have employees that work here.” The business group’s attorney, Christopher Gibson, also argued, “Trenton’s mandatory paid sick leave ordinance is vague, ambiguous and . . . impossible to interpret, administer or implement.”

Although New Jersey business groups make valid points, the new ordinance faces great controversy as a vast number of voters approved it earlier on in November of 2014. Trenton spokesman, Michael Walker, even went on to say, “Trenton voters demanded that the ordinance become law and the city is preparing to enforce it.” If Trenton’s paid sick leave ordinance were to take effect, it would mean that for every thirty hours worked, a worker would be eligible to earn one hour of sick time. For New Jersey businesses with ten employees or more, it would result in a maximum of five sick days per year. For New Jersey businesses with less than ten employees, it would result in up to three paid sick days per year.

The increase in paid sick days would allow employees the opportunity to take care of themselves as well as any immediate family members who may need care. However, it is important to note, if employers offer better benefit packages, they are not required to award more paid sick time to their employees.

Briana is a business administration major with a concentration in management and fashion studies at Montclair State University, Class of 2016.