Posted: June 14th, 2018
By: Matthew Hooker, Summer Blogger
On May 25, 2018, the General Data Protection Regulation (GDPR) went into effect. Although the GDPR is a regulation established by the European Union (EU), its impact extends far beyond the EU. The regulation applies not only to entities within the EU but also to any entity that handles the personal data of “data subjects” residing in the EU. As the New York Times puts it, “the borderless nature of the online world has virtually every commercial entity that touches the web making changes to its sites and apps to comply.” Continue reading »
Posted: June 10th, 2018
By: Nathaniel Reiff, Summer Blogger
As today’s consumer seeks new and innovative ways to save money and preserve the environment, it may be a while until they achieve this objective with the cars they drive. Tesla Inc., the American international corporation renowned for its electric vehicle production, has been hit with a score of lawsuits that could put the energy-giant in a nasty predicament.
Last October, shareholders filed a securities fraud lawsuit claiming Tesla gave false public statements about the progress of producing its Model 3 sedan. The complaint identifies that shareholders bought “artificially inflated” shares of Tesla because Elon Musk, Tesla’s Chief Executive Officer, and other executives misled them with such statements. Tesla counters that since the vehicle was “the first of its kind,” the company had experienced numerous “bottlenecks.” The company said it provided the shareholders in “frank and in plain language” that the challenges the company faced with the Model 3 derived from problems with the battery module process at its Nevada Gigafactory to general assembly at its Fremont plant. Continue reading »
Posted: May 15th, 2018
By: Patrick Wilson
On October 19th, 2017, a bipartisan group of Senators including Amy Klobuchar (D-MN), John McCain (R-AZ), and Mark Warner (D-VA) introduced legislation that would require more transparency and disclosure of the groups funding online advertising during election season. The purpose of proposed Senate Bill 1989, ‘The Honest Ads Act’, would hold online advertising platforms like Facebook, Google, and Twitter to the same standards as traditional media, such as television and radio.
The Bill requires that platforms with more than fifty million unique monthly visitors keep a public record of the parties that purchase more than $500 in advertising and disclose the purchaser of those ads, which included the ad’s target audience is, the ad rate, the name of the candidate the ad supported, and contact information of the ad. The Bill’s stated goal is preventing foreign nationals from purchasing political ads and potentially influencing the perception of American citizens during election season with false or misleading information. Continue reading »
Posted: May 10th, 2018
By: Andrew Homer
The pace and size of mergers and acquisitions in the United States have accelerated in the past few years. It is predicted this momentum will continue into 2018. Global mergers and acquisitions announced so far this year have surpassed a value of $450 billion. Earlier this year, JAB Holdings Company (JAB), a German consumer group, announced it will purchase Dr. Pepper Snapple Group (Dr. Pepper) for $18.7 billion and merge it with its Keurig Green Mountain coffee (Keurig). This is the largest acquisition of a soft drink company.
JAB tries to stay out of the public spotlight, but with recent large acquisitions, this has proven difficult. It is reported that the family behind the consumer conglomerate requires its members to take a vow at the age of 18 not to speak publicly about the family business. JAB purchased Keurig in 2016 for $14 billion and has focused on coffee related industries by later acquiring Krispy Kreme and Panera Bread. JAB began the hot drink journey in 2012 when it purchased Peet’s Coffee & Tea for $974 million. As a result, JAB has created rivalries with companies like Starbucks and Nestlé. A shift into the soft drink market shows JAB’s intent to expand this list to companies like Coca-Cola and PepsiCo. Continue reading »
Posted: April 22nd, 2018
By: Juliana S. Inman
On March 22, 2018, President Donald Trump signed a presidential memorandum imposing tariffs and investment restrictions on China. These tariffs are estimated to affect as much as sixty billion dollars in Chinese imports to the United States. According to U.S. News writers, Ken Thomas and Paul Wiseman, the tariffs were “the boldest example to date of Trump’s ‘America first’ agenda, the culmination of his longstanding view that weak U.S. trade policies and enforcement have hollowed out the nation’s workforce and ballooned the federal deficit.” Moreover, these tariffs against China came just after the United States prepared to impose tariffs of twenty-five percent (25%) on imported steel and ten percent (10%) on aluminum, which were also meant to target China’s cheap steel and aluminum production. Although there are partisan politicians with varying opinions on the recent tariffs, “[b]usiness groups mostly agree that something needs to be done about China’s aggressive push in technology, but they worry that China will retaliate by targeting U.S. exports of aircraft, soybeans[,] and other products and start a tit-for-tat trade war.” The short-term and long-term economic impacts as a result of these tariffs have yet to be seen, but one thing is for certain: there will be economic effects, both positive and negative.
Continue reading »
Posted: April 15th, 2018
By: Andrew Homer *| Staff Writer
The right to contract and the protection thereof is a fundamental piece of the societal and economic machine that provides prosperity to our country. The Contract Clause of the Constitution (Article I, Section X, Clause I) states that “[n]o State shall … pass any … Law impairing the Obligation of Contracts … .” In debating this clause at the Constitutional Convention, its proponents argued that it is intended to protect private contracts from legislative actions. Despite this clear purpose, the Contract Clause has not been so clearly interpreted by the Supreme Court.
Continue reading »
Posted: April 15th, 2018
By Christopher Lewis
By Arad [GFDL (http://www.gnu.org/copyleft/fdl.html), CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/) or CC BY-SA 2.5-2.0-1.0 (https://creativecommons.org/licenses/by-sa/2.5-2.0-1.0)], from Wikimedia Commons
In February 2018, the Southern District of New York issued their holding in Zuckerman v. Metropolitan Museum of Art
. The plaintiff, Laurel Zuckerman who is the great-grandniece of Paul Leffmann and Administratix of Alice Leffmann’s estate, alleged that Pablo Picasso’s, The Actor
, now owned by the Metropolitan Museum of Art in Manhattan, was sold under duress
during the height of Adolf Hitler’s reign in Germany. Ms. Zuckerman sought over $100,000,000 in damages and for The Actor
to be returned to her family. This lawsuit was dismissed as the district judge found that Ms. Zuckerman could not sufficiently argue
that her great-great-uncle was under sufficient duress that would justify returning the painting to her family or allowing for damages. This case is unlikely to be overturned on appeal unless the Second Circuit Court of Appeals widens the claim of duress to include a broader reach into the parties’ motives, however, the claims of duress are not always so easily dismissed. Continue reading »
Posted: April 9th, 2018
By: Yusuf A. Brown *| Staff Writer
As one of the largest and most successful retail banking franchises, it comes to no surprise that Bank of America (“BOA”) would pay its Chief Executive Officer (“CEO”) the big bucks. In February of 2018, the BOA Board approved its CEO’s, Brian T. Moynihan, 2017 incentive compensation package. This approval will allow Moynihan to enjoy a $3 million increase from 2016 in equity incentive. Although Moynihan continues to receive a relatively modest salary of $1.5 million, he will also receive $21.5 million as an equity incentive, an increase from the $18.5 million he received in 2016.
Continue reading »
Posted: April 4th, 2018
By: Christopher Lewis *| Staff Writer
By Rama (Own work) [CeCILL (http://www.cecill.info/licences/Licence_CeCILL_V2-en.html) or CC BY-SA 2.0 fr (https://creativecommons.org/licenses/by-sa/2.0/fr/deed.en)], via Wikimedia Commons
With the advent of new technology, privacy concerns are becoming an increasingly hot topic of debate in many different forms. People across the globe
are becoming more cognizant of the personal right to privacy and are working to protect it; however, other factions believe that technological advances and the integration of life and technology are worth the loss in privacy rights. Some believe that it is only a matter of time before we fall into the dystopian worlds that George Orwell and Ray Bradbury, respectfully, espoused in 1984 and Fahrenheit 451
. Continue reading »
Posted: April 3rd, 2018
By: Juliana S. Inman *| Staff Writer
On Monday, February 26, 2018, the Weinstein Company announced that it will file bankruptcy. Although there were discussions about selling the Company’s assets to an investor group, these discussions fell through shortly after the New York Attorney General’s office filed a lawsuit against the Weinstein Company. This civil rights suit against the Weinstein Company “alleges that Mr. [Harvey] Weinstein sexually harassed and abused women employed by the studio for years,” and further alleges that Mr. Weinstein made verbal threats to kill staff members. The New York Attorney General is seeking an unspecified amount of damages and penalties for victims of the alleged abuse. Despite the fact that Mr. Weinstein and his attorney claim that these allegations are without merit, the Board of Directors of the Weinstein Company felt that it only had one viable option: bankruptcy.
So, what is bankruptcy? Generally speaking, bankruptcy “is a court proceeding in which a judge and court trustee examine the assets and liabilities of individuals and businesses that can’t pay their bills” and make a legally effective decision as to whether to discharge those debts.
Continue reading »