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Mcgraw-Hill Education March 2018 Business Law Newsletter

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Mcgraw-Hill Education March 2018 Business Law Newsletter Proceedings A monthly newsletter from McGraw-Hill Education March 2018 Volume 9, Issue 8 Contents Dear Professor, Hot Topics 2 Video Suggestions 9 Spring is near! Welcome to McGraw-Hill Education’s March 2018 issue of Proceedings, a newsletter designed specifically with you, the Business Law Ethical Dilemma 14 educator, in mind. Volume 9, Issue 8 of Proceedings incorporates “hot topics” Teaching Tips 17 in business law, video suggestions, an ethical dilemma, teaching tips, and a “chapter key” cross-referencing the March 2018 newsletter topics with the Chapter Key 20 various McGraw -Hill Education business law textbooks. You will find a wide range of topics/issues in this publication, including: 1. Airbnb’s decision to remain a “closely-held” company; 2. Recent developments regarding the death of actress Natalie Wood; 3. A recent court decision regarding Florida’s procedure for restoring the voting rights of felons; 4. Videos related to a) recent developments in a wrongful death lawsuit against comedian and actor Jim Carrey and b) sentencing in the “Slender Man” stabbing case; 5. An “ethical dilemma” related to the controversy surrounding Volkswagen’s diesel tests on monkeys; and 6. “Teaching tips” related to the “Ethical Dilemma” (“Volkswagen Suspends Top Lobbyist amid Inquiry into Diesel Tests on Monkeys”) of the newsletter. I wish you an abundance of sunshine in the upcoming spring season! Jeffrey D. Penley, J.D. Catawba Valley Community College Hickory, North Carolina Business Law and Legal Environment of Business Newsletter1 Proceedings A monthly newsletter from McGraw-Hill Education March 2018 Volume 9, Issue 8 Of Special Interest This section of the .Hot Topics in Business Law newsletter covers three (3) topics: Article 1: “Airbnb Says It Won’t Go Public This Year As Top Exec 1) Airbnb’s decision to Departs” remain a “closely-held” company; http://money.cnn.com/2018/02/01/technology/airbnb-no-2018- 2) Recent developments regarding the death of ipo/index.html actress Natalie Wood; and According to the article, Airbnb will not go public this year. 3) A recent court decision regarding Airbnb's CEO Brian Chesky set the record straight while announcing the Florida’s procedure for restoring the voting departure of the company's chief financial officer Laurence Tosi in a recent rights of felons. blog post. The news follows a report from tech news site The Information that alleged tensions between Chesky and Tosi, who had been at the company for two and a half years. Chesky, who has previously hinted at a 2018 public offering, made a definitive statement about an IPO in the post. "We are not going public in 2018," he wrote. "Our primary focus is becoming a 21st-century company and advancing our mission. We're working on getting ready to go public and we will make decisions about going public on our own timetable." Airbnb, the short-term rental company valued at $31 billion, is the second most valuable U.S. startup in the world behind Uber. Airbnb and Uber both are currently operating without CFOs. The CEOs of both companies have expressed that they will not go public this year. In addition to the IPO update, Chesky announced the elevation of Airbnb's Belinda Johnson into a new role: chief operating officer. Johnson previously served as the company's chief business affairs and legal officer. Her role at the company has been likened to that of Facebook COO Sheryl Sandberg, or the "woman behind the man who runs Airbnb," as one article about Johnson put it. Business Law and Legal Environment of Business Newsletter2 Proceedings A monthly newsletter from McGraw-Hill Education March 2018 Volume 9, Issue 8 "Belinda and I often approach things differently, and this is one of the reasons we've worked so well together over the years," Chesky wrote. "I learn from her every day, and I'm a better leader because she is my partner." Last week, Airbnb announced that outgoing American Express CEO Kenneth Chenault will join the company's board. Chenault recently joined the board of Facebook, as well. Discussion Questions 1. What does it mean for a company to “go public?” What is an initial public offering? A company that decides to “go public” is determined to issue securities (stock) for outside investor purchase. The company will no longer be “closely held,” meaning that the company will no longer be owned exclusively by its incorporators. An initial public offering represents the first publicly traded stock issued by the company. 2. Discussion the advantage(s) of a company going public. The decision to go public can result in a major infusion of capital (cash) for a company, particularly if the company’s stock is in great demand. 3. Discuss the disadvantage(s) of a company going public. Once a company decides to trade its stock publicly, it is subject to scrutiny by federal and state authorities, particularly the United States Securities and Exchange Commission (SEC). Article 2: “Natalie Wood’s Husband Robert Wagner Now ‘Person of Interest’ in Her Death” https://www.huffingtonpost.com/entry/robert-wagner-natalie-wood- death_us_5a73652be4b0905433b2413b?ncid=inblnkushpmg00000009 According to the article, Los Angeles County Sheriff’s investigators say Robert Wagner is “more of a person of interest” in the death of actress Natalie Wood, who died nearly 40 years ago under mysterious circumstances. “As we’ve investigated the case over the last six years, I think he’s more of a person of interest now,” Lt. John Corina the media. “I mean, we now know that he was the last person to be with Natalie before she disappeared.” Wood, who starred in “West Side Story” and “Rebel Without a Cause,” was found dead in the water in 1981, near Santa Catalina Island off the coast of California. She had gone on a yachting weekend Business Law and Legal Environment of Business Newsletter3 Proceedings A monthly newsletter from McGraw-Hill Education March 2018 Volume 9, Issue 8 with Wagner, as well as Christopher Walken, who at the time was starring with the actress in the movie “Brainstorm,” and Dennis Davern, the boat’s captain. Wood’s death was originally ruled an accident, but the case was reopened in 2011. The coroner changed her cause of death to “drowning and other undetermined factors” the following year. Detectives who spoke to the media said an autopsy report indicated there were a number of bruises on Wood’s body that appeared to have been fresh at the time of death. “She looked like a victim of an assault,” Los Angeles County Sheriff’s Department Detective Ralph Hernandez said, noting that the marks made “it suspicious enough to make us think that something happened.” Investigators said Wagner — who was married to Wood twice, first from 1957 to 1962, and again from 1972 until her death — has been uncooperative since they reopened the case. “I haven’t seen him tell the details that match all the other witnesses in this case,” Corina said of Wagner. “I think he’s constantly changed his story a little bit. And his version of events just don’t add up.” Walken, however, has spoken with investigators. Wagner wrote in his 2008 memoir, Pieces of My Heart, that “nobody knows” how Wood died. There was a lot of drinking that night, he wrote. He said he and Walken also got into a fight about Wood’s career path. “I picked up a wine bottle, slammed it on the table and broke it into pieces,” he wrote. As to how Wood ended up in the water, Wagner said: “There are only two possibilities: either she was trying to get away from the argument, or she was trying to tie the dinghy. But the bottom line is that nobody knows exactly what happened.” Discussion Questions 1. As the article indicates, Natalie Wood died in 1981, almost four decades ago. Is there a statute of limitations period to charge and convict someone for murder? If not, should there be? A statute of limitations period effectively limits the time in which a prosecutor or plaintiff can pursue a cause of action against a defendant. There is no statute of limitations period for murder. In terms of whether there should be such a limitation, student opinions may vary. 2. In the event that Robert Wagner is charged with murder in the death of Natalie Wood, discuss the relative strength (or weakness) of the prosecution’s case. Business Law and Legal Environment of Business Newsletter4 Proceedings A monthly newsletter from McGraw-Hill Education March 2018 Volume 9, Issue 8 In your author’s opinion, it would be very difficult for the prosecution in this case to prove guilt beyond reasonable doubt. Not only has it been almost forty years since Ms. Wood’s death, but any case against Robert Wagner would be based on circumstantial evidence without the benefit of an eyewitness. 3. As the article indicates, investigators claim that Robert Wagner has been uncooperative since the Los Angeles Sheriff’s Department reopened the case in 2011. From a legal standpoint, is such non- cooperation evidence of guilt? Why or why not? The defendant’s lack of cooperation with the prosecution is not evidence of guilt. In a criminal case, due process ensures that the defendant is not required to assist the prosecution in proving its case. Article 3: “Florida’s Scheme for Restoring Felons’ Voting Rights Rule Unconstitutional” https://www.usatoday.com/story/news/politics/2018/02/01/floridas-voter-restoration-process- ruled-unconstitutional/1088913001/ According to the article, in a landmark ruling with far-reaching implications, U.S. District Judge Mark Walker has found Florida's scheme for restoring the voting rights of felons unconstitutional.
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