Bonus Chapter A: Business Law - McGraw-Hill Introduction to Business

New Law Protects Consumers’ Right to Leave Negative Feedback

December 13, 2016

In December 2008, John Palmer ordered some items from the online retailer KlearGear and never received them. His wife Jen responded to this poor service by writing a critical review about the company on a website called Ripoff Report. The incident eventually faded from Palmer’s memory until three years later when she received a demand from KlearGear to take the review down. If she didn’t comply, the company said, they would fine her $3,500 for violating a non-disparagement clause that Continue reading →

Ethics, Regulation, Consumer Feedback, Yelp, Consumer Review Fairness Act, Credit Rating

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 14: Product and Price, Chapter 16: Place and Promotion, Bonus Chapter A: Business Law

Supreme Court Toughens Rules on Insider Trading

December 8, 2016

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In 2014 a New York appeals court nearly changed the way that lawmakers deal with cases of insider trading. The dispute centered around two hedge fund managers who passed along confidential information between tipsters like a game of telephone. While the pair had been convicted in their first trial, the decision was eventually overturned upon appeal. This set a precedent for insider trading cases in which the prosecution had to prove that the tipster directly received some sort of compensation Continue reading →

Ethics, Stocks, Legal, Supreme Court, Insider Trading

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Bonus Chapter A: Business Law

Indiegogo Allows Crowdfunders to Purchase Equity Stakes

December 2, 2016

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For years crowdfunding sites have provided cash and marketing boosts to entrepreneurs who aren’t afraid to reach out to the public. In exchange, donors receive prizes for their support, ranging from simple displays of gratitude to enormous giveaways for the most generous individuals. One reward they haven’t been able to receive, however, is a stake in the company. For instance, the makers of the Oculus Rift virtual reality headset brought in millions from their 2012 Kickstarter campaign. Facebook eventually purchased Continue reading →

Marketing, Promotions, Crowdfunding, Kickstarter, Financing, Indiegogo, Equity

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 16: Place and Promotion, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Improving Conditions at Bangladesh’s Garment Factories

November 1, 2016

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In April 2013, more than one thousand Bangladeshi garment workers died when the Rana Plaza building collapsed. Considered to be the deadliest garment factory accident in history, the tragic event led to worldwide condemnation of many Western clothing companies. After all, brands like H&M, Walmart and Zara had long pushed producers in Bangladesh’s growing garment industry to make clothes faster and cheaper. While this allowed retailers to set low prices at their stores, the focus on efficiency forced Bangladesh’s factories Continue reading →

Ethics, Manufacturing, Labor Relations, Clothing, Zara, Walmart, H&M, Bangladesh, Human Rights, Garment Industry

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law

Chinese Factories Produce Knockoffs at Record Speed

October 25, 2016

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Israeli entrepreneur Yekutiel Sherman had a great idea for a product: a selfie stick that folded seamlessly into the back of a smartphone’s case. He spent a year carefully designing his idea, producing prototypes and securing small investments from family and friends. By December 2015 Sherman launched a Kickstarter campaign in order to finish funding the item, now called Stikbox. But while the project immediately attracted investors, his popular crowdfunding campaign also caught the attention of Chinese bootleg manufacturers. Within Continue reading →

Operations Management, Global, Ethics, Manufacturing, Product Development, China, Supply chains, Product Distribution, Knockoff products

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media

ATM Fees Reach Nearly $5 for Out-of-Network Withdrawals

October 14, 2016

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If you’re in need of cash in a pinch, you’d better hope that your bank has an ATM located nearby. For the 10th consecutive year, the fees charged by banks for usage of ATMs by non-customers has risen to a record average of $4.57. That number is actually the combination of two separate fees: one charged by ATM owners for non-customers and another by the account holder’s bank for withdrawing out-of-network. In 1998 the combination of these charges amounted to Continue reading →

Ethics, Regulation, Dodd-Frank, Banks, ATMs, Bernie Sanders, Hillary Clinton, Fees

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Update: Wells Fargo Faces Backlash for Employee Fraud

September 29, 2016

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For the past few weeks the business world has been buzzing with outrage over the Wells Fargo banking scandal. Executives at the company likely hoped the worst was over after getting hit with a $185 million fine for allowing such widespread fraud to occur. But as Senator Elizabeth Warren showed last week, regulators and commentators are far from finished with the company. During a hearing with Wells Fargo CEO John Stumpf in front of the Senate Banking Committee, Senator Continue reading →

Management, Ethics, Executive Compensation, Banking, Regulation, Fraud, Wells Fargo, Consumer Financial Protection Bureau, Senator Elizabeth Warren

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

[VIDEO] The Volcker Rule Explained

September 14, 2016

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The Dodd-Frank Wall Street Reform and Consumer Protection Act ranks among the most important laws passed in recent history. It’s also extremely complicated, amounting to some 14,000 pages of various regulations and restrictions. The video below takes a look at one of the key provisions of this landmark bill: The Volcker Rule, or the stipulation that banks cannot act like hedge funds and gamble with their own cash reserves. Although reviled by many on Wall Street, supporters say the rule Continue reading →

Ethics, Finance, Regulation, Dodd-Frank, Wall Street, Volcker Rule

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

Wells Fargo Fires More Than 5,000 Employees for Fraud

September 12, 2016

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Last week regulators at the Consumer Financial Protection Bureau (CFPB) dropped a bombshell that surely shocked anyone with a bank account at Wells Fargo. According to the CFPB, employees at the bank created more than 1.5 million phony accounts over the years in order to fraudulently reach sales targets and earn fees. This “widespread” practice resulted in the recent firing of approximately 5,300 Wells Fargo employees. Regulators also hit the bank with a fine of $185 million along with $5 Continue reading →

Ethics, Banking, Regulation, Fraud, Wells Fargo, Consumer Financial Protection Bureau

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 7: Management & Leadership, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

FDA Bans Use of “Antibacterial” Soaps

September 6, 2016

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Last week we shared a video about how food companies label some items as “natural” even though they’re no healthier than their non-natural counterparts. While that term may soon come under regulation, the Food and Drug Administration (FDA) recently banned another marketing buzzword from use on commercial products. As of last Friday, “antibacterial” soaps are no longer allowed on U.S. store shelves after manufacturers failed to prove they were safer or cleaner than regular products.

“Consumers may think antibacterial washes Continue reading →

Ethics, Product Development, Branding, Regulation, Packaging, Product Distribution, FDA, Soap

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law