Facebook CEO cashes out $ 2.3 Billion from 2012 stocks options
Introduction
This legal event tackles the returns earned from stock options and falls under the province of the securities regulation law. From the onset, it should be noted that the event involves earning of dividends from the stock options available. This is exercised under the Securities Regulations requirements.
Facts
Facebook issued an initial public offering in May 2012 at $ 38 dollars. As it stands, the stock price is $ 26.85 representing a slight decline in the value of the stock. However, the gains realized were essentially accounted for by the CEO to have arisen from the Initial Public Offering that occurred in 2004.
Law
The gains represent what is declared under the Securities and Exchanges law and regulations. By the provisions, the gainer must declare the gains and consequently pay taxes that accrue on the same. The CEO acted in compliance with the law.
Analysis
The provisions of the Securities and Exchanges Act were complied with to the fullest. The CEO duly declared his gains under the provisions of the SEC and consequently paid the taxes that so arise with the declaration. In addition, the CEO observed issues of time and was kind enough to provide for the payment in full in accordance with the operating law and regulation. It should also be appreciated that the event occurred in the wake of a rising call for the strengthening of the provisions of the SEC with the ultimate view of developing a progressive tax regime.
Conclusion
This underscores the essence of observing the rules and regulations as stipulated by the Securities and Exchanges Commission as guided by the Securities and Exchanges Act. That the CEO is tax complaint also suffices as an example of responsible accumulation of wealth.
Samsung Planned Rugged Version of Galaxy S4 Phone
Introduction
The event refers to the latest announcement by Samsung that it would release a rugged version of the galaxy S4 phone into the market. It is the expectation of the company that it would reach out to the market through the introduction of the rugged version of the phone.
Facts
Samsung have recently spend millions of dollars in research and development in line with the discharge of their production duties. It was their deliberate intention to introduce into the firm a product that shall ensure their market dominance or at the least retention of their market share.
Law
This case falls under the province of intellectual property right. The rugged version of the Galaxy S4 is a patented product of Samsung Limited and consequently intellectual property. It is incumbent on other industry players to appreciate the institution of intellectual property and consequently respect the provisions of the law in respect to the patented products.
Analysis
This issue arises in the wake of an intellectual property rights war between Samsung and Apple in which the two companies have accused one another of infringing on the intellectual properties of the other. Intellectual property seeks to protect and ensure the respect of innovation, works and creative produce of an individual or group. In light of the ensuing battles on previous products, it is expected that the rugged S4 version of Samsung galaxy will not be subjected to the same process and contest as to the original patent holder.
Conclusion
This essentially demonstrates the moribund regime on intellectual property which will go deep in encouraging innovation and creativity. In addition, it creates order in the turbulent and competitive business atmosphere.
Hollywood pushes back against new China Tax
Introduction
The event refers to the Hollywood resistance to the demand to pay by the Chinese authorities for the production of the movie, “Life of Pi.” According to the Hollywood actors, the new Chinese tax is a consequence of the changes taxation regime in China that goes deep in affecting the tax rates that was previously used. It is noteworthy that the new rate imposes an additional tax of twenty three million dollars on the Hollywood producers.
Facts
The Hollywood producers did shoot a Chinese movie and should be liable to the necessary tax. It is the requirement of the Chinese authorities that this production incurs a tax of 23 million dollars. However, Hollywood has contested this new application on the ground that it defeats previous and running bilateral trade agreements between the United States of America and the People’s Republic of China.
Law
This case falls under antitrust law. It is important to ensure fairness and effective competition in our markets. The trajectory of marketing today is discouraging of protectionism and encourages globalization.
Analysis
The case requires that the issues at hand be considered and a balance arrived at that favours both the parties be arrived at. While it is essential to observe the letter of bilateral trade agreements. Such must be applied in congruence with the overriding objectives of business. It should be appreciated that China as a nation has its own objectives and ought to be allowed to impose taxes in the satisfaction of these objectives.
Conclusion
The event illustrates the place of international and bilateral trade agreements in light of evolving business interests at the national level.
States take a shot at Looser Alcohol Rules
Introduction
This event involves the recent efforts by New Hampshire and Texas to loosen the stringent limits imposed on alcohol consumption during late hours (late night) and Sundays. It is the observation of the states that these limits are too punitive and discouraging trade in the long run.
Facts
The currency in law and policy imposes drinking limits during late nights and on Sundays. The state policy formulators have taken a new approach in seeking to address the consequences of these provisions. It is their contention that loosening these stringent laws would go deep in encouraging trade and thereby growing the overall economy of the states.
Law
This falls within the province of consumer laws. The final outcome of these concerted efforts would either encourage or discourage drinking habits in the states.
Analysis
The issues at hand is whether the stringent laws in their current form discourage trade And whether loosening these stringent provisions would improve the situation in as much as trading in alcohol is concerned. It should be appreciated that the consumption of alcohol has direct and indirect consequences on the general performance of the economy. It is also equally important for the policy formulators to examine the often contrasting situations in which business interest work in antagonism to public policy. In light of the foregoing, the formulators ought to be guided by public policy which in every sense can override business interest. In addition, a cots benefit analysis with the broader picture in mind must be contemplated.
Conclusion
The event demonstrates the dilemma that is posed by the contrasting and competing interests that put business and societal welfare on the antagonistic sides. It is essential to settle on a middle ground that addresses either side’s interests.
Jury: Exxon owes $236 million for polluting groundwater in N.H.
Introduction
The event involves a business case in which a New Hampshire jury found Exxon Mobil liable in a civil law suit. The case was first filed in 2003 but was finally determined in April 2013, ten years later.
Facts
It was the contention of the State of New Hampshire that Exxon Mobil had acted negligently contrary to the provisions of the law and especially the specific requirements imposed on companies and business exploits by the United States Environmental Protection Agency. It is the position that the supposed additive according to the Agency is categorised under potential human carcinogens. In fact, in the State of New Hampshire, the additive was legally banned in 2007. The case had initially involved a number of defendants who either had their cases dropped or settled on payments. Exxon Mobil had declined on the two options prompting a new suit three months ago as from February 2013.
Law
According to the provisions of the United States Environmental Protection Agency, business and other operations must observe a number of rules. The release of MTBE into the environment was an affront to the law given that the substance was classified under the class of potential human carcinogens. However, it was the argument of the defendant (Exxon Mobil) that the substance worked well and that on balance it improved the air quality with the eventual benefits outweighing the negative impacts it had.
Analysis
The case comes in the backdrop of increased environmental awareness. It is the position that the MTBE release is harmful to humanity as it contaminates groundwater. It should, therefore, be used in restricted places only where the harm does not affect humanity. In addition, business ethics dictates that environmental concerns should outweigh economic earnings.
Conclusion
The case illustrates the role of environmental law in ensuring the protection of the environment and the consequential safeguard of humanity.
Works Cited
Fritz, Ben and Laurie Burkitt. “Hollywood Pushes Back Against New China Tax.” Wall Street Journal (2013).
McLure, Jason. “Jury: Exxon owes $236 million for polluting groundwater in N.H.” NBC News (2013).
Randy, T. “Samsung Plans 'Rugged' Version of Galaxy S 4 Phone.” Wall Street Journal (2013).
Strauss, Gary. “Facebook CEO cashes out $2.3B from 2012 stock options.” USA Today (2013).
Teddy , G. “States Take a Shot at Looser Alcohol Rules.” Wall Street Journal (2013).
