Business, Law, Politics and Ethics
Part one: Corporate Acquisitions and Multinational Corporations
The Supreme Court of the United States stopped the planned merger between Chrysler and FIAT following the declining performance of the former. President Barack Obama was accused of overstepping his mandate when he authorized federal bailout for the automaker (Aspenleaf Productions, 2011). There are fears that the merger would have far reaching implications on people because it would protect or take away their wealth.
Question one: The groups that would benefit from the planned selling of Chrysler are the directors of the acquiring company. Upon the completion of the merger, the retirees who invested in the company would receive more money (Aspenleaf Productions, 2011).
Question two: The merger process takes long because of the stages involved in the merger process. It begins from the appointment of merger champions which comprises executive heads of the merging organizations (Cartwright & Cooper, 2014). The legal structure that guides the merger process is identified as well as financial and operations framework.
Question three: The legal process for Chrysler and FIAT would encompass review of the new organization’s Memorandum and Articles of Association. Charity registration will also take time to obtain. The legal process must answer questions regarding the size of the board, terms of the board, process of selecting chief executive officer.
Part two: Banks, E-Money and Financial Reform
This video discusses the future of money and consumer perception on the modes of money transfer (Aspenleaf Productions, 2011). The emerging phenomenon of digital wallet has received mixed reactions from consumers.
Question one: Cell phone payments are different because it is a virtual way of transferring money. A ban customer does not have to carry money in its physical phone. A review of money laws should be done to conform to this emerging technology.
Question two: Lawsuits involving fraud or misuse of phone-based money transfer encounter evidentiary problems because of mobility of phones. Every individual carries his/her phone. Thus it is difficult to obtain evidence on the person who commits fraud using a phone that does not belong to him.
Question three: Bank customers should be more careful when carrying out online transactions. The increasing incidences of cybercrime should alert customers on the prevalence of cyber criminals who may hack their accounts or lure them into dubious money transfers (Singer & Friedman, 2014). Customers should have strong passwords to prevent hackers from accessing their accounts.
References
Aspenleaf Productions, Inc. (2011). “Corporate Acquisitions and Multinational Corporations:
SCOTUS puts the brakes on Chrysler Sale.” Pearson. Retrieved from http://media.pearsoncmg.com/ph/streaming/bp/2013/business_law/BLaw2013_Corp_Acq.html
Aspenleaf Productions, Inc. (2011). “Banks, E-Money and Financial Reform: Will Current
Spending Methods soon be outdated?” Pearson. http://media.pearsoncmg.com/ph/streaming/bp/2013/business_law/BLaw2013_Banks.html
Cartwright, S., & Cooper, C. L. (2014). Mergers and acquisitions: The human factor.
Butterworth-Heinemann.
Singer, P. W., & Friedman, A. (2014). Cybersecurity: What Everyone Needs to Know.
Oxford University Press.
