The Journal of the Business Law Society

Verizon v. Vonage: If Verizon Wins, Do We All Lose?

     Many of us enjoy those cheeky, and admittedly strange, Vonage commercials.  A substantial number of us are also drawn to the very low price of Vonage services as evidenced by the fact that Vonage has approximately 2.2 million users.[1]  For only $24.99 per month one can get their local and long distance phone service through the internet,[2] but recent events indicate that this price maybe too good to be true.  When deals like this come along, one may wonder how the company in question was able to charge so little and yet still turn a profit.  The answer to that question may be that Vonage has infringed on patents held by Verizon, turning a profit on technology they do not legally own, according to the United States District Court for the Eastern District of Virginia.[3]  While the trial has concluded and Verizon has won the first round, this case continues on appeal.[4]  With Vonage’s demise arguably on the horizon, it is time to reflect on whether Verizon will likely emerge victorious, and also on the consequences of Verizon winning the day.

Midwest Air Group Finds “White Knight”

Midwest Air Group, Inc., parent company of Midwest Airlines, recently announced a merger agreement with TPG Capital, L.P., the global buyout group of a private investment firm known for its record in the aviation industry.[1]  The announcement likely makes many Midwest Airlines fliers are happy to know that “the cookies stay.”[2] 

Monster.com Users Beware: Landing Your Dream Job May Compromise Your Computer's Security and Result in Identity Theft

Seventy-three million people worldwide have relied upon Monster.com to assist them in acquiring the job of their dreams or simply as a means to transfer out of a current dead-end job. It is unlikely that 1.3 million of these users anticipated the theft of their most personal information.[1]

The Journal Begins Publication for 2007-2008

The Journal will begin its first publication cycle starting on Tuesday, September 4.  We invite you to view our site often as we will have new articles coming out each weekday now through December.

We would like to welcome Ashley Balestrieri as a new member of our Editorial Staff for 2007-2008.  We would also like to welcome a mostly new staff of writers.  Look for their articles in the coming weeks.

We always welcome guest articles as well as comments about our site.  You can contact us via email at buslaw@law.uiuc.edu.

The Journal Completes its 2006-2007 Publication Year, Begins Summer Hiatus

The Journal of the Business Law Society has concluded its regular publication cycle for the Spring 2007 semester. Final exams are upon us and summer break will begin shortly. While there may be periodic posts during this period, the Journal will resume its full publication schedule in the Fall when classes begin.

Please join us in Congratulating the Editorial Board for the 2007-2008 publication year!

• Editor in Chief: Alicia Filter
• Managing Editor: Collin Delaney
• Executive Editors: Christopher Minelli & Thomas DeSplinter
• Articles Editors: Naureen Amjad, Katherine Croswell, Jennifer Kolton & Karen Lee

We thank you for visiting the Journal and encourage you to explore our archives.  Please feel free to post your comments or send us questions at buslaw@law.uiuc.edu.

We continue to accept articles submissions from students, professors, and practitioners. If you are a student at the University of Illinois College of Law and are interested in joining the BLS Journal, please contact us at buslaw@law.uiuc.edu.

The Hurdle of "Loss Causation"

Loss causation is one of the elements that have to be satisfied in a securities fraud action under § 10(b) of the Securities Exchange Act and Rule 10b-5. [1] The Supreme Court in Dura Pharmaceuticals, Inc. v. Broud, set up six elements of a securities fraud claim "involving publicly traded securities and purchases or sales in public securities." [2] Among those elements, the loss causation element seems to be one of the most difficult hurdles that a plaintiff in a securities fraud action needs to overcome. If a plaintiff cannot show that there is a genuine issue of material fact as to the loss causation element, he or she won't have a chance to go beyond a summary judgment stage. [3] Not only is this element a great hurdle for a plaintiff, but also the difficulty of showing it can keep many securities fraud claims from moving forward beyond summary judgment. The Seventh Circuit in a recent case, Ray v. Citigroup Global Markets, Inc., was able to grant a summary judgment in favor of the defendants just by looking at the loss causation element without further addressing other elements. [4]

Get off the Radar of Sarbanes-Oxley: NYSE’s Merger of Equals with Euronext

    Hank Paulson, the US Treasury Secretary, started his speech at the Economic Club of New York in November, 2006, saying, “it’s good to be in New York City, the financial capital of the world,” which was well taken by the audience as a joke. [1]  Indeed, in 2005 only one of the top 25 IPOs by value took place in New York. [2] In the year to October 19, 2006, London Stock Exchange and Alternative Investment Market raised almost $40bn from the IPOs of 172 companies. [3]  In comparison, NYSE and Nasdaq only raised short of $30bn from 137 IPOs in the same period. [4] Concern haunted Wall Street: have the Big Apple’s glory days passed?  [5]

First Year, Second Chance

For eleven stellar seasons, the CBS hit “The Jeffersons” told the hilarious story of George and Weezie, who had moved on up the socio-economic ladder to “a deluxe apartment in the sky.” [1]  In contemporary legal education, a growing phenomenon parallels George and Weezie’s desire to get a “piece of the pie.” [2] This article will examine the trend of the transfer law student in addition to the successes, complications, and possible prejudices experienced by transfer students in securing employment.

Cuomo's Code of Conduct: Troubled Times for the Student Loan Industry

In November of 2006, the office of the New York State Attorney General initiated an investigation into the financial agreements between New York universities and student loan providers as part of an effort to eliminate practices that created conflicts of interests in the lucrative $85 billion student loan industry. [1]  However, this investigation did not receive a high degree of publicity or momentum until February of 2007 when the newly appointed New York Attorney General Andrew M. Cuomo expanded the investigation to include more than 60 universities nationwide and major student loan providers and banks. [2]  Attorney General Cuomo's investigation revealed questionable practices within the student loan industry whereby universities were receiving illegal kickbacks for including certain lenders in their "preferred lender" list.  [3] This discovery has led to a nationwide reaction and the student loan industry has been under significant probing from several lawmakers as well as the U.S. Education Department. [4]

Accessing Unclaimed TIF Funds

Developers looking for a new source of revenue during the housing slump should not overlook municipal redevelopment programs. Developing the right kind of project at the right location may qualify one for millions of dollars in government subsidies. Forty-nine states and the District of Columbia have some variation of Tax Increment Financing. [1] More commonly known as TIF, the program lets local municipalities subsidize projects in designated redevelopment areas. 

To Lose or Not To Win, That is the Question

The National Basketball Association (NBA) draft is coming and according to many sports pundits, including ESPN’s Bill Simmons, it will be ‘ridiculously deep.’ [1]  Thus, teams can find potential superstar players lower in the draft and do not necessarily need to have a top lottery pick in order to improve their ball club.  However, before the arrival of the draft, comes the NBA lottery, which determines the order of selection for those teams who did not make the playoffs, or those teams that are holding those spots due to prior trades.  As with any lottery, the teams that are participating really want to win.  In fact, according to the ‘Cause and Effect’ article on NBA.com, in the past twenty years the team with the first overall pick has had a better record the next all but three times. [2] But with any prize of this much value; there is a possibility of those playing the system to best win the top pick, a.k.a. losing on purpose.

Undocumented Taxation: More Illegal Immigrants Likely to File Returns

The historic case of James v. United States held that illegal gains constitute income that must be reported, despite any legal obligation which might arise to make restitution. [1] However, a whole different tax question arises for collecting legally earned income from residents illegally in the country. While the issue may not be clear to the millions of immigrants illegally residing in the country, the issue is clear to the Internal Revenue Service. “Everybody is a citizen for tax purposes,” remarks one Baltimore tax-preparer. [2]

Evolution of Maternalism in Corporate Law

I: Introduction

During the uncertain times of World War II, Harvard University’s president was interviewed concerning the condition of the law school. He stated that it wasn’t bad as he had expected, given the war-time circumstances: “We have 75 students, and we haven’t had to admit any women.” [1]

One would think that the legal industry would have made giant strides towards remedying such primitive opinions. On the contrary, a recent Harvard Law survey of large corporate firms found that some male lawyers still drop pencils under boardroom tables as an excuse to look at women’s legs, and take clients to strip clubs where their female colleagues feel unwelcome. [2] Fortunately, not all firms tolerate such behavior. This article aims to examine the obstacles facing women and mothers in the field of corporate law, and what actions some firms are taking to alleviate their unique burdens. For additional information on mothers in the corporate hiring process, refer to the related article by Tina Liang located here. [3]

Anchors Aweigh! The U.S. Navy, the U.S. Coast Guard, and Regulating International Shipping on the High Seas

Law students enrolled in a “substantive” criminal procedure course frequently sweat over the intricacies of search and seizure law within contexts familiar to the average land-lubber attorney – the home, the automobile, and the person strolling down the street.  Perhaps some die-hard students will take the time to learn more obscure aspects of the Fourth Amendment such as administrative searches and the law of satellite reconnaissance.  But who really bothers to learn anything about maritime search and seizure law?  The idea of pirates, smugglers, and privateers in the twenty-first century is absurd to most people, including many attorneys.  But, be forewarned!  In the post 9/11 world the men and women in the United States Navy and United States Coast Guard are on call twenty-four hours a day monitoring commercial and private vessels on the high seas.  [1]  They are enforcing regulatory legislation developed by Congress and applicable to all tankers, container ships, and other vessels that are vital links between the United States and other markets around the world.  [2]

Not so Funny Funny Business

     Open your local paper and you will see advertisements, turn on your car radio and you will hear advertisements.  Small business owners typically use newspapers and radio ads to sell their products and services, but the process of selecting the proper advertisement is often difficult.  [1]  Selection of the proper media is not the only decision the business owner faces.  The advertisement’s content is also important.   Off the wall advertisements can be beneficial to a business because they can make a business stand out.  [2] Recently a local Champaign-Urbana radio station has spread two wacky ads through the airwaves.  Both radio advertisements imitate famous movie characters in an attempt to entice listeners to go tanning.   What characters you ask, why “Bormat” and “Neapolitan” of course.  Surely, these simple name changes will shield the business that ran the ads from legal liability, right?  This article will briefly analyze these radio ads under the privacy law tort of misappropriation.