Foibles of Federalism; The Legal/Illegal Environment of Cannibus

Marijuana is now either legalized, legalized for medical use or decriminalized by state law in nearly one-half of the United States. However, it is still illegal under federal law. The US Supreme Court determined in Gonzales v. Raich that the powers granted the federal government in the Commerce Clause support federal legislative authority to act. The years since that case have seen troughs and peaks of federal enforcement, promises not to enforce and those promises broken.  Now as businesses begin the  task of selling marijuana under state law, they discover that banks are unwilling to handle their money. Fearful of running afoul of federal law and facing disciplinary action or worse, federally licensed banks are refusing to handle marijuana money that is legally obtained under state law but are illegal proceeds of a crime under federal law. The DOJ recently promised to give banks guidance on how to legally handle this money without risking enforcement action. Banks are skeptical. These are the kinds of policy promises that have been broken before and, of course, are non-binding on future administrations who can prosecute past actions.  So it looks like marijuana dispensary entrepreneurs will be burying a lot of cash in coffee cans in their backyards.  The more things change . . .

Warning: This video includes the word "f**k"


Is this how legal recreational use of marijuana will affect businesses?

Shocking Lack of Ethics in Politics

This story involves a shocking violation of any conceivable ethical standard.  But it involves politics, not business. Once again, if these are the people who make laws, then what hope do we have that they would give a hoot about using law to mandate ethical conduct.

Apparently, Republicans in Florida have made a website that looks like a site for Democratic Congressional candidate Alex Sink.  However, when you click on the button to donate, you are actually pledging money to her opponent.

As reported by The Cloakroom:

The Tampa Bay Times interviews one donor who thought he was giving to Alex Sink's (D) congressional campaign. It even used the same blue and green color scheme as the candidate's official website.
Said the donor: "It looked legitimate and had a smiling face of Sink and all the trappings of a legitimate site."
But he didn't see the small print, which said, "Make a contribution today to help defeat Alex Sink and candidates like her." 

See candidate Sink's actual website, here.  Read The Daily Kos report and see images from the fake site here.  See NRCC website  to defeat Sink here.

Image from Alex Sink's site:


Image from NRCC site:

Politics is Crazy and Politicians Make Law

According to their responses at a recent candidates forum, three candidates for the Republican nomination to run for the US Senate in Georgia would support a resolution to impeach President Obama if they had the opportunity to vote on one.  The most prominent among the candidates is Rep. Paul Broun. Rep. Broun,  was the subject of a post in this blog when, as reported by the Huffington Post, he famously opined:

"God's word is true. I've come to understand that. All that stuff I was taught about evolution and embryology and the big bang theory, all that is lies straight from the pit of Hell," said Broun, who is an MD. "It's lies to try to keep me and all the folks who were taught that from understanding that they need a savior."

Remember, these people make laws. When studying the Legal Environment of Business, it does a disservice to our student for us to focus entirely on the judicial process while ignoring the legislative process. The AACSB Accreditation Standard #9 requires as part of the Undergraduate Curriculum content:

• Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society (emphasis added)

  We are not so naive as to believe the Civic's Class maxim that the law is insulated from politics. Let's make sure our student get a thorough education as well.

Click here or on image to see video of Broun and others "voting" for impeachment:

27 Amendments in 27 Days

The National Constitution Center in Philadelphia is sponsoring daily spotlights on all 27 Constitutional Amendments.  The series, entitled 27 Amendments in 27 days, began this past Saturday, Feb 1st. Each day's offering includes lesson plans, educational resources and guides.  Perhaps there is something there that you may use in class.

The Limited Liability Company Song

The Limited Liability Company Song from: Billy: A Post Apocalyptic comedy.

You Tube Description:
Goofy song and dance number from the play "Billy: A Post-Apocalyptic Comedy" by Derek Lee Barton. Music by Sean Barton. Choreography by Darrin French. Starring Seth Garben, Jefferson Grubbs, Phil de Guzman, Christopher Leck, Jenna Troum, and Jeremy Shpizner. Directed by Kathryn Walsh

Lyrics:
Now if you want to make a nice big fortune
Then there are just a couple things you'll need:
A broker friend to lend a hand
And a few rental properties
Though its not legal you will just follow my lead!

A building in foreclosure you should buy,
Convert to lots of cramped apartments,
Then just rent them out!
Require large rental deposits
Put them in your bank account,
And soon you'll find your balanace has become
A significant amount!

Then you just create an LLC,
A Limited Liability Company,
basically a legal entity that owns the building instead of you.

Limited Liability Company!
You limit liability for me!
An LLC is gonna be
What takes the fall for me.
When renters want their money I'l say
Ask the LLC!

They'll try to get back deposits,
They may even sue,
But the landlord is something
That just isn't you!
LLCs are not people,
they're magic indeed!
They take the fall in courts of law
So you get off scott-free!

(chorus repeats)

The song starts around the 3:34 mark in the video below:

Speech Free From Censorship, Not From Criticism

In case you missed the controversy over the comments by Phil Robertson of Duck Dynasty fame, this video is a quick summary:


Following the suspension by A&E, prominent conservatives, including Sarah Palin, spoke out characterizing Robertson's statements as being protected free speech. No wonder students are confused about the parameters of free speech protection. It is important with the explosion of social media and internet communication that students understand that the liberty of expression does not protect them from criticism if they say something that other people don't like. Speech that may be protected from government censorship is not equally protected from private action by employers, customers, suppliers, competitors, friends, enemies, or people who don't even know you.

A response that I read that I think will resonate with students came from syndicated commentator Leonard Pitts.  Here is the link to the editorial. Here is a quote:

Yeah. Because freedom of speech means you can say any asinine thing you want and nobody can call you on it or punish you for it. Right?

Um … actually, no.

Free speech means you can say any asinine thing you want and the government may not call you on it or punish you for it. If the feds came after Robertson, I’d hold my nose and stand with him. But he wasn’t punished by the feds. He was punished by the free market.

The First Amendment gives each of us the right to bring whatever we wish into the marketplace of ideas — faith, gay rights, white supremacy, libertarianism, socialism, birtherism — without government interference. But if enough people don’t buy what you are selling, you don’t stay in the market very long. And if what you’re selling offends enough people, the market will show you the door.

So Robertson’s rights were not abridged because his network slapped his wrists. Those are the rules we play by. That’s how America works.

A&E, calculating that Robertson had become a liability, dropped him. His fans raised an almighty ruckus and A&E chose discretion over valor, doubtless realizing the people most likely to be offended by the man probably weren’t watching him in the first place.

Now Robertson returns — just in time for a new controversy. It seems an old video has surfaced in which he lists the qualities a man should seek in a prospective wife. She should be 15 or 16 years old, advises the duck hunter — and a good cook.

Great. So now we get to see how child marriage plays in the marketplace of ideas. God bless America.

Read more here: http://www.miamiherald.com/2014/01/05/3853578/free-speech-what-it-is-and-isnt.html#storylink=cpy 

Can I Use a Movie Line as a Song Lyric?

Attorney Gordon Firemark provides the answer and a little legal and business advice as well.