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According to The New York Times, with travel dropping to near nothing and no resumption in sight, major airlines and hotels are offering their highest-spending customers many perks.

Questions:

  1. What do these perks include?
  2. According to the President, the economy is going to bounce back to 2019 levels by the end of 2020. What do analysts in this article predict about the return of airline travel to 2019 levels?
  3. For how long have Delta, American, Southwest, United and Alaska Airlines have announced their status extensions?

Source:

Weed, J. (2020) Airlines and Hotels Reach Out to Their Top Spenders. The New York Times, April 27 (Retrievable online at https://www.nytimes.com/2020/04/27/business/coronavirus-airlines-hotels-customers.html)

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According to The New York Times, as the coronavirus continues to disrupt lives and livelihoods, influencers are offering free money to Instagram followers and gaining a lot more in return.

Questions:

  1. What are popular personalities paying fans to do?
  2. Where does the cash come from?
  3. Although the cash offers on Instagram may look like lifelines to some, discuss whether you think it is ethical to label them charities.
  4. What type of marketing have these Instagram offerings been tagged or called?  
  5. Why is the FTC so interested in the disclosures related to these offers?

Source:

Lorenz, T. (2020). Everyone Is Giving Away Cash on Instagram. The New York Times, April 27 (Retrievable online at https://www.nytimes.com/2020/04/27/style/instagram-cash-giveaways-coronavirus.html)

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According to the Washington Post, Boeing has terminated a long-planned $4.2 billion deal with the Brazilian aerospace manufacturer Embraer after negotiations broke down shortly before a Friday night deadline.

Questions:

  1. Had the deal gone through, what would have been Boeing’s stake in Embraer?
  2. How much of the value of its stock has Boeing lost in the past year?
  3. Who does Embraer compete directly with?

Source:

Gregg, A. (2020). Boeing backs out of Embraer merger. The Washington Post, April 25 (Retrievable online at https://www.washingtonpost.com/business/2020/04/25/boeing-backs-out-embraer-merger/)

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Progressive Leasing, which offers rent-to-own programs at major retailers like Best Buy and Lowe’s, has agreed to pay $175 million to settle allegations it misled consumers, the Federal Trade Commission said Monday.

Questions:

  1. What trade violations did the complaint allege?
  2. Why did FTC Commissioner Rebecca Kelly Slaughter say that the settlement did not go far enough?
  3. What is the deceptive line that retailers are instructed to tell consumers about the leasing program?
  4. How do you think Progressive should account for the one-time application fee of $79?

Sources:

Bhattarai, A. (2020). Progressive Leasing will pay $175 million to settle FTC charges that it misled consumers. The Washington Post, April 20 (Retrievable online at https://www.washingtonpost.com/business/2020/04/20/progressive-leasing-ftc-fine/)

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Shooting in Hollywood is not expected to resume until August. That leaves a vast number of people without work. 

Questions:

  1. What are the time elements involved in estimates that will affect postponing shooting until August?
  2. What are some of the factors why the large majority of people in the motion picture industry are now out of work due to COVID-19?
  3. Why is the article entitled “a remote orchestra”?

Source:

Staff. (2020). A remote orchestra, a virtual writers room: How Hollywood is changing. The New York Times, April 20 (Retrievable online at https://www.nytimes.com/2020/04/20/business/stock-market-live-trading-coronavirus.html)

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The fast-food chain, Shake Shack, was among the businesses criticized for accessing emergency funds for small businesses from the U.S. federal government.

Questions:

  1. What is the stimulus money to be used for?
  2. What has been the controversy associated with the funds?
  3. Why did the chain decide to return the loan money?

Source:

Ramzy, A. (2020). Shake Shack Says It Will Return Its $10 Million Stimulus Loan. The New York Times, April 20 (Retrievable online at https://www.nytimes.com/2020/04/20/business/shake-shack-returning-loan-ppp-coronavirus.html)

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According to the Washington Post, The Life Care Center of Kirkland in Washington State failed to report an outbreak of respiratory illness to local authorities for two weeks as required by law under Medicare and Medicaid, which led to 40 COVID-19 deaths at the nursing home.

Questions:

  1. How much is the per-day civil penalty levied against the nursing home for the period between February 12 to March 27?
  2. Based on #1, what is the total outstanding federal fine?
  3. In addition to the fine, what else could the nursing home lose?
  4. How many residents, staff and visitors were infected with the coronavirus?
  5. Besides failing to report the respiratory problems, what activities did the nursing home have that continued to spread the virus?

Source:

Sachetti, M. and J. Swaine. (2020). Wash. nursing home faces $611,000 fine over lapses during fatal coronavirus outbreak. The Washington Post, April 2 (Retrievable online at https://www.washingtonpost.com/investigations/wash-nursing-home-faces-611000-fine-over-lapses-during-fatal-coronavirus-outbreak/2020/04/02/757cee76-7498-11ea-87da-77a8136c1a6d_story.html)

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According to the New York Times, a South African couple, on their honeymoon in the Maldives are now the sole visitors at a five-star resort, due to the coronavirus.

Questions:

  1. Why don’t they go home with the other 40 South Africans in the Maldives?
  2. Who is running the resort and what regulations does the government have regarding the resort staff?
  3. What is the latest wrinkle with the Maldivian airline crew that is supposed to fly these and other South Africans back?
  4. Why doesn’t South Africa fly the residents back to their country?
  5. Who is paying for the honeymooners’ continued vacation?

Zweig, D. (2020). They Were the Last Couple in Paradise. Now They’re Stranded. The New York Times, April 6 (Retrievable online at https://www.nytimes.com/2020/04/05/style/coronavirus-honeymoon-stranded.html?algo=top_conversion&fellback=false&imp_id=152302150&imp_id=877166409)

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According to the New York Times, as companies face a flood of claims, they are employing new strategies to thwart the very process that they have upheld as the optimal way to resolve disputes.

Questions:

  1. Why are some companies trying to short-circuit the process?
  2. How are some companies trying to short-circuit arbitrations?
  3. What is FairShake and what is their role and impact on arbitrations?
  4. What was the most interesting thing that you learned in the article?

Source:

Corkery, M. and J. Silver-Greenberg. (2020). ‘Scared to Death’ by Arbitration: Companies Drowning in Their Own System. New York Times, April 6 (Retrievable online at https://www.nytimes.com/2020/04/06/business/arbitration-overload.html)

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According to the New York Times, lobbyists are waiting in the wings as the Federal government opens up for coronavirus business.

Questions:

  1. Which agency has been battling a lot of fraudulent products related to the coronavirus outbreak?
  2. How much money did Congress allocate to the EPA to facilitate faster regulatory processing of coronavirus-killing disinfectants?
  3. Explain the exemption sought by the Distilled Spirits Council in the coronavirus bill.
  4. In your opinion, what was the most interesting part of this article?

Source:

Vogel, K. (2020). The Race for Virus Money Is On. Lobbyists Are Standing By. The New York Times, March 28 (Retrievable online at https://www.nytimes.com/2020/03/28/us/politics/coronavirus-money-lobbyists.html)