According to Chico Harlan, five years after the Great Recession, the most striking change in the world of low-income commerce has been the proliferation of rent-to-own stores. Questions: 1. How do rent to own stores avoid state usury laws and other regulations aimed at excessive interest payments? 2. What percentage of items are returned or… Read more »
Posts Tagged: risk
The new trend in non-compete clauses
If you are a chief executive of a large company, you very likely have a non-compete clause in your contract and also understand the importance of this clause in preventing you from jumping ship to a competitor until some period has elapsed. However, according to the New York Times, non-compete clauses are popping up in… Read more »
Impending Huge Penalties!
The Kansas Supreme Court found that FedEx drivers were illegally misclassified as independent contractors from the late 1990s through 2011, despite being treated as employees. According to Alan Pyke, FedEx set contract agreements with delivery and pickup drivers in order to avoid the higher costs associated with making the drivers full employees. Questions: 1. What… Read more »
Dutch Treat?
According to the New York Times, “Dutch pensions are scrupulously funded, unlike many United States plans, and are required to tally their liabilities with brutal honesty, using a method that is common in the financial-services industry but rejected by American public pension funds.” This article discusses the Dutch belief that each generation should pay its… Read more »
Operating Leases
For years, there has been a debate about whether operating leases should be capitalized. In a recent IASB project update report, it is estimated that the long-term liabilities on the balance sheet are underestimated by as much as 46% due to non-recognition of operating leases. Many wonder whether the IASB will scrap the dual lease… Read more »
Watch Out! They Know Where You Live!
Eric Merklein, 67, didn’t know he had outstanding student debt until he received his first Social Security check. He thought that his grandmother had paid it off. Unfortunately, Merklein is among the more than 2 million Americans age 60 and older carrying student debt, which is up from about 700,000 in 2005. Questions: 1. What… Read more »
Rip Off: We Work Hard for the Money!
Although Guadalupe Rangel worked nearly 70 hours per week, he never saw any overtime pay at the Schneider warehouse in Mira Loma, California. As a result he joined a lawsuit involving hundreds of warehouse workers where he will likely receive more than $20,000 in back pay as part of the recent $21 million legal settlement… Read more »
Fraudsters are always looking for a way to rip off the Government
This article details a wheelchair scam that was designed to exploit blind spots in Medicare, which often pays insurance claims without checking them first. The fraud begins with criminals disguised as medical-supply companies. Questions: 1. Based on the article, which major internal control allowed this fraud to happen? 2. What type of control slowed down… Read more »
Bad Blood
Questions: 1. Explain why this is such an unusual labor action. 2. Based on John A. Davis’ blog, what could the board chairman do to help rebuild family unity and commitment to Market Basket? 3. At this point, Market Basket as a continuing entity is hemorrhaging financially. From a corporate governance standpoint, do you think… Read more »
Where in the world are all the vinyl records going?
Hoarding goes beyond compulsive collecting, affecting finances and other areas of the hoarder’s life. Unable to stop buying records, Zero Freitas, a wealthy Brazilian businessman, follows a therapeutical quest to acquire precious and neglected records that haven’t been preserved or transferred to digital files. This post examines what is going on with the world’s vinyl… Read more »