Protecting What's Right

So, you got the job.

Now you are ready for all the perks and nuisances that come with full time employment. You can finally get that cracked tooth fixed, you can add at least a dozen friends to your Facebook profile and well, you’ll figure out a way to deal with the guy who wanted your job to go to his old college roommate. Not to mention that your paycheck will be automatically deposited and you won’t have to worry about all the financial stuff you were dealing with when you were a part-timer.

You can focus on the job to be done, knowing that your employer will handle the rest. And it will never cross your mind that they won’t. Because you are a hard worker –- just the sort of all-American employee that corporations rely upon to build solid profits, even if that means taking advantage of you here and there to the tune of hundreds of millions of dollars a year.

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Let’s take the poster child case, the one we all heard about, that involved an elderly lady and a cup of hot McDonald’s coffee. For years now that case has been batted about as an example of a frivolous lawsuit – one that exemplified the evils of easy access to the civil justice system and the need for tort reform.

But watch the first fifteen minutes of the documentary “Hot Coffee” by Susan Saladoff and ask yourself if those third degree burns look frivolous. If you dare to keep watching, see what you think about the

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By Mazin A. Sbaiti – Baron & Budd Attorney

I recently submitted this post about how large companies have shifted to paying small business vendors on 90 day terms rather than 30 day terms.  This is really interfering with the small businesses’ cash flows and even driving a few out of business because they can’t get short term loans (whereas the big companies can – it’s call TARP, and “commercial paper).

I wanted to follow that up with a few more thoughts I had and to dispel a couple of issues raised by colleagues and friends of mine in reaction to the post.

One person said: “increasing the expense on large companies could be the difference between large layoffs at a big company who is saving millions this way, and just a couple of layoffs if one or two small businesses founder.”  Interesting!  But I think it’s incorrect.  Here’s why:  it assumes that large companies are on the brink and that this is a last-ditch effort to stave off mass layoffs.  Nothing suggests that that is the case. 

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By Mazin A. Sbaiti – Baron & Budd Attorney

One of the most recent assaults on small business’s vitality in America is the shift by large companies – often the customers of smaller businesses – from paying invoices 30 day net to paying them 90 day net.   Several recent studies have shown that this is crushing small businesses by disrupting their cash flows.   This is just the newest way large corporations are managing their own cash flows and cash availability (or even just earning a small percentage extra without any risk).

In other words, corporations are basically taking out 90 day interest free loans from their small business vendors.  As if TARP wasn’t enough, small businesses are now financing corporate America against their will!  Large corporations used to take out short term loans (90 days roughly) called “commercial paper”.  If you’ll recall, this market shrank precipitously during the recession but is still how most large companies satisfy their short term cash needs.  Even though interest rates are very low for commercial paper, the interest these large corporations have to pay on their “loans” from small businesses is zero.  The math is simple:  an extra 1/4% on $20 billion in transactions equates to a lot of money that can be paid out in bonuses to the CEO and top executives.  All on the backs of American small businesses.

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Questions about the potential health effects of the low levels of radiation emitted from cell phones have been an issue for some time. For some individuals, walking down the street with their phone held firmly to their ear is a common occurrence, but new research suggests that it’s time to invest in a good pair of headphones.

National Institutes of Health researchers have discovered that just less than an hour of cell phone use can increase brain activity in the area closest to the phone’s antenna. The researchers, however, recommend caution when interpreting the findings because it has not yet been determined whether these changes will have any meaningful effect on a person’s overall health.

The study, which will be published in The Journal of the American Medical Association this week, is among the first and largest to document that weak radio-frequency signals from cell phones have the potential to alter brain activity.

Baron & Budd has been protecting the rights of toxic exposure victims and asbestos sufferers for more than 30 years. Learn more at baronandbudd.com.

The Food and Drug Administration (FDA) just launched a new website aimed at providing in-depth information and explanations of their regulations to food and drug companies. The site is part of a new initiative by the federal agency to increase transparency and accessibility.

The website, called “FDA Basics for Industry,” includes an FAQ about the regulation of food, drugs and other medical devices. The agency has also promised to respond to questions from companies within five business days.

The FDA has a long-standing reputation for being a secretive agency, and has recently come under fire because of its high secrecy and the possible ramifications that secrecy may have had on the recent outbreaks of a number of contaminated foods, such as eggs.

Canadian yoga retailer Lululemon Athletica is voluntarily recalling certain reusable bags from its stores due to concerns that the bags may contain lead. The bags were given to shoppers with their purchase free of charge to promote the popular “going green” movement. The company stated that there is no concern with the use of the bag, only a potential concern with its disposal after use.

According to CEO Christine Day, the bags were obtained from a new supplier and have only been distributed in stores within the past year. The bags were distributed between Nov. 1, 2009 and Dec. 18, 2010.

Lululemon’s decision to recall the bags comes after recent discussions among other retailers have prompted further investigation into the proper disposal of the reusable bags and other possible lead concerns. Believed by many to be a smart “green” alternative to plastic bags, reusable bags have come under scrutiny lately as accusations of elevated lead levels raise suspicions that the bags may not be as environmentally friendly as once believed.

Earlier this week, Japanese automaker Toyota agreed to pay $32.4 million in penalties after two federal investigations faulted the company for its handling of recent car recalls, according to an announcement from the U.S. Transportation Department.

These fines, according to the department, are the highest allowed by law. The fines come amid ongoing investigations that Toyota failed to comply with federal regulations regarding reporting safety defects to the National Highway Traffic Safety Administration.

The new penalties are in addition to the $16.385 million fine that Toyota paid in April for failing to notify safety officials within five days of learning about the “sticky pedal” defect in certain Toyota automobiles, which caused cars to accelerate with no way to slow down.

On Tuesday, the Senate passed a sweeping overhaul of the nation’s food safety system. The legislation would strengthen the Food and Drug Administration’s (FDA) and help the government crack down on unsafe foods before they could potentially harm consumers rather than after an outbreak occurs.

Despite unusual bipartisan support and a strong push from the Obama administration, the bill may still die because there might not be enough time for the typical negotiations between the Senate and House of Representatives, which passed its own version of the bill last year.

Both versions of the bill would allow the FDA new powers to recall tainted foods, increase inspections and demand greater accountability from food companies and overseas farming.

The bill comes after recent recalls of tainted eggs, peanut butter and spinach that sickened thousands led consumer advocates to demand stronger government oversight.