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Trump travel ban is focus of Supreme Court's last arguments
Network News | 2018/04/25 10:37
President Donald Trump's ban on travelers from several mostly Muslim countries is the topic of arguments Wednesday at the Supreme Court, with a Trump administration lawyer facing questions during the first half of arguments.

The travel ban case is the last case the justices will hear until October.

A little over 20 minutes into arguments, Justice Anthony Kennedy asked Solicitor General Noel Francisco, who was defending the ban, whether statements Trump made during the presidential campaign should be considered in evaluating the administration's ban. Francisco told the justices that they shouldn't look at Trump's campaign statements, which included a pledge to shut down Muslim entry into the U.S.

But Kennedy, whose vote is pivotal in cases that divide the court along ideological lines and whose vote the administration will almost certainly need to win, pressed Francisco on that point. Speaking of a hypothetical "local candidate," he asked if what was said during the candidate's campaign was irrelevant if on "day two" of his administration the candidate acted on those statements.

The Trump administration is asking the court to reverse lower court rulings striking down the ban. The policy has been fully in effect since December, but this is the first time the justices are considering whether it violates immigration law or the Constitution.

The court will consider whether the president can indefinitely keep people out of the country based on nationality. It will also look at whether the policy is aimed at excluding Muslims from the United States.

People have been waiting in line for a seat for days, and on Wednesday morning opponents of the ban demonstrated outside the court holding signs that read "No Muslim Ban. Ever." and "Refugees Welcome," among other things. In another sign of heightened public interest, the court is taking the rare step of making an audio recording of the proceedings available just hours after the arguments end. The last time the court did that was the gay marriage arguments in 2015.



Question of sales tax on online purchases goes to high court
Network News | 2018/04/17 05:37
Online shoppers have gotten used to seeing that line on checkout screens before they click "purchase." But a case before the Supreme Court could change that.

At issue is a rule stemming from two, decades-old Supreme Court cases: If a business is shipping to a state where it doesn't have an office, warehouse or other physical presence, it doesn't have to collect the state's sales tax.

That means large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from customers who buy from them online. But other online sellers, from 1-800 Contacts to home goods site Wayfair, can often sidestep charging the tax.

More than 40 states are asking the Supreme Court to reconsider that rule in a case being argued Tuesday. They say they're losing out on "billions of dollars in tax revenue each year, requiring cuts to critical government programs" and that their losses compound as online shopping grows. But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.

Large retailers want all businesses to "be playing by the same set of rules," said Deborah White, the president of the litigation arm of the Retail Industry Leaders Association, which represents more than 70 of America's largest retailers.

For years, the issue of whether out-of-state sellers should collect sales tax had to do mostly with one company: Amazon.com. The online giant is said to account for more than 40 percent of U.S. online retail sales. But as Amazon has grown, dotting the country with warehouses, it has had to charge sales tax in more and more places.

President Donald Trump has slammed the company, accusing it of paying "little or no taxes" to state and local governments. But since 2017, Amazon has been collecting sales tax in every state that charges it. Third-party sellers that use Amazon to sell products make their own tax collection decisions, however.

The case now before the Supreme Court could affect those third-party Amazon sellers and many other sellers that don't collect taxes in all states — sellers such as jewelry website Blue Nile, pet products site Chewy.com, clothing retailer L.L. Bean, electronics retailer Newegg and internet retailer Overstock.com. Sellers on eBay and Etsy, which provide platforms for smaller sellers, also don't collect sales tax nationwide.

States generally require consumers who weren't charged sales tax on a purchase to pay it themselves, often through self-reporting on their income tax returns. But states have found that only about 1 percent to 2 percent actually pay.


Beleaguered gunmaker Remington points to bankruptcy court
Network News | 2018/02/14 23:19
Remington, the gunmaker beset by falling sales and lawsuits tied to the Sandy Hook Elementary School massacre, has reached a financing deal that would allow it to continue operating as it files for Chapter 11 bankruptcy protection.

The maker of the Bushmaster AR-15-style rifle used in the Connecticut shooting that left 20 first-graders and six educators dead in 2012, said Monday that the agreement with lenders will reduce its debt by about $700 million and add about $145 million in new capital.

The company will attempt to file a prepackaged reorganization plan with the U.S. Bankruptcy Court of Delaware under Chapter 11 of the bankruptcy code.

Remington Outdoor Co., based in Madison, North Carolina, said that business won't be disrupted as it restructures its finances.

Ohio court to hear online charter school's funding case

The survival of one of the nation's largest virtual charter schools is on the line when the Ohio Supreme Court hears arguments Tuesday in a case that could have broader impact on accountability for other e-schools.

The Electronic Classroom of Tomorrow challenges how Ohio tallied students' participation to determine the online school should repay $60 million or more.

The state says ECOT didn't provide data from students' online work to justify the school's full public funding in recent years.

ECOT argues that state law calls for calculating charter-school funding based on enrollment, not participation, and that Ohio's Department of Education effectively changed the criteria without legal authority.

After the state started recouping funding, the e-school of some 12,000 students was abruptly closed last month as it ran out of money.


Samsung heir freed after appeal wins suspended jail term
Network News | 2018/02/03 23:26
Samsung heir Lee Jae-yong was freed Monday after a South Korean appeals court gave him a 2 ½-year suspended jail sentence for corruption in connection with a scandal that toppled the country's president.

The Seoul High Court softened the original ruling against Lee, rejecting most of the bribery charges leveled against Lee by prosecutors who sought a 12-year prison term.

While the ruling clears the way for the Samsung vice chairman to resume his role at the helm of the industrial giant founded by his grandfather after a year in prison, he faces a slew of challenges outside prison.

Chief among them will be winning trust that he is capable of running South Korea's biggest company, and assuaging public anger among those who viewed the court's surprise decision as a setback in the war on corruptions.

"The past year was a precious time for personal reflection," Lee told reporters waiting outside the gates of a detention center in southern Seoul.

Lee's first stop from the prison was a Samsung hospital where his father has been hospitalized after suffering a heart attack in 2014.

Lee was charged with offering $38 million in bribes to former President Park Geun-hye and her confidant Choi Soon-sil, embezzling Samsung funds, hiding assets overseas, concealing proceeds from criminal activities and perjury.

The appeals court said Lee was unable to reject the then-president's request to financially support her confidante and was coerced into making the payments. The court still found Lee guilty of giving 3.6 billion won ($3.3 million) in bribes for equestrian training of Choi's daughter and of embezzling the money from Samsung funds.

Lee's lawyer, Lee Injae, told reporters that the Samsung vice chairman still plans to appeal his conviction. Prosecutors also were expected to appeal the court's ruling, making it almost certain the case will go to the Supreme Court.

Lee, 49 and the only son of Samsung's ailing chairman, was given a five-year prison term in August on bribery and other charges linked to a political scandal that took down former South Korean President Park Geun-hye.

Lee has pleaded not guilty to charges he used Samsung corporate funds to bribe Park and a confidante, seeking to consolidate his control over Samsung and facilitate a smooth transfer of corporate leadership from his father. The appeals court rejected the lower court's view that corporate succession was one of the issues at stake.

Many South Koreans were expecting a tough stance from the appeals court and took to social media and online news portals to vent their anger at the ruling and the judge who issued the verdict.

"Republic of Samsung" and the name of the judge who handed down Monday's verdict were among the top trending words on Twitter in Korean.

The earlier ruling against Lee was seen as a departure from the previous court cases that had been criticized for being too soft toward white-collar crime and toward executives of chaebol, the big conglomerates that helped South Korea's rapid industrialization.

Lee's case and the current trial of the former president are seen as tests of the country's commitment to ending cozy ties among South Korea's political and business elite. Such links once were seen as the key to South Korea's impressive rise from the ashes of its 1950-53 war but now are blamed for corruption, inequality and stifling innovation.

Before the final hearing at the appeals court Lee paid back 8 billion won ($7.3 million) to Samsung Electronics. The lower court had said Lee embezzled that amount from Samsung to bribe Choi.



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