The Constitution and Direct Wine
Shipments
There are many constitutional issues kicking around
the court systems these days. One such issue involves the
constitutionality of preventing out-of-state wineries from shipping
directly
to a consumer. That sale invariably is the result of an internet
transaction. Many states have continued to contest the principle of
direct sales notwithstanding the number of courts seemingly endorsing
the practice on Constitutional grounds. We now have the First Circuit
Court of Appeals ruling to strike down a Massachusetts law allowing
only small wineries producing no more than 30,000 gallons of wine to
ship directly to the state's consumers. The case is Family Wineries of
California v. Jenkins. The decision holds that the state law violates
the Commerce Clause of the U.S. Constitution because it discriminates
against large wineries in favor of smaller Massachusetts wineries.
Deferred Prosecution Agreements
Questioned
In order to fight corporate crime the Department of
Justice has a number of options at its disposal. Those options include
the use of deferred prosecution and non-prosecution agreements. As a
result of such agreements DOJ will generally require a company to
follow strict ethical guidelines to reform in lieu of prosecution, a
win-win situation for all concerned. The Government Accountability
Office (GAO) is now questioning whether the use of such agreements are
working and has recommended that DOJ develop performance measures to
assess the effectiveness of the agreements. While DOJ will go along
with the recommendation DOJ continues to believe that, along with
prosecution, these agreements are invaluable tools in achieving its
strategic objective to combat public and corporate corruption, fraud,
economic crime, and cybercrime.
Business Email - Expectation of Privacy
Most business organizations have either a written
email policy or a tacit understanding with its employees that the
employer has the right to review company emails but the employee can
reasonably use such email for personal use. A recent decision by a
federal district court in the District of Columbia has ruled that the
employee had a reasonable expectation that emails sent to the
employee's lawyer were privileged and were not subject to subpoena by a
third party. In short the employee won the right to conceal the emails
he sent to his attorney on his employer's computers. The ruling goes
against the popular belief that employees have no expectation of
privacy on work computers. When an issue of email privacy arises, it is
important to analyze the company policy before probing into the
"expectation of privacy" considerations. We expect more cases like the
DC one to work its way through the courts.