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Week 6 IRAC Brief: Case Study

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Week 6 IRAC Brief: Case Study
WEEK 6 IRAC Brief
Law/531
November 17, 2014

Explanation This paper will explain regulatory compliance requirements for business situations for both domestic and international businesses. It will also evaluate legal risks associated with domestic and international business activity and explain how this can be applied in a business managerial setting. The two cases chosen deal with Facebook and suits that have happened domestically and internationally to show and explain the difference between international and domestic laws.
Case 1: International Max Schrems a law student and Austrian citizen launched a class action lawsuit against Facebooks Ireland Headquarters, alleging that Facebook violated the European data protection law and …show more content…
The suit was first filed in the Commercial Court of Vienna Austria, which was rejected and transferred to Vienna’s Regional Court based on a procedural decision (Essers, 2014). On August 21, 2014 Vienna’s Regional Court accepted to hear the class action suit and gave Facebook four weeks to respond to the allegations. On September 26, 2014 Facebook petitioned the court to extend the four week response time due to court documents received were in German and no one in the company spoke German. Therefore, Facebook exercised their right to request all legal documents be translated in English and request an extension to respond.
Issue
Did Facebook breach the European data protection law? Max Schrems has filed a class action suit and advised anyone outside the US and Canada can join. The suit is asking for € 500 for each member and sanctions to be placed on Facebook Ireland for breaches such as; failing to get “ effective consent” for using data, implementing a legally invalid data use policy, using big data to monitor users, and tracking users online outside of Facebook via “like” buttons (Facebook, 2014). …show more content…
(2014, August). Austrian court rejects Facebook class action privacy suit, refers to another court. Retrieved from http://www.pcworld.com/article/2463120/austrian-court-rejects-facebook-class-action-privacy-suit-refers-it-to-another-court.html
Facebook hit with international class action privacy suit. (2014) Retrieved from http://www.wired.co.uk/news/archive/2014-08/01/facebook-class-action-lawsuit

Nicholson, (2014). Legal Risks in International Investment. Retrieved from http://www.ehow.com/list_5914112_legal-Risks-international-investme nt.html Sargeant. What Risk do Organizations face when engaging in International Finance Activities? Retrieved From http://www.investopedia.com/ask/answers/06/international finance risks.asp
Regulatory Compliance. (2014). Retrieved from http://searchcompliance.techtarget.com/definition/regulatory-compliance
Regulatory Compliance. (2014). Retrieved from http://en.wikipedia.org/wiki/Regulatory_compliance
Stempel, J. (2014, December). Facebook, Zuckerberg, banks must face IPO lawsuit,judge. Retrieved from http://www.reuters.com/article/2013/12/18/us-facebook-ipo-lawsuit-idUSBRE9BH0VD20131218
Whoriskey, P., & Hilzenrath, D. (2012, May). Investors sue Facebook, advisers as scrutiny of IPO hype intensifies. Retrieved from
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