Nasir and Matt kick off the week discussing Apple’s acquisition of Beats and whether it was a smart purchase. They then answer the question, “Should I give some of my employees a corporate credit card?”


Full Podcast Transcript

NASIR: Welcome to Legally Sound Smart Business.
This is Nasir Pasha.

MATT: And this is Matt Staub.

NASIR: And this is our podcast where we cover business in the news with our business legal twist and also answer some of your business legal questions that you can send at and dot-pizza when that comes.

MATT: I think we’ve said that enough now, I don’t know. The joke might be…

NASIR: No, it’s not a joke. I just want to get used to saying it when we do get it.

MATT: At some point, I guess one of us is actually going to have to look up if that’s even going to become a thing.

NASIR: No, it is. I think you thought I was joking these past few episodes but I’ve been looking it up. I don’t know the exact date that it’s coming out. Like you said, you can pre-register them right now but dot-pizza is coming and it’s coming to a podcast near you.

MATT: I’m just skeptical and this is actually a very nice tie-in to our story here because it’s about something that you never think will happen but you just keep hearing about it and the hype is all there. Of course, I’m talking about Dr. Dre’s most recent album that was supposed to come out every day for the last ten years and hasn’t. You see the tie-in there?
This is nice because we’re talking about Beats by Dre, how they just got bought. It’s official now. The story came out a couple of weeks ago but Apple just purchased Beats by Dre, Beats Electronics I think is the actual name – Beats, whatever you want to call it – Beats Audio Hardware, Beats Music. Three-billion-dollar purchase; 2.6 billion in cash, 400 million in stock.
The price tag is one thing that’s really interesting but Apple is really not known for buying well-known companies – at least well-known to the general public. So, this seems like a different type of acquisition for them as opposed to their normal “We’re just going to buy up technology companies that are doing really well, something we really like” especially because, from what I can tell, Apple has a lot of these things already in place. It’s a different type of acquisition, I think.

NASIR: It is interesting because their headphones are pretty iconic. In fact, I would say some people would argue that the Apple headphones beats Beats. How’d you like that? I just kept thinking about that episode of The Office where I think Jim’s making fun of Dwight saying, “Beats beats Battlestar Galactica or something like that.

MATT: Different type of Beats.

NASIR: Different type of beats. Nonetheless, I think people are confused by the acquisition as well because it’s not normal. But I started looking more into this story.
What’s interesting is that, in the inception of this Beats concept where this guy named Lamar – I think that’s his last name – he actually came up with the concept, “Okay, let’s design headphones that are backed by some kind of celebrity,” and got up and started talking with Dr. Dre and so forth and went to this designer that the owner or partner was actually a former designer of Apple. Because of that, very early – this was back in 2006 even – there was some contact between the Apple Retail VP and this company and there were some lawsuits regarding that with this design company later on that’s kind of irrelevant to that but what’s interesting is that, back in 2006, Apple was in contact with this company and here we are a number of years later where Apple is buying them for three billion dollars.

MATT: Yeah, and I mentioned the price. A lot of people have been talking about that. They think it’s outrageous. I looked a little bit more into the numbers. The cash reserves of Beats is 150 billion. Keep in mind the purchase price was three billion and then the estimated annual sales of Beats last year was two billion and it’s also barely over one percent of Apple’s 171 billion revenue last year. Like I said, people are really obsessing over this purchase price but, you know, if you’re looking at those numbers…

NASIR: That’s true, and Apple’s known for their huge amount of cash that they have in their balance sheet because interests are so low and so forth so it is a big ticket from my perspective. I mean, usually, I’m used to spending about two billion per year or so but three billion is just way too much for me.

MATT: Yeah, that’s about right for you. That’s what I would have said, too.
Another thing is it’s pretty obvious they’re also making this acquisition for the names involved, too, which I think will definitely help. I mean, that alone could almost justify paying a lot of money for this.

NASIR: Yeah, and they also talked about the streaming service. I’m not familiar with it but, apparently, Beats has some kind of free service but they’ve been able to convert a number of their customers to some subscription model and I think Apple has something similar. I assume it has more to do with that play as well. Some people are just saying that because Apple has so much cash right now, this is just one way to bring more attention to innovation that Apple is trying to put themselves more forefront because they’ve been a little bit slow on the innovation side in the last couple of years.

MATT: Yeah, that was interesting. I saw as well that Beats has been really successful in converting unpaid customers into paid. They’re doing something right, I guess.

NASIR: I’ve been told that these Beats headphones are merely just like any other headphones with built-in equalizers or something inside.

MATT: Yeah, I’ve never used them.

NASIR: From a technical perspective.

MATT: I’m not a fan of the headphones that cover the ears. I like them as small as possible. I guess what are they going to do with these? These are bigger than the phones that people are going to be plugging them into. It’s just kind of weird.

NASIR: It’s true. But the worst is you’ve seen people working out with these things. You see them running down the road and they have these big headphones on. Literally, that’s what you saw in the 80’s, right? These big headphones, people running. Now, it went small as possible and now it’s going back to big which is just funny.

MATT: I’m sure they’ll do something very intelligent with these but we’ll keep an eye on this just to see kind of how they change the look of everything.

NASIR: Let’s get to our question of the day. It looks like it’s coming from an ad agency in New York City. It must be one of the big ones.

MATT: Based on that description, it’s obvious that it’s one of the big ones.

NASIR: Yeah. I mean, New York City, there can only be, like, I was trying to think of an ad agency, I can’t think of one.

MATT: Yeah, I’m not sure either.
“Should I give some of my employees a corporate credit card?”
That’s it.

NASIR: All right, let’s see. I was thinking about this question. One of the issue is what if one of your employees misuses one of the credit cards and so forth and what you can do about that. You’re basically entrusting your employee to do that and there’s ways, you can make an agreement saying that they won’t do that and, if they do, maybe garnish their wages and so forth, but that might be an issue in certain states, especially in New York. So, you’re definitely taking a risk but it’s the same thing, I suppose, of giving them cash – except, in a credit card, you can track every dollar and where it’s going to.

MATT: That’s a really good point. If you gave them cash, you have no idea what they’re spending it on unless they bring receipts back. Even then, it’s so much more difficult to track than just a credit card where everything is itemized out on a statement.
But I think the answer to this is pretty simple. If you’re going to do it, if you’ve decided to do it, give it to the employees that you trust to make the right decisions so you’re talking more people towards the top of the company. I wouldn’t just hand it out to random people but I guess it can trickle down as well. If you guys have people out on the street, trying to make sales or taking people to lunch, you know, maybe it might make sense.
But, at the end of the day for me, it comes down to it’s got to be someone you trust no matter who they are in the company.

NASIR: Yeah, and something to keep in mind with the business corporate cards is that, depending upon the number of employees – and I can’t remember exactly, I want to say ten – as consumers, when there’s some kind of unauthorized use of our credit cards, we’re protected, right? I think it’s up to $50.00 or so.
With business cards, if you agree by contract, then that’s not the case. On top of that, if you give these cards to ten employees or so – I think the number is ten – then those protections go away but you cannot go after your employee for basically let’s say they lose the card and, because they lost the card, all of a sudden, thousands of dollars or charges go on your card and somehow your company is held liable for that, you can’t by law go after the employee. I think that there’s a limit. Basically, the same limit that you would be responsible as an individual in a consumer sense is the limit of your liability. It’s kind of a very subtle issue but that’s something to keep in mind – that it’s not just aa simple as giving out a credit card. There’s possibilities of liability because of those consumer protections are not there.

MATT: Right. I think too it should be said that no matter who has the credit card or credit cards, make sure they’re doing business expenses and not anything that might blur the lines of personal.

NASIR: That’s true and keep your receipts.

MATT: Keep your receipt.

NASIR: Just another tidbit there.

MATT: That’s your tax preparer recommendation, I guess.

NASIR: That’s probably the worst rule. I hate doing that because I prefer just to throw away receipts. It’s in the credit card statement but anyway…

MATT: I used to take receipts for everything. More recently, I just started thinking, you know, “Why am I even doing this?” For business stuff, that’s different, but I’m just thinking, in general, “Why am I even doing this? I just take it home, put it on my desk, look at it, and then eventually shred it.” I’ll just save them the hassle and stop there.

NASIR: You shred your receipts?

MATT: Yeah, I shred most stuff just because… I don’t know.

NASIR: You just like shredding?

MATT: I have an accounting background. I don’t know. I’m concerned about… things.

NASIR: What’s interesting is, like, depending upon your shredder, the receipt will be split up into, what, three pieces or so because it’s so small.

MATT: Well, not if you shred them the opposite way. if you put the longways towards the shredder.

NASIR: Oh, no, you can’t do that. No, that’s too reasonable.

MATT: I also just shred everything and then light it on fire. I don’t know why I shred it first.

NASIR: Like I said, you just like the shredder.
All right. Well, that’s our episode. We answered the question, right? Before we ended? I guess the answer is yes, I suppose.

MATT: Yeah. I mean, the actual question is kind of hard but, yeah, I guess we should have just said yes.

NASIR: We should have just said yes and ended it.

MATT: We’ll do an episode of lightning-round questions where we just do yes or no for like fifty questions and that’s the episode.

NASIR: Okay. Sounds good. I like that idea.
All right. Well, thank you for joining us!

MATT: Keep it sound and keep it smart.


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Legally Sound Smart Business

A business podcast with a legal twist

Legally Sound Smart Business is a podcast by Pasha Law PC covering different topics in business advice and news with a legal twist with attorneys Nasir Pasha and Matt Staub.
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Latest Episodes

November 21, 2023

In this episode, Nasir Pasha and Matt Staub explore the legal implications of Artificial Intelligence in the business world. They delve into the most talked-about issue of 2023: AI and its impact on the legal landscape. Although AI isn’t necessarily a new topic, it has many unanswered questions in the legal world. Nasir and Matt…

July 12, 2023

In this episode, Attorney Nasir Pasha and Attorney Matt Staub delve deep into the complexities of mass layoffs and offer valuable insights, real-life examples, and practical advice to employers grappling with the aftermath of such challenging situations. Nasir and Matt emphasize the critical importance of effective communication when executing mass layoffs. They stress the need…

January 9, 2023

As the COVID-19 pandemic swept across the globe, businesses scrambled to adapt to the new reality it presented. In this blog post, we dive into the case of Goldman Sachs, a financial services giant, to examine their response to the crisis and the lessons other businesses can learn from their return-to-office strategy. From prioritizing employee…

October 28, 2022

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September 26, 2022

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July 7, 2022

Whether you are buying or selling a business, the transaction goes through the same steps. However, they are viewed from different perspectives. Sellers may not want to fully disclose all the blind spots while Buyers will want otherwise. Nasir and Matt battle it out in this Buyer vs. Seller to determine who has the advantage!…

May 12, 2022

When it comes to Restrictive Covenants, employers are fighting to keep their company safe while employees may use them to their advantage. Keep listening to find out if the Employer or the Employee wins this battle. Round 1: Trade Secrets A company’s trade secrets encompass a whole range of information and are one of the…

February 14, 2022

The Supreme Court rejected the nation’s vaccine mandate. Businesses with 100 or more employees are NOT required to have their employees vaccinated or go through weekly testings. However, this policy remains in effect for health care facilities. In this episode of Legally Sound | Smart Business, the team sat down to discuss their thoughts on this ruling.

December 1, 2021

In this episode of Legally Sound | Smart Business by Pasha Law PC, Nasir and Matt cover the Business of Healthcare. There is more to the healthcare industry than just doctors and nurses. Many Americans have health insurance to cover their yearly needs, but most Americans are not aware of what really goes on behind…

October 12, 2021

In our latest episode, Nasir and Matt are covering the legal issues on Social Media. The average person spends most of their day on social media, whether they are scrolling for hours or publishing their own content. However, just because you publish your own content on Instagram does not equate to you owning that image….

September 28, 2021

What is a Non-Disclosure Agreement, and when do I need one? In this episode, Nasir and Matt shares why you need to use Non-Disclosure Agreements, basic facts about NDA’s, and discuss about the infamous Jenner-Woods story. Having the right Non-Disclosure Agreement in place not only protects you and your business, but it also makes the…

June 16, 2021

Covered in this episode of Legally Sound Smart Business are some typical business mistakes blunders small businesses often make and how to avoid them. Blunder #1: Copying and pasting agreements It may sound like a good idea at the time, but this blunder comes with hidden pitfalls. Having an attorney draft terms that are specific…

February 4, 2021

How you terminate an employee can make the difference between a graceful transition to avoidable negative outcomes like a dramatic exit or even a lawsuit. We gathered a panel of experts and asked them – is there a “right way” to fire an employee? We would like to thank our guests for this episode: Amr…

December 2, 2020

The COVID-19 pandemic has turned nearly every aspect of life on its head, and that certainly holds true for the business world. In this episode, Matt and Nasir explain how the early days of the pandemic felt like the Wild West and how the shifting legal playing field left a lot open to interpretation and…

November 16, 2020

After plenty of ups and downs, our buyer has finally closed on the purchase of their business. While we’re marking this down in the ‘wins’ column, it never hurts to review the game tape. In this final episode, our hosts, Matt Staub and Nasir Pasha, return to the deal almost a year later to reflect…

September 15, 2020

The ink is drying on the signature line and things are looking great for our buyer. After so much hard work, the finish line is in sight and the cheering within ear shot.   Though the landlord is still serving friction, things seem safe to move forward and for now, our buyer will be keeping…

July 31, 2020

Though things are coming along well, the journey would not be interesting if it was purely smooth sailing. After our buyer opens escrow, they are forced to push the closing date back when suddenly a letter from an attorney was received claiming the business, we are buying has a trade mark on the name!  Now…

June 12, 2020

With frustration at an all-time high and professionalism at an all-time low, our friend the Buyer has “had it” with the Seller and quite frankly their lack of knowledge. At present our Buyer is rightfully concerned that the latest misstep from our loose-lipped Seller will threaten not only the entire operation of the businesses but…

May 11, 2020

As we go deeper into the buying process, we start to uncover more challenges from our seller and encounter some of the wrenches they are tossing our way. When we last left off in episode three our team was knee deep in due diligence for our buyer, had already penned and signed the Letter of…

April 4, 2020

One word–interloper! When a new mysterious broker enters the transaction and starts to kick up dust, Nasir and Matt take the reins. The seller signed off on the letter of intent (see episode 2), yet this “business broker” serves only friction and challenges by refusing to send financials, whilst demanding more of a firm commitment…

April 4, 2020

Just as most stories and deals start out, everyone is optimistic, idealistic and full of hope for clear skies. It’s a perfect outlook with a perfect setup for the ups and downs yet to come. Peek further behind the curtain and into the first steps of buying a business: the letter of intent. After the…

April 4, 2020

When a savvy buyer hears opportunity knocking to purchase a prime positioned business, she decides not to go it alone and taps in the professionals to help navigate what could potentially be a fruitful acquisition. “Behind the Buy” is a truly rare and exclusive peak into the actual process, dangers, pitfalls and achievements, that can…

August 7, 2019

GrubHub is subject to two “matters of controversy” that have likely become common knowledge to business owners: “fake” orders and unfriendly microsites.

May 28, 2019

In this podcast episode, Matt and Nasir breakdown the legal issues of the subscription industry’s business on the internet. Resources A good 50-state survey for data breach notifications as of July 2018. California Auto-Renewal Law (July 2018) Privacy Policies Law by State Why Users of Ashley Madison May Not Sue for Data Breach [e210] Ultimate…

March 12, 2019

In recording this episode’s topic on the business buying process, Matt’s metaphor, in comparing the process to getting married probably went too far, but they do resemble one another. Listen to the episode for legal advice on buying a business.

December 3, 2018

Nasir and Matt return to discuss the different options available to companies looking to raise funds through general solicitation and crowdfunding. They discuss the rules associated with the various offerings under SEC regulations and state laws, as well as more informal arrangements. The two also discuss the intriguing story about a couple who raised over…

July 24, 2018

Flight Sim Labs, a software add-on creator for flight simulators, stepped into a PR disaster and possibly some substantial legal issues when it allegedly included a Trojan horse of sorts as malware to combat pirating of its $100 Airbus A320 software. The hidden test.exe file triggered anti-virus software for good reason as it was actually…

April 17, 2018

Attorneys Matt Staub and Nasir Pasha examine Mark Zuckerberg’s congressional hearings about the state of Facebook. The two also discuss Cambridge Analytica and the series of events that led to the congressional hearings, the former and current versions of Facebook’s Terms of Service, and how businesses should be handling data privacy. Full Podcast Transcript NASIR:…

March 10, 2018

The Trump presidency has led to a major increase in ICE immigration enforcement. It’s critical for business owners to both comply with and know their rights when it comes to an ICE audit or raid. Nasir, Matt, and Pasha Law attorney Karen McConville discuss how businesses can prepare for potential ICE action and how to…

February 5, 2018

New years always bring new laws. Effective January 1, 2018, California has made general contractors jointly liable for the unpaid wages, fringe benefits, and other benefit payments of a subcontractor. Nasir and Matt discuss who the new law applies to and how this affects all tiers in the general contractor-subcontractor relationship. Click here to learn…

January 2, 2018

With a seemingly endless amount of new mattress options becoming available, it is unsurprising that the market has become increasingly aggressive. As companies invest in more innovative solutions to get in front of customers, review sites, blogs and YouTube videos have moved to the forefront of how customers are deciding on their mattresses and how…

December 7, 2017

In recent months explosive amounts of high profile allegations of sexual harassment, assault, and varying acts of inappropriate behavior have transcended every sector of our professional world. With a deluge from Hollywood and politics, and the private workforce, accusations have inundated our feeds and mass media. This harassment watershed has not only been felt within…

November 16, 2017

If you are not familiar with the EB-5 program started in 1990 to give green cards to certain qualified investors in the United States, then you may not have been alone a few years ago. Currently, the EB-5 program has since exploded since its inception and now hits its quotas consistently each year. The program…

October 10, 2017

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August 24, 2017

Nasir and Matt suit up to talk about everything pertaining to employee dress codes. They discuss the Federal laws that govern many rules for employers, as well as state specific nuances in California and other states. The two also emphasize the difficulty in identifyingreligious expression in dress and appearance, how gender-related dress codes have evolved…

June 28, 2017

Nasir and Matt discuss the life cycle of a negative online review. They talk about how businesses should properly respond, how to determine if the review is defamatory, the options available to seek removal of the review, how to identify anonymous reviewers, whether businesses can require clients to agree not to write negative reviews, and…

June 7, 2017

On this episode of the Ultimate Legal Breakdown, Nasir and Mattbreak down social media marketing withguests Tyler Sickmeyer and Kyle Weberof Fidelitas Development. They first discuss contests and promotionsand talk about where social media promotions can go wrong,when businesses are actually running an illegal lottery, and the importance of a soundterms and conditions. Next, they…

April 3, 2017

On this episode of the Ultimate Legal Breakdown, Nasir and Matt go in depth with the subscription box business. They discuss where subscription box companies have gone wrong(4:30), the importance of a specifically tailored terms and conditions(6:30), how to structure return policies (11:45), product liability concerns (14:45),the offensive and defensive side of intellectual property (19:00),…

February 1, 2017

Nasir and Matt discuss the suit against Apple that resultedfrom a car crashed caused by the use of FaceTime while driving. They also discuss howforeseeable use of apps can increase liability for companies. Full Podcast Transcript NASIR: Hi and welcome to Legally Sound Smart Business! I’m Nasir Pasha. MATT: And I’m Matt Staub. Two attorneys…

January 5, 2017

The guys kick in the new year by first discussing Cinnabon’s portrayal of Carrie Fisher as Princess Leia soon after her death, as well as other gaffes involving Prince and David Bowie. They alsotalk about right of publicity claims companies could be held liable for based on using someone’s name or likeness for commercial gain.

December 22, 2016

Nasir and Matt discuss the recent incidentat a Victoria’s Secret store where the store manager kicked out all black women after one black woman was caught shoplifting. They then each present dueling steps businesses should take when employees are accused of harassment.

December 8, 2016

Nasir and Matt return to talk about the different types of clients that may have outstanding invoices and how businesses can convert unpaid bills to getting paid.

November 10, 2016

After a long break, Nasir and Matt are back to discuss a Milwaukee frozen custard stand that is now revising it’s English only policy for employees. The guys also discuss how similar policies could be grounds for discrimination and what employers can do to revise their policies.

October 6, 2016

The guys discuss the new California law that allows actors to request the removal of their date of birth and birthdays on their IMDB page and why they think the law won’t last. They also discuss how age discrimination claims arise for business owner.

September 29, 2016

Nasir and Matt discuss the racial discrimination claims surroundingAirbnb and how it’s handled the situation. They also discuss some practical tips for businesses experiencing similar issues.

September 8, 2016

Nasir and Matt discuss whyAmazon seller accounts are getting suspended and banned without notice and how business owners can rectify this situation through a Corrective Action Plan.

August 25, 2016

Nasir and Matt talk about the accusations surroundingfashion giant Zararipping off the designs of independent artists like Tuesday Bassen and howsmaller companies can battle the industry giants.

August 18, 2016

Nasir and Matt discuss Brave Software’s ad replacing technology that has caught the eye of almost every national newspaper and has a potential copyright infringement claim looming. They also welcome digital marketing expert Matt Michaelree to speak on the specifics of what Brave is attempting to do and whether it has the answers moving forward.

July 28, 2016

Nasir and Matt discuss the sexual harassment lawsuit filed by Gretchen Carlson against Fox CEO Roger Ailes. They also talk aboutthe importance of sexual harassment training and properly handling such allegations in the office.

July 15, 2016

Nasir and Matt talk about the changes at Starbucks that have led to many disgruntled employees and customers.

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