The Social Network - the Movie Review

Steffi Almendares

04/05/16

“The Social Network”

What phase or part of the trial process is seen taking place throughout the movie? 

The part of the trial process that mostly takes place in the movie is the depositions/discovery phase. This phase ultimately lead up to the parties reaching a settlement agreement. Towards the end of the movie a junior lawyer for the defense suggests they should settle. The lawyer mentions that a jury may not be compassionate towards him considering his actions and a settlement is the right play. The settlements end with the Winklevoss twins receiving $65 million and Eduardo Saverin received an unknown amount.

How many law suits and who are the parties involved?  (Ch. 3)

There are two lawsuits in the movie. One sue is from Cameron and Tyler Winklevoss for theft of intellectual property.  The Winklevoss twins believed that Mark ZuckerBerg stole their idea of an exclusive Harvard dating site and made Facebook. The other is from Eduardo Saverin for having his shares in the company unfairly diluting. Eduardo Saverin was Mark Zuckerberg’s partner and believes that Mark unfairly diluted his company shares because he froze the Facebook bank account and because Mark was jealous of his invitation to the finals club.

What are the allegations against Mark Zuckerberg? 

There are several allegations against Mark Zuckerberg. He is accused of misleading the twins; they believed he was working on their idea because they received an email from him stating issues with the site. The twins also claim a violation of copyright, for using their idea in creating his idea. Mark is also accused of breach of security and violation of individual security when he uses the student images to create facemash. The twins also try to get Mark charged with violation of University policy claiming he stole their idea.

What type of business structure is being established for facebook? What elements of this structure are discussed in the movie? (CH. 13) Why use this business structure?

Facebook’s business structure is established as a dual class structure. In this case Zuckerberg sets up the company so Class B shares which he oversees, carry ten times the voting weight that of the A shares.  Having this type of business structure is beneficial for shareholder’s income and loss are treated such as those of partners but enjoy the protection of limited liability. A shareholder’s income and loss will report on individual returns and their personal assets are protected from business creditors.

Did Zuckerberg’s former girlfriend have any tort actions she could have brought? What are these actions and why could she have had a cause of action? (CH 8)

Yes Zuckerberg’s former girlfriend, Jessica Alona, could have brought tort actions against him. She could have claimed that he defamed her character. After the couple broke up Zuckerberg took to his online blog to write about Jessica. In the blog post Zuckerber wrote, “Jessica Alona is a bitch.” This statement is a defamation of Alona’s character.

Please relate all of the ways that this movie involves business ethics.  (CH 2)

The term business ethics has a multilayer of meaning. One level of business ethics includes whether a person is honest, as well as keeping promises and not taking things that don’t belong to you. Mark Zuckerberg fails to keep promises and to not take things that don’t belong to you but at least he is honest. An additional layer to business ethics has to do with being fair, including how we treat others. Zuckerberg is not at all concerned with being fair or how he treats others. This is proven when he cheats his partner out of his shares in the company whose initial $1,000 funded the company.  Finally, the third layer deals with social responsibility, which in the film seems to be fulfilled in bringing in revenue as well as making it “cool” for its users.