Question

ALBANY - Actor Danny Glover was shouted down Tuesday at the state Capitol as a rally in support of Airbnb descended into chaos after it was infiltrated by hotel workers.

Airbnb, the online home-rental marketplace, brought the Lethal Weapon actor to Albany to speak at a rally in support of a bill that would allow and regulate short-term rentals in New York City.

But unbeknownst to Glover and Airbnb, at least a dozen workers from the Hotel Trades Council had blended in among the Airbnb supporters standing behind the actor at the rally.

They began shouting at Glover seconds after the actor began speaking, questioning why he's supporting Airbnb when the company is in a pitched battle with the hotel industry and its union.

"Mr. Glover, you may not understand how hard it is for working families," shouted a man who later said he was a member of the hotel union. "You used to march on behalf of hotel workers all the time. You used to be on the side of working families."

Chaos ensued, with Airbnb supporters and foes screaming at one another for more than five minutes while Glover unsuccessfully attempted to deliver his remarks.

The actor — a paid adviser for the company — was ultimately escorted away from the Capitol's Million Dollar Staircase to the Senate lobby, where he later spoke to reporters.

"I came in support of the work that Airbnb is doing in terms of building communities and the relationships that I've found when I've traveled to communities ... where there are just ordinary citizens who are trying to find a way to get through to the next moment to pay taxes, get kids through school, go on with life," Glover said.

Airbnb has long battled with the Hotel Trades Council in New York, most recently over the company's efforts to get a law on the books specifically allowing rentals of under 29 days in New York City.

The company allows property owners to list their homes, apartments or spare room for rent, connecting them with people looking for a short-term place to stay.

When the union members began shouting at Glover, they held signs that said, "Shame on you, Danny Glover" as Sen. John Bonacic, R-Mount Hope, Orange County, asked staffers to call security, which never came.

In a statement following the event, Hotel Trades Council member Tyrone Connell said he hoped Glover "heard our calls for help because the company he's working for is part of the problem, not the solution."

"I understand Mr. Glover is wealthy and famous and companies ask him for endorsements all the time," Connell said. "But in this case, he's working for Airbnb, whose business is built on taking away affordable housing and displacing tenants, especially for low-income people of color."

Speaking to reporters, Glover acknowledged being paid by Airbnb, but declined to say how much, calling it "private."

In a follow-up statement, Airbnb criticized the protest.

"Danny Glover has been a champion for civil rights and progressive values for decades," the company said in a statement.

"Today, he and hundreds of Airbnb hosts were harassed by individuals working for the hotel lobby while standing up for thousands of hardworking families across New York who depend on home sharing to make ends meet."

write a 3-4 paragraph that identifies the key legal and economic concepts associated with Airbnb, including your solution.

Answer 1

Airbnb violates legal laws of local housing and regulations. It more or less allows property owners to rent or list property on Airbnb and provide affordable housing. This has been form of illegal activity. Moreover lack of verification and fraudulent listing has caused more legal troubles.

It also tends to economically kill competition in hotel industry by providing on the go affordable housing and driving market rates downwards And also lookung to create monopolistic market in this segments .

This will definitely breach US Anti Trust Sherman Act and FTC Acts. Also lack of SoX audit and corporate governance has been rising major issues.

Airbnb relies on marketplace model with economies of scale as its strength. However it has downside risks of legal costs and lawsuits as explained above.