Please Answer In Full thought out statements!

Imagine that the state legislature in California wishes to pass a law that would declare all unused gift cards to be abandoned property after two years, at which time the value of those gift cards would become the property of the state of California. This law will be based on a Oklahoma law described in the video above.

Some points on one side of the argument can be summarized as follows: merchants wish to sell gift cards to their customers, who often buy them for gifts or for their own use. Merchants believe that gift cards create goodwill for the company, because customers who hold those gift cards are constantly reminded that they can shop at the merchants place of business whenever they wish. Additionally, merchant-services businesses, such as American Express, receive the same benefit. Likewise, the profit associated with merchant-issued gift cards and merchant-services issued gift cards might be lost to the merchants or merchant-services providers in states where unused gift cards go to the state. Additionally, people who own gift cards may view them as money in the bank, reserving those cards to be used as needed. People tend to think that they own the value of the gift card in the same way that they think about owning their money. People are generally unaccustomed to thinking about the government taking their property if the property is not used.

On the other side of the argument, in times of great economic challenge, unused gift cards represent many millions of dollars that might be put to good use for public needs such as funding schools, fixing roads, or paying firefighters.

You have been asked to write a recommendation memo to your Board of Directors, which will help inform its decision as to whether it should support or denounce the proposed law. Write the memo, using outside sources as necessary. Set forth at least three clear and well-supported arguments in support of your position, while acknowledging and addressing the other side of the argument. Then answer the following questions:

1. What did you rely on when reaching your recommendation? The law? An ethical analysis? Both?
2. Why are many consumers upset about these types of unused gift card escheatment laws? After all, if they arent using the gift cards anyhow, why shouldnt the state benefit from their value?
3. Why are some merchants and merchant-services unhappy about these unused gift card escheatment laws? Why do they care about who receives the benefit of the card?