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Mainstreaming California's Franchise Rules
Since California introduced the world to franchise sales laws in 1970, it has repeatedly distinguished itself for its sometimes-curious approach to regulating franchise relationships within its borders. Recent events, however, suggest California is moving mainstream.
On July 17, 2003, the California Department of Corporations (Department) revised the rules implementing the California Franchise Investment Law (FIL) to resolve a number of California disclosure idiosyncrasies. Specifically, the Department:
- Expanded the disclosure about out-of-state venue for binding arbitration, thereby ameliorating the Laxmi ruling interpreting California law;
- Reversed its informal policy of refusing to register earnings claims based solely on gross sales or equivalent top line data, a disclosure practice that every other registration state permits. Franchisors may now register gross-only claims in California as long as franchisors tell prospects they are not being given any cost or expense data from which to compute net income or profits; and
- Agreed to exempt Web site advertising about California franchise opportunities from the traditional media advertising filing rules if franchisors complete a single, simple annual filing.
On Feb. 19, 2004, California joined the Coordinated Franchise Review program, a nationwide effort begun 5 years ago to streamline the initial registration application process by allowing franchisors to obtain simultaneous review of their applications in multiple states through the coordinating efforts of a single lead examiner. California had been the only full review registration state not participating.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.