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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 Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.