Features
Net News
Recent developments in Internet law and in the Internet industry.
Features
<i>Ellerth/Faragher</i> Affirmative Action Defense: Resolving the Conflict
On Dec. 1, 2003, the United States Supreme Court agreed to consider whether a constructive discharge caused by a supervisor's sexual harassment constitutes a tangible employment action that bars an employer from raising the defense that the employee unreasonably failed to employ the employer's procedures for preventing and correcting such conduct. In granting the Pennsylvania State Police's request for review from the United States Court of Appeals for the Third Circuit's decision in <i>Suders v. Easton</i>, 325 F.3d 432 (3d Cir. 2003), the Supreme Court has the opportunity to resolve a growing conflict among the circuit courts regarding the availability of the so-called <i>Ellerth/Faragher</i> affirmative defense in constructive discharge cases.
Firing of Nonunion Workers Held Unfair Labor Practice
The United States Court of Appeals for the Sixth Circuit recently held an employer that fired two nonunion workers for complaining to a client about their employer's policies violated the National Labor Relations Act (NLRA).
Features
Fair and Accurate Credit Transactions Act of 2003 Enacted
The Fair and Accurate Credit Transactions Act (FACT), which amends the Fair Credit Reporting Act (FCRA), was recently enacted. The FCRA created a national credit reporting system, and was set to expire this month. FACT permanently authorizes the majority of the FCRA's provisions while including two noteworthy revisions. Particularly significant for employers are FACT Sections 611 and 411, which include new standards for third-party investigations of employee wrongdoing and reporting of employee medical information to employers.
National Litigation Hotline
Recent rulings of importance to you and your practice.
Features
Topical Research: Your Input Sought
For possible future articles, I'd like to gather reader input on a number of topics; here are two. Please be in touch if you or an interested colleague would be a good research contact for either topic. (If you have authoritative knowledge and would like to write on the topic, better yet!)
Bush Signs Anti-Spam Bill
On Dec. 16, President George W. Bush signed the "can spam" legislation passed earlier in the month by Congress. The legislation provides for jail time and hefty fines for serious violators and calls for the creation of a "do not spam" registry.
News Briefs
Highlights of the latest franchising news from around the country.
Selected Pitfalls to Avoid in the Sale of Refranchised Units
The sale of company units to franchisees ("refranchising") differs from a traditional asset sale because the transaction contemplates a continuous business relationship between the parties. The basic terms of this relationship should be outlined in a letter of intent and will be contained in the provisions of the various transaction documents, including the Asset Sale Agreement (ASA), related transfer documents, such as deeds, leases, subleases, assignments, bills of sale, etc., one or more franchise agreements and, if the obligation to develop additional units is part of the transaction, a development agreement. This article continues the discussion of refranchising in last month's issue by reviewing some of the issues that the parties should consider carefully as they document their on-going relationship post closing.
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