U.S. Senate Considers Bill to Limit Y2K Litigation. Senate Bill 96, sponsored by Senator John McCain, R-Arizona, would apply to any Y2K action brought in a Federal or State court after February 22, 1999, excluding personal injury claims, and would pre-empt inconsistent State law. Among other things, the law would set the evidentiary standard for such actions, limit punitive damage awards, and require a 90-day pre-suit notice outlining the problem, and giving the parties a chance to negotiate a settlement before filing suit. The law would also provide limited liability for business officers and directors, with exceptions for intentionally making misleading statements or withholding information. Go to http://thomas.loc.gov and search for Senate Bill 96. See also Senate Bill 723.
From the European Union: EU Proposes Two Electronic Commerce Laws. (a) To conduct secure transactions and make it easier to do business over the Internet, the EU's telecommunications ministers have agreed unanimously to make "electronic signatures,'' the equivalent of handwritten ones in the European Union, if properly certified by qualified third parties. The action now goes to the European Parliament for final adoption. (b) Other legislation under discussion would set rules concerning advertising, electronic contracts, liability and professional standards, and "spam," but the main controversy involves who should regulate online sales -- the country of origin or country of reception. The legislation under consideration - a compromise solution - provides that companies should be regulated by the country where they are established, but that buyers could to invoke their own country's consumer-protection laws. http://legalnews.findlaw.com/scripts/legalnews.pl?nofr=y&L=Cyberspace_Law&R=/news/19990419/bcinterneteurope.html.
Illinois Legislation Would Set Conditions on Enforceability of Automatic Renewal of Contract. Senate Bill 1085 (Philip, R-Addison; DeLeo, D-Chicago) creates the Automatic Contract Renewal Act. If a contract proposes by its terms to automatically renew, the clause authorizing renewal must appear in the contract in at least 14-point bold type. If the contract does not comply with this Act, automatic renewal is not enforceable by the party who prepared the contract. The federal government, state governments, units of local government, and school districts are exempted from compliance with the Act, which would apply to all contracts entered into after its effective date. To track its progress, go to http://www.legis.state.il.us/legisnet/legisnet91/sbgroups/sbgroup11.html and search for SB 1085.
Business Brokers Liens. Senate Bill 749 (Cullerton, D-Chicago) would make several changes to the Illinois Business Brokers Act of 1995, particularly with regard to business brokers' liens. Such liens would be enforceable only against tangible property located in Illinois, and would require that a notice of lien be filed with the Secretary of State for personal property and with the Recorder of Deeds of the county where real property is located. The lien would be effective only against the assets of the business, and provides that a prior recorded lien will have priority over a broker's lien including a prior recorded lien perfected under the UCC. http://www.legis.state.il.us/legisnet/legisnet91/sbgroups/sbgroup11.html
International: U.S. Supreme Court: Customs Service's Interpretation of Regulation Entitled to Judicial Deference. Respondent contended that goods shipped from its plant in Mexico were merely assembled there, and under the applicable regulations, were eligible for a partial duty exemption. However, in an effort to avoid wrinkles, Respondent also permapressed the chemically pretreated garments at the Mexican plant. Claiming the baking was an added process in addition to assembly, the Customs Service denied the duty exemption. Although Respondent prevailed in the lower courts, the U.S. Supreme Court reversed, holding that if the regulation was a reasonable interpretation and an implementation of an ambiguous statutory provision, under Chevron U.S.A. vs. Natural Resources Defense Council, Inc., 467 U.S. 837, it should be given judicial deference. United States vs. Haggar Apparel Co.,. (04/21/99 - No. 97-2044). http://laws.findlaw.com/US/000/97-2044.html
Citation to Discover Assets Does Not Create Lien as to Bankruptcy Proceeding. The Seventh Circuit has ruled that service of pre-1993 citation to discover assets to enforce judgment prior to initiation of bankruptcy proceedings did not create lien in favor of judgment creditor as to assets mentioned in the citation. Therefore, the assets were properly deemed part of the debtor's estate for purposes of distribution in bankruptcy proceedings. Dominick's Finer Foods, Inc. v. Mason, No. 98-1341 (3/31/99). Appeal, N.D.Ill., E.Div.; Aff'd. http://www.kentlaw.edu/7circuit/1999/mar/98-1341.html
Bankruptcy Discharge Denied for Failure to Keep Adequate Business Records. Debtors, sophisticated business managers who controlled flow of funds and investment decisions, and who failed to maintain adequate records showing financial history and condition could be denied discharge of indebtedness. Record showed debtors tendered 450 boxes of documents which formed, according to Trustee's accountant, "impenetrable maze of transactions" which masked nature of various businesses controlled by debtors. Debtors had duty to disclose nature and extent of interests they held in business entities, and even where no creditors actually harmed by misstatements, discharge of debtors could be denied where debtors improperly concealed property of estate through false and misleading statements in disclosure statement. Peterson v. Scott, No. 97-2062 (3/26/99). Appeal, N.D.Ill., E. Div.; Rev'd and rem'd. http://www.kentlaw.edu/7circuit/1999/mar/97-2062.html
Although Court Retained Jurisdiction to Enforce Consent Decree, It Had No Jurisdiction to Amend Agreement Even though District Court retained jurisdiction to enforce Consent Degree entered into between Defendant and Environmental Protection Agency, Court lacked jurisdiction to consider motion by defendant to excise certain unfavorable language in agreement drafted by EPA concerning clean-up of defendant's property. Language in agreement confirmed EPA's belief that property contained environmental wastes, in spite of defendant's belief that Decree was biased, and did not take into account consent nature of agreement and fact that defendant admitted no liability. U.S. v. Accra Pac, Inc., No. 98-3331 (4/16/99). Appeal, N.D.Ind., S. Bend Div.; Vac'd and rem'd. http://www.kentlaw.edu/7circuit/1999/apr/98-3331.html
Intellectual Property: Oral Licensing Agreement Terminable Prior to Statutory 35 Year Period. Plaintiff, who entered into oral licensing agreement of no determined time period, could terminate agreement at will, even prior to 35 year period for said licenses as set forth in Section 203 of Copyright Act, 17 USC Section 203. Under Illinois law, oral agreements of indeterminate length are terminable at will. Also, Illinois law not in conflict with Section 203, since that statute provides that license may be terminated earlier if agreement so provides. Walthal vs. Rusk, No. 98-1659 March 26, 1999). Appeal, N.D. Ill., E. Div.; aff'd. http://www.kentlaw.edu/7circuit/1999/mar/98-1659.html
Did You Know? Argentina's Software Piracy Rate is 70%. Much higher than the 25% estimated software piracy rate in the United States, and much less than the 90% rate in Russia, Argentina's software piracy is believed to cost the Argentine economy in dramatic ways. A study by Price Waterhouse found that a 15% cut in the level of software piracy in Argentina would create 20,000 new jobs, generate $482 million in taxes, and boost the local programming industry by 400%. http://legalnews.findlaw.com/scripts/legalnews.pl?nofr=y&L=Other_International&R=/news/19990423/n23186742.html