Federal Trade Commission Has Jurisdiction Over Not-For-Profit; Association's Restrictions on Advertising Require More Than "Quick-Look" Before Striking. In a little-noticed case with significant repercussions for not-for-profit associations of all kinds, including bar associations, the U.S. Supreme Court has ruled that the Federal Trade Commission has jurisdiction over such entities, even though they are not-for-profit. However, the FTC's charge that the California Dental Association's ethical restrictions on advertising were in restraint of trade could not be substantiated under the "quick-look" doctrine, but required a more thorough analysis. http://supct.law.cornell.edu/supct/html/97-1625.ZO.html
1st District Appellate Court Rules that Dental Office is Not a "Place of Public Accommodation" Under the Illinois Human Rights Act. In a controversial decision, which, by extension, might also apply to law offices, the 1st District Appellate Court, 6th Division, has ruled that a dental office is not a place of public accommodation under the Illinois Human Rights Act. Therefore, dentist's referral of HIV-positive patient to another dentist was not discriminatory. In making its decision, the Court relied in part on the fact that a "dental office" was not specifically enumerated in the statute, although, as Justice Frossard's dissent points out, the list of "examples" is prefaced with the phrase, "By way of example, but not of limitation…" The decision contains the Act's definition of "place of public accommodation in its entirety. No. 1-96-3444 Baksh v. Human Rights Commission (May 7) 1st Dist., 6th Div. (BUCKLEY) http://www.state.il.us/court/appellates/1999/1963444.htm As we go to press on May 28, 1999, the Commission advises that it will file an Intent to File an Appeal to the Illinois Supreme Court.
Defendants' Guaranteed Payment, Not Collection, Pursuant to "Burn-Down" Clause. Bank sued Defendants who had guaranteed a loan. At issue was the meaning of a "burn down" clause that reduced the amount guaranteed as principal payments were made "with respect to the liabilities." The trial court applied the "burn down" clause to collateral proceeds paid over to the bank in a bankruptcy action almost two years after the guarantors' obligations became due. Bank argued that the guaranties are guaranties for payment, rather than collection. Burn down clause in personal guaranty was not ambiguous, and Bank was not required to have amounts paid by bankruptcy court after default on loan deducted from guaranty. No. 1-97-2679 Bank of America National Trust and Savings Ass'n v. Schulson (May 26) 1st Dist. 3d Div. (CAHILL) http://www.state.il.us/court/appellates/1999/1972679.htm
New Federal Regulations Proposed for Tax on Long-Term Contracts. New Federal Regulations have been proposed: for tax on long-term contracts, setting forth how income from a long-term contract must be accounted for. 64 FR 24096, May 5, 1999; http://clr.findlaw.com/content/64fr24096.
Commodity Futures Trading Commission Raises Limits on Agricultural Commodities. The Commodity Futures Trading Commission has raised the speculative position limits for futures contracts on various agricultural commodities. 64 FR 24038, May 5, 1999, affecting 17 CFR, Parts 1, 17, 18, and 150. http://clr.findlaw.com/content/64fr24038
Intellectual Property: New Trademark Regulations Proposed. In order to implement the new trademark Law Treaty, and in an attempt to simplify and clarify trademark procedures, the U.S. Patent and Trademark Office proposes to amend its regulations. 64 FR 25223, May 11, 1999. For details, go to http://clr.findlaw.com/content/64fr25223
Securities & Exchange Commission to Accept filings in HTML and PDF. In an effort to modernize its Electronic Data Gathering, Analysis and Retrieval System, the SEC will accept filings in HTML and unofficial copies in PDF format. 64 FR 27887, May 21, 1999, affecting 17 CFR Parts 230, 232, 239, 240, 270, and 274. http://clr.findlaw.com/content/64fr27887
From the European Union: EU Reviewing Proposed Mergers and Takeovers. The European Commission, under the EU's merger regulation is reviewing, among others, the proposed acquisition by DuPont to buy 80% of agricultural sciences company Pioneer Hi-Bred International; (DuPont already owns 20%); Also under review, the plan by Dutch information technology group Getronics NV to buy U.S. computer services company Wang Laboratories Inc., and the proposed merger between U.S. oil companies Exxon Corp and Mobil Corp.
No Tortious Interference with Business Relationship, in Spite of False Promises. Although defendant induced Texas Rangers baseball player/client of plaintiff to sign agency contract with defendant based on false promise of between $2 million to $4 million in endorsements, and although plaintiff asserted that defendant knew it could not obtain such endorsements, claim of interference could not stand. Defendant's representations amounted to mere "puffing," and were non-actionable. In addition, fact that Plaintiff's contract with client was terminable at will meant that Plaintiff could not sue client for breach of contract, and that Defendant did not induce breach of contract. Speakers of Sport, Inc. v. ProServ, Inc., No. 98-3113 (5/13/99). Appeal, N.D. Ill., E. Div.; Aff'd. http://www.kentlaw.edu/7circuit/1999/may/98-3113.html
To Check the Status of Illinois Legislation, go Online. Now that the flurry of activity is over, and the legislature has adjourned for the summer, go online to check the status of the bills of interest to you. Click on http://legis.state.il.us/index.html