The Business Law Brief sm (February, 2002)

  1. USSC I: Employee's Job-Acquired Impairment Is Not Covered by ADA Because Disability Does Not Affect Major Life Activity. With uncharacteristic unanimity, the U.S. Supreme Court has ruled that an employee's carpal tunnel syndrome, acquired on the job, which makes it difficult for her to do her job, but which does not affect her ability to care for herself off the job, does not render her "disabled" within the meaning of the Americans with Disabilities Act (ADA), 42 U.S. C. Section 12101, et seq. In a case closely watched by employers across the nation, the Court limited the reach of the ADA, holding that the Act's requirement that the injury affect "major life activities" means that "the central inquiry must be whether the claimant is unable to perform the variety of tasks central to most people’s daily lives," such as "household chores, bathing, and brushing one's teeth." The Court found that repetitive work with hands and arms extended at or above shoulder levels for extended periods is not an important part of most people’s daily lives. Toyota Motor Manufacturing, Kentucky, Inc. vs. Williams, No. 00-1089, (January 8, 2002). Commentary at law.com, and findlaw.com.
  2. USSC II: EEOC Can Override Mandatory Arbitration Clauses in Employment Agreements.
    Although recent U.S. Supreme Court decisions have approved of mandatory arbitration clauses in employment agreements, declaring them enforceable under the Federal Arbitration Act, 9. U.S. C. Section 1, et seq., the high court has now ruled that the Equal Opportunity Employment Commission (EEOC) may step into such disputes. Less than a year ago, the Court ruled in Circuit City vs. Adams, 532 U.S. 105 (2001), that such mandatory arbitration clauses were enforceable. However, writing for the majority, Justice John Paul Stevens wrote in EEOC v. Waffle House Inc., No. 99-1823, that "the pro-arbitration policies of the Federal Arbitration Act do not require the agency to relinquish its statutory authority if it has not agreed to do so." Report and commentary.
  3. First Impression: Employer's Failure to Post FMLA Notice Culpable Under the Family and Medical Leave Act.
    The Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq. (FMLA) provides for paid employee leave in the event of certain emergencies, but requires that the employer post an FMLA notice and advise the employee regarding eligibility. In a case of first impression, the employer's failure to post the FMLA notice required by statute, and failure to inform the employee that she was ineligible for paid leave under the FMLA constitutes a "material misrepresentation," so that the employer is barred from raising the defense of ineligibility, even though the employer intended no deception. Kosakow v. New Rochelle Radiology Associates, P.C., # 00-7392, Fed Ct. App. 2d Cir. (December 20, 2001).
  4. Three For One: Pass One Bar, Admitted to Practice in Three States.
    In a program designed to address the increasing need for the multi-jurisdictional practice of law, (often a part of a transactional business law practice), three states have joined together to offer a program: Pass the Bar Exam for one state, and be licensed in all three - Washington, Oregon and Idaho. The program also requires 3 years practice experience, and continuing legal education. Other states are discussing similar programs. See the article in the premier issue of the new ABA e-Journal.
  5. Clickwrap License Agreement Held Enforceable Under UCC.
    Despite Article 2’s requirement of a "sale," as opposed to a "license", courts in Massachusetts have assumed, without deciding, that Article 2 of the Uniform Commercial Code (UCC) governs software licenses. In this very readable case, the clickwrap license was held to override the contradictory purchase order. In effect, what the purchase order gave, the clickwrap license took away, with drastic consequences for the buyer/licensor. i.Lan Software, Inc. vs. Netscout Service Level Corp., No. 00-11489-WGY, U.S.D.C. Mass. (January 2, 2002).
  6. Bankers May Be Liable for Encouraging Investment With "Good Businessmen" Who Were Bankrupt.
    Summary Judgment should not have been granted where Plaintiff alleged that Defendant bankers told Plaintiff that prospective business partners were "good businessmen" and "good customers of the bank" in order to induce Plaintiff to invest in their business, when the bankers knew that the proposed development at issue faced serious opposition and that Plaintiff's prospective "partners" were bankrupt. Schrager vs. North Community Bank, No. 1-99-3727, Ill.App.Ct., 1st Dist., 1st Div., (January 14, 2002).
  7. No Antitrust Violation Because Competitor Did Not Price Product Below Cost.
    A divided Third Circuit Federal Appeals Court has ruled that 3M, the Minnesota-based transparent tape manufacturer, did not violate Section 2 of the Sherman Act when it offered retailers a bundled "rebate" if it would remove the products of Ontario-based competitor LePage's, Inc. from retail shelves, since 3M never priced its products below their cost. The decision overturns a $68 million dollar verdict in favor of LePage's, Inc. The dissent warns that the ruling will "weaken Section 2 of the Sherman Act to the point of impotence." LePage's, Inc. et al, vs. 3M (Minnesota Mining & Manufacturing Co.), et al, Nos. 00-1368 and 00-1473, 3rd Cir. Ct. App., (January 14, 2002). Also see report.
  8. A Review of 2001 Major Intellectual Property Cases; Tasini Leaves Online Databases Decimated, Frustrating Research.
    The National Law Journal provides the year in review of major intellectual property cases, including The New York Times Co., Inc. vs. Tasini, 121 U.S. S Ct. 2381 (2001), which held that republication of the work of free-lance writers in computer databases such as Lexis/Nexis by publishers, including the New York Times, infringed the writers' copyrights. Rather than pay the writers, publishers have removed the works, citing their inability to pay. As a result, scores of documents, reports and articles posted on the internet and available for free have been removed, leaving online databases no longer trustworthy for scholarly research. For report and analysis, see this article in the Chronicle of Higher Education.
  9. The Continuing Fallout: Many Change Careers After 9-11...
    Maybe they found their jobs too stressful, or maybe they were ready for a change anyway, but anecdotal evidence suggests that many people - from CEO's to the rank and file - have made major career changes since the twin towers fell on September 11, 2001. To many, those events were "a swift and dramatic reminder that life is fleeting and work isn't all there is." From the WSJ.com Career Journal.
  10. Tips and Trends.
    New Securities Website: For a comprehensive, easy to use website regarding securities regulation, read this review, then subscribe for a two week free trial. The Web Shrinks: According to Internet survey firm Netcraft, the number of existing websites declined by 182,142 between November and December, 2001. Spam Increases: No, it's not just your imagination. there IS more spam coming to your mailbox. Small Business Bankruptcies are expected to rise during 2002. Online Privacy and Security: Increase your privacy and security with these 10 tips.


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