Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Fri, Jul 10 1992 Date: Fri, 10 Jul 92 05:13:31 EDT Message-ID: 07-10 0000 DECISIONLINE: Business Law USA TODAY Update July 10-12, 1992 Source: USA TODAY:Gannett National Information Network SEARS NEGOTIATING WITH UNIONS: Sears, Roebuck and Co. said Thursday it was removing signs about a new auto repair policy at 11 shops where advisers still are paid on commission. Amid allegations of overcharging and fraud by California's consumer affairs agency, Sears said June 22 it was abolishing sales commissions for auto service advisers. A spokesman said the company is working with unions to change the compensation. GROUP MAY BUY CONTINENTAL: A report Thursday said an investor group that includes financier Charles Hurwitz has offered $350 million to buy controlling interest in Continental Airlines, which is under Chapter 11 bankruptcy reorganization. The Houston Chronicle reported Continental's board of directors favored the deal. Hurwitz's group is one of four parties known to be interested in an investment. FBI LOOKS INTO PAN AM CASE: The FBI is looking into whether offers of $1 million each to families of victims of the Pan Am Flight 103 terrorist bombing came from agents of Libya, Reuter news service said. NBC News reported the offers came from lobbyists for a U.S. businessman who wants trade sanctions lifted against Libya. A New York jury is deadlocked on whether poor security allowed a bomb-laden suitcase on board. SIKES, FCC LOOK TO FUTURE: Federal Communications Commission chairman Alfred Sikes said Thursday the next weeks could spur the launch of exciting communication services. The FCC will likely give regional Bell phone companies more freedom to transmit TV signals over phone networks, in competition with cable-TV companies. Sikes hopes to encourage competition between phone companies and cable TV. PHONES, HDTV ON FCC'S DOCKET: During the next weeks, the Federal Communications Commission will begin examining proposals to establish personal communications networks that use pocket phones to transmit calls via a network of small satellites. The FCC will also continue investigating how to allocate TV channels to super-sharp, high-definition TV broadcasts and begin an inquiry into how to stem telephone fraud. HOUSE DEBATES FUNDS PLAN: Debate opened in the House Thursday on a $35 billion transportation appropriations bill with Republicans assailing a Democratic funds-shifting plan as an election-year effort to destroy a 2-year-old deficit-reduction agreement. The plan, which the White House has threatened to veto, calls for transferring $400 million in unspent foreign aid to transportation projects. SPONSORSHIP IS EXEMPT: The U.S. House Ways and Means Committee Thursday voted to exempt non-profit sports events, such as college bowls and the Olympics, from a Internal Revenue Service proposal that would tax such events' sponsorship revenues. The IRS has argued sponsorship fees should be considered ad spending, which is taxable, rather than charitable donations. CONTRACTORS' FOCUS TO CHANGE: The Planning and Improvement Committee of the Los Angeles County Transportation Commission Thursday took a step toward requiring future contractors to devote a percentage of their work to job development and training. An offshoot of the transportation dollars being invested in building the Metro system and in administering its programs, it is an effort to create more jobs for area youth. COURT SAYS STANDARD IS FLAWED: The U.S. Court of Appeals for the 11th Circuit determined Thursday that the Occupational Safety and Health Administration's Air Contaminants Standard for 428 toxic substances is flawed. The court said OSHA failed to justify the exposure standard, which regulated workplace exposure to the substances in most American industry, for each substance individually. FED DENIES SOUTHTRUST CASE: Citing antitrust concerns, the Federal Reserve Board Thursday denied the application of SouthTrust Corp. to acquire First Federal Enterprises, said Bloomberg Business News. SouthTrust, based in Birmingham, Ala., already controls nine banks in Florida and competes directly with First Federal in its home banking market of rural Marianna, Fla. FORMER CFO FILES CHARGES: The former chief financial officer of American Franchise Group Inc. has filed a lawsuit accusing the chairman and his girlfriend of profiting illegally from insider trades, said Bloomberg Business News. Michael Garrett, who was fired two months ago from his job, also alleges that Chairman William Wilkerson charged personal trips as business expenses. Wilkerson denied the allegations. CONNIE LEE TO GUARANTEE BONDS: Both the House and Senate have now agreed to legislation permitting the College Construction Loan Insurance Association (Connie Lee) to guarantee bonds of any college not served by other financial guaranty companies. Previously, the bond insurance was restricted to lower investment-grade-rated schools. Connie Lee provides credit enhancement for higher education facilities bonds. CONGRESS REVISES EDUCATION ACT: Congress revised the Higher Education Act which now authorizes the College Construction Loan Insurance Association to guarantee up to $600 million for higher-rated schools over a five-year period. President Bush is expected to sign it into law. Colleges are not familiar credits to many buyers of municipal bonds. Without bond insurance many institutions are unable to issue long-term bonds. COURT TO REVIEW $2M AWARD: The California Supreme Court has agreed to review the constitutionality of a $2 million punitive damages award in Pacific Lighting Corp. v. MCW, Inc. The Pacific Lighting case asks the court to determine whether the state's system for awarding punitive damages meets the constitutional due process standards articulated in a similar case, Pacific Mutual v. Haslip. FLIGHT ATTENDANTS WIN FIGHT: In a significant victory for flight attendants, the House Thursday again passed long-overdue legislation limiting flight attendant duty time and imposing rest requirements. This represented a compromise between the flight attendant unions and the leading industry opponent, Delta Airlines. The legislation is an amendment to the House Transportation Appropriations Bill. AUTOMAKERS ATTACK N.Y. POLICY: Two trade associations representing most of the world's automakers Thursday filed a suit in federal court challenging New York's adoption of California's auto-emission standards. The automakers say it will be more difficult for them to meet the standards because New York didn't adopt the other half of the program, which calls for production of cleaner-burning gasolines. Business Law Editor: Kate Coughlin. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM