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 Wed, May 27 1992 Date: Wed, 27 May 92 05:20:54 EDT Message-ID: 05-27 0000 DECISIONLINE: Business Law USA TODAY Update May 27, 1992 Source: USA TODAY:Gannett National Information Network STATES CANNOT TAX CATALOG FIRMS: The Supreme Court ruled Tuesday in the case of Quill Corp. vs. the North Dakota Department of Revenue, that states cannot require out-of-state catalog companies to charge sales tax. But the court's ruling leaves the door open for Congress to change the law. "The court basically punted," says North Dakota Attorney General Nicholas Spaeth. At stake is as much as $3 billion in sales taxes. (For more, see special Court package below.) GENETICALLY ALTERED FOOD OK'D: The Bush administration Tuesday cleared the way for biotechnology firms to produce genetically engineered vegetables, grains and fruits that, in most cases, will not require approval from the Food and Drug Administration or labeling. The food will contain genes of animals, insects and other life forms. The new foods are supposed to last longer, grow faster and resist disease. WORKERS MAY STRIKE AT&T: Members of the Communications Workers of America have authorized a strike against AT&T if an agreement on a new contract isn't reached by Saturday. The CWA, representing 100,000 AT&T workers and the International Brotherhood of Electrical Workers, representing about 27,000 workers, have been negotiating with AT&T since March. IBEW members have already authorized a strike if talks fail. JUDGE ORDERS STOP TO ADS: Federal District Judge Alfred M. Wolin of Newark, N.J., Tuesday ordered Pennzoil Co. and Pennzoil Products Co. to halt an advertising campaign that made unsubstantiated claims. In a suit brought by Castrol Inc., Judge Wolin ruled that Penzoil did not support claims that its motor oil outperforms any leading motor oil against viscosity breakdown and provides better engine protection. SUIT FILED AGAINST EDISTO: Edisto Resources Corp. Tuesday announced that a suit has been filed in Delaware Chancery Court against Edisto and its directors. The suit seeks to compel Edisto to redeem the 208,087 remaining outstanding shares of its $2.60 Senior Cumulative Convertible Preferred Stock, alleging a breach of fiduciary duty to shareholders and Edisto's charter. UT ANNOUNCES SETTLEMENT: Urethane Technologies Inc. Tuesday announced that it settled its litigation with JDL Marketing, one of UT's independent representatives. Under the settlement, UT will issue 100,000 shares of common stock subsequent to an anticipated .72 to 1 reverse stock split of UT's common stock. UT has agreed to register the shares for JDL subject to certain restrictions on resale of that stock. ALLIANT FILES FOR BANKRUPTCY: Alliant Computer Systems said Tuesday it has downsized its operations from 225 employees to 60 employees. It also says it has filed a petition for protection under Chapter 11 of the U.S. Bankruptcy code while it seeks to reorganize its remaining operations. The firm says it will suspend the development and most direct sales of new computer systems. REGGIE GOES TO TRIAL: Edmund Reggie, longtime Kennedy family confidante, faces trial Wednesday on bank fraud charges in Lafayette, La. He's accused of getting more than $4 million in benefits from loans involving the defunct Acadia Savings and Loan of Crowley. Reggie's daughter, Victoria, is engaged to U.S. Sen. Edward Kennedy, D-Mass. MCNAMARA INDICTED: Long Island car dealer and real-estate developer John McNamara, 52, was indicted Tuesday on federal racketeering and fraud charges for allegedly cheating General Motors out of hundreds of millions of dollars. He's accused of receiving some $6 billion in loans from GM's credit division to finance nonexistent vehicles. McNamara's lawyer says his client will contest any charges. SPECIAL PACKAGE ON COURT: QUILL WINS CHALLENGE: In a case decided Tuesday by the Supreme Court, mail-order company Quill Corp., based in Illinois, had challenged North Dakota's 5% tax. The Supreme Court ruled out-of-state catalog firms do not have to charge sales tax. But Congress can still change the law. Analysts say it is not likely to act soon because it would not want to do anything to hurt businesses in today's fragile economy. COURT REJECTS APPEAL: The Supreme Court Tuesday rejected an appeal by medical claims expert Jay Glasser, who said he had been unlawfully prevented from advising women seeking damages from the maker of the Dalkon Shield birth control device. The court let stand an appeals court ruling that said Glasser had an unfair advantage because of his previous, court-approved work studying earlier damage claims. WORKERS MUST PAY TAXES ON AWARDS: Workers who win job discrimination cases against their employers must pay taxes on back pay awards, the Supreme Court ruled Tuesday by a vote of 7-2. Writing for the court, Justice Harry Blackmun said the wages, "if paid in the ordinary course, would have been fully taxable." The tax dispute arose from a discrimination case against the Tennessee Valley Authority in 1984 by Judy Hutcheson. (End of package.) Business Law Editor: Jason P. Smith. (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