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 Tue, Jun 16 1992 Date: Tue, 16 Jun 92 05:20:20 EDT Message-ID: 06-16 0000 DECISIONLINE: Business Law USA TODAY Update June 16, 1992 Source: USA TODAY:Gannett National Information Network N.J. ACCUSES SEARS OF FRAUD: New Jersey has joined California in accusing Sears Tire and Auto Centers of consumer fraud. Monday, New Jersey's Division of Consumer Affairs said all six Sears shops it investigated recommended unnecessary repairs. The Sears shops were among 38 auto repair shops the division probed. Of the 32 non-Sears shops, only five, or 16%, recommended unneeded repairs. SEARS BEGINS REVIEW: Sears says it has begun an internal review of its procedures following Monday's charge by New Jersey that Sears Tire and Auto Centers in the state are deceiving customers. But Sears says similar charges leveled last week by California amounted to grandstanding by a state consumer agency to avoid being eliminated during imminent state budget cuts. STOCK INCOME NOT TAXABLE: The Supreme Court Monday said states generally can't tax out-of-state businesses for income they make from selling stock in other companies. The justices voted 5-4 against New Jersey's efforts to collect $1.8 million in taxes from Bendix Corp. after Bendix sold stock it owned in two other companies. Bendix is now a unit of Allied Signal Inc. SMOKING CASE STILL PENDING: Most of the major cases before the Supreme Court have yet to be ruled on. Before month's end, the court is expected to rule in 29 cases. No date has been set for adjournment, but sessions are rarely held in July. Among the top cases still pending is one on whether cigarette warning labels protect or immunize tobacco firms from being sued by victims of smoking-related illness or death. BANKRUPTCY FILINGS UP: A record 252,000 individuals and businesses filed for bankruptcy court protection from creditors the first quarter, the American Bankruptcy Institute said Monday. Bankruptcy courts are "dangerously overloaded," says ABI President Sam Gerdano. The biggest increase was in Delaware, where the number of cases filed rose 38.5%. SENATE VOTE ON STRIKER BILL: The Senate prepares to vote Tuesday on moving forward on a bill that would bar companies from replacing strikers. AFL-CIO officials said Monday they would agree to limit their right to strike if business agrees to restrict its hiring of permanent replacements during strikes. But Dan Yager, attorney for the pro-business Labor Policy Association, said the concession is a smokescreen. WORKERS COULD STRIKE AMTRAK: A strike could hit Amtrak June 24. Under the provisions of the Railway Labor Act, unions which have not settled new contracts with Amtrak and several freight railroads would be free to strike at 12:01 a.m., on June 24. Amtrak has reached agreements with unions representing 63% of its employees, but six unions representing the other 37% have not yet settled. GARAMENDI DISCUSSES CRISIS: Califronia Insurance Commissioner John Garamendi Monday detailed the unlicensed insurance crisis before a state Senate subcommittee on Non-Admitted Insurers. Garamendi said the problem is widespread, and that, "thousands of consumers are being ripped-off every day by shady unlicensed insurance companies." He called for new regulations and more money for enforcement. REALTOR INDICTED: A federal grand jury in Montgomery, Ala., Monday indicted Realtor Don Martin on 43 charges involving deals that led to the bankruptcies of Tuskegee Federal Savings and Loan and Security Federal Savings Bank of Florida, said U.S. Attorney Jim Wilson. Martin was accused of inflating the value of hundreds of mortgages and selling at least $29 million of worthless loans. SEAFOOD COMPANY FINED: Seattle-based seafood company Northern Alaskan was fined $51,075 for job safety violations on its floating processor in Alaska's Pribilofs, a U.S. Department of Labor spokesman said Monday. The citation comes after a March 27 accident that injured six crew members. HOTEL AND CASINO CLOSES: In Las Vegas, Main Street Station Hotel and Casino closed Monday and owner Bob Snow scrambled to find $230,000 to pay gaming taxes and $50,000 to pay IGT for leasing gaming machines by Thursday. The failure means Bank of America can submit a receiver and the U.S. Bankruptcy Court will appoint a trustee to oversee the sale. CENTER TO COLLECT 900 CHARGES: The Credit Collection Center in Miami has been formed to service pay-per-call information providers. The center says it will enforce collection to the fullest extent of the law, even if that means filing suits. It says that even though carriers may have removed charges from phone bills, callers are still obligated to pay for 900 calls. 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