Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Tue, Nov 3 1992 Date: Tue, 3 Nov 92 04:59:46 EST Message-ID: 11-03 0000 DECISIONLINE: Business Law USA TODAY Update Nov. 3, 1992 Source: USA TODAY:Gannett National Information Network CALIF. VOTES ON TAX PLAN: Fourteen years ago, California's Proposition 13 ignited a taxpayers' revolution that swept the nation. This time it's Proposition 167 - potentially as powerful as Proposition 13 but with far different goals. Instead of focusing on property taxes, Prop 167 takes aims at businesses and the rich. If passed, it could wind up as the biggest single state tax increase in U.S. history. BUSH CUTS BOAT USER FEE: The controversial 2-year-old federal recreation boat user fee will be phased out over two years under legislation signed by President Bush Monday. The fee affects about 4 million boat owners. Effective immediately, boats 21 feet or less will no longer have to display the special decal. Boats 37 feet and less will be exempt Oct. 1, 1993; all remaining boats: Oct. 1, 1994. STATE PROBE COULD BE SETTLED: Advanced Telecommunications Corp. said Monday that it may be able to settle a state investigation of its billing practices for less than $8 million. Bloomberg Business News reported that the payment would resolve investigations by Florida regulators that began after a customer said the company was overcharging for long distance. The company has settled the dispute with the customer. ALZHEIMER'S DRUG VOTED DOWN: A Food and Drug Administration panel Monday said that studies on a drug for the treatment of Alzheimer's disease does not show the drug is safe or effective. Mentane is manufactured by Hoechst Roussel. The panel recommended against expanding the availability of Mentane for Alzheimer's patients who are not taking part in clinical studies. There is no known treatment for Alzheimer's. INFRINGEMENT SUIT FILED: Detection Systems Inc. Monday reported it has filed suit against C&K Systems Inc. and Alarm Components Distributing Corp. in federal district court in New York. The complaint alleges that the defendants have sold products that infringe upon a key patent that Detection Systems owns. The suit claims the company has suffered substantial damages because of the infringement. DUAL-TRADING FACES VOTE: Members of the Chicago Mercantile Exchange Thursday will vote on a proposal to repeal a 2-year-old exchange rule banning dual-trading on most futures contracts. The controversial practice was sanctioned by legislation that reauthorizes the Commodity Futures Trading Commission. Chicago has the only exchange forbidding brokers from simultaneously trading for themselves and clients. ENGLAND WARNS OF REPERCUSSIONS: The British Secretary of Transportation Monday warned that the USA faces repercussions if it chooses not to approve British Airway's $750 million purchase of a 44% stake in USAir. That stake is within the legal limits of how much stake a foreign interest may hold in a U.S. company. John MacGregor warned of wider European effects if the offer were rejected. OTHER COUNTRIES WOULD OPPOSE: British Secretary of Transportation John MacGregor Monday says that if the Department of Transportation rejects British Airway's proposal to buy 44% of USAir, the move would bolster other countries' opposition to giving the USA more access to European markets. USAir has denied a report in the Financial Times that it will switch its jet orders to Europe if the deal doesn't fly. TRUCKING FIRM TO APPEAL: Lifschultz Industries Inc. Monday said it would appeal a federal district judge's dismissal of a $1.8 billion antitrust suit against Consolidated Freightways Inc., Yellow Freight System Inc. and Roadway Services Inc. Chairman David Lifschultz said the company had "direct evidence of predatory pricing." Two former Teamsters members have claimed they participated in a conspiracy. LUFTHANSA WITHDRAWS BID: German airline Lufthansa withdrew its bid for Continental Airlines Monday but announced an air traffic deal that would give the state-controlled airline better access to U.S. airports. Lufthansa's bid was made jointly with U.S. billionaire Marvin Davis. It isn't clear if Davis will make an independent bid for Continental. POWER BOND RULING STANDS: The Supreme Court on Monday let stand a federal appeals court ruling. The ruling rejected a challenge to a settlement of claims related to Washington Public Power Supply System's default on $2.25 million in bonds in 1983. The bonds were issued to finance construction of two nuclear power plants that were never completed. The default was the largest bond default in history. CHOCOLATE WAR IS SETTLED: A federal district court Monday upheld the contentions of Chocolates a la Carte Inc. in finding that both Ira Dubner and Presidential Confections Inc., doing business as The Chocolates Studio, willfully infringed a copyright. The Chocolates Studio used a chocolate designed like a nautilus shell that Chocolates a la Carte created in 1986 for a luncheon to honor Nancy Reagan. THREE ARRESTED FOR FALSE PAPERS: Immigration and Naturalization agents have arrested three more people on charges of using false documents to get work at Federal Beef Processors plant in Fargo, N.D. Ten men were arrested on Oct. 20 on the same charges. One of the men in the group arrested in October was charged with being in the country illegally. HOMES WON'T TAKE AIDS PATIENTS: Most Central Florida nursing homes don't admit AIDS patients, according to the Orlando Sentinel. Hospital staffers identified one nursing home in Orange County and two in Volusia County that have accepted AIDS patients. Nursing homes have denied that they discriminate. Business Law Editor: Beth Mann. (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