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, May 22 1992 Date: Fri, 22 May 92 05:21:01 EDT Message-ID: 05-22 0000 DECISIONLINE: Business Law USA TODAY Update May 22-25, 1992 Source: USA TODAY:Gannett National Information Network FRANCHISE BILLS INTRODUCED: Rep. John LaFalce, D-N.Y., chairman of the House Small Business Committee, Thursday introduced two laws to combat fraud in the $775 billion a year franchise industry. The bills would allow people who buy franchises to be entitled to information detailing the company's revenue and failure rate. Under the measures, franchisees would also have the right to sue if they are the victims of fraud. (For more, see special Franchises package below.) BUSH CHOOSES GILLERAN: James Gilleran, head of the California State Banking Department, is President Bush's choice to succeed Robert Clarke as comptroller of the currency. The Senate Banking Committee, which refused to approve a second term for Clarke, must confirm Gilleran. Some lawmakers, including committee Chairman Donald Riegle, D-Mich., said Clarke's supervision of banks was too lax. EC TO OVERHAUL FARM POLICY: A break may have come in a conflict over farm subsidies that has stalled talks on world trade under the General Agreement on Tariffs and Trade. The European Community Thursday agreed to radically overhaul its farm policy, which could lead to cuts in farm subsidies. But the announcement drew anger from several EC countries that don't want subsidies cut. SIZE OF MARKET SHARE CITED: Reacting to a Commerce Department ruling that Toyota and Mazda are dumping minivans in the USA, Japanese carmakers said Thursday their share of the U.S. minivan market is too small to have hurt U.S. automakers. Toyota Vice President George Borst told the International Trade Commission, which is ruling on the case, that the Big Three control more than 90% of the U.S. minivan market. BREEDEN MAKES FUND PROPOSALS: SEC Chairman Richard Breeden Thursday detailed proposals that would make it easier for small investors to buy into mutual funds and for small businesses to raise money through them. Among proposals: Allowing investors to buy into mutual funds without having to send away for a formal sales offering; and allowing brokers to negotiate commissions with customers. HOUSE AMENDS ENERGY BILL: The House Thursday amended a major energy bill to bar the government from opening any new U.S. waters to oil and gas exploration through 2002. The move sets up a battle because the Bush administration wants to promote drilling on vast new tracts along the mid- and south-Atlantic states, as well as parts of Florida's gulf coast. TAYSTEE, STROEHMANN NAMED: Taystee Baking Co. and Stroehmann Bakeries Inc. were named as defendants in a lawsuit filed by Lynn Bell and six other individuals in the Supreme Court of the State of New York, County of Queens, Thursday. The suit involves the closing of a Taystee bakery in Flushing, N.Y., in July of this year and financing provided by the City Industrial Development Agency. WARNER-LAMBERT SEEKS INJUNCTION: Warner-Lambert Co. announced Thursday it is seeking an injunction against EnviroPack, Inc. of Minneapolis in the U.S. District Court for the District of Minnesota. Warner-Lambert is seeking the injunction for alleged infringement of its patents related to the thermal processing of starch and biodegradable starch-polymer blends. INJUNCTION BARS IMPORT, SALE: U.S. District Court Judge Roderick R. McKelvie in Wilmington, Del., issued an injunction earlier this week barring Conlux USA Corp. from importing or selling its "Premier Series" of coin changers because the products infringe on a patent owned by Mars Inc., it was announced Thursday. Earlier this month, a jury ruled in favor of Mars in a patent-infringement suit against Conlux. SPECIAL PACKAGE ON FRANCHISES: COMPLAINTS PROMPT BILLS: Measures introduced Thursday in the House by Rep. John LaFalce, D-N.Y., to combat fraud in the franchise industry were prompted by increased complaints to state and federal regulators since the recession began and more laid-off workers have purchased franchises. About 500,000 people own franchises in the USA, but only 13 states have franchise-regulating laws. DISCLOSURE, SUITS AT ISSUE: One bill introduced by Rep. John LaFalce expands the financial disclosure a franchisor must make to prospective buyers to include information about outlets that have failed, ownership turnover and any legal disputes with current franchise owners. A second measure would make it easier for franchisees to go into federal court to sue nationally established franchise companies. FRAUD CLAIMS DISPUTED: The International Franchise Association disputes the claim that complaints are on the rise. It says claims are coming from a relatively small number of franchise owners who have been duped mostly by "fly-by-night operators" and scam artists. But Rep. John LaFalce says his committee found that fraud is being increasingly linked to national companies. (End of package.) ADVISORY: Decisionlines will not be published Monday, May 25, in observance of Memorial Day. Decisionlines will resume publication on Tuesday, May 26. 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