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, Jun 12 1992 Date: Fri, 12 Jun 92 05:19:42 EDT Message-ID: 06-12 0000 DECISIONLINE: Business Law USA TODAY Update June 12-14, 1992 Source: USA TODAY:Gannett National Information Network SEARS CHARGED WITH FRAUD: The California Consumer Affairs unit Thursday charged Sears, Roebuck & Co. auto repair shops in California with routinely overcharging customers. Following an undercover probe, the agency asked the state to revoke Sears' auto-repair certificate and close all 72 California Tire and Auto Centers. It's "systematic looting of the public," says Consumer Affairs Director Jim Conran. REPAIRS UNNEEDED OR NOT DONE: A California state agency reported Thursday that a probe found Sears, Roebuck & Co. auto repair shops in the state overcharged agents an average $233 for repairs that were either unneeded or not done. Sears auto employees are paid according to how many parts or service operations they sell, not by how well they fix cars, California says. Sears denies wrongdoing. CHRYSLER MUST PAY $11.3 MILLION: Chrysler must pay inventor Robert Kearns $11.3 million for infringing on Kearns' patent for an intermittent windshield wiper, a federal jury ruled Thursday. But the jury said Chrysler's infringement wasn't willful and ordered the No. 3 automaker to pay 90 cents for every vehicle sold with the wiper system from May 1977 through August 1988. Kearns was seeking from $3 to $33 per car. SCANDAL CLAIMS GMAC EXECS: Top executives of General Motors Acceptance Corp. were replaced Thursday following a scandal in which New York car dealer John McNamara allegedly obtained billions in loans on non-existent vehicles. General Motors says its investigation uncovered no criminal activity by GMAC employees. The biggest change was William Lovejoy, replaced by John Rines as president and CEO. CHARNEY RESCUES UPI: United Press International, which said it would have to shut down Friday, was bailed out by Leon Charney. The lawyer who helped former president Carter set up the Camp David peace talks, tentatively agreed Thursday to buy UPI, which is in bankruptcy reorganization. The deal gives UPI cash to keep it running through next week, while Charney examines its financial records. TENTATIVE AGREEMENT REACHED: Leon Charney, 45, who tentatively agreed Thursday to buy UPI, is a New York TV producer:moderator and real-estate developer who has close ties to Israel. "I am convinced there is tremendous value in the assets of an institution like UPI," Charney said in a statement, calling himself a "white knight." Charney said he expects to make a formal bid for all or part of UPI's assets. VOTE FALLS SHORT: The Senate Thursday narrowly failed to shut off a Republican filibuster of a bill to ban hiring of replacements for striking workers. The vote was 55-41, five votes short of the 60 needed to proceed to a vote on the legislation, which is a top priority for many Democrats and U.S. unions this year. FARE CUTS UNDER SCRUTINY: A bankruptcy judge ruled Wednesday American Airlines must justify its recent fare cuts to a committee of America West shareholders. The judge also has ordered American Chairman Robert Crandall and other executives to be interviewed by lawyers for the America West shareholders committee to determine if American is trying to drive America West and other carriers out of business. FTC ALLEGES PRICE FIXING: The Federal Trade Commission said Thursday Abbott Laboratories, the USA's largest infant formula maker, fixed prices in a government feeding program for poor women and children. The FTC, which has settled similar charges with two other firms, said it hopes to recover millions of dollars from Abbott. The charges came after a two-year probe of alleged bid-rigging. SEC, FIRST INVESTORS SETTLE: The Securities and Exchange Commission reached a $24.7 million settlement Thursday with First Investors Corp., the largest settlement ever with a mutual fund company. The SEC charged that First Investors misled investors about the risks of its two corporate junk bond funds, First Investors Fund for Income and First Investors High Yield. CHILD WORLD, LIONEL TALK: Toy seller Child World, which filed for Chapter 11 bankruptcy court protection last month, says it is discussing a merger with Lionel, which is also in bankruptcy protection. If merger talks fail, Child World says it will close its remaining 71 stores. Child World previously closed 54 stores. The merger would create a chain of 135 toy stores in the Northeast, Midwest and South. LIBEL SUIT DISMISSED: U.S. DIstrict Court Judge Edward S. Northrop Wednesday dismissed a multi-million dollar libel suit brought by National Life Insurance Co. of Vermont against Phillips Publishing Inc. After a two-year legal battle, Judge Northrop granted Phillips Publishing's motion for summary judgment. Phillips Publishing president Thomas L. Phillips called the ruling a victory for First Amendment rights. 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