Regulation

Features

A franchisor of tax preparation franchises was entitled to a 24-month injunction beginning from the time of the former franchisee's compliance with a non-competition covenant. <i>Jackson Hewitt Inc. v. Childress</i>, Bus. Franchise Guide (CCH) ' 13,849 (D. N.J., Jan. 22, 2008). The permanent injunction was ordered when the court granted the plaintiff franchisor's motion for summary judgment.

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Perhaps you've heard: On Jan. 23, 2007, the Federal Trade Commission adopted the comprehensively revised FTC Franchise Rule ('The Amended Rule') and released the 'Statement of Basis and Purpose' ('SBP'), which clarified the Amended Rule's requirements and prohibitions. Compliance with the Amended Rule has been optional since July 1, 2007, and became mandatory on July 1, 2008.

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On April 5, 2007, the Court of Appeals voided a decade-old court-ordered stipulation that had settled a contested litigation over a rent-stabilized apartment. The landlord in <i>Riverside Syndicate Inc. v. Munroe, et al.</i> 10 N.Y.3d 18, was allowed to renege on a settlement on the theory that the stipulation violated public policy and unlawfully waived the tenant's rights. The ramifications of this ruling are extraordinary. A party to a court ordered settlement can reap the benefits for as long as is opportune (the court ruled that there is no applicable statute of limitations).

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Sky-high loss enhancements are increasingly scrutinized in a post-<i>Booker</i> world. Drawing on civil securities law, recent decisions in several circuits endorse an approach holding a defendant responsible for only the portion of victims' losses that was proximately caused by the offense. Some courts' critical analyses bode well for future sentencings.

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The fallout from Hewlett-Packard's ('HP') controversial boardroom leak investigation has led to a variety of actions ' including an investigation by the California Attorney General's office and Congressional hearings on the practice of 'pretexting' ' a tactic employed by Hewlett-Packard to gain the confidential phone records of board members. Despite the considerable press attention devoted to the incident, it is an otherwise under-the-radar action by the SEC that could have the greatest long-term impact on corporate governance and compliance.

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With the ever-increasing focus on security, wage and hour class actions create potential liability for a variety of employers, from airport vendors to power plants to retailers. Fortunately for these employers and others, the recent, yet limited, case law has held that such time is not compensable. Moreover, general wage and hour principles support this conclusion.

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In December 2007, Lucent Technologies Inc. secured a non-prosecution agreement from the Department of Justice and settled an enforcement action with the SEC for conduct related to travel and entertainment expenses incurred on behalf of Chinese government officials and for the manner in which these expenses were booked. The Lucent settlement adds to a number of existing guideposts regarding permissible interactions with foreign officials under the Foreign Corrupt Practices Act. This article examines the Lucent settlement, prior FCPA enforcement activity related to travel and lodging, and offers some practical advice for compliance counsel.

Features

On Dec. 20, FTC staff released for public comment proposed online behavioral-advertising privacy principles in an effort to guide self-regulation of this nascent industry. The release of these Principles followed a two-day Town Hall meeting the FTC held late last year on behavioral advertising, which itself followed the FTC's Tech-Ade Workshop in 2006.