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Archive for January, 2008

Business Law Post Enron is a New Game

Saturday, January 12th, 2008

After the Enron scandal several years back, business law has had to deal with the fallout of some business behaviors that became apparent. The corporate world was shaken to its core and forced to re-examine its policies and procedures and in fact, it’s very responsibility to groups who were not even shareholders.

The law of business in America has had to be modernized somewhat. The Colonial big business attitudes of profits at all costs may have been degraded by bits over the years, but this particular case crushed some of the last vestiges of its stronghold on the corporate world. No longer were profits to the shareholders of a company the main concern with disregard to responsibilities and duties elsewhere.

Fiduciary duties of top management in business have been put under the microscope and subsequently been made a higher priority. This means that besides protecting the assets and profits of the business for the shareholders, there must also exist due care and responsibility to other matters of public interest. These matters have been listed as:

· The Environment
· Human Rights
· Public Health and Safety
· The Welfare of the Community
· Employee Dignity

While the matter of incorporating these matters into business law may not be finished yet, the business world and top executives in particular have had to sit up and take notice of what is going to be expected of them from now on.

The world of big business must now ensure that they are their own watchdogs within their organizations to some degree. They are to be aware of how their business dealings affect these other groups and take some responsibility for that. They must be weary of deals that will increase their profits at the expense of these groups. This is indeed the last crumbling wall of the colonial (now American) exploitative spirit.

One of the biggest effects on corporate America is the need for business lawyers who can help guide them through this new world of restrictions that threaten to make them vulnerable. They are under scrutiny and they need the expertise of lawyers to help them develop new policies and new ways to define their responsibilities as part of the community. Especially now that this new code for business responsibility at the top of the ranks is forming and developing, any big business will not want to risk falling behind in conforming to these new expectations.

While Enron may be a big example, all businesses must take heed of the new credo. Business at the expense of humans, environment is not acceptable. Executives hiding behind the almighty “making a buck for my shareholders” must remember that they are now also responsible to the community at large.

Business lawyers are in demand now and they will continue to be for some time. They are needed in helping the business world meet their responsibilities in a much better way.

Are Future Presidents Pro Business?

Saturday, January 12th, 2008

At election time in the United States, all sorts of groups want the presidential candidates to show strength in the areas that concern them most.  Environmentalists want candidates who are pro-environment while social groups want candidates who are serious about social programs.  In the business community and those who make their living from serving businesses want a presidential candidate who is pro-business.

Pro-business is generally a term that is used to describe the policies and attitudes that encourage business to grow and prosper in this country.  Examples of some actions that are considered pro-business are a reduction in corporate taxes, government grants for small business.  Some people believe that less government regulation is a pro-business move as well. 

Many people generally believe that the Republican Party itself is pro-business where the Democratic Party is recognized as leaning toward more social issues.  While this may be true, there are individual party members who certainly display tendencies opposite of this broad brush stroke.  The truth is that in order to be successful as a presidential candidate, one must be concerned with the balance between all the groups that make up the country and try to meet the needs of all of them as much as possible. 

Pro-business politicians have long argued that a pro-business government means help for everyone because business makes the country go around.  This belief is up for debate on a continual basis.

So, during the 2008 election there may be some candidates that are considered to be more pro-business than others.  If you are looking for one with that label attached to them, then your decision will be easy for you (or maybe not – depending who gives them that label!).

Since the Republicans have been traditionally labeled as such, let’s start by looking at them.  Rudy Guiliani ran New York City for quite some time.  Business there seems in good shape although he does appear to be fairly interested in social issues as well.  Maybe he is one of those who actually tries to find that “balance”. 

Mitt Ronmey is another republican in the running.  He isn’t very popular in the polls.  He apparently can raise a lot of money though, so business people may choose to see that as very pro-business.

On the democratic side we have Hillary Clinton.  She is extremely popular, well spoken and appears to actually have a conscience.  While this may seem very socialistic to some, again she may be on track with “balance”.  Again business people may find her amazing skill at fund raising to indicate pro-business leanings (or just good business).

Barach Obama is popular but lacks a lot of experience and many wonder if that includes business insight, while John Edwards is very keen on doing away with the haves and have-nots in this country.  That may well be construed by the business minded as one of those things that will magically disappear once business is promoted enough to trickle some of the wealth down a little.

As in any election, stick to the candidates that stand for what you personally stand for.  Do your research and VOTE!

What is a trademark anyways?

Saturday, January 12th, 2008

We’re not necessarily talking about Elvis’ trademark sideburns or Catherine Hepburn’s trademark voice, but that’s not too far from the path.

They’re everywhere you look, and yet do you really know what they are? Trademarks are a strange animal and it’s necessary that you get to know them if you have business endeavors of any kind. Whether you’re making your own trademark or using other trademarks, there’s a whole lot to learn.

The definition of trademark is a pretty simple one. It’s only later that the topic gets complicated. Basically, a trademark is just a sign of some kind that distinguishes a company from all the rest. Trademarks sit under the umbrella of “intellectual property.” A trademark can come in many different forms. Maybe it’s am image or a a turn of phrase. Paris Hilton was recently poked fun at for trademarking the phrase “that’s hot.” Indeed, there’s a lot of controversy over what can and should be trademarked.

Are you thinking about buying some intellectual property? If you do, you will be able to take people to court if they use your trademark without permission. It’s important that your company has a signature and unless it’s protected, it’s useless and can be used by just about anyone. A trademark might seem a simple concept enough, but if you overlook the issue, it could cost you a lot down the road.

When talking about trademarks, you’re bound to get into some murky water. For instance, some marks, logos, phrases, images, etc, become trademarks over time, if by chance they simply grow to become synonymous with a particular product or service. When we think of trademarks in this way, it’s pretty apparent that a trademark is not a narrow concept at all. Anything that conspicuously distinguishes something from something else, in a sense, can technically be a trademark.

What about those little circles with the “TM” and “R” in them? What do they mean? The “TM” refers to trademark and the “R” refers to a registered trademark. While they serve as gentle reminders that the trademark is protected by law, they aren’t necessary. There are both unregistered and registered trademarks out there, the latter obviously carrying more weight in a court of law. Most of the trademarks you see on TV and in magazines are registered.

Just as with physical property, intellectual property – when handled in court – is dealt with based on its jurisdiction.

There are five basic kinds of trademarks: distinctive, arbitrary, suggestive, descriptive, and generic. On the other hand, there are some symbols that can never be used in trademarks, like national flags. It’s also important to note that national and international trademark law vary, so especially if you are conducing business overseas, you should be aware of that.

A trademark can open your company up to all kinds of business and separate it from the pack, but if it’s not formed carefully, it may misrepresent and misdirect your company. So choose your trademark  intelligently and make sure you understand the law backing it up so that you can put it to good work

To incorporate or not to incorporate?

Saturday, January 12th, 2008

It seems that more companies feel the need to incorporate than ever before. In today’s society,  just everybody can sue and everybody can be sued and that makes a corporation all the more attractive. However, there are unfortunately more obstacles surrounding incorporation than ever before. So what are the advantages and disadvantages of incorporation? Is it right for your company?

First off, incorporation might be the best decision for one company and the worst decision for another! There is not just one right answer out there. The key is to determine what liability concerns you have in particular and what tax benefits you desire and then find out if incorporation will help your company fulfill its goals better.

Probably the biggest benefit of incorporation goes to the company’s owner. Once a company becomes a corporation, it essentially becomes a separate entity and its owner will only have limited liability as a result. Don’t think that this gets individual shareholders out of the clear, though! Shareholders can be held liable in many circumstances; they can’t always hide behind the corporation.

There are many other benefits, though. Investors are drawn to corporations, and for some companies, investors are invaluable. Not only will investors buy stock in your company, but your employees can have stock options as well. Your employees also might be happier working for a corporation because corporations are forced to be well-organized and consequently, are very efficient.

Still, there are a handful of glaring disadvantages of incorporation that you should also consider. While hopefully a corporation will run like a well-oiled machine, it takes a long time to build that machine. And time is money. Incorporation is a process that all must be entirely committed to. A company doesn’t turn into a corporation over night!

Even after the process of incorporation is over, it can be a real headache to those in charge, as they must welcome a lot of bureaucracy into their company. Many decisions and practices are standardized for corporations across the country and this means your employees might have to go to a regular meeting every week that they didn’t have to go to before. It’s no secret, but small companies are a lot more personal and easygoing than corporations.

There’s also the whole tax issue. While incorporation can sometimes lead to some great tax benefits (which you’ll want to research on your own), it can also lead your company into some financial difficulties. Whether or not taxes get better or worse for your company depends on your specific situation, but don’t assume tax benefits will be waiting for you just around the corner if you incorporate.

Will incorporation make your company bigger, better, and more secure? Probably. But what is the price you will pay for a sturdier company? If you don’t have many concerns about liability and your autonomous company is performing quite well, then there might be more cons than pros to incorporation. So, when deciding whether or not to incorporate, just remember to take into consideration every aspect of your company.

What Your Trademark Can Do For You

Saturday, January 12th, 2008

So, we all know how important a trademark is. Every company must find a way to distinguish itself from every other company and it’s easy to do just that with a simple symbol, image, design, phrase, or word. But what if you were to take the next step and buy rights to such a trademark? What would you get in return? The short answer is: protection.

The long answer is a bit more complicated. Essentially, a trademark is intellectual property. Even though it’s not tangible, like a car or a pair of shoes, you can still own a trademark. A lot of people opt to buy the rights to their trademark, especially those advertising commercial products, because that usually means unauthorized use of it can be successfully fought against in court. For instance, if Company A uses Company B’s trademark to express some kind of message, Company A can be sued.

Now, trademark “abuse” can be policed even if there’s no official representation of the trademark over at the US Patent Office. In other words, sometimes a trademark evolves naturally and becomes distinct on its own. Even if it’s not registered federally, it doesn’t mean it’s not a trademark that should be recognized by the law. However, by registering a trademark, you make it a lot more likely that it will be protected. Basically, it’s easier to prove the legitimacy of  registered trademark, as opposed to an unregistered trademark!

Additionally, if you registered your trademark, that means you get exclusive use of it. That makes your trademark, and thus your company, all the more distinct and valuable. There is a caveat here, however. You must register your trademark in a specific jurisdiction, so your rights are somewhat limited in that sense. Laws vary form state to state, so make sure to research this as you think about the protections you will receive.

If you don’t use your trademark, this will not bode well for you. Regular use of the trademark is a requirement if you want to protect it! Find out what precisely is required in your jurisdiction and make sure to follow through with the guidelines. Chances are using your trademark won’t be an issue – why would you want it to go to waste?

Now, because of the First Amendment, there is an inherently limited protection of the trademark. Not every unauthorized use of your trademark is against the law. In general, though, if you register your service mark, you’ll find that the law is more eager to be on your side.

Remember: you still have protections, even if you’ve never formally bought rights to your trademark. It’s often a good idea to inscribe “TM” next to your trademark, in this case, so as to let people know you think it is original and distinct. This will be helpful later on if you do end up in court, but hopefully it will prevent you from being there in the first place.

Hopefully now you’re more enlightened about the strange ins and outs of trademarks and you can use this special property properly. 

Self-filing for Incorporation

Saturday, January 12th, 2008

Incorporation can be an equally important and intimidating task for the owner of a company, and because it’s also so expensive, many people prefer to file for incorporation without the help of an outsider. This will certainly save a soon-to-be corporation a lot of money. But unless a company’s owner knows what he or she is doing, it can be a great waste of time and effort and it can also hinder the incorporation process and render the company vulnerable to all kinds of problems.

So if you’re interested in self-filing for incorporation, it’s a good idea to get well-versed in all the jargon and learn about each and every step you’ll have to take. You may want to get an attorney on your side, regardless, if only to address concerns as they come up. And they most certainly will come up!

Here is a simple introduction to incorporating your business. The first question you must ask is: “what kind of corporation do I want to form?” There is a lot of literature, on and off line, that can help you find an answer – ultimately, it will depend on the size and function of your wannabe corporation. As you continue on with incorporation, keep in mind that the laws vary from state to state and county to county. You must constantly research the legality of every aspect of incorporation before you make any official decision.

Now, another important decision you will make is what state to file for incorporation in. For many, this decision will be an easy one, as you’ll file for incorporation in whatever state your company is located in. But what if you have more than one company spread out across states? Again, research the laws in the multiple states and pick the state that will be most auspicious for your corporation. Some state laws are more favorable toward businesses than others.

Here’s the fun part. What are you going to call your corporation? While you want to encourage the creative juices to flow, you won’t have total freedom in choosing a name. Some names are taken. With the help of the Internet and the United States Patent and Trade Office, you should discover what options are off the table pretty soon.

Now for the monotonous part. You must elect someone to register the company and also do all he filling for incorporation. That person could very well be you. This is indeed cost effective. Just make sure you know what you’re doing first, or you might find yourself in over your head.

Once you’re through with this process, you can start the real  and more exciting work: determining the structure of your corporation, its Board of Directors, bylaws, etc.

So, do you think you’re ready to self-file for incorporation? The more informed you are, the better prepared you will be to get your corporation up on its feet without the help of an attorney or incorporation service. But the money saved won’t be worth it if you are ignorant about incorporation, because your mistakes will likely be costly ones.

How much work do I have to do to work in the U.S?

Saturday, January 12th, 2008

Just because you don’t live in the United States permanently, doesn’t mean you can’t work there! Many people are successfully granted work visas every year so that they can temporarily reside in the U.S. legally without truly moving from their home. Let’s presuppose that you do not have a greencard. In this case, can you work in the U.S.? Before moving on, remember that there are several ways you can apply to temporarily live in the U.S. This article will mostly address non-immigrant workers.

Your first requirement for working in the U.S. is quite obviously authorization from the U.S. government. But how do you get this? Well, work authorization typically comes in the form of a visa which you must apply for at the consulars office of your embassy to the U.S. There are a variety of visas you can apply for; this is a highly individual and variable process! On occasion, you can apply for a non-work related visa and then petition for work authorization later. People studying abroad often to do just this.

The consulars office has a great deal of control over your fate. Documents and motives help your case, of course, but it is ultimately up to the embassy if you receive a work visa or not. This is not meant to discourage you, but just to enlighten you about how temporary visas are never guaranteed.

There are also those who can gain work authorization by simply legally immigrating to the U.S. In other words, they do permanently reside in the country and thus gain working privileges. This is how you would get a greencard (mentioned earlier).

But how do you know if you’re a good candidate for a work visa? First off, an employer in America can sponsor you. This is a avenue that’s commonly taken. However, you can also sponsor yourself. This is just a bit trickier to do. Only if you are incredibly in demand here in the U.S., for example you have extraordinary ability in your field, can you sponsor yourself. So can you work in the U.S.? Yes, if you manage to earn a green card or there is an employer in the country eager to hire you on board. Otherwise, it might be more challenging to work in the U.S. unless you are an exceptional employee with rare skill and/or talent.

An important note: the more skilled and professional you are at your job, the better chances you will have at successfully traveling to the U.S. and working there. Engineers, doctors, and teachers, for instance, easily work in the U.S. As do workers who fill in gaps that U.S. residents won’t fill. In other words, if you’re interested in a job that no U.S. citizen wants, then your work visa will be more swiftly granted to you.

There’s still one last pesky caveat: some occupations simply don’t qualify you for a work visa! Make sure to check these detailed requirements out as you prepare to work in the U.S.

Mexico pushes for decriminalization of drugs

Saturday, January 12th, 2008

American drug laws are based on the classification of narcotics into five different groups, called Schedules.  Each Schedule is numbered I through V with the lower numbers being considered more dangerous in terms of addiction and bodily harm and the higher numbers having varying degrees of use within the American medical system.  Canada’s classification system runs on a similar theme with a few different drugs being classified in different ways to the American one.  For both countries, drug laws dictate different penalties depending on which drug is called into question and what its intended purpose was: personal use, trafficking, or initial production.  Prison sentences are decided based on what Schedule of drug is in question and the more dangerous drugs call for harsher sentencing.  In Canada, cannabis is set apart from other Schedule I drugs as it is seen as less harmful; oddly this has not meant its removal to a lesser Schedule as of yet. 

Mexican drug law is facing some drastic changes, which are being viewed as hazardous particularly by the American government.  President Vicente Fox is due to sign a bill that would effectively wipe out criminal drug charges for the possession of small amounts of any drug, even those though to be particularly dangerous.  The logic behind such a law is that regardless of legislation, people always have continued to partake of what are classified as dangerous drugs, and if they are going to do so on their own time there is no real risk to anyone else.  Using drugs like marijuana, cocaine and even heroin and speed will therefore become, if not acceptable practice, then at least not an illegal practice since the only person’s health at risk is the person using the drug.  Since small amounts of any drug are clearly for personal use and would not generally be sold then, like the Dutch form of drug tolerance, Mexico would likely see its drug users spending less time in court. 

Canada is also considering decriminalization of marijuana and the subject keeps rearing its head in provincial and federal governments.  The idea is not to encourage people to use drugs but to accept the fact that some people will regardless of legislation and to stop wasting tax dollars trying to stop them.  America is certainly not on board with this kind of thinking and with increasing pressure on both borders to loosen up strict drug laws the country is becoming uneasy.  Law enforcement agents expect that with such laws in place in Mexico and possibly Canada, drug trafficking between the three countries will become worse than it currently is and more Americans will be obtaining illegal drugs for their own use. 

If Mexico is to go ahead with this decriminalization, it would mean that the two countries to the north will be put in a position where they will have to decide their stance on personal drug use and possibly amend their own current drug laws. 

Will Americans ever have Legalized Pot?

Saturday, January 12th, 2008

In 1978 the federal government of the United States decided that for medicinal purposes, Robert Randall could be allowed 300 marijuana cigarettes each month so long as they were supplied by a state controlled growing facility.  This case led the way to a handful of other people gaining the rights to smoke state provided marijuana, however in future years the first Bush administration decided to pull the plug on this endeavor.  While the people already taking legal marijuana were allowed to continue, there were no more medical cases taken on by the federal government and this is still the case today.

In 1996, however, California passed the Compassionate Use Act which allowed for medicinal use by its residents and following this bold move 12 other States have created similar programs for their citizens.  These States have decided that the drug can be put to good use in relieving pain for sick and dying people and as such they are willing to admit that there are not enough drawbacks to its use to maintain a full ban.  What this means for the future of legalized pot is up for debate, since the current federal government is still not folding under national pressure to decriminalize a drug that many people firmly believe is not harmful. 

The problem with decriminalization lobby groups is that the federal government still has a very strong anti-drug stance and any moves to even move marijuana out of the Schedule I class (those being classified as the most risky for addiction and bodily harm) have seen little backing.  Because of this, the current atmosphere is not warm towards the decriminalization of any drug and especially one that is so controversial.  America is not a country that leans on liberal tendencies when it comes to drug use, and it seems that the federal government remains staunch in its resistance to protesters who claim marijuana is both medicinally useful and of no harsh consequence with non-medicinal use. 

The Drug Enforcement Administration (DEA) is a federal organization given the task of enforcing the Controlled Substances Act, and as such it is a federal body that often overrides State legislation by performing raids on medicinal grow crops.  Marijuana being a fully illegal substance in the eyes of the federal government (in fact as a Schedule I drug it is classified as having no accepted medicinal purpose) it remains under close scrutiny by the DEA and people harvesting or distributing it even under State legislation are in constant dread of being shut down by the federal government. 

In American’s current climate, marijuana decriminalization is definitely not on the table.  If State governments keep up the fight for medicinal use, however, the stigma surrounding the drug will eventually be brought down and perhaps in the very distant future we might see a softening of the drug laws specific to pot.  Let’s not bet any money on full decriminalization, but maybe it could get moved down to a Schedule II or III – who knows?

U.S. Drug Arrests besides Marijuana

Saturday, January 12th, 2008

In America today, the most common drug arrests come from the possession or sale of marijuana.  This is a drug with very widespread use and many people believe that its effects are not harmful in the long term.  Although drug users have effectively created several subcultures pertaining to their use or even in some cases to their addictions, it is interesting to know which drugs in particular are getting people caught out and actually arrested for their involvement, be it possession or sale of illegal narcotics.  Interestingly, although it is a completely different kind of drug to marijuana which is clearly the most used and sold in America, heroin is the second most likely drug to get you arrested.

Heroin actually ranks right up there with cocaine after marijuana use in the United States, and these two drugs are generally understood to be more addictive and potentially harmful to users than marijuana or most natural drugs.  Both are processed from naturally occurring elements however the production method leaves the substances extremely potent and dangerous.  Production workers who spend their lives processing cocaine from the coca leaves found in South America have to keep masks over their noses and mouths to prevent too much of the cocaine from being absorbed by their bodies.  Without the masks, enough drugs would be inhaled to kill them in a very short period of time.

Heroin is used differently than cocaine; where the latter is inhaled in powder form through the nose, heroin is cooked into a liquid, put into a needle and injected straight into the bloodstream.  This is a highly addictive drug and the sale of it is slightly more likely to get you arrested than the use.  Upon arrest for the use of heroin, you will be sentenced to some kind of treatment for the addiction (assuming you are addicted, and most people do plead as such if only to lessen the sentencing) and a short jail sentence or community service for any adjacent crimes committed while high or for the purpose of obtaining drugs. 

Following these three narcotics, the next most likely drugs to get you arrested, either for possession or sale, are the synthetic types.  This includes ecstasy, ketamine, crack-cocaine and several others which are processed and essentially manmade.  While the use of these drugs is also quite widespread, people are generally much less likely to walk around with large amounts on them or to keep a ‘stash’ at home; with marijuana users will often keep a bag with them or at home and therefore it is easier for police who decide to search to find what they are looking for.  Granted, synthetic drugs are not in use quite to the extent that marijuana is – after all they are often used in conjunction with a major party or event – however the use of them is more dangerous. 

Needless to say, if you smoke pot in America you are much more likely to wind up in handcuffs than if you use any other drug – a strange fact because it is perhaps the least likely to do any real damage to your health.