KYZ Law, P.C.

Supreme Court Affirms Invalidation of California Restrictions on Violent Video Games 7-2 decision reaffirms several strongly speech-protective precepts, reinforces constitutional protections for children and video games, and underscores recent holding against creation of new categories of “unprotected” speech  The Supreme Court’s June 27, 2011, decision in Brown v. Entertainment Merchants Association (EMA) invalidated California’s “violent [...]

Last month, the Federal Trade Commission filed a lawsuit against a Canadian entrepreneur and a group of web-based businesses that promised “free” offers that were far from free. In its lawsuit, the FTC charges the online marketers with scamming consumers in the United States, the United Kingdom, Canada, Australia, and New Zealand out of more [...]

    Although Motions to Vacate Arbitration Awards Are on the Uptick in U.S. State and Federal Courts: (as reported by the National Law Journal) the success rate for motions to vacate remains low. The study concluded that only 13.9% of the motions decided in 2010 were successful. In 2005, 13.5% of the filed motions to vacate were successful [...]

France Unveils New International Arbitration Statute: In January, France adopted a statute governing arbitration that took effect May 1, 2011. The statute is intended to maintain France’s role as a leading venue for international arbitration disputes. Under the statute, the president of the Paris Court of First Instance is given the title of “support judge” [...]

Russia’s international behavior during the last decade has puzzled many U.S. observers. To explain such behavior, U.S. officials and commentators typically appeal to psychology. The Russians, they say, are acting out of injured pride- impulsive, emotionally unstable, and often paranoid. But Russia and the U.S have unaligned objectives. If analyzed closer, Russia’s policies have been purposeful, cautious, and even when misguided- reasonably consistent- growing ties with Europe and China (not with the U.S.) in reliance on fuel exports.

If you ever thought that using an offshore corporation was a good way to hide assets offshore take a lesson from the IRS investigation. The taxpayer attempted to avoid disclosure by having a third party hold title to enough shares so that when calculated the taxpayer owned less than 50%. The CCA concluded that the taxpayer had effective control of the shares such that the third party held shares should have been counted as part of the taxpayer’s shares and when included the taxpayer held more than 50% of the combined voting power. The result is a 40% penalty for understatement of income and possible criminal and civil penalties.

The U.S. government is currently investigating certain major banks with offices in China, Hong Kong, India, Korea and the U.S., which promoted undeclared foreign accounts to U.S. persons, and attempting to obtain the names of U.S. account holders. The Internal Revenue Service (“IRS”) will soon reveal the details of a new offshore voluntary disclosure program (“new VDP”). Under the new VDP, participants with undisclosed foreign accounts or unreported foreign income may be able to avoid criminal prosecution and limit their potential exposure to civil penalties by making a voluntary disclosure of such undisclosed accounts or unreported income to the IRS.

The Foreign Corrupt Practices Act (FCPA) makes it clear that the anti-bribery provisions “shall not apply to any facilitating or expediting payment to a foreign official, political party, or party official the purpose of which is to expedite or to secure the performance of a routine governmental action . . .” Unless, this payment is over $100, to a senior official, and the list goes on. If you are doing business with countries that require or expect a grease payment, you should be aware of the way the FCPA is interpreted.

Not so fast, North Carolina ethics committee says. It is well established that lawyers cannot share their fees with a non-lawyer. But why can’t a Groupon fee be viewed as payment for advertising rather than sharing a legal fee? I hope North Carolina will get the real point here.

llinois contractors who are owed money pursuant to oral contracts with their customers may be breathing a bit easier today. The Illinois Supreme Court recently held that the Illinois Home Repair and Remodeling Act does not preclude contractors from trying to enforce oral contracts for home repair or remodeling work for over $1,000. This decision reversed the appellate court’s decision that such oral contracts were unenforceable because they violated the Act’s requirement that “[p]rior to initiating home repair or remodeling work for over $1,000, a person engaged in the business of home repair or remodeling shall furnish to the customer for signature a written contract or work order.”

If it is determined that a veteran was deployed to a combat or combat support posting within the previous 12 months, that veteran has the right to request a 90-day stay in foreclosure proceedings. The court is required to grant this stay, and it is in addition to any other rights the veteran may have. Public Act 96-0901, effective January 1, 2011.

The Homeowners’ Solar Rights Act prohibits condominium associations from banning solar-energy systems. It applies to deed restricsions and covenants of associations as well. It exempts buildings taller than 30 feet. House Bill 5429, effective date January 1, 2011. A similar provision by FCC bans condominium associations from prohibiting satellite installations.

Illinois Public Act 96-0970 requires smaller not-for-profit corporations to provide written notice to their employees and board members that their employees may not receive unemployment insurance benefits. It applies to NFPs that do not have more than 4 employees within each of 20 or more calendar weeks. Effective January, 2011.

Read the key items you should have incorporated in your contract in order to deter others from taking advantage of you and/or prevent any misunderstandings in the future.

Well-written contracts avoid future disagreements, litigation in court, and simply put, loss of money. The following are the key items you should think about and, if appropriate, incorporate into your contract.