Law and the Business of Furniture
Jerry Cohen Hello. I\'m Jerry Cohen and with this blog I\'ll be providing insight and solutions regarding legal matters affecting the furniture industry, including operational issues, trends, and current and proposed legislation. I’ve worked on the business and legal side of the furniture industry which gives me an unusual perspective on the complexities we face. My firm and I currently counsel furniture manufacturers and national, regional and local retailers with their corporate, commercial and intellectual property transactions, as well as day to day matters. In the course of our work we deal on a regular basis with federal, state and local authorities, attorneys general, financial institutions (such as banks, asset based lenders, hedge funds and private equity); licensors and licensees; the media; sale promoters; creditors and debtors, landlords, and others. Have a comment? Add it to this blog or write to jcohen@homefurnishingslaw.com
CIT’S BANKRUPTCY: WHAT YOU NEED TO KNOW (PART 2)
1. Background: Last month we discussed “What CIT Groups’ Bankruptcy Will Mean For You.” Since then, CIT Group Inc. has filed for bankruptcy protection hoping to restructure its debt and remain in business (although dependent on the holding company that has filed for bankruptcy, CIT’s operating subsidiaries remain outside of Ch ...... Read More
Comments (1)WHAT CIT GROUPS’ BANKRUPTCY WILL MEAN FOR YOU
1. Background: The furniture industry is heavily dependent on CIT Group Inc.’s factoring and lending services. CIT is in financial distress and its fate will be determined in about two weeks as the deadline looms for the bondholders to agree to accept a plan that would either restructure about $31 billion of debt or put CIT into a prepackaged bankruptcy. ...... Read More
Comments (1)WOOD, LEATHER AND TEXTILES EXEMPT FROM CPSC LEAD CONTENT LIMITS
The Consumer Product Safety Act of 2008 (CPSIA) which limits the content of lead in certain children’s products and requiring testing and certification has been controversial from its inception. However, a bit of good news is that the Consumer Product Safety Commission (”CPSC”) has issue a final rule stating that wood, leather and textiles inherently do not exceed the le ...... Read More
Comments (0)Furloughs as a Viable Alternative to Layoffs
Although the economy is sending mixed signals and we’re all hopeful for an uptick, it’s safe to say that we’re not out of the woods just yet. Employers are still looking for ways to shore up sales and profits and employees continue to worry about job security. Labor and benefit costs, a substantial expense of any business, always receive close scrutiny in difficult ...... Read More
Comments (5)ARE YOU COMPLYING WITH THE NEW COBRA SUBSIDY REQUIREMENTS?
The Economic Stimulus Bill provides individuals eligible for continued medical coverage under COBRA with a federal subsidy of 65% of the individual’s insurance premium for up to nine months, which subsidy is advanced by the employer. Every employer that sponsors a group health plan and every employee that was terminated or laid off on or after September 1, 2008 is affected. Below is a ...... Read More
Comments (1)Surviving the Economic Bust – Using U.S. Immigration Laws to Strengthen Your Business
I. Introduction Recent immigration raids targeting the furniture business in Arizona are proof that no industry is immune from scrutiny by U.S. immigration officials. However, U.S. immigration law can also be a useful tool in your strategic business plan by attracting foreign investors. When a foreign investor creates a legal relationship or affiliation with a U.S. manufacturer o ...... Read More
Comments (0)Avoiding Foreclosure and Bankruptcy -- Working with your Vendors and Bank
Some manufacturers and retailers in our industry are finding themselves in a cash flow squeeze and fearful that they may soon be unable to fulfill their obligations to vendors, landlords, banks and other creditors. There are several strategies and actions a company may pursue under such circumstances. After first reducing all unnecessary overhead, performing financial triage and taking other cost ...... Read More
Comments (1)Interview With California’s Lead Formaldehyde Inspector
As I discussed in a previous post, California’s new formaldehyde regulations that affect manufacturers of composite wood products and furniture fabricators, importers/exporters and retailers will be effective on January 1, 2009. Judging from the emails I’m receiving, there is a tremendous amount of confusion concerning how to comply with the regulations. We discussed these issues w ...... Read More
Comments (0)California’s Formaldehyde Regulations: Compliance Primer
California means business. Despite the confusion, the lack of infrastructure for required third party testing, and numerous other unanswered questions, California is rolling out and is poised to vigorously enforce its new formaldehyde regulations on January 1, 2009. We’ll leave the wisdom of the regulations to the legislators and lobbyists. The guidelines below should help fabricators (i.e. ...... Read More
Comments (5)Avoid Lawsuits Through Effective Customer Service
When our clients call us to defend a customer lawsuit, or to reply to the applicable State consumer protection agency, a governmental authority, or the Better Business Bureau, it’s too late. As the Wall Street Journal (“WSJ”) recently stated: “…it’s crucial for companies to realize that the way they handle customer complaints is every bit as important as ...... Read More
Comments (0)"Scaring Retailers." Who, me?
A reader recently wrote about my previous post regarding design patents, trade dress and copyright protection: “No offense to FT or the writer but I think your [sic] being a bit naive about how to protect designs. [1] Unless someone copies your pattern “exactly” without any minor changes your wasting your time and $$ to go after them. [2]&#x ...... Read More
Comments (1)Licensing at WithIt
I had the pleasure of attending the WithIt conference the other week ( ” Women in the Home Industries Today”) and speaking about “The Win-Win Licensing Agreement: Drafting and Negotiating Strategies” (the conference was sponsored by Furniture/Today among many others). You can find the PowerPoint presentation here. To the uninitiated, WithIt’s goals are summed ...... Read More
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