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
Retailers Beware: 1.8 Million Reasons To Be Careful About Comparison Advertising
To grab the attention of customers that are not in the mood to part with their dollars, many retailers resort to comparison pricing advertisements. This creates pitfalls that retailers should be aware of. Michaels Stores, a large retail chain, recently ran afoul of New York's deceptive advertising statutes and settled the case for $1,800,000. Admittedly, Michael's may have gotten carried away. The... Read More
Comments (2)SOCIAL MEDIA: SOMEONE STOLE MY CONTENT, NOW WHAT?
What's a frustrated author to do? You work hard to create original content for your website, blog or other platform that will resonate with your audience and then learn that someone has ripped you off. Or conversely, you come across someone else's content or photograph that's perfect for your online use -- can you post it? Although the law is still catching up with the internet and social media,... Read More
Comments (1)WHEN TO USE A NON-COMPETE AGREEMENT
There's a place and purpose for Non-Compete Agreements but perhaps not as widely as currently being used. In my view, a non-compete is appropriate for certain officers and management, but not for most staff and salespersons. Here's why (if you would like to see a typical Non-Compete Agreement, email me at the address below). 1. What is it? Just like it sounds, the Non-Compete Agree... Read More
Comments (2)LICENSOR AND LICENSEE DISPUTES – TRADEMARK ISSUES
Licensed furniture collections are all the rave as reported here in Furniture/Today. As these relationships multiply and mature, disputes between licensors and licensees are arising with more frequency. One area ripe for disagreement relates to the licensee's use of the licensed trademark. 1. LICENSOR.(a) Concerns: Licensors are obligated by law to carefully control and police the use of their... Read More
Comments (0)HIRE ACT – Is It Meaningful for the Furniture Industry?
What it is: The “Hiring Incentives to Restore Employment Act” (HIRE), which was recently enacted, provides tax incentives for hiring and retaining employees (it also provides incentives for purchasing equipment and certain business assets). How it works: Employers are exempt from paying the 6.2% Social Security portion of FICA taxes through the end of 2010 for employees that are hired betwe... Read More
Comments (4)HOW AICO PROTECTS ITS DESIGNS FROM INFRINGEMENT
Larry Rinaldi, President of Amini Innovation, Corp. (“AICO”), doesn’t believe in the adage “imitation is the sincerest form of flattery.” Designing product for its clients is a challenging creative process that AICO performs exceptionally well. Rinaldi exclaims, however, that infringement of its designs is distracting, costly and frustrating, which explains why AICO devotes its attention and re... Read More
Comments (1)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 Chapter 11 and are currently serving customers). If you would lik... 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. As of today, some bondholders have o... 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 lead content limits as set f... 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 times. There may be viable ex... 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 brief summa... 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 or retailer in t... Read More
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