Run Your Butt Off (?)

THE WAR:  Reebok v. FTC Reebok made unsupported claims in advertisements that walking in its EasyTone shoes and running in its RunTone running shoes strengthen and tone key leg and buttock (gluteus maximus) muscles more than regular shoes. The FTC’s complaint also alleges that Reebok falsely claimed that walking…

FTC v. Legacy Learning Systems Inc.

THE WAR Legacy Learning Systems Inc. sold $5 million worth of DVDs of guitar instructions through affiliate sales. The problem? The affiliates didn’t disclose that they got a huge commission for each sale – instead, it looked like their reviews were totally impartial. THE WINNER The FTC, under a…

Ch Ch Ch Changes – A Redlined and a Plain

I used to represent a now defunct hedge fund that had a whip smart general counsel. Her standards were high and she prized speed and competence. At one point, I was helping her get licenses to a bunch of algorithms. I drafted the first version of the license agreement,…

Activia: No Sh*t

This is a new series called War Story Wednesdays. (We love a lot of alliteration.) War stories are cases that illustrate business law. First, we give you The War – those are the facts and the battle. Then, we give you The Winner – who won and why. Finally,…

Fair Market Value v. Fair Value: What’s the difference and why it matters

Let’s say you need to come up with a value for something – a company, a hard asset, intellectual property, shares of stock. The measure is often Fair Market Value or Fair Value – two terms that get treated as if they are identical. Except Fair Market Value and…

Section 218 Agreement under Social Security Act

It’s the third week of the year, and I’m clinging to my 2012 resolutions by my fingertips. My resolution to post 3 times a week is in danger. So, on a Thursday night, in a cab on my way home, I have grabbed this little post out of my…

6 Ways to Deal with Loan Covenants

If you borrow money, you may expect that the terms of the loan, including the loan amount, payment terms, interest rate and all other terms, are listed in the cover letter. The rest of the documents may look like inaccessible lawyer filler that have no bearing on your conduct. …

War Stories: Cheap Labor Ain’t Always Cheap

  Profit and Laws and our book, Birth to Buyout, examine issues facing businesses – everything from web contracts to building prototypes.  Occasionally, we’ll be posting stories from the real world that illustrate a particular issue or law.  Up this week?  Manufacturing.  And perhaps an argument that sometimes it’s…

The 4 Types of Entities (sorry, it’s pretty dull)

Everyone always wants to know: which entity should I pick? Let’s try and answer that once and for all. Here, we’ll talk about the types of entities. Down the road, we’ll talk about how to think about them. First, you should know that all business entities are creatures of…

Why Hangover II is a crash course in copyright

The legendary artist who etched the tattoo onto Mike Tyson’s face sued the makers of Hangover II for using it without his permission. (In the movie, Ed Helms wakes up in the morning with it on his face.) This is the lawsuit version of the Hangover (I, not II):…