Sara Lee sues Kraft over its advertising claims regarding the taste of hot dogs.
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Chronicling the high cost of our legal system
From the monthly archives:
Sara Lee sues Kraft over its advertising claims regarding the taste of hot dogs.
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More about international forum-shopping and libel tourism. [Edward Wasserman, Miami Herald/American Center for Democracy]
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The testing requirements of the Consumer Product Safety Improvement Act are due to go into effect nine months from now, when the temporary stay expires. Here’s what they’ll do [AmendTheCPSIA.com] to the economics of one Bay Area designer who specializes in “100% natural, locally-made, completely adorable peapod-shaped baby sleep sacks”, a product line relatively well suited to absorb the costs of a testing program since the item sells for a fairly high price and doesn’t have many component parts:
If I were to have each batch of my current inventory tested by CPSC-approved third party, I would have to pay $57 per print and batch for 3rd party lead testing, and $278 per print & batch for phthalates, totaling $4,690 altogether. If I were to increase my price point based on cost increases to cover this 3rd party testing, I’d have to raise my price point by $19.14 each. My precious baby sleepsacks are barely selling at $53.95, so charging $73.09 each in these tough economic times would surely put me out of business.
[...Or I could instead produce] a single batch of sleepsacks (ONE PRINT). I’d then have it 3rd party tested for lead and phthalates, and increase the price point to $57.95. With an increased price point and only one style/print in my line, I could hardly remain competitive in the marketplace!
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I was given the opportunity to be on a public-affairs-in-America program on Press TV, the English-language Iranian television network, yesterday. The majority of discussion was on economic issues, but I do get to comment on a number of counterproductive laws Congress seems intent on passing this term. The program is available on line.
I’m one of the participants in an online symposium at Reason on who can, should or will serve as President Obama’s Supreme Court nominee. I have kind words for Walter Dellinger III, mixed views on “empathy”, and predict that the current surge of activist federal economic policy will contribute to the Court’s docket in coming years. The full list of participants: Radley Balko, Alan Gura, Wendy Kaminer, Manuel Klausner, Judge Andrew Napolitano, Walter Olson, Roger Pilon, Glenn Reynolds, Damon W. Root, Ilya Shapiro, Harvey Silverglate, Ilya Somin, and Jacob Sullum.
Maybe we need to create some “super-Don’t” label for when a story like this comes along: “A defense attorney and former federal prosecutor whose clients have included rap stars and a soldier at the Abu Ghraib prison in Iraq was charged Wednesday with arranging the killing of one witness and trying to hire a hit man to kill another.” [AP/1010WINS]
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According to Manhattan D.A. Robert Morgenthau, New York lawyer Marc Bernstein “settled these cases pretty cheap, then took the money and ran.” [NY Daily News, press release] Meanwhile: “Prominent Arkansas plaintiffs securities lawyer Gene Cauley is expected to plead guilty for failing to pay clients $9.3 million in settlement funds he was supposed to be holding as their escrow agent.” [ABA Journal, earlier] According to a report dated February (PDF) from the ABA’s Center for Professional Responsibility, New York is among the states that have adopted payee notification reforms intended to catch this category of fraud at an early stage; Arkansas has not. For more on payee notification, see my 2006 paper with Peter Morin.
“In an opinion peppered with golf references and a quote from “Caddyshack” star Bill Murray, a federal magistrate has recommended the dismissal of a lawsuit brought by Rudolph Giuliani’s son over his booting from Duke University’s varsity golf team.” [The Smoking Gun, Althouse; earlier]
The online service has gone to court seeking a declaratory judgment against South Carolina Attorney General Henry McMaster. [Citizen Media Law, Jim Buckmaster/Craigslist blog] Earlier here and here.
And now Grant Faber of Hillsboro, Ore., is in a fair bit of trouble. [Oregon Live via Obscure Store, Legal Blog Watch]
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Litigation’s not the only way to respond to the issue of compensation, as I argue this morning at Point of Law.
New resource recently launched by the crafter/activist who did business as Whimsical Walney, with help from the one who does business at Organic Baby Farm: WhatIsTheCPSIA.com, a site for everyone trying to get up to speed on the Consumer Product Safety Improvement Act and the reasons it needs reform. Among the many common questions it seeks to answer (with new material being added steadily): “I thought CPSIA is a toy law, why do you have to test clothes?”, “Why does CPSIA affect home crafters?”, “Can’t CPSC make exemptions to CPSIA for certain products?”, “Why does CPSIA affect schools?”. Worth checking out. (Corrected to add proper credit to Whimsical Walney; more.)
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Texas lawyers are seeking discovery against hog-raising giant Smithfield Foods to determine whether a swine operation it partly owns in Mexico might have contributed to the death of a Harlingen woman in the H1N1 flu outbreak. “Mexican health officials have found no connection between the swine flu virus and the pig farm. Nevertheless, residents there have long blamed the farming operation for a variety of illnesses, UPI reported.” The lawsuit might seek $1 billion. [Brownsville Herald, May 12]