Law Commons^™

Franchise Regulation: Comprehensive State Regulation Now Unnecessary, Robert C. Downs

Faculty Works

Since 1970, there has been an epidemic of state regulatory activity con­cerning the sale of franchises and business opportunities. In addition to those states which actually have adopted franchise regulation statutes, several state legislatures currently are considering pending legislation. Undoubtedly, other states, including Missouri, soon will have the opportunity to protect their un­suspecting citizens from the risks believed to be inherent in the franchising industry.

Nor has the franchising business gone unnoticed by the federal govern­ment. On December 21, 1978, the Federal Trade Commission (FTC) published its rule 436, entitled "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures." …

The New Debt-Equity Regulations Under The Internal Revenue Code, Christopher R. Hoyt

Faculty Works

One of the most litigated tax issues is whether an interest in a corporation is stock or debt. Although stock and debt have many similar characteristics, the tax consequences can vary drastically depending on which interest exists. Recognizing the need to end this uncertainty, Con­gress enacted section 385 of the Internal Revenue Code as part of the Tax Reform Act of 1969. That section authorized the Treasury Department to issue regulations distinguishing debt from equity for all tax purposes and listed five factors that may be considered. On December 29, 1980, the department filed final regulations scheduled to become effective …