The Rhode Island Cannabis Act: New Laws for Recreational Users, Retailers, and Manufacturers
On May 25, 2022, the Rhode Island Legislature enacted the Rhode Island Cannabis Act to legalize and regulate the recreational use of cannabis. The sale of cannabis by licensed retailers may begin on December 1, 2022. The Act imposes restrictions on the personal use of cannabis and penalties for individual violations. It also imposes taxes…
Read More
Like-Kind Exchanges May No Longer Be Likeable – An Overview of Current Law and Preview of Proposed Changes
Under Section 1031 of the Internal Revenue Code (“Code”), a taxpayer may defer recognition of capital gains on exchanges of qualifying property in a process known as a “like-kind exchange” or “1031 exchange.” Under the Tax Cuts and Jobs Act of 2017, Code Section 1031 applies only to exchange of real property and not personal…
Read More
Using an Unregistered Broker-Dealer for Capital Raising is a Risky Proposition
One of the most overlooked and problematic issues concerning capital raising by small businesses, venture capital funds, and private equity funds is the use of “finders” to assist issuers with raising capital. Those who act as “finders” assist in matching issuers with investors for a fee. Issuers generally desire to pay a “finders’ fee” only…
Read More
USD London Interbank Offered Rate (LIBOR) Cessation: 6 Month Update
Now nearing six months from the date that several US agencies recommended for the cessation of new U.S. Dollar LIBOR contracts (December 31, 2021), a clear winner has emerged as the replacement rate for floating rate commercial loans: CME Term SOFR. While certain tenors of LIBOR will be published through June 30, 2023, to allow…
Read More
Artificial Intelligence and the Americans with Disabilities Act
Throughout recent years, the use of artificial intelligence (“AI”) software in the recruitment and hiring of employees has rapidly increased in popularity. AI software has gained traction as a valuable tool in streamlining the hiring process, and employers have embraced it to assist them in various employee-related decisions, while regulators have been hesitant to accept…
Read More
Navigating the Legalities, Pros, and Cons of Short-Term Rentals
Growth of Short-Term Rental Industry. Since 1995, the short-term rental industry has grown enormously with the launching of short-term rental companies such as Vrbo in 1995, Airbnb in 2008, and HomeToGo in 2014. Specifically, a 2022 National Business Institute article stated that by 2019, the U.S. short-term rental industry had grown to a $115 Billion…
Read More
Will The Texas Two-Step Create New Restructuring Opportunities For Companies Facing Mass Tort Liabilities?
Johnson & Johnson is using the bankruptcy code and a relatively obscure Texas statute in an attempt to limit its overall exposure to mass tort litigation over asbestos in the talc used in its baby powder products. This strategy, dubbed the “Texas Two-Step” by its critics, involved Johnson & Johnson first converting to a Texas…
Read More
Consumer Protection Acts: What to Know for Businesses – Part One
Every state has a consumer protection law that prohibits deceptive business practices, with many prohibiting unfair or unconscionable practices as well. These statutes, commonly known as Unfair and Deceptive Act and Practice (“UDAP”) statutes, are intended to provide specific protections and remedies for consumers in the marketplace. UDAP laws have very broad language and cover…
Read More
Will My Last Will and Testament Dispose of My Assets?
The importance of establishing a Last Will and Testament (“Will”) or other testamentary substitute(s) (such as a revocable trust) for all competent adults to dispose of their assets at death cannot be overstated. Without a formal plan for distributing assets to a client’s beneficiaries provided in a Will or trust, the intestacy laws of the…
Read More
New Standards for Phase I Environmental Site Assessments: Impact on Owner & Lender Liability
Phase I Environmental Site Assessments (“Phase I”) are a commonly utilized assessment tool for environmental due diligence in most commercial real estate transactions in the United States. These site assessments and environmental reports provide purchasers and lenders with a summary of environmental concerns for the subject property and abutting properties, specifically as to the existence…
Read More