Service Contracts

News & Analysis as of

Mitigating Risk in Cloud Computing Agreements

Cloud computing is the new reality. A 2013 IDC survey reports that 61% of enterprises have at least one cloud-based application and total enterprise investments in cloud-based solutions have gone up more than 10% since 2012....more

DOL Issues Proposed Rule to Implement Federal Contractor Minimum Wage Rate

As prior blog entries (see here and here) have explained, on February 12, 2014, President Obama signed Executive Order 13658 to increase the hourly minimum wage for employees of federal contractors and subcontractors to...more

DOL Proposed Rule Raises Minimum Wage to $10.10 for Federal Contractors

The U.S. Department of Labor (DOL) recently issued a proposed rule raising the minimum wage to $10.10 per hour for employees staffing any of four categories of federal contracts. The proposed rule implements an executive...more

Is There Any Escape From Your Contract?

Are you stuck in a contract with onerous provisions and desire to get out of it? Are you paying too much for an item or service and want to stop making such payments? If you answered yes to either of the preceding...more

Policyholders are Exposed to Cyber-Risk from Their Third Party Contracts

The use of third party technology service providers has become widespread and commonplace in all industries. Technology services like “cloud” data storage providers and software as a service (SaaS) allow companies of all...more

New Changes to Engagement Letters Preclude Company Intervention in Portions of Audits Performed by Company Personnel

A recent auditing standard issued by the AICPA’s Auditing Standards Board may result in the inclusion of a new provision in auditors’ engagement letters related to external auditors’ use of the work of internal auditors and...more

Make sure you get the plan services you were promised

People can promise you the moon, but they may deliver far less. That is why despite the promises made by your plan providers; you should always read their contract to determine whether they are actually delivering you what...more

2014 Resolutions Series: Trapped in an unhealthy IT vendor relationship? How to make the best of a difficult situation

My client, “Hal”, head of IT procurement for a large regional hospital system called me yesterday morning and declared “I hate vendors!” One of the hospital’s key vendors had just delivered a set of unexpected and “urgent”...more

Weekly Update Newsletter - April 2014 #3

In this issue: - GSA Issues Proposed Rule to Amend General Services Administration Acquisition Regulation (GSAR) - SBA Issues Notice of Public Availability of FY 2013 Service Contract Inventory - SBA...more

If You Think Your Family Business’s Service Contracts Limit Your Liability In All Situations, Think Again!

Family-owned businesses in the services industry in Washington (and beyond) should be paying attention to a recent Washington Supreme Court case addressing the “Independent Duty Doctrine” (also referred to as the “economic...more

CFPB service contract inventory available

A notice was published by the CFPB in today’s Federal Register that an inventory and summary of the service contracts over $25,000 it awarded in FY 2013 are available for public viewing. (The inventory and a summary are...more

New Jersey Bill Regulates Vehicle Service Contracts, Ancillary Products

Last month, New Jersey Governor Chris Christie signed SB 854, which will regulate, among other things, motor vehicle service contracts and motor vehicle ancillary protection products. ...more

Missouri AG Action Indicates Focus On Auto Service Contracts

On January 28, Missouri Attorney General Chris Koster announced a settlement with the owners of a vehicle extended-service-contract seller alleged to have marketed limited-time extend warranty programs for vehicles. The AG...more

North Carolina Regulator Issues Guidance On New Service Contracts Sales Tax

Recently, the North Carolina Department of Revenue issued guidance regarding a new state law that imposes the state’s 4.75% general sales and use tax, as well as applicable local and transit sales and use tax rates, to the...more

New York, Automatic Renewal Clauses Are Not So Automatic

Many industries utilize term contracts with automatic renewal clauses to capture recurring revenue. An automatic renewal clause is a contractual provision by which the contract is automatically renewed at the end of the...more

Congressional "P3 Caucus" Holds First Public Meeting

The Congressional Public Private Partnerships (P3) Caucus held its first public event on Tuesday, November 19 in the Cannon House Office Building. Co-chairs Reps. Mike Rogers (R-AL) and Gerald Connolly (D-VA) were joined by...more

Compliance May Remain a Concern Even in the Cloud

The recent report from BSA | The Software Alliance entitled "Navigating The Cloud: Why Software Asset Management is More Important than Ever" provides a ood summary of the items businesses need to address either internally or...more

Investigating Alleged Board Member Misconduct

Let us start our discussion with an area of broad consensus: A company’s board of directors has a duty of care to respond to and investigate allegations of wrongdoing by officers and employees of the company. But what happens...more

Illinois Enacts Auto Ancillary Products Bill

On August 9, Illinois enacted HB 1460, which expands the definition of “service contract” in the state’s Insurance Code to include ancillary auto service contracts – e.g. contracts related to the repair or replacement of...more

Ninth Circuit Rejects Claims to Area of Origin Priority by Tehama-Colusa Canal Authority

On July 1, 2013, the Ninth Circuit Court of Appeals issued an opinion rejecting assertions by Tehama-Colusa Canal Authority (“TCCA”) that California area of origin law entitled its member districts to priority deliveries of...more

Negotiating Construction Equipment Leases; Getting Beyond the Battle of the Forms

A. THE PROBLEM: “I want it on the jobsite yesterday!” In buying out a construction project, a general contractor (GC) or a subcontractor will likely negotiate and enter into equipment leases that cost, on an...more

FCC Sets Comment Dates for Bundled Components Public Notice

The Wireline Competition Bureau has set the comment and reply comment deadlines for the Bundled Components Public Notice discussed below....more

Newly Enacted Legislation Rewrites Florida's Rules on Individual Design Professional Liability

A new law will soon go into effect in Florida that will impact anyone doing business with design professionals in that state. ...more

Copyright Reversions And Loan-Out Corporations

A few weeks back, I had the opportunity to speak at an Ontario Bar Association Entertainment, Media & Communications Law Section session on the topic of copyright reversionary interests. During the Q&A portion of the...more

FCC Seeks Comment on Bundled Components for E-rate

Executive Summary: The Wireline Competition Bureau (“Bureau”) is seeking comment on proposed clarifications to the treatment of ineligible devices when bundled with E-rate eligible components....more

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