M. A. SMITH
A PROFESSIONAL LAW CORPORATION
Michael A. Smith, Attorney at Law
E-mail: masaplc@hotmail.com
319 E. Foothill Blvd., #C Voice - (626) 357-1177
Arcadia, CA 91006 Facsimile - (626) 357-4588
September 2005 No. 4
CHANGES IN THE LAW
Proposition 77 will be on the November 8 ballot. The California Supreme Court decided voters shall decide if their legislators will be able to draw their own district lines, and, in effect, choose their voters instead of the voters picking their politicians, as it should be. If this proposition passes, an alleged bipartisan panel of retired judges, working under strict guidelines, would decide the political boundaries of our districts.
This measure is very important and will create a great deal of controversy. It should be carefully researched and reviewed before the upcoming election.
CREDIT CARD PAYMENT INCREASE
An increase in minimum payments made to credit card companies is on its way. Banks issuing credit cards have until January 2006 to alter the minimum payment requirements to include a "reasonable amount of principal."
What is a reasonable amount of principal? Generally, it is considered to be about one percent of the principal amount owed (not including interest), to be added to your bill each month.
FIRE SAFETY QUIZ
What is the best way to prevent or put out these types of fires? (Some may have more than one answer.)
1. trash
2. house
3. electrical
4. oven
5. grease in a pan on the stove
6. uncondoned grease
7. car
8. chemical
We are in the midst of fire season in California. When was the last time you checked your smoke detector battery? Thanks to retired paramedic, Mike M.
Answers to quiz on page 2
A BIT OF TRIVIA...
Charles M. Riser created the Fig Newton cookie recipe. In 1891 he invented a machine which allowed mass production of his cookies. The machine worked like a funnel within a funnel producing an endless length of jam filled dough. The dough was then cut into smaller pieces. The rest is history.
IRS STUDIES S CORPORATIONS FOR REPORTING COMPLIANCE
S corporations are the most common corporate entity. Tax returns for these entities account for 59 percent of all corporate returns filed in 2002. Compliance audits of S corporations are scheduled to begin this year. The IRS will examine 5,000 randomly selected S corporation returns from tax years 2003 and 2004.
A ROSE BY ANY OTHER NAME...
Shakespeare didn't think names were important -- the Ninth Circuit disagrees. The high Court upheld a jury verdict against an engineering firm's CEO for calling Mamdouh El-Hakem, "Manny" and-or "Hank," despite the strenuous objections of Mr. El-Hakem. Names are important. A person's ethnicity encompass more than his or her skin color and physical traits.
What may appear trivial to some could be offensive to others.
DYNAMIC PRICING
A study by the Annenberg Public Policy Center, based on a telephone survey of 1,500 adults, examined people's knowledge of pricing and found 64 percent of those surveyed, who recently used the internet, did not know it is legal for an on-line store to charge different people different prices. Seventy-one percent of those surveyed did not know it is legal for bricks-and-mortar stores to do the same.
Such pricing, called dynamic, targeted, flexible, tailored or discriminatory pricing is all right, according to Wharton's Marketing Department. "It is customary and often beneficial to society as a whole."
Consider, a person at the beach who wants a soda; he can go to the nearby snack stand and pay $5 or walk a couple blocks to a nearby store and pay $2. It's the same item with two different prices. Convenience does come at a price.
And what about the senior who goes into McDonalds for a "senior" cup of coffee. He is charged less than you or I but his coffee is poured from the same pot.
This type of pricing is not new. We have all been exposed to it for years but do not recognize it as such. We do, however, understand "senior discounts." Want the best price, check out several stores before buying.
WORD OF THE MONTH
The word for September is exploit which The American Heritage Dictionary defines as:
(ek'sploit') v. 1. To utilize fully or advantageously. 2. To make use of selfishly or unethically. See manipulate.
HAPPY BIRTHDAY
Celebrating a birthday this month?
_ Happy birthday to you! _
ANSWERS TO FIRE QUIZ
1. Put only thoroughly dried material in trash containers.
2. Dial 911 then turn off gas and electrical power.
3. Dial 911 then turn off power at main panel.
4. Close oven door.
5. Put a lid on the pot or pan.
6. Call 911 then use a dry chemical fire extinguisher.
7. Call 911.
8. Call 911 then use a dry chemical fire extinguisher.
Thanks Fred, for all your contributions and for helping make our newsletter worthwhile.
COMMENTS OR SUGGESTIONS?
Call Paula at (626) 357-1177 or, if you prefer, e-mail her at paulasmith1000@hotmail.com.