| Volume 63 Number 6 |
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The People’s Lawyer’s Tip of the Day
Under Texas law, a "Pyramid promotional scheme" is "a plan or operation by which a person gives consideration for the opportunity to receive compensation that is derived primarily from a person's introduction of other persons to participate in the plan or operation, rather than from the sale of a product by a person introduced into the plan or operation." You don't have to establish a pyramid scheme to violate the law. In fact, if you advertise, promote, or sell a pyramid promotional scheme, you have committed a state jail felony. If a business opportunity sounds too good to be true and your primary source of income will be through the introduction of new consumers, think twice before you get involved. Click here for more.
For Profit Colleges See New Regulations
For-profit colleges, like Westwood University, University of Phoenix, and other technical schools, will be subject to new regulations. The United States Department of Education has issued tougher rules regulating for-profit colleges, which account for 46 percent of all student loans in default. The new "gainful employment rules" apply to any college that focuses on job-training programs. Students at for-profit colleges are twice as likely to be unemployed after graduation as graduates of traditional four year schools, yet 92 percent of their students receive federally guaranteed loans. Unlike traditional unsecured debt, federally guaranteed loans are extremely difficult to beat in bankruptcy. While a credit card company may be unable to collect a debt after a consumer goes to bankruptcy, the federal government will probably get its money, leaving the unemployed graduate of a technical school in a really bad situation. What are the new rules and how will they help students? Click here for more.
Gas Prices Trending Downward
On Friday, the average price of a gallon of gasoline in the United States was $3.74. Over the past three weeks, the price for a gallon of gasoline has dropped by 17 cents, and many experts believe the trend will continue. A decrease in demand due to unemployment, coupled with an oversupply of gasoline, should drive prices down. Furthermore, reports out of Saudi Arabia indicate the oil cartel will saturate the market with an additional increase in output. With supply high and demand weak, prices could drop quickly and remain low for a while. Click here for more.
Zocor Linked to Muscle Damage
The U.S. Food and Drug Administration said this week it has found a clear link between prescription drug Zocor and potentially deadly muscle damage. The popular cholesterol medication was subjected to new clinical trials which found people who took high doses of the medication (about 80mg) were at a substantially greater risk of developing muscle problems. Do you use Zocor to lower your cholesterol? Click here for more.
Your Money
How will a rate change affect your credit card balance? Click here for more.
For the Lawyers
CAFA “defendant” does not include counterclaim defendants. The Ninth Circuit Court of Appeals held that the term “defendant,” as used in Section 5 of the Class Action Fairness Act includes only original or true defendants. Click here for more.