Five Stories That Matter in Michigan This Week – May 31, 2024

  1. Sixth Circuit Finds No Enforceable Requirements Contract in Automotive Supply Dispute

The Sixth Circuit Court of Appeals recently reversed a district court’s preliminary injunction that had compelled an automotive supplier to continue supplying seatbelt parts to another automotive company at the contract price. The court found that the parties’ contracts lacked a clear and precise quantity term, and thus did not constitute an enforceable requirements contract under Michigan law, as clarified by the Michigan Supreme Court’s 2023 decision in MSSC, Inc. v. Airboss Flexible Products Co. Consequently, the supplier was free to accept or decline purchase requests on a release-by-release basis.

Why it Matters: The Sixth Circuit’s decision in Higuchi International Corp. v. Autoliv ASP, Inc. underscores the importance of carefully drafting contracts to ensure they meet the requirements for an enforceable requirements contract under Michigan law. Michigan businesses should review relevant contracts with their Fraser Trebilcock attorney.


  1. Keep Your Michigan Cottage in the Family

The family cottage is a place for fun and relaxation in Michigan. For many, the family cottage becomes the meeting place for generations and where lifelong memories are made. As a result, it’s often the intent of the owner to pass the cottage on to future generations to enjoy. Unfortunately, challenges such as high property taxes and family disputes can prevent that from happening. These obstacles can be overcome through careful cottage succession planning.

Why it Matters: If you own a cottage in Michigan, our Cottage Law team can help you think through the issues and take the actions necessary to create a cottage plan. A cottage plan usually addresses the concerns through the creative use of a limited liability company (LLC) or a trust to own the property. Learn more from your cottage law attorney.


  1. Gain Peace of Mind Through Life’s Toughest Challenges

Family law involves deeply personal and often emotional issues – that can be as complicated as they are sensitive. A strong family law attorney understands the judicial processes and procedures, while also handling your case with care and compassion.

Why it Matters: Fraser Trebilcock attorney Paula C. Spicer has over a decade of experience assisting clients in family law matters. Paula compassionately and efficiently works with clients to help them understand their options and navigate the often challenging and emotional situations. Learn more how she may be able to assist.


  1. June Business Education Series

Most entrepreneurs and business leaders face similar frustrations – employee conflicts, lack of sales, profit woes and inadequate growth. Decisions never seem to get made, or, once made, they fail to be properly implemented. There is a solution, and it is not complicated or theoretical.

Why it Matters: The Entrepreneurial Operating System (EOS) is a practical method for achieving the business success you have always envisioned. More than 100,000 companies have discovered what EOS can do. Learn more and to register.


  1. DEA Recommends Cannabis Rescheduling: Developments and Implications for the Industry

The industry may soon experience a major shift, as the Drug Enforcement Administration (DEA) moves to reschedule cannabis to Schedule III. This decision follows a recommendation from the Department of Health & Human Services (HHS), which is supported by scientific evidence reviewed by the FDA.

Why it Matters: The expected rescheduling of cannabis to Schedule III will have notable implications for cannabis businesses. The removal of cannabis from I.R.C. Section 280E will provide significant tax relief for state-legal cannabis operators, and the possibility of increased banking access could enhance the industry’s financial stability and growth potential. Nevertheless, cannabis companies will continue to face certain limitations stemming from the persistent federal prohibition of cannabis. Read more.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Cottage Law | Mark Kellogg
Family Law | Paula Spicer
Cannabis Law | Sean Gallagher

Five Stories that Matter in Michigan This Week – November 25, 2022

  1. U.S. Supreme Court Declines Challenge to 2018 Seattle Hotel Health Insurance Law

The U.S. Supreme Court on Monday, November 14, 2022, turned away a challenge to a 2018 Seattle law requiring hotels to pay for health insurance for low-wage workers.

Why it Matters: The justices declined to hear an appeal by a group called the ERISA Industry Committee (ERIC) of a lower court’s ruling that upheld the law. The U.S. Supreme Court’s decision not to take up the challenge could encourage other cities and states to adopt similar requirements intended to address the widespread lack of health insurance among low-wage employees. (as reported by Reuters on November 21, 2022.)


  1. EEOC Issues New Workplace “Know Your Rights” Poster

The Equal Employment Opportunity Commission has issued an updated “Know Your Rights” workplace poster. Employers with more than 15 workers are required to display the poster, which can be found here, in their workplace. The updated poster identifies and summarizes laws that protect workers from discrimination and retaliation, and explains how employees or applicants can file a complaint if they believe that they have experienced discrimination.

Why it Matters: Employment law is a constantly evolving area, so it’s important for employers to stay abreast of new developments, such as this updated poster requirement from the EEOC. Contact a member of our Labor, Employment & Civil Rights team with any questions.


  1. Business Planning for the Future

A lot of small-to-medium size businesses devote time and focus on their near-term future but may not think of what 5-10 years will bring. The value of a business can often be in the ability to transition it to a new owner, but some business owners are unsure how to set themselves up to be successful in this arena.

Why it Matters: Capitalizing on the ability to plan for the long-term will aid your business in any transitions that may occur. Learn more here.


  1. FTC Safeguards Rule Deadline Extended, But Don’t Wait to Implement Data Security Compliance Protocols

The Federal Trade Commission recently extended the deadline, from December 9, 2022, to June 9, 2023, for compliance with the most stringent requirements of its latest rulemaking, revisions to the Safeguards Rule under the Gramm Leach Bliley Act (“the GLBA”).

Why it Matters: The GLBA, which was implemented over 20 years ago, defines how businesses gather, use, and share certain financial information about their customers. The Safeguards Rule establishes certain data security requirements for how a business stores that information. Learn more from our Fraser Trebilcock attorneys on the matter.


  1. Sixth Circuit Rules that Notice is Required to Terminate Contract for Successive Performances

Under Section 440.2309(2) of Michigan’s Uniform Commercial Code, a contract that “provides for successive performances but is indefinite in duration” may be terminated at any time (without cause). However, as a U.S. Court of Appeals for the Sixth Circuit decision points out, reasonable notice of such termination must be provided, unless the requirement of notice is waived via the contract.

Why it Matters: The court’s ruling in the case of Stackpole International Engineered Products v. Angstrom Automotive Group is a reminder for buyers and sellers, especially in the manufacturing industry, who enter into contracts that provide for successive performances to work with experienced legal counsel in the drafting, review and enforcement of commercial contracts to avoid contractual disputes and litigation.

Related Practice Groups and Professionals

Employee Benefits | Sharon Goldzweig
Labor, Employment & Civil Rights | Aaron Davis
Business & Tax | Mark Kellogg
Business & Tax | Robert Burgee