There are two overarching goals to this case study. First, the authors want to introduce students as early as possible in their study of business to the perils of deliberate misstatements of income in financial statement and the significant consequences that await those who do. Given the recent business scandals involving mortgage-backed…

Even as they struggle to climb out of deep financial holes, states are facing lawsuits that contend they do not meet their constitutions' requirements to provide sufficient funding to districts and fail to provide resources for disadvantaged schools and student populations. This article reports on legal battles in Texas, Colorado, and elsewhere…

In Simon v. Eastern Kentucky Welfare Rights Organization the Supreme Court concluded that several low-income individuals and organizations representing them lacked standing to maintain a class action challenging the validity of a revenue ruling by the Internal Revenue Service. The impact of this case is discussed along with an alternative course.…

The legal problems faced by publishers of alternative newspapers are often compounded by the limited availability of the funds they have either for legal defense or for initiating lawsuits. Although both the courts and journalism's professional associations theoretically support the position that the alternative press possesses rights identical to…

Recent adverse economic conditions have forced colleges and universities to fire tenured faculty members for reasons of financial exigency. The courts must define "financial exigency" to prevent abuse of the procedure by firing unwanted but tenured faculty. The search for such a definition is explored. (LBH)

Since June 1979, when the Ohio Supreme Court declared Ohio's finance system constitutional, that system has continued to deteriorate, as evidenced by the number of districts borrowing from the school loan fund. Moreover, the supreme courts of four other states have recently declared their state financing systems unconstitutional. This paper…

The response of courts to terminations resulting from a financial crisis threatening a school is analyzed. That response depends, in part, on whether the teacher is asserting the infringement of a constitutional right, such as freedom of expression, or the deprivation without due process of the law of a property interest, such as a statutory or…

An overview of recent court cases concerning dismissal of tenured college faculty for reasons of financial exigency focuses on court definitions of exigency, criteria for "just cause" for termination, due process requirements, reemployment, compensation for wrongful termination, and legal requirements that constitute "good…

As a part of the Tax Reform Act of 1976, Congress authorized certain nonprofit organizations, including those dedicated to the advancement of the arts, to seek judicial determinations as to their tax status as organizations classified in the Internal Revenue Code. Two Internal Revenue Service form letters are appended. (JMD)

The poor performance of boards of trustees, often a characteristic of the so-called "struggling institution," is identified as a symptom of trouble in institutions with financial problems. In scores of colleges studied, very few boards of trustees were found who met the standards of composition, organization and performance necessary for solution…

The major legal issues surrounding trustee financial exigency decisions, the fiduciary duties of trustees to preserve net institutional assets, and potential trustee liability for a decision to close an institution prior to bankruptcy are examined. (Author/MSE)

Two newsletter articles are presented that examine legal aspects of campus collective bargaining: (1) "Campus Bargaining and the Law: A Decade of Higher Education Collective Bargaining--1972-1982" (June M. Weisberger); and (2) an analysis of the the Appellate Court decision in the S. Simpson Gray case. The first article examines major…

Considerations that can help colleges and universities develop institutionally specific strategies for planning faculty reductions are addressed. It is suggested that an institution can provide a fair and workable reduction plan if it: thoroughly explores alternatives to faculty layoffs; develops explicit standards and procedures for reduction…

This Report of the Conference on Public Service Equalization Litigation, held during May 1974, is organized into nine sections. Section One, Public Service Equalization, notes that two major problems that are almost invariably encountered in public service litigation cases are the factual complexity of the cases themselves and the financial…

The legal developments regarding dismissal of tenured faculty members because of financial exigency are considered. Attention is directed to, the ability of the public or private institution to dismiss and the constitution of a state of financial exigency and a bona fide dismissal. A standard for claiming financial exigency that was suggested by…