Tag: law

Michigan’s Item Pricing Law: The Price Tag for Retailers and Consumers

Community and Economic Development, Franchised Businesses, Public Policy and Economic Analysis, Reports
Michigan faces a host of challenges as we enter the second decade of the 21st century. Chief among these are the realities and perceptions that Michigan is stuck in the 20th century, and that outdated regulations are stopping businesses and citizens from moving ahead.
 
This report assesses the costs and benefits associated with one such regulation— the Item Pricing Law (IPL)—which went into effect on January 1, 1978
and has not significantly been amended since.1 We conclude that the time has come for Michigan to reform its IPL. Only eight states have any form of an IPL, and Michigan’s is by far the most burdensome. Michigan is the only state that still requires a price label to be placed on nearly every consumer item, which creates unnecessary costs for both businesses and consumers, and yields little or no benefits that are not otherwise afforded to consumers in other states. 

Sticker shock: Plan to repeal pricing law launches debate

AEG In the News

The Detroit News,

AEG Files Brief With United States Supreme Court; Pricing Power Issue Significantly Affects U.S. Auto Industry…

AEG Press Releases

FOR IMMEDIATE RELEASE:  FEBRUARY 26, 2006CONTACT:   Patrick Anderson or Ted Bolema: 517-333-6984   ANDERSON ECONOMIC GROUP FILES BRIEF WITH U.S. SUPREME COURTPricing Power Issue Significantly Affects U.S. Auto Industry; Also Restaurants, Hotels, Rental Agencies, and Other Franchises East Lansing, MI — Economists at the consulting firm Anderson Economic Group today filed a “friend of the […]

Amicus Curiae Brief to the U.S. Supreme Court re: Resale Price Maintenance

Expert Testimony and Litigation Economics, Other, Reports, Strategy and Business Valuation

Anderson, Bolema

A brief filed by Anderson Economic Group in the U.S. Supreme Court in the matter of Leegin Creative Leather Products, Inc., v. PSKS, Inc., dba Kay’s Kloset…Kay’s Shoes. Brief addresses resale price maintenance agreements and per se illegality under the Sherman Act and anti trust provisions.

Review of the Proposed “K-16” Initiated Law

Other, Public Policy and Economic Analysis, Reports

Rosaen, Sallee

This report reviews the likely effect of the proposed “K-16” initiated law, which will be Proposal 5 on Michigan’s election ballot on November 7, 2006. In this report we describe how each provision of the K-16 initiated law would change the School Aid Act. We then forecast, using assumptions based on historical data on Michigan’s economy, taxation, and expenditures, the cost impact that would likely result if the K-16 law is adopted and implemented. We also review a number of important Constitutional questions. We estimate that the additional cost of this proposal will be…

Michigan Business Corporation Act Amendments: A Shareholder Rights Perspective

Other, Project Profiles, Public Policy and Economic Analysis, Strategy and Business Valuation

The Taubman Company is a Real Estate Investment Trust (REIT) with more than 30 premier shopping centers located in 13 states. A Michigan corporation, the Taubman Company trades on the New York Stock Exchange under the symbol “TCO.”

In late 2002 the Taubman Company became the target of a hostile takeover bid made by rival Simon Property Group (SPG). In defense, Taubman management and major shareholders announced their intent to vote their shares in opposition to the takeover. SPG claimed that this intention triggered an obscure provision of Michigan’s Control Share Acquisition Act, and a federal judge agreed, thus disenfranchising some 33.6% of TCO voting shares. However, the judge’s opinion did leave the door open for State Legislators to clarify the intent of the Act, which was originally passed to make Michigan businesses less prone to hostile takeovers.

The Taubman Company’s legal team retained Anderson Economic Group to assess the proposed and existing legislation. As part of this, Anderson Economic Group released “Michigan Business Corporation Act Amendments: A Shareholder Rights Perspective,” which was used by the Taubman Company to highlight the benefits of clarifying the law. AEG also analyzed shareholder support for the takeover offer, provided independent research on a 1998 restructuring of the Taubman Company incorrectly portrayed by SPG, and compiled information on the legislation and the related court ruling for distribution on www.AndersonEconomicGroup.com.

Additionally, AEG Principal Patrick Anderson testified at State House and Senate Committee Hearings about the need to clarify the Michigan Control Share Acquisition Act. Ultimately, this clarifying legislation became PA 181 and was passed by Michigan lawmakers, providing better protection of shareholder rights, and restoring the legislative intent of protecting Michigan Companies from hostile takeovers.