Volume 5 / Number 2 / Summer 2001

This page contains the abstracts, as well as links to the complete document on Westlaw.com, for the Article, Essay, Comments and Recent Developments of the Summer 2001 Issue.

 

Article

The Failure of the Federal Courts to Support Virginia’s Reluctance to Pierce the Corporate Veil
Wendy B. Davis
Westlaw
Small business owners depend on the protection of incorporation to shield their personal assets from the creditors of their businesses. These small business owners should be able to rely on the precedent set by the courts in the state in which they incorporate to determine when the corporate veil might be pierced. However, Virginia small businesses cannot do this because federal courts do not apply Virginia law consistently with Virginia courts. Should a small business owner be haled in to federal court, the corporate veil is much more likely to be pierced. This Article examines the gap between the way that Virginia state courts and federal courts apply Virginia law.

 

Essay

 

Small Business, Local Culture, and Global Society: Some Examples from the United States
Amy C. Bushaw
Westlaw
This Essay examines the plight of small businesses in our increasingly global economy. While at first blush small business may seem threatened by globalization, there is still a need for small businesses to create local opportunities, to serve local needs, and to celebrate local culture. Examples are given of small enterprises that succeed because of the efforts of local residents, the assistance of local business networks, and government-sponsored regional coordination efforts. Finally, the Essay offers some ideas regarding the role that government can play in supporting the creation and success of small businesses.

 

Comments

 

Inherent Agency Power: A Modest Proposal for the Restatement (Third) of Agency
Kornelia Dormire
Westlaw
Of the three categories of agency defined in the Restatement (Second) of Agency—actual authority, apparent authority, and inherent agency power—there appears to be a fair amount of uncertainty among the courts regarding inherent agency power. Because inherent agency power is an analytical construct that is most usefully kept separate from actual and apparent authority and the Restatement (Third) is a work in progress, it is worthwhile to examine the language of the Restatement (Second) and some courts’ reactions to it with the hope that it will prove helpful in drafting a clearer inherent agency section for the Restatement (Third).

English-Only Rules and the Effect of the Business Necessity Defense on the Small Business Employer
Jacqueline M. Jacobsen
Westlaw
This comment examines English-only rules in the workplace in light of the Equal Employment Opportunity Commission’s guideline eliminating the plaintiff’s burden to show adverse consequences. The author argues that the employer’s responsibility to establish business necessity should be restructured to fit the unique needs of small businesses.

An Argument for the Repeal of the Davis-Bacon Act
Christine Tracey
Westlaw
This Comment discusses whether the Davis-Bacon Act and other federal prevailing wage laws are still necessary. The author addresses the economic and industry changes since the Davis-Bacon Act was enacted and examines arguments for both repeal and retention of the Act, concluding that the Davis-Bacon Act has outlived its usefulness and should be repealed. Because federal regulation of construction contracts limits the competitive flexibility of contractors and adds compliance costs, workers and small businesses would benefit greatly if these laws were repealed and market forces were allowed to determine fair wages for construction workers.

 

Recent Developments

 

An Analysis of Gitlitz v. Commissioner
Westlaw
The Supreme Court’s recent ruling in Gitlitz v. Commissioner allowed shareholders in an S corporation to enjoy a stock basis increase for discharge of indebtedness income that was never taxed to anyone. This Section discusses the facts that led to this ruling and the reasoning followed by the Court.