Secondly, it seems as if sometimes Johnston left out information that would have helped better flesh out his points.
White could be helpful. What about risk factors incorporated by reference from a Act filing into a prospectus? Most people, even lawyers, use less legalese in conversation than they do when writing.
The truth is that no supplier can afford not to take notice of the law and International best practice with regard to how they draft any documents intended for consumers, unless they do not mind spending a fortune on litigation, media releases and free gifts to the customers they will lose.
Whenever possible, use short explanatory sentences and bullet lists Use descriptive headings and subheadings Avoid frequent reliance on glossaries or defined terms as the primary means of explaining information in the prospectus.
Rule d applies only to the cover page, summary and risk factors sections of prospectuses. How do I learn to write in Plain English if I have never done it before? Give any order it considers just Give money or property back to the consumer Compensate the consumer for losses or expenses Sever part of your doc Alter it Declare it to have no force or effect Award damages against you for collective injury Not only can the whole Why corporations use plain english be declared void or a provision severed, but a court can also choose to change the wording of the agreement to what they think is fit.
Most of us have been writing prospectuses for years and have developed personal ways to do it, which we are comfortable with.
In keeping with the distinction previously made about hard and soft core, the parts of the prospectus not subject to d may have fewer Plain English elements. Change now at your own leisure or change later after your company could have suffered financial and reputational losses. Have you seen examples of English where too much jargon has been used?
The SEC describes Rule b as the clear, concise and understandable prospectus requirement and makes it applicable to the entire prospectus. Another novel feature of the Act is that courts are given wide powers to redraft contractual terms where they infringe on consumer rights created by the Act.
The risk factors should be placed in the context of the specific offering so investors can understand the specific risk as it applies to the issuer and its operation.
I incorporate by reference, the review by Eric Hanson, whose opinion of this book I adopt as the more succinct expression of what follows here. What about junk bond covenants or other complex legal terminology? Start thinking differently about how you communicate with your clients.
Risks of using Plain English? Two of our colleagues who have already produced Plain English prospectuses have told me that the translation process of converting old time-worn boiler plate and legalese into Plain English was excruciatingly difficult.
Maybe they wanted to encourage experimentation without the pressure of a rule to force issuers to put Management Discussion and Analysis or the Notes to the Financial Statements in Plain English.
But some people still question whether to use plain English for legal documents. That language, however, should be accompanied by a summary which explains what it means to investors. Since consumers are king in terms of the CPA and that is why it is important for companies to ensure that they avoid litigation before it starts.
Define terms in a glossary or other section of the document only if the meaning is unclear from the context. Special consumer courts are another feature of the Consumer Protection Act that will have a vast impact on the enforcement of consumer rights.
Costly litigation If companies refuse to re-evaluate their agreements and comply with the plain language requirements they open themselves up to the possibility of litigation. They say it is because they need to be precise and that their language has been honed by centuries of litigation.
David Cay Johnston could perhaps benefit from some lessons from the Austrian school of economics, a tradition of economic reasoning that is generally both anti-state as well as pro-free market. But this is baloney. Prior to actually doing a prospectus using Plain English, you should absolutely, positively read these two books.
With technologies in use all over the world, it is important that non-scientists or those with a limited knowledge of technology can understand why these products and services should matter to them.
What are the risks of using legalese?The "Plain English Movement" by Peter Tiersma has been seeking for years to compel the use of Plain English in the writing of a variety of legal documents intended for use by consumers.
Insurance companies and mortgage lenders have already been subjected to the Plain English wringer. Plain English is free of jargon, “legalese” and using complicated words for the sake of it. There is even a UK organisation, Plain English, that helps companies and organisations edit and rewrite their documents so that they are expressed in simple, plain English.
The agency published its plan Monday for meeting the requirements of the Plain Writing Act ofwhich requires all federal agencies to use clear and concise language when preparing new or. If corporations use plain English to file their documents, it will be easier for investors to know more about their investments and the corporations they are investing in.
Moreover, investors will be more likely to catch the important information necessary to make informed decisions of whether they should hold or sell their shares.
The Fine Print: How Big Companies Use "Plain English" to Rob You Blind covers the sneaky ways companies take advanta - Diplomat-turned historian George Kennan The Fine Print: How Big Companies Use "Plain English" to Rob You Blind covers the sneaky ways companies take advantage of regulations and laws to enrich themselves at the /5.
Investors expect, need, and deserve plain English.
The SEC expects plain English. Using plain English makes an issuer look better, and coincidentally improves documents. Using plain English saves money. Investors expect, need, and deserve plain English.Download