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Check For Weed

Client Alert | less than 1 min read | 02.19.10

In Agredano v. U.S. (Feb. 17, 2010), the Federal Circuit reversed the Court of Federal Claims decision that Customs and Border Protection breached an implied-in-fact warranty when it sold a car at auction containing concealed marijuana, drugs that ultimately resulted in the purchaser spending a year in a Mexican prison. The Federal Circuit held there was no implied-in-fact warranty that the car did not contain contraband, finding there was no meeting of the minds required to form such a warranty because Customs' regulatory duty to remove contraband from the forfeited vehicle did not create a contractual obligation and the agency had expressly disclaimed any and all warranties at the auction.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...

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