Leegin says that by maintaining price consistency among niche retailers it sells to, stores can offer improved customer service. That, says the manufacturer, enables smaller stores to compete against rival brands sold by bigger cut-rate competitors.

At issue is whether price floors such as Leegin's always should be treated as illegal or evaluated case by case to see if they are pro-competitive.

The Smiths say they lowered prices by up to 20 percent because several other retailers selling Leegin's Brighton brand also were lowering prices. The Smiths say they and the competing stores were threatened by Leegin with being cut off unless they raised their prices again. Alone among the threatened stores, the Smiths refused to cave in.

"When Leegin stopped shipping to us, my wife and I lost half our business," Phil Smith said in an interview. "Kay and I are back to the same size store we started with 21 years ago."

Discounters and consumer groups say consumers will suffer if the Smiths lose.

"In the Internet age, this is a dagger at the heart of the most consumer-friendly environment we've seen in generations," said Mark Cooper, a spokesman for the Consumer Federation of America.

"Would there ever have been a Sears & Roebuck, an A&P, a Walgreens, a Kmart or a Wal-Mart" absent a ban on minimum pricing agreements? the federation asked in court papers filed in support of Kay's Kloset.

In Leegin v. Kay's Kloset, the Bush administration says it is inappropriate to automatically prohibit price floor agreements when they are not necessarily anticompetitive.

Thirty-seven state attorneys general oppose the administration.

TomorrowNow allegedly pretending to be Oracle customers and illegally hacking into its secure support Web site for users of Oracle's PeopleSoft and JD Edwards applications. SAP then allegedly copied content from the site and used it to offer Oracle customers cut-rate support services in the hopes of eventually migrating them over to SAP's rival applications.

So far, SAP has yet to respond publicly to the accusations, perhaps suggesting that a countersuit could be in the offing. As for Oracle, the vendor hasn't made any additional comment beyond the lawsuit itself.

"If we decide to trust a company, we'd hope it to be justified," said an IT manager at a French company that uses JD Edwards applications and sources its support for that software from TomorrowNow. "When we choose a supplier, we don't necessarily investigate them first," he added. The manager agreed to speak on the condition of anonymity for himself and his company.

While products, services and price are primary factors in procurement decisions, a vendor's ethics and business practices are also extremely important, according to John Matelski, chief security officer and deputy chief information officer for the city of Orlando and a JD Edwards user. He's also the former president of the Quest International Users Group, which focuses on the needs of PeopleSoft and JD Edwards applications customers that Oracle acquired through the January 2005 purchase of PeopleSoft.

"As a public-sector entity, which is directly accountable to its citizens and constituents, I would be concerned about our relationship with any vendor that is proven to conduct business in an unethical manner," Matelski wrote in an e-mail response for comment. He would prefer to do business with companies that can be trusted, and do not have a track record of inappropriate business practices.

"Due to the nature of the relationships that we develop, software vendors and consultants would be held to a higher standard, because they would typically have a greater level of access to our systems and data during implementation and support engagements," Matelski wrote. "The security and privacy of our data is key, and if an organization is known to have illegally obtained data before, I would need to be much more careful when evaluating whether to establish or continue a relationship with them."

David Mitchell, software practice leader at analyst Ovum drew a comparison between the potential damage of the lawsuit with fallout of the corporate spy scandal that hit Hewlett-Packard Co. last year. Despite leading to the resignations of several executives including its chairman, HP weathered the storm well and customers stayed loyal to the company.

"With HP, Hurd responded positively, he apologized," Mitchell said. "It was about the approach they took when something inappropriate had happened. If HP had not responded so positively I think they would have seen more negative consequences."

Should Oracle's charges against SAP be proven, "they need to embrace it and reassure people how it's come about," he added. If there was some wrongdoing, Mitchell, the former senior director for market development at Oracle UK, believes it'll turn out to be the work of one bad apple. "SAP ethically and culturally is a very correct organization, this isn't rotten DNA," he said. "If this turns out to be true, then it will be an individual, I think, who has acted inappropriately."

As for Oracle, the vendor needs to act to avoid any negative publicity from the suit given that it named many customers whose identities were allegedly purloined by SAP and suggested that SAP customers unknowingly might be using services that contain Oracle's intellectual property. "It could be good for Oracle to say, 'We have no beef with the customer, our beef is with SAP,'" Mitchell said. "Or it could be perceived as Oracle picking on the customer."

Andreas Chatziantoniou, a software consultant specializing in Oracle products with Accenture Technology Services in the Netherlands, wondered about another potential negative hit on Oracle.

"From the reputation side, I believe that this can backfire," he wrote in an e-mail. "Oracle has a reputation for dumpster diving in order to get information about competitors," alluding to an incident in 2000 when Oracle defended the actions of detectives it hired to investigate two research groups that supported Microsoft Corp. during its antitrust trial.

The lawsuit might be Oracle's way to gain some extra publicity, following the release earlier this week of the vendor's third-quarter financial results, according to Chatziantoniou. Perhaps a case of "read between the lines: our results could have been much better when SAP would play by the rules," he suggested.

The lawsuit alone won't deter customers from buying SAP's applications, but the noise around the legal action might give both SAP and Oracle users the sense that the firms are distracted and not fully focused on customers' needs, he added.

Now isn't the time for either Oracle or SAP to lose focus, given the competitive threat they face.

Last week, Microsoft, which has tended to focus more on the small to midsize business market with its Dynamics applications, vowed to compete more aggressively in the enterprise market against Oracle and SAP.

Another issue that should give vendors pause is that customers have long memories when it comes to scandals, Chatziantoniou wrote. "Even years later, people (the decision makers) remember the 'bad publicity,'" he added. What might suit the vendors' customers and partners is an out-of-court settlement, he concluded.

"So far such a situation has never happened to me in my business life, but if it did I would consider the fact very heavily when doing business with such a company," Manfred Reif, a managing director at HSH Nordbank, a credit investment bank in Luxembourg, wrote in an e-mail response to comment on the lawsuit. "Nevertheless, first of all being suspicious and 'listening' to your gut feeling should be one's daily duty," he added.

Another factor to bear in mind is the number of customers Oracle and SAP share, Seth Ravin, CEO and president of Rimini Street ., pointed out. He's a co-founder of TomorrowNow, selling his share of the company to SAP in early 2005 and establishing Rimini Street as a rival supplier of third-party maintenance and support.

While Oracle and SAP compete bitterly in the applications market, plenty of SAP users run their software on Oracle's database and middleware. It's in both vendors' interest to resolve the current dispute rapidly.

"So far, we've only heard one side of the argument," Ravin said, with SAP yet to comment.

Given how closely Oracle and SAP watch each other, he finds it hard to believe that the alleged actions by TomorrowNow were deliberate. "I strongly doubt it," he said, adding that such behavior wouldn't be in anyone's best interests and would likely be quickly discovered. Oracle appears to require users of its customer support database to be "self-policing," he said, in other words, they have access to more content than their specific needs warrant, which may have led to some confusion about what was OK for SAP to access and what wasn't.

Colombian appellate judge Leonor Perdomo ordered the release of ex-intelligence chief Jorge Noguera Friday on the grounds that Noguera was "illegally and unconstitutionally being deprived of his freedom" because chief prosecutor Mario Iguaran had not personally issued an arrest request. Perdomo ruled that Iguaran has to personally request ex-intelligence chief's detention because Noguera was a public servant when the crimes were alleged to have been committed. Noguera, who was arrested on Thursday, is accused of murder and conspiracy for allegedly contracting with illegal paramilitary groups to assassinate political opponents. Iguaran disagreed with the ruling, stating that "think Colombia or the international community can tolerate the message that conspiring with criminals has any relation to one's functions as a public servant."

Noguera, who ran the Colombian Department of Administrative Security resigned in October 2005 after he was tape-recorded while discussing plans to sell intelligence to paramilitary groups. Several of the people on Noguera's hit list were later killed, including university professor Alfredo Correa de Andreis, who was investigating the paramilitary groups at the time of his death in 2004.

A powerful quake tore into a rural area of coastal central Japan on Sunday, killing at least one person as it toppled aging farmhouses and temples, set off landslides and caused a small tsunami. Some 160 people were injured.

The magnitude 6.9 quake struck at 9:42 a.m. (0042 GMT) off the Noto Peninsula on the Sea of Japan coast. The Meteorological Agency issued a tsunami warning urging an evacuation, but the alert was lifted after a 10-centimeter (6-inch) wave hit the shore, causing no damage.

The temblor was a shock to the region, which had not seen a major quake since 1933.

"The shaking was so violent, I freaked out. All I could do was to duck underneath the desk," said Yukiko Taka, 58, the owner of a traditional lacquerware shop in Wajima, the hardest hit town in Ishikawa prefecture (state). "It was so frightening."

Weaker quakes rattled the region through the day, including a magnitude 5.3 aftershock. No additional damage was reported.

The initial quake knocked down buildings, caused landslides, and cut power, water and transportation lines. The Noto airport was closed, and roads were snarled with residents leaving or concerned Japanese rushing to the area to see relatives.

A 52-year-old woman was crushed to death by a falling stone lantern, officials said, and at least 162 other people were injured, most of them hurt when they fell during the shaking or were hit by falling objects and broken glass.

Local authorities said they were thankful the death toll was so low.

"Perhaps our traditional homes were sturdy enough to survive the quake," said Masayuki Murozuka, an Ishikawa official. "I think it was also fortunate that the quake hit in midmorning so most people were fully awake, perhaps even finished breakfast by then."

Television footage of the quake showed buildings shaking violently for about 30 seconds. After the quake, buildings lay in heaps of rubble, and the windows of shops were shattered. Roof tiles cluttered streets with cracked pavement.

Fear of aftershocks and more landslides caused by the loosening of soil waterlogged by overnight rains continued to plague the quake zone -- and keep residents jittery.

"A fairly big aftershock hit just minutes ago and I jumped out the door," said Tomio Maeda, manager of convenience store Family Mart in Anamizu town. "It's scary, I guess it's not over yet."

In Tokyo, Chief Cabinet Secretary Yasuhisa Shiozaki said officials were doing their best to rescue victims and assess the extent of the damage.

About 30 soldiers had arrived to help with disaster relief, and military aircraft were examining the damage. Some 375 firefighters from seven other prefectures were also dispatched to help, the Fire and Disaster Management Agency said.

The quake also knocked down at least 45 homes in Ishikawa, and partially destroyed another 227, the FDMA said. Most of the injuries and damage were concentrated in Wajima, about 312 kilometers (193 miles) northwest of Tokyo.

"Members of Congress now face a choice: whether they will waste time and provoke an unnecessary confrontation, or whether they will join us in working to do the people‘s business," Bush said. "We have many important issues before us. So we need to put partisan politics aside and come together to enact important legislation for the American people."

Democrats said it was time to heed the mandate of their election sweep last November, which gave them control of Congress. Passage marked their most brazen challenge yet to Bush on a war that has killed more than 3,200 troops and lost favor with the American public.

"By choosing to make a political statement and passing a bill they know will never become law, the Democrats in Congress have only delayed the delivery of the vital funds and resources our troops need," Bush said. "The clock is running. The Secretary of Defense has warned that if Congress does not approve the emergency funding for our troops by April 15, our men and women in uniform will face significant disruptions — and so will their families."

Bush said that to get the votes needed to pass the bill, House Democrats included billions of dollars in domestic and pork barrel spending for local congressional districts, including $74 million for peanut storage and $25 million for spinach growers, that has nothing to do with the war.