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California Business Law Questions & Answers
2 Answers | Asked in Tax Law, Business Formation and Business Law for California on
Q: Do you need a business license for an online retail business in California? We already have a seller's permit and LLC.
David S. Greenberg
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David S. Greenberg
answered on Mar 23, 2023

All companies are required to obtain a California business license, no matter whether they have a physical storefront or just sell online.

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1 Answer | Asked in Business Law, Civil Litigation, Construction Law and Employment Law for California on
Q: How Does A Company / Corporation Protect from Liability of California ( Protection Laws) from a stooge person in employ
James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 21, 2023

There are several steps a company or corporation can take to protect themselves from liability for the actions of a "stooge" employee:

Establish clear policies and procedures: A company should have clear policies and procedures in place that prohibit illegal or unethical behavior,...
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1 Answer | Asked in Antitrust, Business Law, Gov & Administrative Law and International Law for California on
Q: Where do you find the threshold of antitrust being committed upon your client?
James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 15, 2023

Determining whether antitrust laws have been violated and if your client has been harmed by anticompetitive behavior can be a complex legal analysis that involves a careful review of the relevant facts and legal standards.

In general, antitrust laws are designed to promote and protect...
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2 Answers | Asked in Business Law, Civil Litigation, Collections and Consumer Law for California on
Q: Can I sue a Debt Collection Agency acting as a Lien Enforcement Group that is violating FDCPA daily?

I am sending a cease and desist letter via certified mail to them and aligning my ducks in a row to file a lawsuit against them. I am looking for a lawyer/paralegal who is willing to help guide me through this.

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 15, 2023

Under the Fair Debt Collection Practices Act (FDCPA), debt collectors are prohibited from engaging in certain abusive, deceptive, or unfair practices when attempting to collect a debt. If you believe that a debt collection agency is violating the FDCPA, you may be able to sue them in court for... Read more »

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1 Answer | Asked in Business Law and Landlord - Tenant for California on
Q: can a company impose a monetary fine on its customers for violating state law?

The property management company that services my office building is adding a charge to if monthly rent if suspect ed of smoking in their office.

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 15, 2023

It is generally not legal for a company to impose a monetary fine on its customers for violating state law. In the case of smoking in an office building, it would be up to the property management company to enforce any relevant state or local laws and regulations related to smoking. However, they... Read more »

2 Answers | Asked in Business Formation, Business Law and Public Benefits for California on
Q: Can a CA Nonprofit Public Bene Corp use proxies to meet a quorum & to actions? & use unanimous consents in lieu of mtgs?

CA Corp Code 5510 + seem to allow proxies to achieve a quorum and to take actions "if allowed"

5516 allows for unanimous consent "if allowed"

Does this mean if the by-laws permit, both can be so used? Thx

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 14, 2023

Yes, a California nonprofit public benefit corporation can use proxies to meet a quorum and to take actions if it's allowed in the corporation's bylaws. Similarly, the use of unanimous consent is also allowed if it's permitted by the bylaws.

According to California...
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3 Answers | Asked in Business Law, Consumer Law and Contracts for California on
Q: can 3rd party marketing company charge you monthly fees even when they didn't hold up to their end of the agreement?

promised a website build, to have it up and running in less than 30 days. gave me nothing actually and way overcharged. tried to dispute it with my bank, but they got the money anyway and received nothing for my marketing campaign total of about $3000 wasted money

Leon Bayer
Leon Bayer
answered on Mar 13, 2023

In my opinion, you are entitled to recover your money. Your most efficient course of action is to sue in small claims court.

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3 Answers | Asked in Business Law, Consumer Law and Contracts for California on
Q: can 3rd party marketing company charge you monthly fees even when they didn't hold up to their end of the agreement?

promised a website build, to have it up and running in less than 30 days. gave me nothing actually and way overcharged. tried to dispute it with my bank, but they got the money anyway and received nothing for my marketing campaign total of about $3000 wasted money

Jacob Rheaume
Jacob Rheaume PRO label
answered on Mar 13, 2023

Probably not, but some of this will depend on the terms of the contract. Typically, a service contract will include payment terms that allow for the individual receiving the service a net number of days by which to pay after receiving the invoice.

I know you mentioned that they promised to...
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1 Answer | Asked in Business Law, Contracts and Civil Litigation for California on
Q: I’m locked out of my Facebook acct and there’s is NO FB support to contact - but I spend $2k on ads w/ FB & can’t get in

I’m currently running ads that I do not have access to changing or pausing or editing in anyway. Facebook has NO support to help me get back in, I’ve tried EVERYTHING down to even contacting friends of friends who work there to help me. They’ve even filed an internal report and still nothing.... Read more »

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 13, 2023

I'm sorry to hear that you are experiencing difficulty accessing your Facebook account and ad account. It is certainly frustrating to be locked out of an account without any means of contacting support for assistance.

One option you might consider is filing a complaint with the Better...
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2 Answers | Asked in Business Law and Contracts for California on
Q: Can a car dealership cancel sale contract with 0 down payment approval after 12 days of signing and not give you the car

A dealer ship lied about the down payment approval but signed the contract with that financing terms then tried to change the down payment to$250 I had financing already when I applied for credit but after I turned down the second contract the dealership didn't run my credit with who I was... Read more »

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 13, 2023

If you signed a sales contract with the dealership that specified a particular down payment and financing terms, and the dealership later attempts to change those terms without your consent, that would generally be considered a breach of contract. However, the specific legal rights and remedies... Read more »

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1 Answer | Asked in Business Law, Civil Litigation, Identity Theft and Child Custody for California on
Q: TMobile has been selling my information without my consent. To developers and marketing people to make money. It has put

It has put me in danger. My personal life. I have stalkers,I've been sexually assaulted. Etc. My identity has been stolen,I've lost my house my cars, my kids temporarily on allegations. I need a lawyer

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 11, 2023

If you believe that T-Mobile has sold your personal information without your consent and that this has resulted in harm to you, you may have legal options to seek compensation for your damages.

Here are some steps you can take:

Consult with an attorney: It's important to speak...
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1 Answer | Asked in Consumer Law and Business Law for California on
Q: I represent a patio furniture company, does the regularatory act CPSIA apply to our products?

We do not sell any children's furniture

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 10, 2023

The Consumer Product Safety Improvement Act (CPSIA) is a federal law that sets safety standards for certain consumer products, including children's products. The law requires manufacturers to conduct testing on their products to ensure that they meet certain safety standards, and it also sets... Read more »

1 Answer | Asked in Antitrust, Business Law and Gov & Administrative Law for California on
Q: Can I sue the County government for maintaining an unfair tax advantage for a former muni employee competitor in the CT

Am in the County. The City opened up and the first license went to the city community dev director that helped make the ord and a 6% tax advantage over me, after espousing prohibition for his career and a few months before speaking against me at my County planning hearing, which I go through every... Read more »

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 10, 2023

If you believe that the County government is maintaining an unfair tax advantage for a former municipal employee competitor, you may want to consult with an attorney who specializes in tax law or government law. An attorney can review the details of your case and advise you on whether you have a... Read more »

2 Answers | Asked in Bankruptcy, Contracts, Business Formation and Business Law for California on
Q: Can i be removed from an Eidl loan? Is it possible to transfer liability with a indemnification agreement/ stake sale?

i am member of an llc and i signed a personal guarantee on an Eidl loan. A member wants to take my stake in the company. Will an indemnification agreement between partys be an option?

Is that be an option or would that be voided by the SBA?

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 10, 2023

Generally, an EIDL loan is a loan that is made directly to a small business, and the loan is based on the creditworthiness of the business, not the individual partners or owners. However, it is possible that the loan agreement includes a personal guarantee, which means that the individual partners... Read more »

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1 Answer | Asked in Copyright, Business Law and Intellectual Property for California on
Q: Can I create questions and guided coursework using someone else's book to sell for teachers to earn PD credit?

Many websites offer professional development credit for book studies to teachers who pay to take their courses. Can I legally create a course based on someone else's book as long as I encourage students to buy the book and I do not copy any text from the book?

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 10, 2023

As long as you are not infringing on the author's copyright, creating a course based on someone else's book may be legal. However, you should ensure that your use of the book is considered "fair use" under copyright law. This can depend on factors such as the purpose and nature... Read more »

2 Answers | Asked in Construction Law and Business Law for California on
Q: If you buy a construction company in California do you get their license as well?

If you buy a construction company in California do you get their license and does the owner that holds the license need to stay on board? If the license holder, quits, is fired or for any other reason leaves the company would the license stay with the new owner?

Thank you!

Adam Stoddard
Adam Stoddard
answered on Mar 9, 2023

A company cannot get a contractor's license, at least to my knowledge. An individual can obtain a contractor's license, then setup a company (sole proprietorship, LLC, corporation, etc.) and then that company can contract under that individuals license. Thus, if you were to buy a... Read more »

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1 Answer | Asked in Tax Law and Business Law for California on
Q: What business license(s) or DBAs would I need if I were to sell digital products on a third party platform?

I am thinking of selling digital products (i.e PDFs, templates, drawings, printable stickers) on a platform called Etsy. I'm wondering what I'll need since I do not intend to sell physical products, just strictly digital.

James L. Arrasmith
PREMIUM
James L. Arrasmith PRO label
answered on Mar 8, 2023

If you are selling digital products on a third-party platform like Etsy, you may need a business license and/or a DBA (Doing Business As) registration, depending on your specific circumstances and the requirements of your state and local government.

Here are some general guidelines:...
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1 Answer | Asked in Business Formation and Business Law for California on
Q: What do I need to form a c-corp in the US when operations are out of a different country (ie Ecuador)?

I'm starting a business where the founders live/work virtually in the US, but money will technically be made in Ecuador. We are a subscription based business for backpackers to book and get discounts in Ecuador (and eventually other countries in South America). So backpackers will buy their... Read more »

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 6, 2023

To form a C-corp in the US when your operations are based in Ecuador, you will need to follow the incorporation procedures of the state in which you plan to incorporate. Delaware is a popular choice for incorporation due to its favorable corporate laws and tax benefits.

To form a C-corp in...
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1 Answer | Asked in Business Formation and Business Law for California on
Q: Do I need 2 separate business licenses for different products?

I am a sole proprietor offering graphic design services and stationery in CA. Now, I want to start selling handmade jewelry and polished rocks (using a different name for this business) – do I need a separate business license for that? The owner (myself) and business address remain the same for... Read more »

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 3, 2023

In California, you are not generally required to obtain a separate business license for each different type of product or service that you offer. As a sole proprietor, you can operate multiple businesses under a single business license, as long as the businesses are related and have the same owner... Read more »

1 Answer | Asked in Landlord - Tenant and Business Law for California on
Q: Can I work with the property manager directly if I buy business and take over lease from the previous business owner?

I am buying a business and trying to take over the lease from the previous business owner. I sent emails to the property management company and they said I had to send my documents through the previous business owner; and I couldn't talk to the property management company directly but have to... Read more »

James L. Arrasmith
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James L. Arrasmith PRO label
answered on Mar 2, 2023

If you are buying a business and taking over the lease from the previous business owner, you should be able to work with the property manager directly to transfer the lease to your name. However, the property management company may require you to provide certain documents and information, such as... Read more »

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