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California Business Law Questions & Answers
1 Answer | Asked in Business Law for California on
Q: Can the Board of Directors of a California nonprofit 501(c)(4) vote via email in the case of a emergency?

In a flood, earthquake or other disaster, following the process required in our Bylaws, it may not be possible to get immediate approval from the Board of Directors for necessary remedial expenditures. In that case, would it be possible to include a disaster clause in our bylaws approving funds... View More

James L. Arrasmith
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answered on Feb 22, 2024

In California, nonprofit corporations, including 501(c)(4) organizations, are governed by both state law and their own bylaws. State law does allow for boards to conduct business via electronic means, including email, as long as all members consent to this method of communication for... View More

1 Answer | Asked in Business Law and Education Law for California on
Q: Does the California Board of Nurses curriculum requirements supersede the Title 5 laws?

The Business and Professions code states theory and clinical practice shall be concurrent. However the colleges (approved by the BRN) offer the theory and clinical practice as a separate course. If one course is passed and the other is failed. Can the BRN require the student to retake and pay for... View More

James L. Arrasmith
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answered on Feb 22, 2024

In California, the Board of Registered Nursing (BRN) sets specific standards for nursing education to ensure that graduates are competent and prepared for licensure. These standards, including curriculum requirements, are designed to comply with both the Business and Professions Code and the... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: LLC State Formation Question - CPR Training

I have a CPR Training center. We provide a service. We have 3 physical locations currently. Covina, CA, St. Louis, MO, and Philadelphia, PA. I am filing taxes this year as a sole proprietor however next year I want to create an LLC. Am I able to create the LLC in a state like Nevada even if my... View More

James L. Arrasmith
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answered on Feb 22, 2024

In the United States, it's indeed possible to form an LLC in a state where you don't actively conduct business, and Nevada is a popular choice for many due to its favorable business laws and privacy advantages. If you decide to form your LLC in Nevada, you'll benefit from the... View More

1 Answer | Asked in Family Law, Real Estate Law, Business Law and Civil Litigation for California on
Q: How to Serve a Subpoena (SUBP-001)?

I am planning to serve a SUBP-001 subpoena to an employee at the local YWCA for an upcoming hearing, specifically a Motion to Set Aside the Previous Minute Order. However, when a registered server attempted to serve them, they refused, stating that “their policy does not allow individual... View More

James L. Arrasmith
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answered on Feb 22, 2024

In California, when serving a subpoena (SUBP-001), the law requires that it be properly served on the individual named in the subpoena. If an initial attempt to serve a subpoena is refused, using a sheriff or a registered process server is a common and legally recognized method to ensure the... View More

1 Answer | Asked in Contracts and Business Law for California on
Q: I'm in a payment dispute with Dollar General (DG) over products they purchased from a company I own.

DG is claiming they only received 300 units for one PO, however, I have proof with the Bill of Lading (BOL) from their shipper that shows the 2,600 units (with the corresponding weight) were indeed picked up.

DG also ordered a smaller quantity of 390 units on a separate PO for which I was... View More

James L. Arrasmith
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answered on Feb 22, 2024

Before proceeding to small claims court, it's advisable to make a final attempt to resolve the dispute directly with Dollar General, presenting them with the evidence you have, including the BOL, and clearly stating your case. Documentation of all communication attempts can be beneficial. If... View More

Q: I am suing the Tax Collector of Riverside County, CA for instructing his office to break CA Tax and Revenue Laws.

did this by telling them to place extra parties of interest in the excess tax proceeds Recommendation Letter to the Board of Supervisors. The judge told me the Board Of Supr. are responsible, yet they sign off on all recommendations the tax collector makes, they don't conduct research, or... View More

James L. Arrasmith
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answered on Feb 22, 2024

In California, suing a public official, such as the Tax Collector of Riverside County, for actions taken in the course of their official duties can be complex due to sovereign immunity and various protections that limit liability. However, if there's evidence of willful misconduct, negligence,... View More

1 Answer | Asked in Landlord - Tenant and Business Law for California on
Q: In San Diego, CA. Are housing companies or landlords allowed to request a bank statement from rental applicants?
James L. Arrasmith
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answered on Feb 21, 2024

Yes, housing companies and landlords in California generally are allowed to request bank statements from rental applicants during the screening process. However there are some limitations in place under CA state law.

The primary restrictions when obtaining or evaluating bank statements from...
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1 Answer | Asked in Consumer Law and Business Law for California on
Q: Video Game 'Challenge' - False Advertisement (?) "Free Item" not stated as limited quantity What california law?

A video game, subject to California Law, had a challenge that required certain requirements to be met in said video game. Requirements did also include time spent in said game.

When as of 11-02-24 the user attempted to claim said item it was said that it was in fact a 'limited... View More

James L. Arrasmith
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answered on Feb 21, 2024

Under California law, false advertising is prohibited under the state's Business and Professions Code, particularly under Section 17500. This law prohibits any untrue or misleading statements made in connection with the sale or advertisement of goods or services. If the video game developer... View More

2 Answers | Asked in Business Law, Contracts and Consumer Law for California on
Q: Can a company force you into a contract you have not signed in California?

I purchased a car from car max, i was approved for a joint loan. Then later it was retracted and they said i had to do a re-buy re-purchase. I did that and was approved for a second loan solo. a document was missed in signing. and submitted as soon as I received it twice. Months later i never got... View More

James L. Arrasmith
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answered on Feb 21, 2024

No, a company cannot force you into a contract you have not signed in California. Some key points here:

- For a contract to be legally binding, it requires mutual agreement between parties typically indicated by signatures. If you have not signed any new agreements with CarMax, you are...
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1 Answer | Asked in Business Law for California on
Q: Can parents make their kids work for their business for free in California?
James L. Arrasmith
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answered on Feb 21, 2024

Under California law, parents are generally not permitted to compel their children to work for their business without appropriate compensation. The state's labor laws mandate that minors must be paid at least the minimum wage for their work, and they are entitled to the same protections and... View More

1 Answer | Asked in Real Estate Law, Business Law and Gov & Administrative Law for California on
Q: Does the family court in California have the authority to rule on civil business and professional code violations?

I am seeking treble damages along with real estate and cal business & professional code violation damages stemming from a real estate purchase with my former partner soon to be ex wife on a property purchased after the date of separation where she breached our contract and she was the licensed... View More

James L. Arrasmith
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answered on Feb 20, 2024

In California, family courts primarily handle cases related to divorce, child custody, spousal support, and similar family law matters. While they have broad jurisdiction over issues arising out of marital relationships, including the division of marital property, family courts do not typically... View More

2 Answers | Asked in Business Law, Contracts and Gov & Administrative Law for California on
Q: Do I need a license to be a lessor of a vehicle in California?

I would like to use my LLC to purchase a vehicle, then lease that vehicle out to a company I am a shareholder of for its' business use. Does the LLC need a special license to do this?

T. Augustus Claus
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answered on Feb 6, 2024

Generally, if your LLC is engaging in vehicle leasing as a business activity—especially if it plans to lease multiple vehicles or engage in leasing as a regular part of its business operations—it may be subject to regulatory requirements, including obtaining a specific license.... View More

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2 Answers | Asked in Business Law, Contracts and Gov & Administrative Law for California on
Q: Do I need a license to be a lessor of a vehicle in California?

I would like to use my LLC to purchase a vehicle, then lease that vehicle out to a company I am a shareholder of for its' business use. Does the LLC need a special license to do this?

James L. Arrasmith
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answered on Feb 22, 2024

In California, leasing vehicles as a business activity, including by an LLC to another company, generally requires compliance with specific regulatory requirements. If your LLC plans to engage in the business of leasing vehicles, it may be subject to licensing requirements under the California... View More

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3 Answers | Asked in Employment Law and Business Law for California on
Q: I am IT consultant for my company and my client never set an SOW despite me asking for it. they think I inflated hours

I have excellent reviews from them for my work but now they are questioning my hours. I have sent back detailed descriptions of the hours but still concerned. They never was clear on hour caps it was vague and I just was doing my job

Neil Pedersen
Neil Pedersen
answered on Feb 5, 2024

This is the kind of issue that does not have a legal solution. You are going to have to resolve it through negotiation and diplomacy. The employer has the right to terminate your involvement at will unless you have an agreement to the contrary about that status. If the employer believes your... View More

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3 Answers | Asked in Employment Law and Business Law for California on
Q: I am IT consultant for my company and my client never set an SOW despite me asking for it. they think I inflated hours

I have excellent reviews from them for my work but now they are questioning my hours. I have sent back detailed descriptions of the hours but still concerned. They never was clear on hour caps it was vague and I just was doing my job

Tim Akpinar
Tim Akpinar
answered on Feb 14, 2024

It could be difficult to change what your client thinks, as you continue to work with them about your efforts. The situation you describe can arise on any project-based assignment. For future assignments, some things to consider are different arrangements that provide more control over services... View More

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3 Answers | Asked in Employment Law and Business Law for California on
Q: I am IT consultant for my company and my client never set an SOW despite me asking for it. they think I inflated hours

I have excellent reviews from them for my work but now they are questioning my hours. I have sent back detailed descriptions of the hours but still concerned. They never was clear on hour caps it was vague and I just was doing my job

James L. Arrasmith
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answered on Feb 5, 2024

In California, even without a formal Statement of Work (SOW), there may still be an implied contract between you and your client based on your actions and communications. If you have a history of providing services and receiving compensation, it could establish the terms of your agreement,... View More

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1 Answer | Asked in Consumer Law, Contracts and Business Law for California on
Q: Car auction house doesn't have all the all the paper work I need.

I bought a car at a public aution house. The car had some dmv fees. I took the papers back to the auction house and they said they will take care of it. They transferred the car title to out of state to another dealer in order to remove the CA dmv fees. Then they gave me a temporary registration.... View More

James L. Arrasmith
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answered on Feb 3, 2024

In California, when purchasing a car from an auction house, it's crucial that all necessary paperwork, including the bill of sale and title transfer documents, are in order for proper registration with the DMV. If the auction house has transferred the title to an out-of-state dealer to... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: Will a parent LLC in NM for a subsidiary in CA need to register as a foreign entity CA if I live in CA doing eCommerce

If a California subsidiary is registered by a parent company in New Mexico and conducts business within California, does the parent company, based in New Mexico, also qualify as 'doing business in California'? Consequently, would it be necessary for the New Mexico parent company to... View More

James L. Arrasmith
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answered on Feb 1, 2024

In California, if your New Mexico parent company has a subsidiary that conducts business within the state, it may trigger the requirement to register as a foreign entity in California. Even if you operate the subsidiary primarily for eCommerce and live in California, the fact that your parent... View More

1 Answer | Asked in Business Law, Mergers & Acquisitions, Civil Litigation and Securities Law for California on
Q: I run a business in Los Angeles and received a Wells Notice after testifying, without an attorney.

hvm

James L. Arrasmith
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answered on Jan 30, 2024

Receiving a Wells Notice in Los Angeles indicates that the Securities and Exchange Commission (SEC) is considering enforcement action against you or your business. This notice is a serious matter and typically precedes formal charges. It gives you the opportunity to present your side of the story... View More

2 Answers | Asked in Business Law, Construction Law and Small Claims for California on
Q: Do I have any recourse for getting back money I paid to an unlicensed CA contractor who I fired for poor quality work?

I hired an unlicensed "contractor" on the recommendation of family members to do a bath and kitchen remodel. After paying him more than $10,000, I fired him because of the poor quality of the work he did on the bathroom remodel and the kitchen planning. The bathroom has to be completely... View More

Dan Rowan Cortright
Dan Rowan Cortright
answered on Jan 29, 2024

In addition to what Mr. Arrasmith said, there are specific statutes in CA that provide remedies and civil penalties for those who have hired unlicensed contractors. These state that you are permitted to recover all money you paid to the unlicensed contractor regardless of whether you knew they... View More

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