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Texas Business Law Questions & Answers
1 Answer | Asked in Arbitration / Mediation Law, Business Formation, Business Law and Contracts for Texas on
Q: Hello, Is my sister entitled to all money from a failed joint business venture?

My sister started a business w/her sister but couple months later got upset because it became overwhelming for her, requested to be released from the business, &wants all her money bk.

Tim Akpinar
Tim Akpinar
answered on Mar 19, 2024

A Texas attorney could advise best, but your question remains open for three weeks. It could depend on the terms of the business venture (agreements between the parties) and their conduct. This is a fact-intensive matter. There is no universal cookie-cutter answer. An attorney would need to see how... View More

2 Answers | Asked in Contracts, Business Law, Civil Litigation and Collections for Texas on
Q: I just got served in a civil action lawsuit against a company I'm an independent contractor for, and have no ownership

The Civil Action Lawsuite is against Fresh Central Trading LLC., it names its President and Owner A.G., and also then names me. When I read the documents it states that I'm an owner and officer of the company and I'm just an independent contractor from Canada who is here on a TN Visa... View More

John Michael Frick
John Michael Frick
answered on Mar 19, 2024

If you are named as a party in the lawsuit, you have less than three weeks from when you were served to hire an attorney to file an answer on your behalf to the lawsuit. (In Texas state court, your answer must be filed no later than the first Monday following the expiration of twenty days from the... View More

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1 Answer | Asked in Business Law, Collections and Construction Law for Texas on
Q: Is a Texas City entity required to act as surety for sub-contractors on projects under $50,000 with no Bond in place?

City of Princeton, TX awarded a contract for $49,720 (no bond required) to their vendor. The vendor hired my company to do the whole wireless project for $45,500. We completed the project and provided all the hardware. The city paid the vendor, the vendor has refused to pay us. The city claims they... View More

John Michael Frick
John Michael Frick
answered on Mar 14, 2024

No, a city is not required to act as surety for subcontractors. You have a valid cause of action for breach of contract against the person or entity you contracted with.

There are numerous things that could be in that subcontract to protect you from that person being paid by the City and...
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1 Answer | Asked in Contracts, Copyright, Business Law and Employment Law for Texas on
Q: Do I have legal rights to photos and videos taken while working at a company?

For two years I worked at a dog training company. During this time I took photos and videos of the dogs and training for my personal social media, the companies, and for owner updates. When a past employee left the company she was told she wasn’t allowed to keep the images posted to her social... View More

James L. Arrasmith
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answered on Mar 2, 2024

When you create content such as photos and videos while working for a company, the ownership of that content often depends on the terms of your employment and any agreements you might have signed. In the absence of a specific contract regarding media rights, the situation can become complex.... View More

1 Answer | Asked in Consumer Law, Real Estate Law, Business Law and Civil Rights for Texas on
Q: If I paid for a package for real estate licensing but got sick with a chronic illness can I get a refund?

I purchased a real estate package course however I got diagnosed with a chronic illness and was not able to attend school. I do have documents some are from my attorneys who are helping me file a disability claim or an SSDI claim. I guess my question would be is it right practice for them to... View More

James L. Arrasmith
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answered on Feb 24, 2024

While it ultimately depends on the policies of the institution or company from which you purchased the real estate licensing package, many organizations have provisions for refunds or accommodations in cases of unforeseen circumstances such as illness or disability. Providing documentation of your... View More

1 Answer | Asked in Business Law and Communications Law for Texas on
Q: Verbal agreement

If my father and I have been working to purchase a business and don't have a written contract but there are communications between us in email and text. Now we don't see eye to eye can I remove him from continuing to pursue the business while I continue on to purchase it without him?... View More

John Michael Frick
John Michael Frick
answered on Feb 21, 2024

It depends on whether you and your father have an actual verbal agreement or have just been "working to purchase" the business and whether your father has incurred any costs in reliance on any promises you have made.

To determine your best strategy to disengage with your father,...
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1 Answer | Asked in Contracts and Business Law for Texas on
Q: I am a Pro se filer. I have filed everything thru responding to Defendants answers. Is the next step going to trial?

I have filed a civil suit against my 3 former business partners for 18 counts of violating our Articles of Incorporation and 8 counts of Member Oppression. I had invested my money, not getting paid until we were cash-flow positive, one partner hired 2 of his friends, paid them from day 1 when I was... View More

John Michael Frick
John Michael Frick
answered on Feb 8, 2024

After the first Defendant's answer is filed, you must make your mandatory disclosures under Rule 194 within thirty days. Then, the discovery period begins and lasts nine months during which any party may take depositions, serve written requests for admissions, requests for production, and/or... View More

1 Answer | Asked in Contracts, Arbitration / Mediation Law, Business Law and Small Claims for Texas on
Q: Late fee and unpaid sales commissions

Hi. As a freelancer in TX, client in AZ was chronically late needing numerous reminders for every invoice(12mo consecutively - except for the first)

For one invoice I added a 10%/mo late fee. Client eventually paid the invoice late, yet now months later he is ignoring the late fee. By... View More

John Michael Frick
John Michael Frick
answered on Feb 6, 2024

The act of paying the principle amount of an invoice, but not the late fee, when you unilaterally added a late fee to the invoice without the client's agreement does not create a contract pursuant to which the client agreed to pay a 10% late fee. Under the Texas Finance Code, an unpaid amount... View More

2 Answers | Asked in Business Formation, Business Law and Tax Law for Texas on
Q: Would I need to register another DBA if the base name of the business is the same?

For example, "Green Horn Retail" and "Green Horn Warehouse" or "Green Horn Retail Warehouse"

James L. Arrasmith
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answered on Feb 4, 2024

In Texas, the need to register a separate Doing Business As (DBA) for variations of your business name depends on how you intend to operate these entities. If "Green Horn Retail" and "Green Horn Warehouse" or "Green Horn Retail Warehouse" are operating as distinct... View More

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2 Answers | Asked in Business Formation, Business Law and Tax Law for Texas on
Q: Would I need to register another DBA if the base name of the business is the same?

For example, "Green Horn Retail" and "Green Horn Warehouse" or "Green Horn Retail Warehouse"

T. Augustus Claus
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answered on Feb 1, 2024

In Texas, if you are operating multiple businesses under variations of the same base name, such as "Green Horn Retail" and "Green Horn Warehouse," you may not necessarily need to register each one as a separate Doing Business As (DBA) entity, especially if they are operated as... View More

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1 Answer | Asked in Consumer Law and Business Law for Texas on
Q: I’m a trying to purchase a vehicle from Texas. I live in Iowa. The TX dealership says I HAVE to pay for the Safepoint.

The dealership says it’s the law in TX you are required to have Safepoint. I live in Iowa. They say they already installed it. This is a used 2022 Tahoe. They are also charging me for VIT, which my research says is not my cost. The dealership claims it made a “mistake” in the price and... View More

John Michael Frick
John Michael Frick
answered on Jan 30, 2024

VIT is a property tax assessed on the dealer, not on the purchaser. While a dealer can list VIT reimbursement on a sales contract, it is not required by law to be paid by the purchaser and is a negotiable term of any sales agreement.

Texas law does not require a vehicle to have Safepoint...
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1 Answer | Asked in Divorce, Family Law, Business Law and Collections for Texas on
Q: Per decree indemnity clause am I entitled to be reimbursed legal & receivers fees paid to collect judgement ($200K)?

I was awarded 70% of marital estate. Ex sold the asset (our business) while under standing orders for purported zero dollars even though I was awarded value of $2m. I have paid over $200k to attorneys and receiver to try to collect. Ex has been sent to jail twice for contempt. One receiver even... View More

John Michael Frick
John Michael Frick
answered on Jan 26, 2024

Attorney fees are typically recoverable in a suit to enforce an indemnity obligation just as they are in any other suit on a written or oral contractor.

A receiver's fee is typically paid from the money recovered by the receiver "off the top." Whatever proceeds remain and...
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1 Answer | Asked in Contracts and Business Law for Texas on
Q: Is there a difference between a Letter of Intent and a Purchase Agreement?

Can a Letter of Intent be used as a Purchase Agreement?

John Michael Frick
John Michael Frick
answered on Jan 24, 2024

A letter of intent is customarily a non-binding instrument outlining the major terms of a contemplated transaction.

A purchase agreement is customarily a binding contract containing a complete and detailed agreement as to all aspects of a transaction.

It would be difficult to...
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1 Answer | Asked in Business Law for Texas on
Q: I fired my lawyer in early November. he recently filed for a motion to remove counsel. I submitted a response. What now?

my response was submitted in with the district county clerk. my response stated the day i fired the attorney. I also submitted email screenshots with my response were the attorney is acknowledging that i fired him.

Simone Nisbett
Simone Nisbett
answered on Jan 16, 2024

If your fired your attorney, it is normal that they would file a motion to withdraw as counsel in turn so that they can make the court and any opposing counsel aware that they are no longer your representative. The next step would be to make sure to communicate with them about the status of any... View More

2 Answers | Asked in Business Law and Health Care Law for Texas on
Q: can I write M.D. after my name as a health book author?

My M.D. degree is from abroad, I did not get license in USA and I do not practice here (I work in biotech).

The book is educating people about medical conditions and healthy lifestyle. I do not present myself as a practicing doctor, but because I have M.D. education and degree, I consider... View More

James L. Arrasmith
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answered on Jan 15, 2024

In the United States, the use of academic titles, such as M.D., is generally permissible as long as it's clear and truthful about one's qualifications and does not mislead the public. Since you earned your M.D. degree, you can include it after your name on the book cover. However,... View More

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2 Answers | Asked in Business Law and Health Care Law for Texas on
Q: can I write M.D. after my name as a health book author?

My M.D. degree is from abroad, I did not get license in USA and I do not practice here (I work in biotech).

The book is educating people about medical conditions and healthy lifestyle. I do not present myself as a practicing doctor, but because I have M.D. education and degree, I consider... View More

John Michael Frick
John Michael Frick
answered on Jan 22, 2024

It depends on the university from which you earned the medical degree.

Texas Penal Code 32.52 makes it illegal to use or claim to hold a postsecondary degree that is a fraudulent or substandard degree to promote a business or obtain a benefit.

Texas Education Code 61.302 defines...
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1 Answer | Asked in Business Law, Intellectual Property, Internet Law and Trademark for Texas on
Q: If I write product review articles online under the persona of a fictional character, how would I disclose that?

I am starting an affiliate marketing website to write product review, comparison, advice-type articles but creating a character which I want to credit the articles to instead of using my own name and likeness. I am trying to find out how to do this without misleading my readers but I don’t want... View More

James L. Arrasmith
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answered on Jan 1, 2024

When creating content under a fictional persona for your affiliate marketing website, it's important to maintain transparency without overwhelming your readers with disclaimers. This balance is key to establishing trust while respecting your creative approach.

A subtle yet clear way to...
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1 Answer | Asked in Copyright, Business Law and Intellectual Property for Texas on
Q: How can I use a portion of an Excel screenshot in an educational ebook about Excel?

MIcrosoft copyright guidelines state that portions of screenshots cannot be used. I have a need to show many specific, zoomed in areas of the Excel interface

James L. Arrasmith
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answered on Dec 19, 2023

In the United States, the use of copyrighted material, such as Excel screenshots, for educational purposes may fall under the category of "fair use." However, this is a complex area of law and depends on various factors, including the purpose of use, the nature of the copyrighted work,... View More

2 Answers | Asked in Immigration Law, International Law, Education Law and Business Law for Texas on
Q: Can International Students Open an LLC in the state of texas?

I have a question about establishing an LLC in Texas. Is it possible for international students to form an LLC in the state, considering the restrictions on off-campus work? Specifically, if we hire employees from other countries to perform the work, is this a viable option? Additionally, if... View More

James L. Arrasmith
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answered on Dec 12, 2023

International students in Texas can establish an LLC, but it's important to navigate this carefully due to visa constraints. Your student visa status, typically an F-1, places limitations on off-campus employment. However, owning an LLC doesn't automatically equate to employment.... View More

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2 Answers | Asked in Immigration Law, International Law, Education Law and Business Law for Texas on
Q: Can International Students Open an LLC in the state of texas?

I have a question about establishing an LLC in Texas. Is it possible for international students to form an LLC in the state, considering the restrictions on off-campus work? Specifically, if we hire employees from other countries to perform the work, is this a viable option? Additionally, if... View More

Glendia  Del Evans
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Glendia Del Evans
answered on Dec 20, 2023

First consult a TX business lawyer regarding non-citizens owning an LLC. F-1 student visa will only allow very passive involvement, and you cannot draw a salary or profit from the LLC. There are options through an LLC to petition for it's owner but it depends on the employment-authorized... View More

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