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California Business Law Questions & Answers
1 Answer | Asked in Business Law for California on
Q: Is it illegal for my employer to not fix our credit card reader which is preventing us from getting tips?

For the past month we’ve been forced to manually enter all cards and now customers cannot leave us credit card tips as we are manually entering the cards.

James L. Arrasmith
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answered on Jul 22, 2024

Under California law, your employer is required to provide you with the tools and equipment necessary to perform your job effectively. If the credit card reader is broken and not being fixed, it could be considered a failure to provide adequate tools for your job. This situation impacts your... View More

1 Answer | Asked in Contracts, Criminal Law, Business Law and Landlord - Tenant for California on
Q: Can storage unit owner take my property without any notice?

I am renting a storage unit. It is one of 4 units in a secluded area i.e, not typical franchise self storage. Contract states it is only for storage. It also states items are not to be stored outside unit. Also states mediation before legal claims. I did leave things outside of the unit. The... View More

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answered on Jul 21, 2024

The storage unit owner should not take your property without proper notice, even if the contract states no items should be stored outside the unit. The manager’s voicemail was an informal warning, but it does not constitute legal notice for disposing of your property. You may argue that removing... View More

1 Answer | Asked in Business Law and Employment Law for California on
Q: Running a business and working as an employee with the same employer ?

I work at a school as a teacher and want to start a side business of after school activities. I want to start these activities at the same school I am working at as an outside vendor. When I checked with the employer they said that they can’t do that since they can’t give a W2 and 1099 to the... View More

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answered on Jul 20, 2024

You can indeed explore running an after-school activities business at the same school where you work, but it's crucial to address the legal and contractual aspects. As your employer mentioned, they cannot issue both a W-2 and a 1099 to the same person due to tax regulations. However, your... View More

1 Answer | Asked in Bankruptcy, Business Law and Civil Litigation for California on
Q: Someone was buying my business. They owed me $85,000. Did bankruptcy. Why do they get to keep my business and make money

It seems to me that if you possess any asset without paying for it that is theft. Why were they allowed to keep the business and make money at it.? It is not their only source of income. Besides, it is not their business. If you are buying a car and fail to pay for it, it get repossessed. Why do... View More

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answered on Jul 18, 2024

It sounds like you're facing a frustrating situation. In bankruptcy proceedings, assets and debts are handled according to specific laws. When someone files for bankruptcy, their debts can be discharged, meaning they are no longer legally required to pay them. However, this doesn't... View More

1 Answer | Asked in Contracts, Workers' Compensation, Business Law and Collections for California on
Q: State Fund claims that we have misclassified our "Clerks" and suing us to pay for additional premiums.

Statefund audited us end of 2023 year and say our office Clerks are not Clerks... suddenly owing them $56000 for the past year premium. we've negotiated many times with the auditor he brought it down to $45000 and then sent it to collection. Now the collection company is suing us for $45000.... View More

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answered on Jul 18, 2024

Under California law, disputes with insurance auditors and collection agencies can be complex but manageable with the right approach. Your situation involves a challenge over the classification of your clerical staff and the resulting premium adjustments claimed by State Fund. When facing such... View More

3 Answers | Asked in Family Law, Business Law, Business Formation and Divorce for California on
Q: Can my stepmom take part of my business if my dad leaves her and is the one that pulled out the loan to help me fund it?

In short…. My dad being more creditworthy…. Is going to pull out a loan to help me start a business. My stepmom served him with divorce papers and I’m wondering if she would be able to take part of the business as part of their divorce settlement. And what our best course of action would be.

Robert Kane
Robert Kane
answered on Jul 13, 2024

It seems unlikely that your stepmom can take part of your business if my dad leaves her and is the one that pulled out the loan to help me fund it,

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2 Answers | Asked in Consumer Law, Contracts and Business Law for California on
Q: What recourse or action can be taken by a renter of a storage unit when the property owner is in breach of contract
Delaram Keshvarian
Delaram Keshvarian
answered on Jul 13, 2024

Thank you for your question!

The tenant can bring damages lawsuit against the landlord for Beach of contract or other violations of tenants' rights.

This is merely a discussion of general laws and not legal advice. For legal advice, more specific facts and investigations are...
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1 Answer | Asked in Business Law and Consumer Law for California on
Q: Can a company I owe money to, charge me different smaller amounts instead of the amount thats owed till my credit card g

After help with a uhaul for my folks I found they racked up an extra 270. They kept charging my card but it wouldn't go through many times. I called them n let them know I'll set up a payment plan. Then instead of charging my card randomly for 270 they started charging my card for 250,... View More

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answered on Jul 18, 2024

Under California law, a company you owe money to can charge your credit card for smaller amounts instead of the full amount owed, but this practice raises ethical concerns. If you have set up a payment plan with the company, they should follow the agreed terms rather than charging your card in... View More

2 Answers | Asked in Estate Planning, Business Law, Civil Litigation and Collections for California on
Q: Working at My shop the police dept showed up and said I was trespassing and had to leave.

CPD said if I come back they'll arrest me for trespassing. Since then they have sold all my tools, equipment, supplies along with all of my customers furniture I was working on. Can I use the city because it should be a civil matter ?

Robert Kane
Robert Kane
answered on Jul 8, 2024

Yes, you can file a claim the city and then sue the city. Whether you have a viable case will depend all the facts and the law.

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1 Answer | Asked in Business Law for California on
Q: I am trying to determine if the actions of my business partner can have her removed from the partnership?

Are any of these considered breach of fiduciary duty/grounds for removal from a 50/50 general partnership with no written agreement? 1) Purchasing prescription drugs illegally and failing a drug test for a client (we work with rehabs). 2) Using business funds to pay personal taxes after... View More

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answered on Jul 18, 2024

Under California law, a general partnership is governed by the Uniform Partnership Act, even if there is no written agreement. A partner's actions can constitute grounds for removal if they breach their fiduciary duty to the partnership.

Purchasing prescription drugs illegally and...
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3 Answers | Asked in Business Formation, Business Law, Civil Litigation and Land Use & Zoning for California on
Q: Corporate building and parking lot is private own. We are having a charity event can the city charge a fee for permit?

My work is having a charity event and the city is saying they want to charge the company a fee for traffic flow and for the parking lot being blocked off for car show. But the building and parking lot is private own by corporate. Can the city charge for having an event on the business private... View More

Robert Kane
Robert Kane
answered on Jul 4, 2024

Yes, the city can charge for having an event on the business private property. A car show is well beyond the normal usage for which the property was zoned for.

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1 Answer | Asked in Business Law for California on
Q: Can I sell my LLC's assets without written approval from the rest of the Shareholders? I have 31% with no Op Agreement.

I have 31% equity and currently the CFO. There is no Operating Agreement. I need to raise capital for attorney fees for a possible lawsuit.

James L. Arrasmith
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answered on Jul 1, 2024

Based on the information provided, I can offer some general guidance, but please note that this is a complex situation that would benefit from consultation with a qualified business attorney familiar with California LLC law. Here's an overview of key points to consider:

1. Absence of...
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1 Answer | Asked in Employment Law, Public Benefits and Business Law for California on
Q: I have a question about about an EDD claim back in 2020. I am self employed and may have incorrectly filed the claim.

Back in 2020. I filed an unemployed claim but wasn't sure I was eligible since I was self employed and have my own S-Corp. I filled out the forms retroactively. I inadvertently told EDD that no income was received by me for those 2 retroactive months. After I hit submit, I realized that I was... View More

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answered on Jul 1, 2024

This is a complex situation that involves unemployment insurance claims, self-employment, and potential errors in reporting. Here's a breakdown of the key points and some general advice:

1. Potential incorrect filing: You filed an unemployment claim in 2020 as a self-employed...
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1 Answer | Asked in Business Formation and Business Law for California on
Q: Do I need to file a Foriegn LLC in California if I register my startup in Delaware ?

I am just thinking of starting my own company and currently living in California State. As most tech statups are registered in Delware, I was planning to register in Delaware. But since I live in California do I need to register it in california as well ? I will be the only person working for now.... View More

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answered on Jun 30, 2024

To answer this question concisely:

Yes, if you're living and operating your business in California, you'll likely need to register your Delaware LLC as a foreign LLC in California, even if you're the only person working and have no sales or revenue yet.

Key points:...
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1 Answer | Asked in Business Law, Civil Litigation, Contracts and Landlord - Tenant for California on
Q: ABC revoked my evicted tenants license to sell indefinitely. Tenants transfers license to a person who doesn’t lease.

All of this was done with out my consent they were open and selling illegally this weekend. Sheriff refused to help me. Rent past due since May 2024.

James L. Arrasmith
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answered on Jun 30, 2024

I understand you're dealing with a complex legal situation involving evicted tenants, licensing issues, and overdue rent. Let me break down the key points and provide some general guidance.

1. Eviction status: You mention "evicted tenants," but it's not clear if the...
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1 Answer | Asked in Business Law for California on
Q: How to get preferred class of shares canceled since they are going to be converted in common stock for a California Co

California C Corporation.

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answered on Jun 29, 2024

To address your question about canceling preferred shares that are set to be converted to common stock in a California C Corporation, here's a concise overview of the process:

1. Review Corporate Documents:

- Check the articles of incorporation and bylaws for procedures on...
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1 Answer | Asked in Contracts, Business Law and Construction Law for California on
Q: Can I do a job under my employees contractors licenses

I have a small repair shop. I have a job that is needing be done outside of my repair shop. The contractors license is necessary for the dollar amount. My employee is a licensed contractor but is working for me under my Workmen’s Comp.. Can I do the job under her contractors license, if she is... View More

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answered on Jun 27, 2024

1. Generally, a contractor's license is not transferable. You cannot simply "use" your employee's license for your business operations.

2. In California, the person or entity performing contracting work must hold the appropriate license. If your business is performing...
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1 Answer | Asked in Employment Law, Business Law and Entertainment / Sports for California on
Q: Can an entertainment company fire its entire staff and rehire everyone to do their exact jobs as freelancers?

Company is planning on laying off its entire staff (sales, creative development, VFX, post production, accounting, and beyond) and rehiring everyone as freelancers for less pay and without benefits. Is this legal?

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answered on Jun 24, 2024

Hi! I can offer some general information about this situation:

1. At-will employment: In most states, including California, employment is generally "at-will," meaning employers can terminate employees for any reason that isn't illegal (such as discrimination or retaliation)....
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1 Answer | Asked in Business Law and Contracts for California on
Q: Due to disagreement on number of stock options granted to me per the original contract, I didn't end up exercising my

0

Due to disagreement on number of stock options granted to me per the original contract, I didn't end up exercising my options within 90 day period and now they are saying those are all expired.I have emails regarding discussion on number of the shares and my disagreement during 90... View More

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answered on Jun 25, 2024

Under California law, contract disputes can potentially toll, or pause, the expiration period of stock options, but this is not automatic. The key factor is whether the dispute can be proven to have prevented you from exercising the options within the designated period. If you have documented... View More

1 Answer | Asked in Business Law for California on
Q: Clarification On Brokering Requirements

I wish to broker the sale of sugar between a supplier and a buyer. I was told that I don't require a license since I'm not supplying or transporting, only speaking and negotiating with the supplier and buyer. I did some further research and found some claiming I need to register with the... View More

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answered on Jun 23, 2024

To answer this question, let's break down the different aspects and clarify the requirements for brokering the sale of sugar:

1. General brokering:

For simple brokering activities where you're acting as an intermediary between a supplier and buyer of physical goods (in...
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