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1 Answer | Asked in Business Law for California on
Q: Is it against California Corporate Code for nonprofit corporations to approve deficit budgets?

How can a nonprofit corporation operate on a deficit budget where they spend more funds than they take in? We have a reserve fund for maintaining our major assets over time. Our bylaws say that any loan from the reserve fund must be repaid within one year. That didn’t happen last year and it... Read more »

James L. Arrasmith
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answered on May 26, 2023

Nonprofit corporations in California are generally allowed to approve deficit budgets. However, operating on a deficit budget should be carefully considered for the financial stability of the organization. It is important to monitor the situation and explore strategies such as fundraising or... Read more »

2 Answers | Asked in Business Law and Civil Litigation for Michigan on
Q: I am in a partnership dispute. I am a member of a 50/50 partnership. We both agree to dissolve the company.

Are there any case law for me to ask for a non-compete or moratorium for both of us not to be able to use the existing customers of the business for a certain amount of time?

David Soble
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David Soble
answered on May 26, 2023

Good question. These items that you wish to have, such as a non-compete or a non-circumvention agreement, are documents that should really be agreed to up front at the time you and your partner did your initial business deal - so PRIOR to the actual dissolution of a company and not during a... Read more »

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1 Answer | Asked in Business Formation, Business Law and Real Estate Law for Maryland on
Q: I am a new real estate agent serving Maryland. Is the use of the word “Realty” prohibited in my business name?

I am a new real estate agent. Got my license back in March 2022 but am just now actively pursuing real estate. Currently a solo agent at Samson Properties serving Maryland only but would like to get licensed in DC and VA as well.

As advised I’ve created an LLC (Carla Clemente Realty)... Read more »

Thomas C. Valkenet
Thomas C. Valkenet
answered on May 26, 2023

Welcome to the Club! I am also a licensed Maryland Broker, and our Law Firm owns a separate brokerage.

You may use the word "Realty" in your entity name. Review the ethics rules of your local, State and National associations for how you may portray yourself. For instance, you mut...
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1 Answer | Asked in Business Law, Employment Law, Civil Rights and Criminal Law for Indiana on
Q: Employer wants me to secretly record customers in their homes for sales pitches in Indiana. Is that legal?
Maurice Mandel II
Maurice Mandel II
answered on May 24, 2023

Wiretap laws are different in each state. This could be a criminal violation. Something just doesn't sound right when the employer says to "secretly" tape record your customers in their own homes. The customers have a right to privacy and this would appear to violate that. If it... Read more »

1 Answer | Asked in Employment Law and Business Law for Pennsylvania on
Q: Does my employer owe me money for time spent working?

I am a DJ. The company for which I work has establishments set up regular weekly gigs with them, to which I get assigned. Each week, I prep the materials out of my own pocket, drive to the establishment on my own dime, and work the gig each Wednesday. When the gig occurs normally, I am... Read more »

Maurice Mandel II
Maurice Mandel II
answered on May 23, 2023

In California; "―Hours worked‖ means the time during which an employee is subject to the control of an employer, and includes all the time the employee is suffered or permitted to work, whether or not required to do so." Under Federal law: "“Employ” includes to suffer or... Read more »

1 Answer | Asked in Business Law and Health Care Law for West Virginia on
Q: Doctors office is trying to enforce a 3 strike policy with missing appointments

Doctors office is trying to enforce a 3 strike policy with missing appointments where you will not be allowed to speak treatment there. Just tried to reschedule my appointment because after driving around for 20 minutes in 3 different parking lots including a garage there were not spots a... Read more »

Matthew Stapleton
Matthew Stapleton
answered on May 23, 2023

Physicians have the right to end the Patient Physician relationship. The only time there me be a legal issue is for patient abandonment where a patient must prove that the physician ended the relationship at a critical stage in the patient’s treatment without good reason or sufficient notice to... Read more »

2 Answers | Asked in Employment Law and Business Law for Utah on
Q: Is it legal for employer to ask for my lease agreement? They'll only pay relocation once they get a copy of signed lease

Employer gave us the option of "quit or relocate" and the relocation package offer has a term stating they'll only pay for relocation expenses (minus taxes) 30 days after they receive a copy of the signed lease. I'm located in UT. Company is in CA.

Maurice Mandel II
Maurice Mandel II
answered on May 23, 2023

You don't really get "pay" for relocating, it could be a job benefit to receive expenses for relocation. It would not be proper for any employer, CA or UT to withhold your wages for failing to provide proof of a lease agreement. Wages are earned for work performed, not relocation.... Read more »

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2 Answers | Asked in Business Law and Civil Litigation for California on
Q: A former business partner put our checking account in 12k of debt and will not return my attempts at contacting him.

I started a business with a friend, with no contracts between us. I stopped doing business with him, but there was a debt on a CC I opened for the business that he put on there without my approval and was slowly paying it off using the joint business checking that he continued to use for the... Read more »

Robert Kane
Robert Kane
answered on May 22, 2023

It appears you have a general partnership. "A California GP must have two or more persons engaged in a business for profit. Except as otherwise provided by law, all partners are liable jointly and severally for all obligations of the partnership unless agreed by the claimant. Profits are taxed... Read more »

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1 Answer | Asked in Business Formation, Business Law and Gaming for Minnesota on
Q: I'm beginning the process of making a game on my own to be released digitally. I'm in Minnesota. Do I need a business?

I have concerns over what degree of personal ownership I would have over a company and if it would effect how flexible i can be, I don't know how taxes would work if I successfully sold the product as myself vs a business. I am also concerned there could be liability risk without one, being... Read more »

Robert Kane
Robert Kane
answered on May 22, 2023

Properly forming and maintaining a business entity has great advantages. Protecting your personal assets is one. It's hard to determine your current situation. Is this a solo endeavor or are others involved? Will funding from other sources be needed to market the game? What exactly do you mean... Read more »

2 Answers | Asked in Business Law, Criminal Law, Intellectual Property and Trademark for California on
Q: I am trying to sell fake AirPods on eBay. I say that they are not from Apple. What is legal consequence?
James L. Arrasmith
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answered on May 22, 2023

Engaging in the sale of counterfeit or fake products, such as claiming to sell fake AirPods that are not from Apple, can have severe legal consequences. Selling counterfeit items is generally considered trademark infringement and can result in civil lawsuits and potentially criminal charges. It is... Read more »

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1 Answer | Asked in Contracts, Business Law and Civil Litigation for Massachusetts on
Q: Can a buyer dispute a nonrefundable deposit on an online contract for mentorship if the contract had already been signed

Do contract cancellation forms apply to online nonrefundable services? If the buyer had attempted to resolve the issue with the service provider to no avail within one day of purchasing it, do they still have the right to dispute the charges and are viable for refund? Is there at all any way within... Read more »

William J. Amann
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answered on May 20, 2023

In Massachusetts, there are a myriad of regulations which can pertain to specific types of contracts and cancellations. For example, Uniform Commercial Code governed contracts would likely fall under the definitions of "contract", "contract for sale" and... Read more »

3 Answers | Asked in Contracts, Employment Law and Business Law for California on
Q: I received a cease and desist letter from my previous employer and I am wondering what I should do in regards to it?

I’m wondering if I need to respond or if I just leave it alone. When I resigned from my position my previous employer responded with retaliation and harassment. Now I’m receiving a letter. I’m not sure what to do.

John Michael Frick
John Michael Frick
answered on May 18, 2023

It depends on what they are asking you to cease and desist from doing.

If your former employer is asking you to cease and desist from using its trademarks, trade secrets, patents, copyrighted information, etc., you might consider consulting an attorney to help you determine if you are...
Read more »

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3 Answers | Asked in Contracts, Employment Law and Business Law for California on
Q: I received a cease and desist letter from my previous employer and I am wondering what I should do in regards to it?

I’m wondering if I need to respond or if I just leave it alone. When I resigned from my position my previous employer responded with retaliation and harassment. Now I’m receiving a letter. I’m not sure what to do.

David H. Relkin
David H. Relkin
answered on May 18, 2023

As hard as it may sound, ignoring the letter is the wrong decision. I am not saying that you need to shoot off a letter to the author. I am saying never disregard such a letter. It must be analyzed. What is the motive, what are your risks? You have not provided the substance of the letter, but it... Read more »

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1 Answer | Asked in Copyright, Business Law, Education Law and Intellectual Property for California on
Q: What options are there to publish a translation of a book/material for which the author is unknown?

For example, material/manuscripts from obscure/ancient origins and unknown copyright.

Is it legally permissible to publish a translation of such works and state that the author is unknown?

James L. Arrasmith
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answered on May 16, 2023

Copyright Considerations: Copyright laws protect the rights of authors and creators of original works. However, if the author of a work is genuinely unknown, determining the copyright status can be challenging. Copyright protection typically lasts for a specific duration after the author's... Read more »

1 Answer | Asked in Real Estate Law and Business Law for Florida on
Q: Can they ask me for more money when by my account, I’ve paid up everything I’ve owed and I’m up to date?

In a letter dated March 31, 2023, I was informed by the Head of Accounts Receivables that I owed $789.99 to the Association. The letter states, “must be paid within 30 days of the date of this letter. "

On April 29th, 2023 I sent the full $789.99 within the 30 days of the date of the... Read more »

Barbara Billiot Stage
Barbara Billiot Stage
answered on May 16, 2023

Technically you missed the 30 day deadline if the payment was not received by April 30th. Without knowing how much your dues are and what the frequency is for payments, it is impossible to give you a definitive answer if this amount being demanded is an overcharge. Legally, the management company... Read more »

1 Answer | Asked in Personal Injury, Products Liability and Business Law for Michigan on
Q: Videographer creating ads for another company's safety product?

I am a videographer and run my own videography company. If I promote a safety product (film ads and take photos) for another company's product to be released on their social media, and that safety product ends up not being what is stated unbeknownst to me and it ends up failing and hurting... Read more »

Tim Akpinar
Tim Akpinar
answered on May 14, 2023

A Michigan attorney could advise best, but your question remains open for two weeks. In a setting like this, there are no guarantees as to who a potential plaintiff would name in a lawsuit. If someone is merely inserting a script that the client provided without knowledge, that would probably be... Read more »

1 Answer | Asked in Contracts, Copyright, Business Formation and Business Law for California on
Q: Hello, I'm looking to start an adult entertainment buisness/ studio.

Hello,

I'm looking to start the above buisness and want to know;

1. How to start it and run it in CA.

2. How to make a consent contract for it.

James L. Arrasmith
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answered on May 11, 2023

Here are some general points to consider:

Business Formation and Licensing:

a. Choose a business structure: Determine the most suitable legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation. Consult with an attorney or business advisor to...
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3 Answers | Asked in Contracts, Banking, Business Law and Civil Litigation for California on
Q: I am the controller for a company being sued for 1.5 million by a bank. Am i considered does1-100? Do i need attorney
James L. Arrasmith
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answered on May 11, 2023

As the controller for a company being sued for 1.5 million by a bank, it is advisable to consult with an attorney to understand your specific role and potential liabilities in the lawsuit.

Regarding the "Does 1-100" designation, it is a common placeholder used in lawsuits when...
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2 Answers | Asked in Immigration Law and Business Law for California on
Q: How can I start a LLC with OPT as a foreigner? Will there be any risk?

I'm graduating with OPT majoring in game programming. I want to make indie games with my friends, so we plan to start an LLC. And use it as our OPT for the first year. Will there be any risks? Are there any tips for the whole process?

Carl Shusterman
Carl Shusterman
answered on May 11, 2023

As an F-1 student with OPT work authorization (work permit), you can get your company up and running and be self-employed as long as you’re putting your degree to work. You must also work full time and have all the proper business licenses that your state requires.

You don’t have to...
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2 Answers | Asked in Immigration Law and Business Law for California on
Q: How can I start a LLC with OPT as a foreigner? Will there be any risk?

I'm graduating with OPT majoring in game programming. I want to make indie games with my friends, so we plan to start an LLC. And use it as our OPT for the first year. Will there be any risks? Are there any tips for the whole process?

James L. Arrasmith
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answered on May 11, 2023

As a foreigner graduating with Optional Practical Training (OPT) and planning to start an LLC for developing indie games with your friends, it is important to understand the process and potential risks involved.

Here are some key considerations:

Eligibility for OPT: Ensure that you...
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