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Arizona Business Law Questions & Answers
3 Answers | Asked in Bankruptcy, Business Formation, Business Law and Contracts for Arizona on
Q: Two small business entanglement debt and liability question.

My employer (E) has two small businesses (A and B) both 100% owned by E. Business A owes business B a significant amount of money for services accumulated throughout the years. However, E wants to protect the assets of A from any happenings relating to B. If B goes bankrupt will the creditors of B... Read more »

Diane L. Drain
Diane L. Drain
answered on Jan 16, 2023

Your "employer" needs to talk with an experienced bankruptcy attorney in order to determine their best course of action. This is not a decision that should be made lightly. Do not rely on a "mass-production" law firm (one that pays for advertising on the Internet or TV).... Read more »

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3 Answers | Asked in Bankruptcy, Business Formation, Business Law and Contracts for Arizona on
Q: Two small business entanglement debt and liability question.

My employer (E) has two small businesses (A and B) both 100% owned by E. Business A owes business B a significant amount of money for services accumulated throughout the years. However, E wants to protect the assets of A from any happenings relating to B. If B goes bankrupt will the creditors of B... Read more »

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Jan 16, 2023

A trustee in bankruptcy "steps into the shoes of the debtor". Consequently, a bankruptcy trustee is entitled to pursue and collect/liquidate any obligations to the debtor.

That's in a Chapter 7 case, where a trustee is automatically appointed.

In a Ch. 11, the debtor...
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1 Answer | Asked in Divorce and Business Law for Arizona on
Q: Husband had a company prior to our marriage but then sold it after 12 years of marriage am I entitled to Money in divorc

Am I entitled to any money from his company during our divorce?

Peter H. Westby
Peter H. Westby
answered on Oct 11, 2022

Assuming you and your husband had no valid prenuptial agreement that would dictate otherwise, you might be entitled to be compensated for an interest in this business. From the information you provided it appears that your husband's business started out as his sole and separate property.... Read more »

1 Answer | Asked in Copyright and Business Law for Arizona on
Q: Are jokes copyrighted? LIke for example Dad jokes can you sell merchandise with a dad or any kind of jokes?
Erik Špila
Erik Špila
answered on Aug 20, 2022

Hello there!

The answer for your question depends on some other things, but in general I would say there are many public domain jokes which can be freely used and are freely used by many people, many products and so on (if the joke slogan is not trademarked for instance).

There is...
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1 Answer | Asked in Business Law and Civil Litigation for Arizona on
Q: Can you sue a survival company for having faulty equipment on the survival watch they sell? The compass is faulty.

The watch is "Pro-4 Tactical Survival Watch". Imported and distributed by: Pro-4 Marketing LLC 32411 Industrial Drive, Madison Heights, MI 48071

John Michael Frick
John Michael Frick
answered on Apr 1, 2023

Yes, but it may be easier to just return the faulty watch for a refund if it is new or for warranty repair service if it has been used but is still in warranty.

Lawsuits can be fairly expensive.

1 Answer | Asked in Business Law, Civil Litigation and Collections for Arizona on
Q: Can I file a motion for an extension of time with the court to find an attorney to comply with AZ Rule 26?

I filed a complaint in Superior court pro se and the defendant acquired an attorney and answered. The attorney has now reached out to move forward with discovery and other protocol but I have had issues acquiring counsel and need more time. Can I at least file a motion for more time so my case is... Read more »

Barry W. Kaufman
Barry W. Kaufman
answered on Mar 3, 2023

Can you? Sure. It's a motion to extend time to respond to discovery. Be forewarned: now that you've filed and the defendant has responded, it may be more difficult to find a lawyer to take your case, or may require a hefty retainer upfront. Good luck.

1 Answer | Asked in Bankruptcy, Business Formation, Business Law and Civil Litigation for Arizona on
Q: Def transferd all assets to LLC aftr judgment, can I gain access to LLC with a Default Judgment of new Complaint?

Won a judgment against defendant. The def had an LLC for their business but never used it in any way. It laid dormant since 2019 until my judgment. The original first year address has been outdated and out of commission. The Arizona Corp Commission has suggested this would be an Invalid LLC address... Read more »

Timothy Denison
Timothy Denison
answered on Jan 16, 2023

No. You would need to try to “pierce the corporate veil.” It is doable but difficult and a new default judgment or complaint would not be effective in so doing.

1 Answer | Asked in Business Law, Tax Law and Employment Law for Arizona on
Q: Have I been misclassified as independent contractor ? I have been running a business for someone for 8 yrs .

I only receive commission & 1099. I am asking for reimbursement for all necessary spending & maintenance costs as I’m out of pocket for all. I have had no time off, no health care , no overtime tho I am solely responsible for the business . I sign all client contracts as rep for... Read more »

Rebecca Hill
Rebecca Hill
answered on Apr 26, 2022

You should call and attorney and request a case evaluation. Whether a 1099 independent contractor is misclassified is a fact specific analysis based on a number of factors.

1 Answer | Asked in Business Law and Landlord - Tenant for Arizona on
Q: Can a land lord lock you out without getting a court order?
Peter H. Westby
Peter H. Westby
answered on Mar 9, 2022

A commercial landlord can lock out a tenant without first obtaining a court order. This option is often specifically reserved in many commercial leases. It is also one of the remedies allowed by ARS 33-361.

1 Answer | Asked in Business Law, Contracts and Real Estate Law for Arizona on
Q: In Arizona can a leasing office give more than one renewal offer raising price each time. I did accept first offer.

The owner changed management companies if that matters.

Peter H. Westby
Peter H. Westby
answered on Dec 22, 2021

This can be done if handled properly by the landlord or his management company. Your documents should be reviewed by an attorney. They may consist of an offer that is binding upon your acceptance. Or they may contain language that provides the proposal is not binding upon the landlord until... Read more »

1 Answer | Asked in Business Law and Intellectual Property for Arizona on
Q: Can I teach martial arts?

So I've been Practicing Taekwondo for 7 years now and had been considering teaching kick boxing on the side for some extra cash, and my Instructor had said that if I tried to teach martial arts outside of the school I could be sued because of copy right, could they possibly do that?

Marcos Garciaacosta
Marcos Garciaacosta
answered on Sep 12, 2021

You should consult with an attorney

But as long as you are not taking content, printed or recorded, from somebody else, and as long as you are not violating any employment or NDA, you can be ok

1 Answer | Asked in Copyright, Business Law, Intellectual Property and Internet Law for Arizona on
Q: Does a volunteer own the intellectual property they create for a company if no agreement is made saying otherwise?

In the US (specifically Arizona), if you create intellectual property (e.g. website, social media channels and 3rd party sales channels) as a volunteer (I was a volunteer in a business my husband was a co-owner in, I was not paid, wasn't asked to do create the IP nor directed in any way and... Read more »

Marcos Garciaacosta
Marcos Garciaacosta
answered on Jul 23, 2021

Depends on any communications or agreement.

Most likely any creation would be considered as a gift.

Depending on the value of the creation an attorney can advise you on what to do

1 Answer | Asked in Consumer Law, Contracts, Products Liability and Business Law for Arizona on
Q: I have a small company and I want to manage/invest my clients' money; charing no fees. Are there any legal hurdles?

I want to be able to advertise that I will return a percentage per year on the investment. No fees.

Marcos Garciaacosta
Marcos Garciaacosta
answered on Jun 9, 2021

It depends on the type of business you have. You will need a license and registration with agencies.

Consult with an attorney.

2 Answers | Asked in Bankruptcy, Business Law, Civil Litigation and Libel & Slander for Arizona on
Q: Who do you report bankruptcy fraud/disability fraud to when your ex business assoc. hides assets, guns, cars etc

We lived operated our business and worked at this non profit outreach and the owner trespassed from property to take our belongings and dumped our destroyed items in the neighbors parking lot ending in filing criminal damage to property of him. He also took door of shower room we had to use so him... Read more »

Timothy Denison
Timothy Denison
answered on Apr 20, 2021

Report to the FBI.

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1 Answer | Asked in Contracts, Copyright, Business Law and Communications Law for Arizona on
Q: We do internet videos and a major american television show is asking us to sign a "Material License Agreement"

We are wondering what liability can come from this? We do not currently make money from the internet and are just making interesting videos. The contract says we grant non-exclusive license. We're fine giving it away for free but since we don't make money from this, we just want to make... Read more »

Tim Akpinar
Tim Akpinar
answered on Mar 8, 2021

An Arizona attorney could advise best, but your post remains open for four weeks. Because of its complexity and detail, this could be a difficult post for an attorney to respond to without knowing more information, and likely seeing the agreement you mention. If you continue not to get a response,... Read more »

1 Answer | Asked in Business Formation and Business Law for Arizona on
Q: I'm looking for a Business attorney that can help me prepare a Certificate/Resolution per the SBA request.

This was the email I received from SBA below

=======

1. Please provide a Certificate/Resolution that includes:

a. A statement that the LLC held a meeting and specify the date (on or after loan approval date of 6/2/2020)

b. A statement that the LLC authorizes... Read more »

Ilene L McCauley
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Ilene L McCauley
answered on Feb 23, 2021

Thanks so much for the list. You will need to hire an attorney to prepare these for you. If the business is in San Diego the attorney must be licensed in California.

1 Answer | Asked in Business Law and Employment Law for Arizona on
Q: My ex-employer won’t respond when I ask about returning work equipment - tablet, phone & laptop. Are they mine now?
Carrie Dyer
Carrie Dyer
answered on Oct 7, 2020

No, the equipment is not yours. It is the property of your employer. You should continue to contact your employer until you get a response regarding how the equipment should be returned.

1 Answer | Asked in Business Law and Employment Law for Arizona on
Q: if i have a non compete with a former employer and that owner sells the company is the non compete still valid?
Peter H. Westby
Peter H. Westby
answered on Aug 11, 2020

It might still be valid. This depends upon how the sale was structured and the agreements made with the buyer. I recommend that you discuss with an employment law attorney before you make any decisions.

1 Answer | Asked in Business Formation and Business Law for Arizona on
Q: I am thinking of opening a dog bakery in my home. Is that legal? Would it require permits?
Ilene L McCauley
PREMIUM
Ilene L McCauley
answered on Jun 25, 2020

Thank you for your question. The answers depend upon where you live. You need to contact the city or municipality to answer whether or not a permit is required. However you also need to think about taxes on the money that you earn. I recommend you speak with the city or municipality regarding... Read more »

1 Answer | Asked in Business Law, Construction Law, Contracts and Employment Law for Arizona on
Q: if i work for one client at a time and i stake construction without survey license, im within ARS 32-101?

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Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Mar 27, 2020

You are not competent to read the law and determine what it means and whether you can do what you are trying to do. While I have not read the law either I can tell you that if ANY Florida law requires any sort of "certification" before anyone can do whatever the law covers, you cannot... Read more »

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