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California Business Law Questions & Answers
2 Answers | Asked in Business Law, Consumer Law, Contracts and Small Claims for California on
Q: Is there a simple 1-2 page agreement for a cash transfer between two parties? Something that would hold up in court.
Maurice Mandel II
Maurice Mandel II answered on Jul 1, 2020

Typical Attorney Answer: It depends. It depends on the amount of money involved. It depends on what terms you want re: security, repayment, interest. It depends on how much you trust the other person- the more you trust, the longer the agreement should be. You can find simple promissory notes... Read more »

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1 Answer | Asked in Business Law, Employment Discrimination and Employment Law for California on
Q: Does it matter if I “quit” or I am “terminated” after being furloughed due to corona virus? My company wants me to quit

I was laid off due to coronavirus in feb and got a better job during the time off. I was given my estimated start date but I am not going to Return to my original job. My employer is telling employees to resign/quit if they do not want to return. Is either in my best interest? I am enrolled in... Read more »

Neil Pedersen
Neil Pedersen answered on Jun 23, 2020

If you have a new job lined up and do not have to worry about immediately qualifying for unemployment insurance benefits, then the main thing for you to consider is what you want future employers to know about how your employment ended. Quitting to move on to a better job is usually a good thing... Read more »

1 Answer | Asked in Business Law and Consumer Law for California on
Q: Is it legal for dentist office to do this... to say there is no coverage so they can charge cash price, it was COVERED!

Told daughter needed braces; but not covered. offered choice of braces & Invisalign. Had planned on braces, couldn’t afford invisalign, they said NO price difference $5,495 braces OR $5,495 Invisalign.

Ex’s coworker got braces & it WAS COVERED. Called dentist office, said... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jun 21, 2020

Fraud includes concealment of information that a person is legally obligated to disclose. You could have both Negligent misrepresentation and concealment in the facts that you describe. No one can predict what the outcome would be in Court. You can go to a local attorney for an evaluation of your... Read more »

1 Answer | Asked in Business Formation and Business Law for California on
Q: Adding a new member to a single-member LLC

I established a single-member LLC in California in 2018. Now, I would like to add another member to this LLC by giving him 50% of the ownership. I already received a new EIN from IRS for this two-member LLC. Now the question is what form do I need to file on California State's website? Do... Read more »

Kristina M. Reed
Kristina M. Reed answered on Jun 17, 2020

I recommend that you consult with your CPA and a business attorney. Your question poses a few layers.

First, unless the Articles of Organization prevent additional members, the LLC can have more than 1 member without the need to file Amended Articles of Organization. If you are unsure,...
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1 Answer | Asked in Business Law for California on
Q: Can you use a moveable hypothec agreement with investors in your business
Maurice Mandel II
Maurice Mandel II answered on Jun 13, 2020

There is not enough information in this question to be able to formulate any response.

THE OPINIONS STATED HEREIN ARE BASED ON THE INFORMATION CONTAINED IN THE QUESTION,WITHOUT ANY INDEPENDENT INVESTIGATION. DO NOT RELY ON FREE LEGAL ADVICE IN A PUBLIC FORUM, EVEN MINE. CONTACT AN ATTORNEY...
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1 Answer | Asked in Business Law for California on
Q: Should respondeat superior apply to a principal’s liability for torts committed by independent contractors?
Dan Robinson
Dan Robinson answered on Jun 12, 2020

It depends. I have sued a property owner for damage caused by its contractor. But it's unlikely that respondeat superior will apply. A principal can instead be held liable based on its own negligence in hiring, instructing, equipping, or directing the contractor.

But there's a...
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2 Answers | Asked in Business Formation, Business Law and Civil Litigation for California on
Q: I may be facing a lawsuit. I am operating as a Sole Prop. Can I form a LLC now and be protected from a lawsuit?

I added a copyrighted image to my website by mistake. Once I found out it was copyrighted I removed it but the attorney for the original photographer is still threatening me with restitution for a ridiculous amount ($150,000)-even though the pictures license can be purchased for $250. Can I... Read more »

Ana Maria Del Valle-Aguilera
Ana Maria Del Valle-Aguilera answered on Jun 12, 2020

There are several parts to your question:

1. Forming an LLC before the lawsuit will not protect you, as it is a separate legal entity formed after the event in question. As a sole proprietor you would be personally responsible for the infringement.

2. As there may be other facts...
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1 Answer | Asked in Business Law and Civil Litigation for California on
Q: My business rental is infested with fleas. It is uninhabitable. Am I responsible to pay rent?

We have bombed the location 3 times, treated 5+ and still infested from rodents living under the floor. We're paying rent though still unable to do business because of COVID. But the space has been uninhabitable regardless. Are we still responsible for paying rent if the space is toxic with... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jun 12, 2020

So sorry to hear about this. The value of the rental directly corresponds to the quality of the Rental, and it sounds like the condition has seriously negatively affected the quality. A rental comes with a "Warranty of Habitability" and if the LANDLORD breaches that warranty, your... Read more »

3 Answers | Asked in Consumer Law, Banking, Business Law and Civil Rights for California on
Q: I purchased my prom dress in full cash, but they said no refunds however it’s been two months since I was supposed to ge

I paid in full cash in March and it was supposed to be picked up my mid March but then everything closed, they now want me to pick it up but prom is over and I was supposed to receive it months ago. How do I get my refund.

Louis George Fazzi
Louis George Fazzi answered on Jun 11, 2020

If they refuse to give you a refund even considering you were never able to use the dress and they failed to deliver when it was due, it seems you have at least two choices available to you. 1. Take possession of the dress to use at a later date, or so you can sell it to someone who can later make... Read more »

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1 Answer | Asked in Consumer Law, Contracts and Business Law for California on
Q: Does Seller of Travel have deceptive business practice in my case? Should I take a legal action? What do I do?

I booked a full tour package for my family of 4 members in Jan 2020 for Jun 2020 (to 3 countries in Europe). I paid ~5700$ (50% of total cost) as deposit. The flights got cancelled in Apr 2020 due to COVID 19 by the airline. The Travel Agent withheld that info, didn't notified us about the... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jun 11, 2020

Very sorry to hear your travel plans went poorly. No one can give you a definitive answer on how the case will be decided. Typical Attorney Answer: It depends.

First of all you have special protections and rights under the SELLER OF TRAVEL STATUTE, CALIFORNIA BUSINESS AND PROFESSIONS...
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1 Answer | Asked in Business Formation, Business Law and Trademark for California on
Q: I have a question about a company name

Someone else has the company name I want but, they haven't been active since 2014 I believe. They don't have it trademarked i looked them up on the government trademark site and other sites they don't come up. Is it possible i can trademark the name and use it for my company?

Barbara Berschler
Barbara Berschler answered on Jun 6, 2020

Trademark rights are not merely created by someone registering the mark, whether with the USPTO or under a state's law. Under the common law, if you use a mark as a mark, you can acquire trademark rights in that mark. You would need to investigate further about whether the other person has... Read more »

2 Answers | Asked in Business Law, Contracts and Construction Law for California on
Q: I recently received a bill from a handyman for services rendered in December of 2017. Do I have to pay this?

I have never been billed for these services and had inquired multiple times for a bill in December 2017. Since so much time has elapsed, I feel even the hours are a bit high. I believe this was an oral agreement only for the work rendered Am I still responsible to pay?

Donald M Barker
Donald M Barker answered on May 27, 2020

As a general rule, any civil action for monies owed for services or goods must be commenced within two years of providing such services or goods, with some narrow exceptions. If there is a written contract, the statute of limitations is four years, with some exceptions.

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1 Answer | Asked in Business Law, Contracts and Immigration Law for California on
Q: I want to open a business of linking in Los Angeles and I don't know what visa, legal statut and contrat I need.

I am French, I am 20 years old and I only had my high school diploma in France.

I would like to know what visa I must have to open my business of linking French food suppliers and restaurants in Los Angeles (knowing that I would not have much money to invest at the beginning).

I... Read more »

Adan Vega
Adan Vega answered on May 26, 2020

You should consider engaging an experienced immigration attorney to assist you with an E-1 visa. The attorney will discuss with you all of the necessary requirements for a French citizen to begin a business venture in the U.S. that will qualify you for the E-1.

Good luck to you.

1 Answer | Asked in Business Law and Tax Law for California on
Q: LLC in California owns a bar that closes. The LLC is delinquent on unsecured property taxes with the county.

Can the county go after members/owners of the LLC for payment of delinquent unsecured property tax?

Zaher Fallahi
Zaher Fallahi answered on May 25, 2020

Generally, if the LLC is kept separate from the members (no commingling), the LLC money has not been taken for personal use, etc., the members’ liability is limited to their capital in the LLC. Since there was a real property in the LLC’s name, it may have had a counsel, who would be in a much... Read more »

1 Answer | Asked in Employment Law and Business Law for California on
Q: Can I be penalized if I quit a job I never officially started due to Coronavirus and they still can’t operate

Can I be penalized if I quit a job I never officially started due to Coronavirus and they still can’t operate but they were paying me a small amount of hours for 6 weeks. I have a new job offer possibly and want to resign this position never worked but want to know if I will encounter problems... Read more »

Maurice Mandel II
Maurice Mandel II answered on May 21, 2020

COVID presents a lot of unique problems. Who is it that is going to penalize you? The temp agency?

In California, you are an at-will employee. This means that you can quit at any time, you are not required to give notice, unless you have a contract that says otherwise. From what you...
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1 Answer | Asked in Employment Law, Contracts and Business Law for California on
Q: Can I be penalized if I quit a job I never officially started and they still can’t operate but they were paying standby

Can I be penalized if I quit a job I never officially started due to Coronavirus and they still can’t operate but they were paying me a small amount of hours for 6 weeks. I have a new job offer possibly and want to resign this position never worked but want to know if I will encounter problems... Read more »

Neil Pedersen
Neil Pedersen answered on May 18, 2020

Unless you have a specific agreement with the employer to work for a defined period of time, you have the right to quit at any time and for any reason. Simply give notice of your intent to leave.

Good luck to you.

2 Answers | Asked in Consumer Law, Contracts, Business Law and Education Law for California on
Q: How should I request a university program in California to return my admit deposit since they have deferred starting?

I was selected in a program that has now deferred their start date due to CoVID. They requested a sizable deposit to secure my position in the program for their initial start date. The program no longer fits my timeline and they have refused to refund the deposit. What can I do in this situation?

John Francis Nicholson
John Francis Nicholson answered on May 20, 2020

I agree with Mr. Kaufman that you may need an attorney to sort this out. However, your question does not indicate whether you have contacted the university directly to find out what there policy is, and what writing is it based on. Some schools have a refund policy based upon a timeline that... Read more »

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1 Answer | Asked in Business Formation, Business Law and Securities Law for California on
Q: Starting an equities investment club in California. Will create a CA LLC and an online brokerage account for trading.

We are going to pool our money into a single brokerage account. The account will be managed by one person who does not have a securities license. Is this ok?

Also, the members of the club would like to compensate the person who will be managing the account, keeping the records, etc. Is... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 14, 2020

Unless everything you are planning to do can be fit under the statutory heading of "Investment Clubs" (assuming California allows them) you and the trader who is making money are looking for big-time trouble.

1 Answer | Asked in Criminal Law and Business Law for California on
Q: Hi there can a motion happen after a trial date has been set?

I am asking for an assignment I have!

Dale S. Gribow
Dale S. Gribow answered on May 14, 2020

more info needed...................However, YES

1 Answer | Asked in Tax Law and Business Law for California on
Q: Filing State taxes with Franchise tax board when annual taxes have not been paid for LLC?

This is a two part question.

I started a single member LLC in California in 2017. The LLC never conducted any business however, I have not yet dissolved it. Currently, it is suspended with the Sectary of State. Every year, I file a schedule C federal tax return and no state return (The... Read more »

Kenneth Sisco
Kenneth Sisco answered on May 10, 2020

I am not advising you not to pay your annual minimum tax, or not to dissolve your LLC; only what will happen if you don't. If set up properly, the minimum tax is assessed against the LLC, not you. If it is not paid, the LLC will be suspended. If you do not dissolve the LLC and do not pay... Read more »

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