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California Business Law Questions & Answers
2 Answers | Asked in Business Law, Landlord - Tenant and Gov & Administrative Law for California on
Q: Does a keymaster arcade game be considered a vending machine?

The lease for our business at a mall states "Vending machines are not allowed in the retail selling area of the store".

Pavel Kolmogorov
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answered on Dec 20, 2024

A keymaster arcade game may not be considered a vending machine under California law. According to Bus. & Prof.Code § 17571, a "vending machine" is defined as any mechanical device that operates by the insertion of a coin or other thing of value and dispenses a product, service, or... View More

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3 Answers | Asked in Business Formation, Business Law and Contracts for California on
Q: Business model legality and company formation?

I have a mobile app that shares sports betting predictions. there is no gambling in my mobile app. only predictions of the results of sports matches are shared only by me. users see these predictions as paid subscribers. for example the result of the LA lakers vs Boston Celtics NBA game, Boston... View More

Pavel Kolmogorov
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answered on Dec 19, 2024

The business model described, which involves sharing sports betting predictions and odds without facilitating actual betting or linking to gambling sites, may not fall under the definition of gambling in many jurisdictions. However, the legality can vary significantly by state.

In...
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2 Answers | Asked in Business Law and Securities Law for California on
Q: I have shares of common stock in a company and would like to find its worth and how to transfer or sell them?

they are also named in a deceased family member.

Robert Kane
Robert Kane
answered on Dec 2, 2024

I assume the shares are not of a publicly traded corporation like McDonald's or Microsoft. So, you just can't look them up and sell them. How shares are bought and sold are likely restricted by the corporation's bylaws. You will need to contact the corporation to find out your rights... View More

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2 Answers | Asked in Business Law for California on
Q: Can a non professional serve as an officer -not shareholder-in a professional corp in california?

Medical corp

Robert Kane
Robert Kane
answered on Dec 1, 2024

Generally, only professionals licensed in the profession of the professional corporation may be an officer, director, or shareholder of that professional corporation. There are, however, circumstances where unlicensed individuals may have authority over the services provided as officers. Why are... View More

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2 Answers | Asked in Criminal Law, Real Estate Law and Business Law for California on
Q: I inherited half my uncle's residence which is a duplex. He receives rental income I get nothing Can I force him to sale

I'm co-owner since 2009 the property is located in Korea town in Los Angeles ca. 6 years ago I appraised and market was at $1.2m must higher now. Since then my uncle will not speak to me or acknowledge I own half He never splits any rental income with me like he did with my mom He just ignored... View More

James Clifton
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James Clifton
answered on Nov 25, 2024

You can force the sale through a partition lawsuit. In the lawsuit, the court determines if the property can be divided evenly. If the property cannot be physically divided, the court will force the sale of the property. Each party will receive half of the money from the sale subject to offset for... View More

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2 Answers | Asked in Business Law for California on
Q: What happens if you are 50% owner of a corporation and have no written agreement and one partner wants out

one partner has put in 80k and the other has put in 30k but now wants to dissolve the company and other partner does not want to

Shawn R. Jackson
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answered on Oct 15, 2024

As you might imagine, a few initial questions for you: [1] is there a signed shareholder's agreement for the corporation ... [2] what are the written documents that support the "50%" ownership and how does that ownership reflect the 80k - 30 k split ... and [3] do you have a signed... View More

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4 Answers | Asked in Business Law and Employment Law for California on
Q: a subordinate at the previous employment has provided deliberately false information to a background checker

The false information which gave false employment dates and reason for leaving (I resigned, but the subordinate said I was fired) has resulted in my conditional job offer with the county to be withdrawn. In addition, the subordinate also circulated damaging rumours to my colleagues ( I am a nurse... View More

Bradley Mancuso
Bradley Mancuso
answered on Oct 9, 2024

There could be potential defamation and other statutory liability here. For example, California Labor Code § 1050 prohibits ex-employers from intentionally interfering with your attempts to find a job by giving out false or misleading job references. However, there are numerous exceptions to... View More

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4 Answers | Asked in Business Law and Employment Law for California on
Q: a subordinate at the previous employment has provided deliberately false information to a background checker

The false information which gave false employment dates and reason for leaving (I resigned, but the subordinate said I was fired) has resulted in my conditional job offer with the county to be withdrawn. In addition, the subordinate also circulated damaging rumours to my colleagues ( I am a nurse... View More

Neil Pedersen
Neil Pedersen
answered on Oct 9, 2024

The short answer is maybe yes. More would need to be known. You say this person who stated the falsehoods was a subordinate. That suggests the person was not authorized by the company to speak on its behalf. Under those circumstances if the subordinate makes knowingly false statements of past... View More

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3 Answers | Asked in Estate Planning, Family Law, Business Law and Probate for California on
Q: Do i have a case? and enough proof?

My dad passed away in 2023, with no will or anything to prepare for this type of event. My uncle co owned a few stores that him and my dad shared. After the passing of our father, my uncle my sister and myself all came to a verbal agreement on what would happen with my dads share in the stores. my... View More

Gerald Barry Dorfman
Gerald Barry Dorfman
answered on Sep 27, 2024

Your situation involves more than one area of law, including partnership, contract and probate. You can not solve such a complex situation by posting on an online forum. In fact, it is not in your interest to do so, as anyone, including your uncle and other interested parties, can see what you have... View More

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3 Answers | Asked in Estate Planning, Family Law, Business Law and Probate for California on
Q: Do i have a case? and enough proof?

My dad passed away in 2023, with no will or anything to prepare for this type of event. My uncle co owned a few stores that him and my dad shared. After the passing of our father, my uncle my sister and myself all came to a verbal agreement on what would happen with my dads share in the stores. my... View More

Julie King
Julie King
answered on Sep 27, 2024

The answer is: It depends. When someone in California dies, an analysis must be done to determine the total value of ALL assets that person owned (with the exception of a few assets, but a business is NOT one of the exceptions.) If the dollar amount of the assets totals $154,500 or higher, then... View More

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2 Answers | Asked in Business Law for California on
Q: Person designated as administrator of the corporation is custodian of the records? CFO?

Person designated as administrator of the corporation is custodian of the records? CFO?

Eliza Jasinska
Eliza Jasinska
answered on Sep 25, 2024

In a corporation, the custodian of records manages and safeguards important documents like corporate minutes and resolutions. The Chief Financial Officer (CFO) handles the company's financial matters, like accounting and reporting.

While an administrator may also be the custodian of...
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2 Answers | Asked in Business Law for California on
Q: Can my wife sue her former business partner for lying about finances and leaving all the debts to her?

Her business partner was the one handling all the expenses, all the finances. She was the CEO and he was the CFO, and he was lying about finances for a few months, wasn't paying rent, didn't pay one of the people who helped with an install, didn't pay several other important bills,... View More

Robert Kane
Robert Kane
answered on Aug 21, 2024

Yes, your wife can likely sue her former business partner for lying about finances and leaving all the debts to her. How to proceed will depend on the details and her objectives. There are an infinite number of scenarios that could exist. If the business was formed and maintained properly, your... View More

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3 Answers | Asked in Consumer Law, Personal Injury and Business Law for California on
Q: Should we pay the bill and give the incident report If so what r the procedures and will she still be able to sue after?

Hi, one of our customers burned herself on the knee under the stove we cook our meat in. She is now asking for medical bill and an incident report.

Tim Akpinar
Tim Akpinar
answered on Aug 15, 2024

My colleague has outlined a number of positive measures that demonstrate good faith on your part. I would add something that is not raised in your post. Are you insured? If you are insured in your operations (it looks like you run a food business??), you should consider placing your insurance... View More

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1 Answer | Asked in Business Law and Employment 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

James L. Arrasmith
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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

James L. Arrasmith
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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 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

James L. Arrasmith
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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

James L. Arrasmith
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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.

James L. Arrasmith
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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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