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California Business Law Questions & Answers
2 Answers | Asked in Business Law and Criminal Law for California on
Q: Hello. I ran into a garage door service company and saw that their entire business is based on fraud.

Hello. I ran into a garage door service company and saw that their entire business is based on fraud. They fix non-existent door problems for thousands of dollars, although parts are very cheap. Is this considered a scam and how can they be punished? Only text please.

Dale S. Gribow
Dale S. Gribow answered on Apr 12, 2021

you should contact a civil lawyer to see if they feel there is a case.

write out a detailed summary to share with a lawyer.

contact the appropriate authority, either police or licensing entity for that company.

IF, they are fixing the doors, but you think the price is too...
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1 Answer | Asked in Business Law for California on
Q: Hello I want to ask if it was legal for cube smart to sell my unit when I was 3 days away from paying?

I had 3 units at cube smart and all the bills were confusing they sold one unit and then gave me a refund how can they do this legally

Julie King
Julie King answered on Apr 8, 2021

Unfortunately, the answer to your question will depend on the terms of the contract you signed with that company. Each contract contains different language in it and a lawyer would have to guess what your contract said, which would not help you at all. Once a lawyer has read the contract and... Read more »

1 Answer | Asked in Business Law, Criminal Law and Employment Law for California on
Q: If the company training team teaches an easy way to do something and that "something" breaks the law, who is responsible

Details removed

Dale S. Gribow
Dale S. Gribow answered on Mar 25, 2021

IF YOU KNOWINGLY BREAK THE LAW, YOU WILL BE RESPONSIBLE.

THAT DOESN'T MEAN THEY ESCAPE EXPOSURE.

3 Answers | Asked in Business Law for California on
Q: Is it legal to have a contract where my company only pays someone after the company makes a certain amount of profit?
Robert Philip Cogan
Robert Philip Cogan answered on Mar 25, 2021

Maybe. Your question does not say what the contract is about or how the deal works. "Profit" can have many meanings. Ten CPAs can give you 10 different calculations of profit and every one of them will be legitimate. An attorney can set up the deal so that you and the other side have the... Read more »

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2 Answers | Asked in Employment Law and Business Law for California on
Q: Vending Machine Stocking as a independent contractor?

Can I hire someone as a independent contractor to stock my vending machines using the business to business exemption to the AB 5 law if they have their own business license for services?

Ernest Charles Payne Jr
Ernest Charles Payne Jr answered on Mar 21, 2021

The “ business to business exemption” is very narrowly tailored. Assuming the other party is a legitimate business, properly licensed to do the sort of business, eg stocking vending machines; he has his own place of business independent of yours; he is contracted with you in writing to perform... Read more »

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1 Answer | Asked in Business Formation, Business Law and Tax Law for California on
Q: I have a vending machine business, can I have freelancers?

I know there some ab 5 law now but I want to hire freelancers to stock my machines. I will purchase the food products for the machines. They will stock the machines once or twice a week. Meaning 1- 2 hours a week. I am giving them a set payment amount for each month they help me. Do I have to... Read more »

Julie King
Julie King answered on Mar 21, 2021

The chances are very high that those workers would be classified as employees. In today’s world, it is harder than ever to successfully classify a worker as an independent contractor. But a lawyer would need to ask a lot of questions before giving an opinion. For example, will the workers have... Read more »

1 Answer | Asked in Contracts and Business Law for California on
Q: I sigmed a stipulation for a default judgment. Next month i am retired and i cannot pay anymore. Any solution?
Julie King
Julie King answered on Mar 19, 2021

You have three choices: (1) you can call the company and see if they will restructure the debt, although they are not obligated to do so, since you already have a contract to repay; (2) do nothing and you will have a judgment entered on your credit records and will likely be subpoenaed to attend a... Read more »

1 Answer | Asked in Business Law, Civil Litigation and Contracts for California on
Q: When can owner of a single member LLC sue personally against a 3rd party doing business with the LLC {not on behalf of}

Case: The sole member of an LLC filed a lawsuit in his individual name (as the plaintiff) against a company to sue them for contract fraud. The LLC owner was not aware that it could be a problem to file the suit in his name since he was personally financially injured and sees his LLC and himself as... Read more »

Maurice Mandel II
Maurice Mandel II answered on Mar 18, 2021

Path of least resistance, if you cannot amend your complain to add a plaintiff? Dismiss and start over. If it is an LLC, they have to be represented by an attorney.

Justia disclaimers below, incorporated herein.

1 Answer | Asked in Business Law for California on
Q: I just bought out 4 business partners and have 3 left, 2 are a husband and wife. In our Operating agreement for the LLC

I just bought out 4 business partners and have 3 left, 2 are a husband and wife. In our Operating agreement for the LLC, it states the voting rights go according to capital interest. I have 60%. They are afraid I wont allow them any voting rights at all so they want me to sign a document outside... Read more »

Kenneth Sisco
Kenneth Sisco answered on Mar 12, 2021

If you do what they are proposing, that will be giving them absolute control over YOUR business. It will be like two wolves and a lamb voting on "What's for lunch?" You own 60% of the company; you have the most to gain and to lose. If they want an equal voice, they should purchase... Read more »

2 Answers | Asked in Business Formation and Business Law for California on
Q: What is the best way legally to file a foreign corp from Colorado to California and also could I later move to CA?

I purchased 2 shelf corps that are llc's and wanted to dba in california. I wanted to also ask is it legally better to have multiple companies under 1 llc or should they legally be divided?

Julie King
Julie King answered on Mar 9, 2021

This is a tough question to answer without more information. Many companies divide up their product lines into separate corporations so if one product has a liability issue, the revenue from the other products is not affected. But, the other side of the coin is that you have to pay a minimum of... Read more »

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1 Answer | Asked in Consumer Law, Contracts, Real Estate Law and Business Law for California on
Q: Is it legal for me to ask my clients for a deposit (50% of the inspection fee) ?

Or they can pay the total cost of the inspection fee no later than on the day of the inspection. Otherwise no report will be delivered to the client. To many times, clients don’t want to pay or want to cancel the inspection without giving ANY Notice, so if they pay a deposit they are less likely... Read more »

Ernest Charles Payne Jr
Ernest Charles Payne Jr answered on Mar 6, 2021

Yes. That is legal, and completely reasonable. Just make sure you are completely transparent with your clients about your policy before you take their deposit to hold their inspection appointment, and under what conditions that deposit will or won’t be refunded. Good luck.

1 Answer | Asked in Contracts, Business Law, Gov & Administrative Law and Government Contracts for California on
Q: My LLC got & spent $48k EIDL, but I'm now out of business & can't repay. If I dissolve b4 payment is due can I get out?

It's a business of one. The EIDL/SBA contract lists my LLC as the borrower but it's my name as the authorized signer and manager of the biz. Biz has no assets or collateral. If I close the biz can they come after me personally to repay EIDL? To get out of paying is there anything I must... Read more »

Julie King
Julie King answered on Mar 2, 2021

You cannot dissolve the LLC unless you can swear under penalty of perjury that it owes no debts. But the answer to your question will depend on the language in the loan documentation you signed. That is your contract. A lawyer would have to guess what your documents say in order to answer your... Read more »

2 Answers | Asked in Consumer Law, Contracts, Business Formation and Business Law for California on
Q: Is it legal for a company to charge me for not being enrolled in autopay? I'm being charged 7.50 a month, seems illegal.

The company is Sunrun and based out of Denver Co, I am in the state of Ca.

Peter N. Munsing
Peter N. Munsing answered on Feb 26, 2021

Companies can give a preferential rate if someone signs up with autopay. Are you being billed extra because you are not or did you just choose the non-autopay option?

Depending on the industry, file a complaint with whoever regulates that industry.

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3 Answers | Asked in Bankruptcy, Contracts, Admiralty / Maritime and Business Law for California on
Q: What option do we have to avoid bankruptcy as freight forwarder hit by per-diem charges for container storage?

We are a freight forwarder and at the brink of filing for bankruptcy. Our client, the shipper, ran out of warehouse space to accept shipments and instead had the trucking company hold the containers for over three months. The shipping company charges detention or per-diem fees for the containers... Read more »

Leon Bayer
Leon Bayer answered on Feb 23, 2021

You should immediately consult an attorney to review all the contracts and any other paperwork. Without seeing the contracts, there is no way to answer your question.

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1 Answer | Asked in Business Formation, Business Law, Tax Law and Trademark for California on
Q: i have my own business and i went as far as paying for my trademark do i have to pay taxes on my business still?

i have not have my wedsited just yet or business cards, i havent even hired no one and i just want to know if i have to files for the business and even if i got my ein number

Julie King
Julie King answered on Feb 21, 2021

If you are taking about income taxes, the answer will depend on whether you have any income. However, you must remember that there are MANY kinds of taxes. If your business is incorporated or a limited liability company, you must pay the minimum of $800 per year franchise tax. I assume you have a... Read more »

2 Answers | Asked in Business Formation, Business Law and Construction Law for California on
Q: Would forming an LLC or Corporation be better for a person who wants to start their own General Contracting Company?

I want to become a first time business owner and was wondering which would suite me the best in terms of taxes, protection, and future costs? I am planning to elect to file taxes under S-Corp subsection for either of these business entities that I am willing to go with.

Shawn R. Jackson Esq.
Shawn R. Jackson Esq. answered on Feb 22, 2021

The answer to your question should be developed in an initial free consultation by video call or telephone call. The short answer is ... it depends" ... upon your preferred management structure, the operations plan, your succession plan ... and how well you get along with others ...

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1 Answer | Asked in Contracts and Business Law for California on
Q: What are the steps to filing a civil suit in Sonoma County for a quarter of a million by October 2021?
Yelena Gurevich
Yelena Gurevich answered on Feb 19, 2021

You can look for instructions and forms on- http://sonoma.courts.ca.gov/self-help/civil-self-help-center

3 Answers | Asked in Banking, Business Formation, Business Law and Gov & Administrative Law for California on
Q: Regarding EIDL loan

I receive an email today from SBA.gov and they asked me for the following information.

Why would they ask me for this information now when I already got approved?

They are also asking me "A statement that the LLC held a meeting and specify the date" I don't hold... Read more »

Shawn R. Jackson Esq.
Shawn R. Jackson Esq. answered on Feb 19, 2021

The short answer is that to qualify for the EIDL money, you would need to have had a meeting to authorize the LLC taking on that financial responsibility.

I would recommend that we schedule a free initial consultation to discuss additional requisite facts … and how to best move forward.

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1 Answer | Asked in Business Law, Copyright, Identity Theft and Intellectual Property for California on
Q: INTELLECTUAL PROPERTY Can we make arguments for laws around transmission of signals being focus by trajectory on human

C

If processing of signals constantly being held consistent of my attention and/or just comprehension of just auditory vibration of non audio frequency in turn creates a usable feature for in chip processing products and telecommunications. So communication by exchanging of similarities... Read more »

Leonard R. Boyer
Leonard R. Boyer answered on Feb 17, 2021

Exactly what are you trying to accomplish? Your question is not clear.

1 Answer | Asked in Business Law and Trademark for California on
Q: Through Trademark Terminal Your Brand Performs More Trading Over Internet?

Since this is an era of effective businesses though the ecommerce channels and Trademark Terminal is providing the elevation in the quality to do the same. Almost all of the customers and clients are using the medium of internet as their basis communication and collaboration route. Trademark... Read more »

Robert Philip Cogan
Robert Philip Cogan answered on Jan 18, 2021

Website rankings and trademarks are different things. It might be a good idea to read the Trademark Terminal website and see if they actually say that they make your brand more appealing. They might not. You might want to call an intellectual property attorney. Many give free initial consultations.

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