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Tennessee Business Law Questions & Answers
1 Answer | Asked in Banking, Business Law and Constitutional Law for Tennessee on
Q: Do banks have to provide documentation if requested?

Cashapp put a temp hold on $309.09 and then never released it. They keep telling me it was put back into my account but will not provide documentation of this. And I have requested it 5 times now.

James L. Arrasmith
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answered on Mar 11, 2024

Yes, banks and financial institutions are generally required to provide documentation related to your account upon request. This is part of their responsibility to maintain accurate records and to provide transparency to their customers.

In the case of Cash App, which is a financial service...
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1 Answer | Asked in Business Law for Tennessee on
Q: HowLong can a board member be on the board ?

We have a board member who controls the board and has for seven years no elections self appoints other to be on the board

James L. Arrasmith
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answered on Mar 4, 2024

The length of time a board member can serve on a board largely depends on the organization's bylaws or governing documents. These documents typically outline the terms of board members, including how long they can serve and the process for elections or appointments. If there are no term limits... View More

1 Answer | Asked in Tax Law, Business Law and Juvenile Law for Tennessee on
Q: Is it legal for the city to open a hospitality tax account for a 12 year old's small business?

We asked the county clerks office if my son needed a tax license and they told us he was under 18 so to go enjoy his business and learn as there was no need to file anything at his age. He was not able to legally open an account. Later he set up at an event in city limits. I was sent an email... View More

James L. Arrasmith
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answered on Feb 22, 2024

The legality of a city opening a hospitality tax account for a minor's business depends on local laws and regulations, which can vary widely. While minors generally have limited legal capacity to enter into contracts or be held responsible for tax obligations, local jurisdictions may have... View More

1 Answer | Asked in Business Law, Civil Rights, Municipal Law and Employment Law for Tennessee on
Q: Can an employer put up camera surveillance in the workplace without disclosing their locations? I love in Tennessee

I understand and agree to camera surveillance in the workplace for security. But my employer wants to use it to “keep an eye on productivity”. She claims she’s not going to tell us where said cameras are, but I feel like this may be a violation of employee privacy. Especially if we need to... View More

James L. Arrasmith
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answered on Feb 4, 2024

In Tennessee, employers generally have the right to install cameras in the workplace for purposes such as security and monitoring productivity, provided the surveillance does not occur in areas where employees have a reasonable expectation of privacy, such as bathrooms or locker rooms. However, the... View More

1 Answer | Asked in Contracts and Business Law for Tennessee on
Q: I am being sued by a client that did not like the website that was built for them. How should i handle the suit?

I offer free revisions for my clients so long as they are hosting with me as well. She refused the revisions and even refused to take over the site herself. Instead decided the sue.

Nina Whitehurst
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answered on Jan 14, 2024

Even if your contract is ironclad it is usually not worth the bad will and emotional drain to litigate. My best advice to you, but this is based on very limited information so take with a grain of salt, is to offer her a full refund in exchange for a settlement agreement in which you admit no fault... View More

1 Answer | Asked in Probate and Business Law for Tennessee on
Q: In Tennessee, if a business partner dies, does the heir take over the deceased half of the business? (No will involved)

My father passed in Feb 2023 and I haven't gotten into the business part of my fathers stuff yet bc my mother passed as well this year. I am sole heir to everything in this family. My mother was 1/4 partner as well, but never kept up with the business side of things, the men did. Before she... View More

Anthony M. Avery
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answered on Dec 27, 2023

As administrator you will want to dissolve the Partnership. The assets may not be collectable but you can pursue dissolution. You will need a competent attorney and expect to pay alot. The Partnership interest is personal property and goes to the next of kin which is almost always also the... View More

2 Answers | Asked in Criminal Law, Education Law, Tax Law and Business Law for Tennessee on
Q: If a school official lied to defraud parents of an account balance or charge, is that criminal?

A school sponsored, parent funded, non-profit school support organization has been asked to pay an amount that is not correct and accounting is wrong. The school sponsor is the only person allowed to handle the budget and pay vendors. The sponsor informed parents the charge was less than what it... View More

James L. Arrasmith
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answered on Dec 25, 2023

If a school official intentionally provided false information about finances to defraud parents, this could potentially be considered criminal behavior. In your situation, if the school sponsor misled parents about the actual costs and required additional payments under false pretenses, it may... View More

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1 Answer | Asked in Real Estate Law, Business Formation and Business Law for Tennessee on
Q: Is it possible to purchase 99% of the shares of an LLC while keeping the original owner on as a non-equity/no-owner?
Mr. James Charles Wright
Mr. James Charles Wright
answered on Nov 16, 2023

A limited liability company has members and membership interests. Yes, you can purchase 99% of the interest in the LLC - but if you are leaving one percent- is that for the old owner- so they would be one percent equity owner? This sounds like a structure of membership issue. It may be... View More

1 Answer | Asked in Consumer Law, Contracts, Business Law and Small Claims for Tennessee on
Q: I have done a consent judgment on an amount I am being sued for and it was approved. Do I still have to appear in court

The lawsuit is coming from a loan company that has acquired a lawyer for representation. I think I got the term "Consent Judgement" correct. With that being said, since the judgement was approved by the courts, is it still necessary for me to go to court?

Anthony M. Avery
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answered on Nov 10, 2023

It is probably an Agreed Judgment. I recommend you still go to Court to get the agreed money Judgment entered. Sometimes bad things happen, and it is difficult to rectify them. That creditor's attorney might forget about your agreement and enter the full ad damnum, plus attorney fees... View More

1 Answer | Asked in Business Law and Education Law for Tennessee on
Q: We are a jr high and high school Fishing team for 2 counties in TN. Do we qualify for Exempt School Org?

We want to start a 501C3 nonprofit for the funding.

James L. Arrasmith
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answered on Nov 9, 2023

To determine whether your fishing team for junior high and high school students qualifies for an Exempt School Organization status, you will need to review the requirements set forth by the IRS for educational organizations. This typically involves the organization being associated with an... View More

1 Answer | Asked in Business Law for Tennessee on
Q: If you are the only member of a LLC and it is dissolved - can you represent the LLC in legal matters?

If someone is one (and only) listed member of an LLC, can they represent the LLC in legal (civil) matters? LLC has been dissolved.

Anthony M. Avery
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answered on Sep 26, 2023

If the LLC is dissolved, then it has no legal matters. Members receive both assets and liabilities, and have legal proceedings against them personally. Sometimes it may be prudent to reinstate the LLC without others knowing. That member needs an attorney.

1 Answer | Asked in Business Law and Contracts for Tennessee on
Q: Can you use your DBA when signing a lease in TN?

The contract lists the DBA and not the actual name - is that still legal?

Anthony M. Avery
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answered on Sep 26, 2023

If the other party to the lease contract accepts that name as a signature, then it supposedly becomes a contract. But I would never advise anyone to execute a contract in that function. It may be unenforceable. Usually a signature would be ...John Doe d/b/a Doe Services...

2 Answers | Asked in Business Law for Tennessee on
Q: If I were to ask for a discount, whether it was at a restaurant or store, would they have to provide me one?

If someone went to a grocery store and asked for a discount or coupon, would the business have to legally provide one?

Anthony M. Avery
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answered on Aug 25, 2023

No, there is no legal obligation.

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1 Answer | Asked in Real Estate Law and Business Law for Tennessee on
Q: I have a LLC in which I’m the majority member.

I have a LLC in which I’m the majority member. My partner did a hard money loan without my permission to purchase a property and the property ended in foreclosure. The hard money lender stated that there is still 25k to fulfill the lender and he will put a lien on the company. What can I do?

Anthony M. Avery
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answered on Aug 14, 2023

Does the LLC have an Operating Agreement, By-Laws, etc.? If so, then it must be read carefully to see how property of the LLC can be encumbered or money borrowed. If not, probably only the managing member had the power to borrow for the LLC. Lender must get a Judgment first before having a... View More

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: How do you change the members and owners of a multi-member LLC?
Anthony M. Avery
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answered on Jul 28, 2023

If there is a n Operating Agreement then look at that for any controlling terms. More than likely the Managing Member simply designates new members. A new owner would need to notify the State Secretary of State of their new manager status. But it is also dependent on what State the LLC is... View More

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: can the treasurer of a non profit, an officer of the corporation, also serve on the board of directors? State is TN
Matthew Morris
Matthew Morris
answered on Jul 20, 2023

There is nothing to prevent the treasurer from serving on the board of directors in Tennessee, assuming that there is nothing in the bylaws that would prevent this.

The only requirement for serving on the board under the Tennessee Nonprofit Corporation Act is that “All directors must be...
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1 Answer | Asked in Employment Law and Business Law for Tennessee on
Q: i got in trouble for a conversation I had in the break room. I never consented to recording. Is that illegal?

I was having a conversation with some coworkers about our bosses. The convo was heated, and all the employees were upset. We all got called out and in trouble for talking bad, but the only way they knew was from the camera recording in the corner. There was no consent i signed to be audio... View More

Maurice Mandel II
Maurice Mandel II
answered on Jul 10, 2023

Video or audio taping of a person without their knowledge or consent can be "wiretapping," and it is illegal in most states. The issue is are there any warning signs at the workplace that advise you there is taping or are security cameras in place? If so, you have been provided warning.... View More

1 Answer | Asked in Business Law, International Law and Internet Law for Tennessee on
Q: Domain Registrar- cheated.Not added purchased domain to my acct- due to selling it at higher price -refunded the money.

Dear sir, I am 56 years male living in india! Most unimaginable fraud commited by NETWORK SOLUTIONS LTD ( My registrar). I have registered a domain name connect.com with NETWORK SOLUTIONS (My registrar) based in Virginia! Checked the availability of the name in Network solutions website search... View More

James L. Arrasmith
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answered on Mar 19, 2023

I'm sorry to hear about the fraud you experienced with Network Solutions. It's important to take action as soon as possible to try to rectify the situation.

You may want to consider contacting Network Solutions again and explaining the situation to a manager or supervisor. Provide...
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1 Answer | Asked in Employment Law, Business Formation and Business Law for Tennessee on
Q: Can I have people employed in one S Corp that are meant to work between 2 shared ownership LLCs?

We have 2 LLCs that have partial shared ownership, 2 people are owners in both, 2 more are owners in just one. We are hoping to have an S Corp that is owned by the 2 that own both to employ everyone that currently works in the LLCs to consolidate and simplify things for employees and compliance.... View More

Mr. James Charles Wright
Mr. James Charles Wright
answered on Mar 10, 2023

You could set up an entity to provide employees to both and then be reimbursed by both entities for the employees. Or the employees could be employed by one entity and when they work for the other - the other entity reimburses the first entity for the time of the employees.

1 Answer | Asked in Copyright, Business Law, Intellectual Property and Trademark for Tennessee on
Q: Could I use black label as a company name or no?

I am establishing a small business and coming up with a company name is confusing to say the least. We will be a soap and skincare company.

James L. Arrasmith
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answered on Feb 25, 2023

It's difficult to give a definitive answer without knowing more details about your business and the products you plan to sell, but in general, using "Black Label" as a company name may be problematic because it's a common term that is used by many companies in various... View More

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