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Texas Business Law Questions & Answers
1 Answer | Asked in Contracts and Business Law for Texas on
Q: If I sell my business on contract & the buyer does not pay - can I foreclose on the buyer's house or other collateral?

Wondering if a business sale contract gives similar protection benefits to something like a mechanic's lien - where the debt can be secured with property or other collateral.

John Michael Frick
John Michael Frick
answered on Nov 23, 2022

The sale of a business can be collateralized just like other transactions. As long as real estate securing the transaction is not a homestead, real estate can secure the transaction. This is commonly done with a deed of trust.

Perfecting a security interest has different requirements...
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1 Answer | Asked in Business Law and Car Accidents for Texas on
Q: Is it legal for a parking lot to use metal bars sticking out of the ground, instead of normal parking blocks?

I was leaving a parking lot, when something started to scrape under the car. I got out, and realized that instead of parking blocks, the spaces had metal bars sticking a foot out of the ground. It's a dirt and gravel parking lot, so the bars almost blend into the ground, and they're not... Read more »

Tim Akpinar
Tim Akpinar
answered on Oct 27, 2022

A Texas attorney could advise best, but your question remains open for two weeks. It doesn't seem like a good practice for non-security purposes. Based on the description being dirt and gravel, if it's an old and neglected lot, it could be exposed rebar from deteriorated concrete blocks.... Read more »

1 Answer | Asked in Contracts, Criminal Law and Business Law for Texas on
Q: I hired a guy who advertises his services to build 2 PCs. Brought him the parts. Been 1.5 months. Can he legally keep it

He claimed he was the best. I know alot more now about PCs than when I hired him. I put down $250 and the overall fee I'm supposed to pay upon completion is way over market price and reluctantly I agreed as long as I had in writing what service after the sale would I be receiving. Never got... Read more »

Jaime Victor Papa
Jaime Victor Papa
answered on Oct 24, 2022

This may be a breach of contract. I would need to learn a few more details. If it is a breach, you can likely take legal action.

1 Answer | Asked in Business Law and Contracts for Texas on
Q: Non payment of Dues

Hello, I am an independent contractor based in France. I worked as a remote worker for a used cars dealership based in Garland, TX for over a year. The first inquiry was through Fiverr and then we worked directly. This dealership's main business is to find cars with clean titles and clean... Read more »

John Michael Frick
John Michael Frick
answered on Oct 12, 2022

You can likely sue the dealership for breach of contract. If the agreement is between the dealership and your company, make sure that your company is registered to do business in Texas and is in good standing before filing suit.

You most likely can sue in justice of the peace court given...
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3 Answers | Asked in Business Formation, Business Law, Immigration Law and Tax Law for Texas on
Q: I am Ukrainian citizen living in the USA as a student and I want to open an online business how should I pay taxes.

I am Ukrainian citizen living in the USA as a student waiting for my F-1 visa and TPS and I want to open an online business.

I want to open drop shipping business I have an Ukrainian card and I have a card in PNC bank that I just opened, but because I am minor it was opened on my host mom... Read more »

Jaime Victor Papa
Jaime Victor Papa
answered on Sep 20, 2022

In my experience, business owners generally hire an accountant to help them navigate the taxes.

I really like Peters CPA, LLC https://www.lpeterscpa.net/ or (972)863-9640.

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1 Answer | Asked in Business Formation, Business Law and Contracts for Texas on
Q: my work did not give me any hours for the last 2 weeks of my job but i sign a contract that say i am generated me hours
Jaime Victor Papa
Jaime Victor Papa
answered on Sep 19, 2022

This may be a breach of contract. I would need to see the contract.

1 Answer | Asked in Personal Injury and Business Law for Texas on
Q: What discipline and who would be the best attorney or group to help this Restaurateur pro bono?

A car crashed into a restaurant injuring one person critically, destroying a wall and possibly the integrity of the structure itself. The Restaurateur leases the property and the landlord does have insurance. The landlord may or may not have business interruption insurance. Additionally,... Read more »

John Michael Frick
John Michael Frick
answered on Sep 16, 2022

It is unlikely you will find an attorney willing to take such a case pro bono. Moreover, it is unlikely that you will need to do so.

The restauranteur should report the claim to its own insurance company. The insurance company should cover the restauranteur's damages and will be...
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1 Answer | Asked in Contracts and Business Law for Texas on
Q: Does a person I drew sample illustrations for owe me money?

In 2014 I created drawing samples for a person who asked for them because she was writing a children's book. I sent a set of 4 designs and asked her to choose the one she liked best. She chose two and said that she would speak to me again after she talked to her PR person. But I didn't... Read more »

Jaime Victor Papa
Jaime Victor Papa
answered on Sep 15, 2022

I believe that you may have a case. I would have to see all the interactions.

1 Answer | Asked in Business Law, Civil Litigation, Contracts and Real Estate Law for Texas on
Q: I have a business. I need to file a TRO, as soon as possible. I need the steps to self-file, possibly ex-parte.
John Michael Frick
John Michael Frick
answered on Sep 7, 2022

It is highly recommended that you not attempt to represent yourself in such a proceeding. Depending on whether your business is a sole proprietorship, limited liability company, or corporation, you may not be able to legally represent your business in a Texas court.

I'm sure you...
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1 Answer | Asked in Business Law, Civil Litigation, Contracts and Small Claims for Texas on
Q: Hi! what kind of lawyer do I need? I loaned an individual/ LLC $26K, a notarized contract was signed.

The contract was signed last year 7/21. After the money was sent, the individual vanished. I tried several times to collect payment. The money was indented and written for the investment of an 18- wheeler truck. The contract also stated I could have rights to drive. At this time I'm not... Read more »

John Michael Frick
John Michael Frick
answered on Sep 1, 2022

You most likely need a debt collection attorney in the state where the LLC on the loan contract is located and where the individual resides.

1 Answer | Asked in Libel & Slander, Business Law and Identity Theft for Texas on
Q: I am not sure what type of lawyer would help me with a negligence case that does not involved physical injury.

I am a real estate professional. I just recently discovered that an Appraisal Management Company which also does Broker's Price Opinons, had approved application from someone claiming to be me. The imposter was using my inactive real estate license to illegally perform BPO's. The imposter... Read more »

John Michael Frick
John Michael Frick
answered on Sep 1, 2022

This particular type of dispute falls into the area of law known as professional liability. If you have a Real Estate Professional Errors & Omissions Insurance Policy, you should report the claim made against you to your insurer, who will most likely provide a defense to you.

Because...
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1 Answer | Asked in Criminal Law and Business Law for Texas on
Q: I have a direct sales business. I have ordered from a person in past. In july i mentioned i would be needing more soon.

So she made them at that time and billed for them. I have not paid and have not received. Is this fraud

John Michael Frick
John Michael Frick
answered on Aug 29, 2022

No, you are not likely guilty of fraud based on the facts as stated.

This is more of a civil law question than a criminal law question. While there are many nuances to fraud, it usually requires a false representation of material fact which you knew was false or which you made recklessly...
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1 Answer | Asked in Business Formation and Business Law for Texas on
Q: In order to accept donations as a school club do I need to be a certified non profit organization?

I have started a club called Project: In need, and I wanted to have monthly events such as car wash, lemonade stand, bake sale, etc to raise money so that my club could make goodie bags for emergency shelter workers.

Arturo C. Aguilar
PREMIUM
Arturo C. Aguilar PRO label
answered on Aug 20, 2022

No you do not. You can even file a "domestic public organization" with the State of Texas - Secretary of State. This is pretty easy and should cost I think less than $50 dollars. People start go fund me organizations online all the time, they do no need any special recognition from the... Read more »

1 Answer | Asked in Business Law for Texas on
Q: There are 5 partners in an LLC as follows 2 30% owners 1 20% 2 10%. one of the 30% buys out the 20% behind closed doors

The other partners had no knowledge of any of this until after the fact. This has impacted the partners big time changing the dynamic. The problem is the one owning 50% now is in no way equipped to make financial decisions on behalf of the company. He's already proven that. At the very least... Read more »

Kacie Marie Czapla
Kacie Marie Czapla
answered on Aug 7, 2022

Do you have an operating agreement? Most operating agreements have buy-out clauses that prevent this from happening. Without an operating agreement, your options are limited.

1 Answer | Asked in Arbitration / Mediation Law, Business Law, Civil Litigation and Small Claims for Texas on
Q: I am in the middle of a negotiation and need help

I am a truck driver. In one of my deliveries, my trailer was damaged by one of the employees of the warehouse. They have accepted responsibility but have neglected my claim for the diminished value of mu trailer. I was going to sell it for 70k but now due to the accident the value of the trailer... Read more »

Tim Akpinar
Tim Akpinar
answered on Apr 16, 2022

A Texas attorney could advise best, but your question remains open for four weeks. I'm sorry for the damages to your trailer. You have a number of options. The first would be the cheapest, which is trying to continue negotiations. At this point, you may have already resolved the matter. But if... Read more »

1 Answer | Asked in Business Formation and Business Law for Texas on
Q: I am interested in starting a non profit fan site / fan group. What is the best 501 option?

I would prefer for it to be some type of corporation.

I saw this list: https://www.rocketlawyer.com/business-and-contracts/starting-a-business/non-profit-incorporation/legal-guide/types-of-non-profits

501(c)(7) doesnt really fit because we would not be limited to membership.... Read more »

Matthew Morris
Matthew Morris
answered on Apr 5, 2022

Most lawyers who offer advice on a question like this will ask a lot of questions to dig deeper into the details before offering advice. I have about fifteen that I go through when somebody is asking for advice on whether to form a nonprofit.

First, some background to be sure we are on the...
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1 Answer | Asked in Divorce and Business Law for Texas on
Q: I'm going through divorce and own a small business. The business is in my name. Do I have to split the profits with my e
Jennifer S. Hargrave
PREMIUM
Jennifer S. Hargrave
answered on Apr 4, 2022

Congratulations on being a business owner!

The business will be valued as part of your overall estate. The profits generated from your business can factor in to the overall value of your business. How your business is valued will depend on many factors, including the type of business...
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1 Answer | Asked in Contracts, Business Law, Collections and Small Claims for Texas on
Q: I bought a car and have proof they have received all the money owed. The person who sold me the car had a lien on the

Title. The car was repossessed after I fired their son and I guess they stopped making payments then. The Lien holder gave me the car with my name as the customer without any payment due and I have a paper with all information saying so. Would the car then be mine?

The first part of the... Read more »

Leroy Scott
Leroy Scott
answered on Apr 3, 2022

If you only paid the lienholder, but not the actual seller, then the vehicle would still belong to the seller. The lienholder can only release its lien; it cannot give you title to the vehicle (unless the lienholder had repoed the vehicle).

If you only paid the seller, but not the...
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1 Answer | Asked in Copyright, Business Law and Patents (Intellectual Property) for Texas on
Q: I am trying to find the patent for the brush guard that GM put on their Commercial Utility Cargo Vehicle (CUCV).

These vehicles were provided to the US military from 1984 - 1987. I believe similar brush guards were an option on GM trucks as early as the 1960's. I would like to reproduce this brush guard for the same GM vehicles and other vehicles with slight modifications. Thanks for any help you can... Read more »

Peter D. Mlynek
Peter D. Mlynek
answered on Mar 29, 2022

Sorry to be getting to this so late.

This is a common type of question, but unless the brush guard was ornamental, finding the patent is not going to be very helpful. The drawings that come with patents are there to help the reader understand the invention, and are not meant to be...
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1 Answer | Asked in Business Law for Texas on
Q: My business was subcontracted to create a survey. Can the subcontractor remove my company name from the survey?

The survey is a questionnaire to be administered as part of a education grant.

Jaime Victor Papa
Jaime Victor Papa
answered on Mar 28, 2022

I see that you are located in Albuquerque, NM but are asking a business law question for Texas. If this is a Texas legal matter, my thoughts are as follows:

I recommend that you have an attorney review your original contract and all recorded conversations with the contractor. After an...
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