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California Business Law Questions & Answers
2 Answers | Asked in Business Formation and Business Law for California on
Q: What are all the basic requirements for starting an online e-commerce business? Any legal work? fees? TOS that I need?
Joshua Kroot
Joshua Kroot answered on Sep 27, 2020

Most people starting e-commerce businesses would be well served to form a company (LLC, corporation) to limit their liability, and will want terms of service, a privacy policy and a return policy. There may be local business licenses that are necessary and restrictions on what can be sold and how... Read more »

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2 Answers | Asked in Small Claims and Business Law for California on
Q: Do I sue the owner of the business I'm having problems with or sue the business itself which is registered as an LLC?

I want to get my spray tanning equipment back from a salon. Confused if I should sue the owner of the business or sue the business? Whichever one I sue do I list the other as a second defendant?

Maurice Mandel II
Maurice Mandel II answered on Sep 22, 2020

Did this spray tanning salon employ you? Or did you just sell it some equipment as a third party vendor? Were you an employee when you sold it the equipment? You posted in employment law, which is usually reserved for employment questions. This is a question about a sale and financing. That would... Read more »

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2 Answers | Asked in Small Claims and Business Law for California on
Q: Do I sue the owner of the business I'm having problems with or sue the business itself which is registered as an LLC?

I want to get my spray tanning equipment back from a salon. Confused if I should sue the owner of the business or sue the business? Whichever one I sue do I list the other as a second defendant?

Neil Pedersen
Neil Pedersen answered on Sep 22, 2020

You sue the person or entity with whom you entered into the contract to sell the equipment, or with whom you have a financing agreement. This is more complicated than can be answered without much more information. You would be well served to consult with an attorney and provide that attorney with... Read more »

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1 Answer | Asked in Business Law for California on
Q: Does Sec 600 (holding electronic annual meetings) and sec 20b (consent requirements) apply to nonprofit religious corps?
Brian Scott Winkler
Brian Scott Winkler answered on Sep 12, 2020

Most states allow nonprofit corporations to hold both board and membership meetings electronically, through any medium where all of the individuals participating may hear each other and participate in all matters before the board or membership, unless the corporation's articles or bylaws... Read more »

1 Answer | Asked in Banking, Business Law and Tax Law for California on
Q: Federal & State taxes paid monthly or annually? And finally, the funds collected in crowdfunding services include taxes?
Maurice Mandel II
Maurice Mandel II answered on Sep 8, 2020

Yes to Question 1. Look at the contract for Q2. You used up all your questions. Taxes? Which Taxes? Sales Tax? Property Tax? Income tax? Employment Tax? Perhaps you need to discuss your matters with a Tax attorney or an accountant.

Justia disclaimers below, incorporated herein.

2 Answers | Asked in Legal Malpractice and Business Law for California on
Q: If an equity partner in a law firm screws up badly and the firm is sued - can the partners expel her and keep her stake?

This is for something I'm writing ( a work of fiction) and I'd like to have something with this situation: a lawyer who just borrowed a lot of money to become an equity partner in a law firm is sabotaged to accidentally reveal some very private client info to the wrong people. The lawyer... Read more »

Neil Pedersen
Neil Pedersen answered on Aug 28, 2020

The answer to this question will depend on form of the entity that is the law firm, and the organizational agreements associated therewith. A well-drafted Shareholder's Agreement or Partnership Agreement can spell out the particular circumstances under which an equity owner/partner can be... Read more »

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1 Answer | Asked in Business Formation and Business Law for California on
Q: Assisting in filing all forms involved with the CSO application
Tim Akpinar
Tim Akpinar answered on Aug 28, 2020

A California attorney could advise best, but you await a response for two weeks. You might be better off simply reaching out to attorneys, either ones you find on this site or through your own independent searches. The format here is just basic question and answer, not an attorney referral. If you... Read more »

2 Answers | Asked in Business Law, Consumer Law, Criminal Law and Small Claims for California on
Q: Can I make a refund with a gift card if I receive cash for it initially and services were not rendered

Customer wanted trees trimmed he paid me in advance $350 I was unable to show up due to family emergency I told customer I could be there the following day he demanded a refund. I've been issued him a gift certificate for the amount he paid for the services of $350 and emailed him the gift... Read more »

Maurice Mandel II
Maurice Mandel II answered on Aug 22, 2020

You should refund the $ in the same form as you received it. If he is OK with the gift card, you are done. If not, get it back, give him cash or a check.

Justia disclaimers below, incorporated herein.

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1 Answer | Asked in Business Law for California on
Q: In purchasing for a business, is it legal for the same person to purchase items, and approve the invoice?

Our head of accounts payable is making me enter the invoice information for my purchases into our records system, and I'm afraid that this will leave me vulnerable to accusations of fraud

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

It is not an illegal practice unless you are some kind of government entity or contractor, which might lead to a contract violation. Otherwise, the boss decides what he wants in his own business.

Justia disclaimers below, incorporated herein.

2 Answers | Asked in Employment Law, Business Law and Small Claims for California on
Q: Employer is with holding wages (1 year.) Claims employee defined as "paid under the table",no recourse in Ca. Court?

Claim's employee has no recourse in California Courts to file claim, for past wages or additional damages, fines, penalty, waiting period (etc.). Because employee was "paid under the table" and will suffer fines, penalties and jail time also. Employer has judgements against for... Read more »

Neil Pedersen
Neil Pedersen answered on Aug 20, 2020

This is a scare tactic used by employers who unlawfully fail to pay their employees properly.

If you have received money under the table, i.e., been paid without the employer reporting the money to the government, you still have an obligation to report the income to the IRS and the...
Read more »

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1 Answer | Asked in Business Law for California on
Q: Do I need an LLC for a homemade mask making business?

A friend convinced me that I needed an LLC to sell homemade masks to friends and family or on Etsy. He says there will be tons of lawsuits against mask makers if people get covid. Do you think this is a serious risk to my little homemade business, even if I have a disclaimer saying these masks are... Read more »

Shawn R. Jackson Esq.
Shawn R. Jackson Esq. answered on Aug 19, 2020

Well ... as a general rule, you will want three "hurdles" between you and the litigation attorneys. [1] a legal entity like a corporation or LLC ... [2] good insurance and ... [3] good management/disclosure protocols. Most of the time, a litigation attorney can get over two of the... Read more »

2 Answers | Asked in Business Law and Employment Law for California on
Q: Can I contact business cards I collected at a previous employer?

I was laid off from my employer in CA in April. I have a collection of business cards I accumulated. Am I allowed to contact them working for my new employer in a similar field?

Neil Pedersen
Neil Pedersen answered on Aug 18, 2020

California protects employees who move on from one employer to another and allows that employee to fairly compete in the same market as long as the employee does not engage in unfair competition, including use confidential information garnered from the prior employer. Generally business cards are... Read more »

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1 Answer | Asked in Business Law, Civil Litigation and Real Estate Law for California on
Q: Right if first refusal in our lease agreement was not provided with the actual property price.

We (Tenant) have a gas station on a commercial property with another business and a couple residential rentals on it. Our landlord provided Us with a first right of refusal letter that showed a price of 1.3 million. We later found out the property was sold for 900k through escrow. We never received... Read more »

Joshua Kroot
Joshua Kroot answered on Aug 16, 2020

In general, if you otherwise have a claim under the right of first refusal clause, you should be able to sue after the sale has already taken place. Depending on how the sale was structured, it may or may not be difficult to get it essentially reversed so that you are able to purchase the property.... Read more »

2 Answers | Asked in Business Law, Libel & Slander, Contracts and Civil Rights for California on
Q: My boss is attempting to sue me and claim my business as his.

I worked for a real estate agency. My boss is attempting to sue me, claiming that I deleted files off the computer. He also claims he owns my business (A Marketing Agency) as I opened it while working for him.

There is an alarm code history in which it has me registered for going in 5 days... Read more »

Maurice Mandel II
Maurice Mandel II answered on Aug 14, 2020

Suggest you change the name on your marketing agency to a new dba, sounds like it is a sole proprietorship. The chain of events is a little problematic. NEVER, NEVER keep your personal files on a company computer, the computer is not yours, and actually your removal of those files from the... Read more »

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1 Answer | Asked in Business Law for California on
Q: If people buy stickers from me and I enter the names into a giveaway for a free painting is that illegal?
Maurice Mandel II
Maurice Mandel II answered on Aug 13, 2020

It could be if the people are giving you their personal information confidentially and the "giveaway" is being run by some other person. Then you are disclosing their personal information. Better to disclose that you plan to do this and provide them the choice to opt out.

Justia...
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1 Answer | Asked in Business Formation, Business Law and Real Estate Law for California on
Q: What is best for me llc or corporation i want to start a business buying properties in other states and rent them out
Joshua Kroot
Joshua Kroot answered on Aug 9, 2020

There are a few factors that will play into your decision, including how many properties you are planning on holding, whether there will be other owners, partners or investors in the business, and what your tax situation is. Often, real estate holding companies will be structured as LLCs. Many... Read more »

3 Answers | Asked in Employment Law and Business Law for California on
Q: vendor not releasing payments from past few months and what should I do?

We have been waiting from past few months for payments from vendor, they are asking ask for settlement but we are decided to file a petition in court? What steps need to be taken and how long will my petition will take?

Neil Pedersen
Neil Pedersen answered on Aug 7, 2020

It depends on how much is involved in this dispute.

If the amount in controversy is $10,000 or less you can proceed through small claims court and probably get a judgment in a matter of months, once the courts open back up.

If the amount is greater than $10.000 then you will have...
Read more »

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1 Answer | Asked in Contracts, Business Law and Employment Law for California on
Q: Can a sales organization change a commission plan after the time period for that plan has passed?

I work in sales. We had a commission and payment plan we all agreed to for Q2 (April-June). The month after they changed the commission plan because "too many people were doing poorly" however I was doing very well and now they have taken away everything I did in Q2 during COVID after... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jul 29, 2020

I had a case like this several years ago, but in that case, it was changed because the salesmen did so WELL! Sometimes these plans contain language saying that they can be unilaterally changed/discontinued at any time. That may not be an enforceable term of the contract. If you were paid the... Read more »

2 Answers | Asked in Consumer Law, Business Law and Gov & Administrative Law for California on
Q: Under CA laws can a used car dealer list price on Cars..com or Cargurus yet write a tiny disclaimer Add Ons Mandatory?

For cash purchase, I've found several dealers say I MUST purchase car with $1999-$3000 extra option. Is this legal?

Scott Richard Kaufman
Scott Richard Kaufman answered on Jul 29, 2020

No. Not lawful. Report this to the dmv...

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2 Answers | Asked in Antitrust, Business Formation, Business Law and Employment Discrimination for California on
Q: Is it legal in CA to start a business that is competitive with a former employer?
Maurice Mandel II
Maurice Mandel II answered on Jul 28, 2020

It depends on whether you signed any trade secret agreements in your former employment. They could use that to claim you were using confidential information to contact your former clients, whether it is true or not. There is no legal prohibition against competing against a former employer using... Read more »

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