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California Business Law Questions & Answers

1 Answer | Asked in Business Formation, Business Law, Civil Rights and Constitutional Law for California on

Q: I'm trying to find out the laws for the manufacture and sale of nunchucks in San Diego, California

I would probably be selling them at street fairs or farmers markets if possible

Louis George Fazzi answered on Jun 24, 2019

I believe the right to manufacture and/or sell such items is strictly prohibited by state law in California. You will need to contact counsel in San Diego County to fully research the legality of the manufacturing or sale of such products before you undertake such an enterprise. Any law firm which... Read more »

1 Answer | Asked in Business Law and Contracts for California on

Q: Do I still have to pay a membership for a gym that already closed.

A gym I was a member of closed at the beginning of this year without warning. That gym also switched everyone who attended that gym to a different local gym. I’m now stuck paying a membership for a gym who I never signed any contract for. Is this legal?

Thomas A. Grossman answered on Jun 24, 2019

Unless you have a signed contract with the gym in question, I don't believe you have to pay for a gym membership. I would suggest not paying membership fees. I doubt they will try to sue you for it. Good Luck.

1 Answer | Asked in Business Law and Civil Litigation for California on

Q: Hello, quick question. Is BUSINESS AND PROFESSIONS CODE SECTION 21660-21669.1 a state code?

Thomas A. Grossman answered on Jun 24, 2019

To my knowledge, all of the codes in California are State (i.e. California) codes. The Code you referenced appears to be a section of the California Codes which references multiple State codes (i.e. 21660 through 21669.1). Hope that helps.

1 Answer | Asked in Business Law for California on

Q: If a tradesperson is working in your home and is not doing a job well and you ask them to fix it and they refuse unless

you pay them more money and you refuse to do so, and they then decide to just walk off the job and say " take this free and I am leaving now" and leave without any discussion, do you legally have to pay them for any work they did? There was no contract on either side.

Neil Pedersen answered on Jun 21, 2019

There is a concept known as quantum meruit that says that you have to pay the fair market value of valuable service provided to you, even if there is no contract. It is possible that the tradesperson could make such a claim if he can prove you ended up with something of value based on his efforts.... Read more »

2 Answers | Asked in Business Law, Contracts and Stockbroker Fraud for California on

Q: Is it legal to create contracts regarding loans to someone for the purpose to use that money to trade stocks?

If not, and a contract was made for that purpose. Let's say the loaner, loaned $5k and was promised back $10k.

Would the borrower still be obliged to give $10k

even though the contract is not legal?

Samuel B. Edwards answered on Jun 15, 2019

There is nothing inherently illegal or unenforceable for a contract concerning trading stocks. However, there are a lot more questions that would need to be answered in order to know for sure, including what state you are in. There may be a requirement for the person doing the investing to be a... Read more »

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1 Answer | Asked in Contracts, Tax Law, Admiralty / Maritime and Business Law for California on

Q: Does buyer of 'boat' LLC have to register ownership immediately after acquistion? And whom is responsible for taxes?

In October 2018, I sold my California LLC which only asset was a boat (wholly owned by my single owner/manager CA S corp).  Licensed yacht brokers handled the sale through a maritime attorney.  The deal was a straight up deal, llc for cash.  The same maritime attorney represented both buyer and... Read more »

Bruce Alexander Minnick answered on Jun 11, 2019

You are sailing in unchartered waters--at least for me. In addition, there are some important facts missing from you question that prevent lawyers from advising you. Finally, competent lawyers do not answer questions about what might happen in the future. Too many possibilities.

1 Answer | Asked in Products Liability and Business Law for California on

Q: Good Afternoon, I've had a solar system on my house for approximately 4 years that is not functioning due rain damage.

I have had the system for approx 4 years. This will be the second time the inverter and control panel has filled with rain water and failed. I have been trying to get it fixed for the last 3 months. The company we lease the system from finally (after 2 months) sent out a service person. I am told,... Read more »

Timur Akpinar answered on Jun 10, 2019

Your question remains open for four weeks, maybe because it was overlooked in the Product Liability heading. A California attorney would be in the best position to identify the consumer law elements under which you could pursue your remedies. A California attorney could help determine the most... Read more »

2 Answers | Asked in Contracts, Business Law, Land Use & Zoning and Landlord - Tenant for California on

Q: I live in a mobile home park. There is a stream that runs under my mobile home. A walk bridge is build directly behind

my Mobile home. I pay rent on space. The bridge is rotten and needs repairs. Am I wrong thinking the park owners are responsible for repair?

Manuel Alzamora Juarez answered on Jun 6, 2019

No. Your park owner has the responsibility of maintaining his property.

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1 Answer | Asked in Business Law and Business Formation for California on

Q: How do I file a partnership in California?

Kenneth Sisco answered on Jun 3, 2019

It is a fairly simple procedure actually. Of course, there are several types of partnerships, and you probably should not rule out a Limited Liability Company, or even a Corporation. But once you have determined what you need, simply go to the California Secretary of State's Web site, and you... Read more »

1 Answer | Asked in Business Formation, Business Law and Contracts for California on

Q: If there is a company buying another company which executives or people should be present to finalize the deal?

Bruce Alexander Minnick answered on May 31, 2019

Whichever "executive" authorized by the company.

1 Answer | Asked in Business Formation and Business Law for California on

Q: I'm a CA resident and registered a DE LLC, (no hard assets, just IP rights and R&D expense. Do I need to register in CA?

the entity is a R&D single member LLC. Work is done in the garage and expense is paid from personal account to vendors/suppliers in all states.

Thank you

Kenneth Sisco answered on May 28, 2019

The correct answer is "yes." Anytime a business entity conducts business activities in California, it must qualify to do business. And, I always advise my clients to follow the law.

As a practical matter, the only way it will come up is if you have income, or if you get sued. In that...
Read more »

1 Answer | Asked in Employment Law, Business Law and Tax Law for California on

Q: If my business' cofounder and I elect to stop receiving compensation for months, must I file state payroll reports?

The two of us are currently the only employees of our business, and only took a single paycheck of $100 each to set up the payroll system so it would be in place when we have employees in the future. We have since decided to delay any hiring, and will not be taking any compensation ourselves, for... Read more »

Neil Pedersen answered on May 24, 2019

This is a question best answered by your tax accountant. While owners can agree to not take a salary from the business there are tax consequences associated with that decision that you need to measure against the relatively small administrative charges you wish to avoid paying. Get in contact... Read more »

1 Answer | Asked in Business Law and Employment Law for California on

Q: Can an employee file a lawsuit against the owner personally instead of the business?

Received a letter from an attorney this morning and was wondering if it's possible for an employee who I owe back wage to, to file a lawsuit against the owner instead of the business?

Neil Pedersen answered on May 20, 2019

There are several ways an employee can sue the owner of a business. While the general rule is that the business is primarily liable for many of the claims an employee can make, there are several ways an owner who either engages in certain acts of harassment, or who has discretionary control over... Read more »

3 Answers | Asked in Insurance Bad Faith, Insurance Defense, Business Law and Car Accidents for California on


This young guy hit my car CLEARLY at fault & admitted it. the insurance paper showed his policy had expired He told me that he would talk to his mother to get my car fixed. His mom is an insurance agent. the calls that were supposedly from a claim adjuster were not the # was from his moms office... Read more »

William John Light answered on May 18, 2019

Unclear if you are injured from a collision or just want property damage repaired. The remedy for establishing who is at fault in a collision is a lawsuit. If you want your property damage repaired, file in Small Claims. Bring photos of the damage, and of the scene. Bring copies of the... Read more »

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1 Answer | Asked in Consumer Law, Business Law, Small Claims and White Collar Crime for California on

Q: I got scammed out of 5500$ by an online seller, How to proceed?

Ok, So i purchased 20,000$ (~200 orders) of merchandise from an online e commerce site for my small business, under all my personal info. I only receive 900$ of items from them. I charged back with my credit provider and only got back 14000$ I am out about 5500$. I am not the only one who got... Read more »

Scott Richard Kaufman answered on May 6, 2019

Sounds like you may have to sue them, which of course could cost way more than the $5500 you are out.

Maybe small claims is your best bet, it's quick, easy and for matters under 10K wherein attorneys are not

allowed at all, well, other than to represent an LLC or a CORP.

1 Answer | Asked in Consumer Law, Contracts and Business Law for California on

Q: What can we do about a client who received the solution they wanted but has begun to post negative reviews?

Due to an accident that our catering delivery driver was in just short of arriving at the clients location, we were unable to fulfill the order. The customer has received a full refund, but has begun to post negative reviews online stating that we are fraudulent and even going to the point of... Read more »

William John Light answered on May 2, 2019

She is entitled to post truthful facts and she is entitled to post her opinion. You are entitled to respond. Unless your contract with her contains a non-disparagement provision, or unless she is lying, there isn't much you can do. Maybe send her a copy of the Traffic Collision Report as proof... Read more »

2 Answers | Asked in Business Formation, Business Law and Products Liability for California on

Q: If a dealership forgets to charge your down payment and you signed the contract already do you need to pay them?

I recently got a car and was putting down $2,000 as down payment but the dealership forgot to charge me the down payment but instead charged me everything else for the car. We signed the contracts already and everything was a done deal. Do I need to go back and give them the money they forgot to... Read more »

Scott Richard Kaufman answered on May 2, 2019

If you agreed to pay the money but they made a mistake, you should not, morally or legally try to avoid paying what you've agreed to pay. You'd be just like a car dealer then...

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1 Answer | Asked in Contracts, Real Estate Law, Business Law and Federal Crimes for California on

Q: Can I fight for property that was never paid for years ago to my father who is no longer living in the states?

My father fled the States in 2006 after having trouble with the law but signed a bill of sale to transfer half of his business to his business partner for about $600,000 but the buyer stopped sending him money within a year. Due to this, my father signed a power of attorney to my mother (never... Read more »

Bruce Alexander Minnick answered on Apr 28, 2019

If you are wondering why lawyers here on Justia are not answering you or are advising you to consult with a lawyer who handles your particular issues it is because Justia is a free online legal forum established to allow members of the public to ask general legal questions to lawyers who volunteer... Read more »

2 Answers | Asked in Consumer Law and Business Law for California on

Q: Is it legal in Arizona for Walmart and other stores to require you to show your receipt and check your bags

Mr. H. Michael Steinberg answered on Apr 25, 2019

In a word yes. They are not government. If they suspect you may have shoplifted it accidentally did not pay for an item they have right to make you prove the item was legally purchased.

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