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California Business Law Questions & Answers
1 Answer | Asked in Landlord - Tenant and Business Law for California on
Q: In San Diego, CA. Are housing companies or landlords allowed to request a bank statement from rental applicants?
James L. Arrasmith
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answered on Feb 21, 2024

Yes, housing companies and landlords in California generally are allowed to request bank statements from rental applicants during the screening process. However there are some limitations in place under CA state law.

The primary restrictions when obtaining or evaluating bank statements from...
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1 Answer | Asked in Consumer Law and Business Law for California on
Q: Video Game 'Challenge' - False Advertisement (?) "Free Item" not stated as limited quantity What california law?

A video game, subject to California Law, had a challenge that required certain requirements to be met in said video game. Requirements did also include time spent in said game.

When as of 11-02-24 the user attempted to claim said item it was said that it was in fact a 'limited... View More

James L. Arrasmith
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answered on Feb 21, 2024

Under California law, false advertising is prohibited under the state's Business and Professions Code, particularly under Section 17500. This law prohibits any untrue or misleading statements made in connection with the sale or advertisement of goods or services. If the video game developer... View More

2 Answers | Asked in Business Law, Contracts and Consumer Law for California on
Q: Can a company force you into a contract you have not signed in California?

I purchased a car from car max, i was approved for a joint loan. Then later it was retracted and they said i had to do a re-buy re-purchase. I did that and was approved for a second loan solo. a document was missed in signing. and submitted as soon as I received it twice. Months later i never got... View More

James L. Arrasmith
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answered on Feb 21, 2024

No, a company cannot force you into a contract you have not signed in California. Some key points here:

- For a contract to be legally binding, it requires mutual agreement between parties typically indicated by signatures. If you have not signed any new agreements with CarMax, you are...
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1 Answer | Asked in Business Law for California on
Q: Can parents make their kids work for their business for free in California?
James L. Arrasmith
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answered on Feb 21, 2024

Under California law, parents are generally not permitted to compel their children to work for their business without appropriate compensation. The state's labor laws mandate that minors must be paid at least the minimum wage for their work, and they are entitled to the same protections and... View More

1 Answer | Asked in Real Estate Law, Business Law and Gov & Administrative Law for California on
Q: Does the family court in California have the authority to rule on civil business and professional code violations?

I am seeking treble damages along with real estate and cal business & professional code violation damages stemming from a real estate purchase with my former partner soon to be ex wife on a property purchased after the date of separation where she breached our contract and she was the licensed... View More

James L. Arrasmith
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answered on Feb 20, 2024

In California, family courts primarily handle cases related to divorce, child custody, spousal support, and similar family law matters. While they have broad jurisdiction over issues arising out of marital relationships, including the division of marital property, family courts do not typically... View More

2 Answers | Asked in Business Law, Contracts and Gov & Administrative Law for California on
Q: Do I need a license to be a lessor of a vehicle in California?

I would like to use my LLC to purchase a vehicle, then lease that vehicle out to a company I am a shareholder of for its' business use. Does the LLC need a special license to do this?

T. Augustus Claus
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answered on Feb 6, 2024

Generally, if your LLC is engaging in vehicle leasing as a business activity—especially if it plans to lease multiple vehicles or engage in leasing as a regular part of its business operations—it may be subject to regulatory requirements, including obtaining a specific license.... View More

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2 Answers | Asked in Business Law, Contracts and Gov & Administrative Law for California on
Q: Do I need a license to be a lessor of a vehicle in California?

I would like to use my LLC to purchase a vehicle, then lease that vehicle out to a company I am a shareholder of for its' business use. Does the LLC need a special license to do this?

James L. Arrasmith
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answered on Feb 22, 2024

In California, leasing vehicles as a business activity, including by an LLC to another company, generally requires compliance with specific regulatory requirements. If your LLC plans to engage in the business of leasing vehicles, it may be subject to licensing requirements under the California... View More

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3 Answers | Asked in Employment Law and Business Law for California on
Q: I am IT consultant for my company and my client never set an SOW despite me asking for it. they think I inflated hours

I have excellent reviews from them for my work but now they are questioning my hours. I have sent back detailed descriptions of the hours but still concerned. They never was clear on hour caps it was vague and I just was doing my job

Neil Pedersen
Neil Pedersen
answered on Feb 5, 2024

This is the kind of issue that does not have a legal solution. You are going to have to resolve it through negotiation and diplomacy. The employer has the right to terminate your involvement at will unless you have an agreement to the contrary about that status. If the employer believes your... View More

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3 Answers | Asked in Employment Law and Business Law for California on
Q: I am IT consultant for my company and my client never set an SOW despite me asking for it. they think I inflated hours

I have excellent reviews from them for my work but now they are questioning my hours. I have sent back detailed descriptions of the hours but still concerned. They never was clear on hour caps it was vague and I just was doing my job

Tim Akpinar
Tim Akpinar
answered on Feb 14, 2024

It could be difficult to change what your client thinks, as you continue to work with them about your efforts. The situation you describe can arise on any project-based assignment. For future assignments, some things to consider are different arrangements that provide more control over services... View More

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3 Answers | Asked in Employment Law and Business Law for California on
Q: I am IT consultant for my company and my client never set an SOW despite me asking for it. they think I inflated hours

I have excellent reviews from them for my work but now they are questioning my hours. I have sent back detailed descriptions of the hours but still concerned. They never was clear on hour caps it was vague and I just was doing my job

James L. Arrasmith
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answered on Feb 5, 2024

In California, even without a formal Statement of Work (SOW), there may still be an implied contract between you and your client based on your actions and communications. If you have a history of providing services and receiving compensation, it could establish the terms of your agreement,... View More

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1 Answer | Asked in Consumer Law, Contracts and Business Law for California on
Q: Car auction house doesn't have all the all the paper work I need.

I bought a car at a public aution house. The car had some dmv fees. I took the papers back to the auction house and they said they will take care of it. They transferred the car title to out of state to another dealer in order to remove the CA dmv fees. Then they gave me a temporary registration.... View More

James L. Arrasmith
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answered on Feb 3, 2024

In California, when purchasing a car from an auction house, it's crucial that all necessary paperwork, including the bill of sale and title transfer documents, are in order for proper registration with the DMV. If the auction house has transferred the title to an out-of-state dealer to... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: Will a parent LLC in NM for a subsidiary in CA need to register as a foreign entity CA if I live in CA doing eCommerce

If a California subsidiary is registered by a parent company in New Mexico and conducts business within California, does the parent company, based in New Mexico, also qualify as 'doing business in California'? Consequently, would it be necessary for the New Mexico parent company to... View More

James L. Arrasmith
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answered on Feb 1, 2024

In California, if your New Mexico parent company has a subsidiary that conducts business within the state, it may trigger the requirement to register as a foreign entity in California. Even if you operate the subsidiary primarily for eCommerce and live in California, the fact that your parent... View More

1 Answer | Asked in Business Law, Mergers & Acquisitions, Civil Litigation and Securities Law for California on
Q: I run a business in Los Angeles and received a Wells Notice after testifying, without an attorney.

hvm

James L. Arrasmith
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answered on Jan 30, 2024

Receiving a Wells Notice in Los Angeles indicates that the Securities and Exchange Commission (SEC) is considering enforcement action against you or your business. This notice is a serious matter and typically precedes formal charges. It gives you the opportunity to present your side of the story... View More

2 Answers | Asked in Business Law, Construction Law and Small Claims for California on
Q: Do I have any recourse for getting back money I paid to an unlicensed CA contractor who I fired for poor quality work?

I hired an unlicensed "contractor" on the recommendation of family members to do a bath and kitchen remodel. After paying him more than $10,000, I fired him because of the poor quality of the work he did on the bathroom remodel and the kitchen planning. The bathroom has to be completely... View More

Dan Rowan Cortright
Dan Rowan Cortright
answered on Jan 29, 2024

In addition to what Mr. Arrasmith said, there are specific statutes in CA that provide remedies and civil penalties for those who have hired unlicensed contractors. These state that you are permitted to recover all money you paid to the unlicensed contractor regardless of whether you knew they... View More

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2 Answers | Asked in Business Law, Construction Law and Small Claims for California on
Q: Do I have any recourse for getting back money I paid to an unlicensed CA contractor who I fired for poor quality work?

I hired an unlicensed "contractor" on the recommendation of family members to do a bath and kitchen remodel. After paying him more than $10,000, I fired him because of the poor quality of the work he did on the bathroom remodel and the kitchen planning. The bathroom has to be completely... View More

James L. Arrasmith
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answered on Jan 28, 2024

In California, hiring an unlicensed contractor can complicate the process of recourse for poor quality work. However, you do have options to pursue. First, you can consider filing a complaint with the California Contractors State License Board (CSLB), which handles disputes involving unlicensed... View More

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1 Answer | Asked in Banking, Business Law and Gov & Administrative Law for California on
Q: Can Chime close my account and send an email saying I am not eligible to receive my money back?

Chime closed my account and said I violated their deposit account agreement. They said I can not have my money back its about 800 dollars. I do not understand how I violated anything and they will not provide details or email me back. I am in the military and only used the account for a few... View More

James L. Arrasmith
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answered on Jan 27, 2024

If Chime closed your account and is withholding your funds, it's important to understand your rights and possible courses of action. Financial institutions, like Chime, often have policies outlined in their account agreements that may allow them to close accounts for certain violations.... View More

1 Answer | Asked in Business Law for California on
Q: Breach of contract If the seller didn’t provide all financial document during dual diligent can he sue me ?

The purchase agreement expired because the seller didn’t provide all document that were needed. It was extended by the agent but it was expired because the seller didn’t provide all documentation again

During dual diligent - he failed

But now he sue me for breach of contract

James L. Arrasmith
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answered on Jan 25, 2024

Under California law, in a situation where the seller fails to provide necessary financial documents during the due diligence period, this could be considered a failure to fulfill their obligations under the terms of the purchase agreement. If the agreement specifies that these documents are... View More

2 Answers | Asked in Personal Injury, Business Law and Civil Litigation for California on
Q: Is there an instance where court found a publication liable for intentional infliction of emotional distress?

In Hustler Magazine, Inc. v. Falwell, 485 U.S. 46 (1988), supreme court ruled that Public figures and celebrities cannot claim Intentional infliction of emotional distress for publications. Is there an instance where the person was not a celebrity and or a public figure and their IIED claim went... View More

Theodore Allan Greene
Theodore Allan Greene
answered on Jan 24, 2024

Yes of course. You might remember Nicholas Sandman who claimed he was defamed by the media... and settled with some of them for Millions of dollars. See below.

"Nicholas Sandmann tweeted Friday he reached a settlement in his $250 million defamation lawsuit against the Washington Post...
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2 Answers | Asked in Personal Injury, Business Law and Civil Litigation for California on
Q: Is there an instance where court found a publication liable for intentional infliction of emotional distress?

In Hustler Magazine, Inc. v. Falwell, 485 U.S. 46 (1988), supreme court ruled that Public figures and celebrities cannot claim Intentional infliction of emotional distress for publications. Is there an instance where the person was not a celebrity and or a public figure and their IIED claim went... View More

James L. Arrasmith
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answered on Jan 24, 2024

In California, the scope for successfully claiming intentional infliction of emotional distress (IIED) against a publication or movie studio is quite narrow, especially post-Hustler Magazine v. Falwell. This ruling set a high bar for IIED claims involving public figures or celebrities, requiring... View More

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1 Answer | Asked in Business Law for California on
Q: Hello, can I get sued for having a similar business name in California? Not the same name but similar.

Both registered with CSLB.

James L. Arrasmith
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answered on Jan 23, 2024

In California, as in many jurisdictions, using a business name that is too similar to an already existing business can potentially lead to legal issues. This is especially true if your business operates in the same industry or market as the other business, as it could lead to confusion among... View More

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