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Michigan Business Law Questions & Answers
1 Answer | Asked in Business Law for Michigan on
Q: My girlfriend was threatened with fraud for customers letting her load rewards on her account... can they do this?

The customers let her but the business threatened to fire her and get her for fraud

Thomas. R. Morris
Thomas. R. Morris
answered on May 24, 2018

It sounds like a good reason for her employer to fire her. The next questions are: Whether this scheme results in monetary liability to the employer; and whether it might constitute a crime. I don't think that there is enough information for an attorney to definitively answer the question,... View More

1 Answer | Asked in Business Law, Contracts and Probate for Michigan on
Q: A probate question involving a small, family owned C Corp - A son inherited shares, but refuses to sign Agreement.

How can there be any compliance with the terms of a mother's will, if the son refuses to sign the Shareholder Agreement, thus (officially) becoming a shareholder?

Richard Michael Gee
Richard Michael Gee
answered on Apr 10, 2018

I'm not a Michigan lawyer, and so cannot advise on Michigan law in this regard. I assume your corporation is a Michigan corporation. Normally, however, if there was no requirement in the will that the son agree to a shareholders agreement as a condition for getting his shares, then he is... View More

1 Answer | Asked in Business Law and Real Estate Law for Michigan on
Q: I have 25% shares in Michigan company which own apartment building.Apartment bldg was sold by partners without asking me

Is this legal to sell property without my agree to transaction. Can tittle company pursue with closing without my consent.?

Thomas. R. Morris
Thomas. R. Morris
answered on Apr 10, 2018

Quite possibly. The question is whether, under the organizational documents for your "company", a 25% owner has the power to veto a sale approved by the majority. Usually, the majority rules. If so, they can close the sale.

1 Answer | Asked in Business Law and Contracts for Michigan on
Q: I gave a check to a facility for my mom to stay there and she stayed there only for a day and they don't refund.

I don't have any other documents. I gave a check to the facility.

Thomas. R. Morris
Thomas. R. Morris
answered on Mar 16, 2018

See if you can locate the documents that constitute the contract. If the contract provides that no refund is required to be made, then you may have a difficult time making a case for a refund. If there is no written agreement, particularly none that your mother (or you, if you were the... View More

1 Answer | Asked in Contracts, Business Law, Communications Law and Internet Law for Michigan on
Q: Freelance client is months behind payments and requiring digital account access prior to paying. What are my rights?

After six months trying to arrange a payment schedule as promised by client, the client requested more work prior to pay. I declined and offered a payment schedule. Point person misunderstood and responded by dissolving business relationship and demanding digital web/email account access... View More

Carrie A. Ward
Carrie A. Ward
answered on Feb 28, 2018

Do you have a written contract with the client? If so, you should examine the terms of any default provisions. If you do not have a contract, it is a trickier situation and you probably have the right to terminate the contract without further liability to the client. However, you need to examine... View More

1 Answer | Asked in Banking, Business Law, Consumer Law and Bankruptcy for Michigan on
Q: 100 percent net pay taken from bank account right after payday. What can I do?

I was layed off from a job and I had to take a job for less. 1600 a month differance. I could not afford my discover card payments anymore and im on welfare now. I tried on several occasions to make payment arrangements but the refused. They could not garnish my paycheck because years ago i chose... View More

Robert Keyes
Robert Keyes
answered on Dec 12, 2017

Sounds like a prime candidate for a bankruptcy.

1 Answer | Asked in Business Law for Michigan on
Q: Can a single owner of an LLC cash checks that are written to the business for their own personal use?
Thomas. R. Morris
Thomas. R. Morris
answered on Nov 7, 2017

Not legally, if it means bypassing the company books and accounting for the income.

1 Answer | Asked in Contracts, Copyright, Business Law and Intellectual Property for Michigan on
Q: Is what I'm being requested to do legal? And, do I currently have the legal right/rights qualifying me to proceed?

I was asked by someone to make a number of hard(CD)copies of music for them. This request requires me to "rip" the content(given to me in CD format) on a computer and then burn the music onto the requested number of CDs( also provided to me). The requester(the commissioner) has told me... View More

Benton R Patterson III
Benton R Patterson III
answered on Sep 18, 2017

You may be at risk of committing copyright infringement if the person commissioning the project does not have the appropriate rights. If the commissioner does own the copyright to the content on the CDs, he should be willing to cover any loss you may incur from copying the content (indemnify you).... View More

1 Answer | Asked in Business Formation and Business Law for Michigan on
Q: If I create an acronym in order to advertise an event such as an open house do I have to have it licensed or approved?

A group of moms from church with small businesses and homemade crafts want to get together for a vendor show/open house. We can't identify ourselves with the church since it isn't a church sanctioned event, and we aren't from the Chamber of Commerce or any other official... View More

Brent T. Geers
Brent T. Geers
answered on Sep 6, 2017

That would be fine. Do you plan to hold these or other events again in the future? If so, you might want to give some thought towards incorporating. That would make the name associated with the organization permanent.

If it's a one-time thing, it probably wouldn't be worth the hassle.

1 Answer | Asked in Contracts and Business Law for Michigan on
Q: How to update LLC operational agreement to reflect change of ownership.

I have a LLC operational agreement with my partner and I would like to leave the LLC. We had no income just some costs that we paid and no other activity. He agreed to keep the company for himself and I was told to update the agreement (it allows us to make changes provided both parties will agree... View More

Thomas. R. Morris
Thomas. R. Morris
answered on Jul 27, 2017

If you are confident in your ability to use the language and in the simplicity of the legal issues, do it yourself. But an attorney who has seen none of the documents and has not had the opportunity to ask questions cannot confidently draft some clauses to be carried off by you. This may well be... View More

1 Answer | Asked in Business Law for Michigan on
Q: I have people that were hired as a delivery truck driver to deliver my goods but they are not authorized to accept

Payment. One of the store owners paid one our drivers and he kept the money. Am I liable?

Thomas. R. Morris
Thomas. R. Morris
answered on Apr 21, 2017

This is a question of "ostensible agency". The issue is whether you caused the customer to believe that the driver was authorized to accept payment (that the driver was your agent for the purpose of payment), or, conversely, whether you adequately informed the customer that the driver... View More

1 Answer | Asked in Business Law for Michigan on
Q: If I have a delivery company contracted to deliver my goods and pay them upfront and then they don't deliver, can i

Rescind the contract? Could I also obtain restitution? If do, how do I go about this?

Thomas. R. Morris
Thomas. R. Morris
answered on Apr 21, 2017

Remedies for breach of contract include a claim for damages. This format does not allow for a primer on contract law. You should consult with an attorney to identify the remedy available, how much might be recovered, whether the defendant is collectable (i.e. whether you can collect on any... View More

1 Answer | Asked in Business Law for Michigan on
Q: If a company is concerned about competitors from imitating their logo and thereby misleading customers, how can they

protect the logo and what would they do if someone imitated or straight copied their logo?

Thomas. R. Morris
Thomas. R. Morris
answered on Apr 19, 2017

A logo can be protected as a trademark. Federal registration gives greater protection, but even an unregistered trademark can be protected. An infringement is usually dealt with first by a "cease and desist" letter which notifies the infringer of its improper use of the logo. If that... View More

1 Answer | Asked in Business Law and Employment Law for Michigan on
Q: Can a company prevent its employees from revealing its customer list, pricing policies, &other confidential information

If the employee resigns to work for a competitor or for themselves? How?

Thomas. R. Morris
Thomas. R. Morris
answered on Apr 19, 2017

Yes. The best way for a company to do this is to enter into written agreements with its employees. In the absence of a written agreement, it may be possible for an employer or former employer to legally enforce an employee's or former employee's obligation to not misappropriate property... View More

2 Answers | Asked in Tax Law and Business Law for Michigan on
Q: I have an MI LLC thats two years old with no activity or sales. received a letter that I owe $29k. What do I do!?

I only got the LLC so I could start business but never did anything with it. What do I do? I cant afford that bill and Ive never used it.

Thomas. R. Morris
Thomas. R. Morris
answered on Mar 24, 2017

If the debt is owed by the LLC and not you personally, I assume that the LLC will not pay it. The creditor might assert a theory for your personal liability and seek to collect from you. I would need more information in order to assess the possible outcomes. If this is a tax bill as the category... View More

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1 Answer | Asked in Business Law, Civil Litigation and Consumer Law for Michigan on
Q: What can I do about a company who is charging me for services I never connected to and I threw away my paperwork.

AT&T is sending me to collection threatening to sue for money for services I never received and therefore I threw the paperwork away. They need a password to get into my account, the password was with paperwork.

Thomas. R. Morris
Thomas. R. Morris
answered on Mar 23, 2017

Respond to AT&T by informing them that you dispute the debt and want to see evidence that you owe it. They should provide this because if they sue they will need to prove that you entered into a contract with them for services. If they do sue, you can dispute that you owe the money, but if... View More

1 Answer | Asked in Business Law for Michigan on
Q: my husband is part owner of LLC. God forbid, If something should happen to him, would i be entitled to his share?
Thomas. R. Morris
Thomas. R. Morris
answered on Mar 19, 2017

Probably. It depends upon 1) whether he owns his membership imterest jointly with another person; 2) his estate plan; and 3) the terms of the operating agreement (such as whether there's a buy-sell provision. You have not provided enough information to enable me to answer definitively.

1 Answer | Asked in Business Law, Contracts and Real Estate Law for Michigan on
Q: Real Estate Michigan

I live in Michigan and have a house on a land contract. I haven't received a statement or receipt for my payments in over 6 months despite asking for monthly statements several times. Do I have any legal recourse i can take?

Kenneth V Zichi
Kenneth V Zichi
answered on Mar 2, 2017

Whether or not you get a 'receipt' or a statement really isn't relevant. Are the checks being cashed in such a way you can show they were negotiated? Is there a deed in escrow somewhere so that when you are done paying you will be easily able to get the deed recorded?

It...
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1 Answer | Asked in Business Law for Michigan on
Q: Our business vendor company contacted a debt collector and sued our Michigan based LLC in 2011 and garnished our bank a

Our business vendor company contacted a debt collector and sued our Michigan based LLC in 2011 and garnished our bank accounts. As we moved our cash so they did not collect any money. Is it safe to do business by the same LLC or have to start new business company?

Thomas. R. Morris
Thomas. R. Morris
answered on Feb 16, 2017

Presumably the LLC with a judgment against it is not "safe". But don't assume that your business can be protected by starting a new LLC like a snake shedding its skin.

1 Answer | Asked in Business Formation and Business Law for Michigan on
Q: I am a Member of a 2 member LLC, i am looking to buy out my partner with business funds. Is this legal? in Michigan

We have no operating agreement but are in complete agreement about an equal payout for 50% interest in the company. At which point the other member will withdraw from the LLC. What Documentation is Necessary and what are the tax implications? Is it possible to structure the payout as part cash and... View More

Glenn B. Manishin
Glenn B. Manishin
answered on Feb 6, 2017

All of that is possible, since an LLC is essentially a partnership in corporate form providing limitations on the personal liability of the members. Even a simple bill of sale would be sufficient documentation. The tax impact depends on the other member's "capital account," as for... View More

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