North Carolina Business Law Questions & Answers

Q: NC. Is there a % limit to deposits for materials in Cost Plus building contract ?

1 Answer | Asked in Business Law, Contracts and Construction Law for North Carolina on
Answered on Mar 28, 2017

There is no limit by law, but it should be a negotiated sum between the homeowner and contractor. Generally, deposits should be limited to around 10% of the contract price, but this also depends on the remaining pay schedule. Contractors typically ask for deposits for material costs. However, if the deposit is a greater figure this may be a red flag that the contractor is not adequately capitalized or doesn't have access to credit for purchasing materials.
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Q: Are there any rights a consumer or business owner has if you've signed a confession of judgment

1 Answer | Asked in Consumer Law and Business Law for North Carolina on
Answered on Feb 28, 2017

If you aren't in compliance with the agreement you made with the creditor then the creditor can file the confession of judgment.They and the clerk are not required to give you any notice, unless you have a written payment agreement which requires the notice. You'll need to contact the creditor to ask for more time to pay.
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Q: Complicated case about an unnotarised business contract.

1 Answer | Asked in Business Law and Contracts for North Carolina on
Answered on Feb 27, 2017

You need to contact an attorney immediately to discuss your case.Once more facts are learned, the attorney may be able to take steps to stop actions on the other party's part. A contract of this type does not have to be notarized to be valid. If you are not in default of the contract, they cannot repossess the property. In addition, even if you are late, they may not have the right to repossess the business. There are additional requirements. Contact an attorney now.
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Q: I have a now employee who quit and left his tools and Toolbox at my business. What can I do with his property?

1 Answer | Asked in Business Law and Employment Law for North Carolina on
Answered on Feb 23, 2017

I would send a written notice to the employee to pick up the tools by a certain date. Not knowing the timing here, a full answer is not possible. If you have the employee's address, you could deliver. There is not set time frame on this, but after a reasonable time, I would argue that they have been abandoned and you could dispose of the tools.
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Q: What licenses are needed to open a Hookah lounge establishment that serves alcohol?

1 Answer | Asked in Business Law for North Carolina on
Answered on Feb 20, 2017

At the very least, you will need a license issued by the ABC Board for alcohol sales. There are different levels of licenses depending on your alcohol needs. Additionally, you will need business licenses. The licenses vary by county. Its best to consult with an attorney to discuss your specific business needs to get a complete answer.
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Q: City job can employer take employees tips and give them to non profits/not allow worker to accept tips they are given?

1 Answer | Asked in Employment Law, Workers' Compensation and Business Law for North Carolina on
Answered on Feb 15, 2017

If an employer is relying on the tip credit privilege to meet their minimum wage obligations, then the employer for itself cannot take an employees' tips.
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Q: I am starting a food trailer buisness and my investor decided to back out before we signed a contract but he gave me

1 Answer | Asked in Business Law and Contracts for North Carolina on
Answered on Feb 13, 2017

It depends on the terms of your agreement, whether written or oral. The money was paid and used for the intended purpose, so no doubt you have a contract. What was your agreement with respect to the money? To pay back after a certain time frame or when the business reached a certain point? If there was no agreement, generally the legal answer is within a reasonable time. There is no set number of days, etc.
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Q: Should I get a llc for my small etsy store and blog for the protection?

1 Answer | Asked in Business Law for North Carolina on
Answered on Jan 24, 2017

Forming an LLC or other business form can offer protection to individuals and individual assets should a claim be made against a company. Based on your information, I am not sure what the size of claims against you could possible be for small charms. Nonetheless, you could consult with an accountant for the tax consequences to you and also attorney for the most appropriate form for your business.
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Q: I'd like to ask the seller of the business I'm purchasing not to compete with me for a specified period of time

1 Answer | Asked in Business Law for North Carolina on
Answered on Jan 18, 2017

Yes. The non-competition clause must be contained in a written contract and there are other terms that must be included. You should discuss this with an attorney.
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Q: Who owns the inventory in a business...the person who bought the inventory or the person who owns the building?

1 Answer | Asked in Business Law for North Carolina on
Answered on Nov 29, 2016

The lease speaks only to the interest in the real property, not to ownership of the business or the business assets. Without reviewing the actual documents, a full answer could not be provided. However, based on the information provided, the inventory belongs to the business, which in turn belongs to the business owners. Unless an agreement was reached that gave the aunt some ownership in the business (which may have been part of the agreement), the inventory likely belongs to your grandpa.
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Q: I was employed as a subcontractor broker with a real estate agency. If I leave them does the agency own my prospects?

1 Answer | Asked in Business Law and Real Estate Law for North Carolina on
Answered on Oct 28, 2016

Based on this information alone, I would say no. However, an attorney will need to review the whole contract to determine if that is the appropriate answer and to fully advise you. It is well worth your time to pay the minimal amount for advice from an attorney on this. The agency's response seems to come from a different clause in the contract than the one cited in your question.
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Q: Small, residential prog. Parents signed contract and pd. Nonref.deposit and 1st month. 2nd mth, kid left. Suing for $

1 Answer | Asked in Business Law, Civil Litigation and Contracts for North Carolina on
Answered on Oct 10, 2016

The question you ask is not clear from the above. If you wish to have the advice of an attorney, you can use this site to locate an attorney in your area and meet to discuss the details of your case. If you have been served with a summons and complaint, you have 30 days to file a response with the court. The advice of attorney is strongly suggested.
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Q: In NC, signed private employer document stating I will pay back travel costs for training if i resign within 90 days

1 Answer | Asked in Employment Law and Business Law for North Carolina on
Answered on Oct 7, 2016

Without more information and knowing the exact terms of the contract, yes, you are responsible. You signed a contract agreeing to be responsible. Unless there was a breach of that contract by the employer which would potentially relieve you of your obligations to perform, it is likely a valid contract. It does not need to be notarized or signed by an attorney.
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Q: Can a corporation cease operations if it has outstanding debt?

1 Answer | Asked in Business Law for North Carolina on
Answered on Sep 9, 2016

Yes. Corporations can generally cease operations at any time, depending on the corporate documents. The business will go through the winding down process in which debts are paid and company business is brought to a close.
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Q: If a business receives an overpayment on an account from a customer, are they legally obliged to notify the customer?

1 Answer | Asked in Business Law and Consumer Law for North Carolina on
Answered on Aug 17, 2016

The answer to this question depends on the terms and conditions of your credit account agreement. Most account agreements would allow application to an outstanding balance. However, if payments are made with a specific designation as to how they should be applied, it is questionable especially without contract authorization. If your contract allows you to apply to other outstanding invoices or to hold as an open unapplied credit, then that would be ok. Otherwise, it should be refunded to the...
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Q: I am researching for a novel. Can a Syrian living in America with temporary protection status own their own business?I

1 Answer | Asked in Business Law and Immigration Law for North Carolina on
Answered on Aug 16, 2016

Yes, they most definitely can. In most states you just need a social security number. And you can get that with TPS. Good luck with your novel!
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Q: Do you need FDA approval to resell an imported Personal Lubricant product on Amazon?

1 Answer | Asked in Business Formation, Business Law, Products Liability and Consumer Law for North Carolina on
Answered on Jul 8, 2016

If you are packaging it from bulk for resale, probably. If you are just reselling a sealed package you have, I don't believe so but if you are a business why not contact your lawyer or insurance company.
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Q: Is a broad, general non-compete agreement legal in NC in case where current employer is being bought out by another co?

1 Answer | Asked in Business Law, Contracts and Employment Law for North Carolina on
Answered on Jul 1, 2016

Many facts will be relevant and you will want to discuss this with an attorney. Ultimately your defenses to this non-compete will be determined by a Judge and their opinion on whether the time and territory is overly broad or if another defense exists. It does sound like the time and territory would be overly broad in North Carolina for the position described. The fact that nothing is being offered to sign would be a complete and total defense to the document. Be careful as a payment as...
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Q: Can i be sued for selling MLM items online at Amazon/Ebay?

1 Answer | Asked in Intellectual Property, Business Law, Consumer Law and Internet Law for North Carolina on
Answered on Jul 1, 2016

Whether they can sue you depends some on your agreement with them as a distributor. I would imagine that they limited what you can do with what they have sold you. They have an interest in protecting their brand and may be able to sue you for unauthorized use of their trademarks at the very least. These suits can have high penalties that would dwarf any profits you might receive from selling the products online.
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Q: If I create a LLC and make a single Living Trust the only member would that be a disregarded entity?

1 Answer | Asked in Estate Planning and Business Law for North Carolina on
Answered on Jul 1, 2016

My guess is that this arrangement is unnecessarily complex and you should discuss with a competent attorney in your state what your goals are with this arrangement. Generally LLCs are disregarded entities for taxes. You could elect to have the LLC taxed as a C-Corp if you wanted corporate taxation. Trusts can be drafted to be disregarded or to be their own taxable entity. Trust tax brackets and corporate tax brackets are different from individual tax brackets so make sure what you are doing...
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