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Tennessee Business Law Questions & Answers
1 Answer | Asked in Business Law for Tennessee on
Q: i am looking to sell my llc and my partner is under the assumption he will get back all of his initial startup costs

before our percentage split is this true as we dont have an operating agreement

Mr. James Charles Wright
Mr. James Charles Wright
answered on Sep 3, 2024

The sell and distribution of proceeds would be controlled by statute. The statutes that deal with this are more complex- and this is a simplification: If someone is buying the entity - creditor's claims would be dealt with first. After paying creditors if there are funds left over - any... View More

1 Answer | Asked in Business Law, Civil Rights, Landlord - Tenant and Municipal Law for Tennessee on
Q: Can a hotel take my belongings without informing me that my payment for services didn't go through?

Hotel located in Tennessee.

James L. Arrasmith
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answered on Jun 26, 2024

To answer this question accurately, we need to consider a few key aspects of Tennessee law and general hotel practices:

1. Payment issues:

When a hotel guest's payment doesn't go through, the hotel typically attempts to contact the guest to resolve the issue before taking...
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1 Answer | Asked in Consumer Law, Contracts, Criminal Law and Business Law for Tennessee on
Q: If I get a car from a dealership but make payments to another dealership, is something illegal happening?

Filed complaint with tn commissions and car dealership that I make payments to said they never sold me a car...but I believe they have multiple lots was even told by the lot I got car at. Some of the payments was not reported right. I have time recipts of transactions

Anthony M. Avery
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answered on May 28, 2024

Filing a Complaint without knowing most of the facts could get you repossessed. Hire an attorney to look at your financing statement. Then you and him start calling the noteholder, whoever that is. Some corporation searches will also be necessary. Determining the actual lienholder may be a... View More

2 Answers | Asked in Car Accidents and Business Law for Tennessee on
Q: I am having trouble finding a lawyer to help with a commercial property damage claim/insurance company.

Someone drove their car into our building and it took out our HVAC unit/ductwork and damaged the metal building wall through to the inside. The insurance company refuses to pay the full amount - they approved the estimate we sent but insist on depreciating the value of the 5 year old unit which... View More

Tim Akpinar
Tim Akpinar
answered on Jun 3, 2024

Unfortunately, the depreciation issue you mention does confront claimants in property losses such as yours, depending on the carrier and their philosophy toward customer service. My colleague raises a good point - explore the liability of all parties involved. Also review your policy. While the... View More

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2 Answers | Asked in Car Accidents and Business Law for Tennessee on
Q: I am having trouble finding a lawyer to help with a commercial property damage claim/insurance company.

Someone drove their car into our building and it took out our HVAC unit/ductwork and damaged the metal building wall through to the inside. The insurance company refuses to pay the full amount - they approved the estimate we sent but insist on depreciating the value of the 5 year old unit which... View More

Anthony M. Avery
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answered on May 17, 2024

Hire an attorney file suit against all liable parties, such as driver, car owner, lessor, etc. If under $ 25K in damages, I would sue in Sessions to get to Court faster and cheaper. But you will probably have to try it twice that way. Owner may be judgment proof, so expect to recover from... View More

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1 Answer | Asked in Business Formation, Business Law and Tax Law for Tennessee on
Q: Does a DE nonprofit have to file a foreign qualification in TN if the sole member/directors merely lives in Tennessee?

No business will be conducted in TN. The DE Nonprofit will not actively be seeking out donations or soliciting donations particularly from TN residents, although the NP may accept donations from TN residents. Solicitation of charitable donations will be passive from the NP website.

James L. Arrasmith
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answered on Apr 11, 2024

Based on the information provided, it is unlikely that the Delaware nonprofit would need to file a foreign qualification in Tennessee solely because one of its directors or members lives there, as long as the nonprofit is not actively conducting business in the state.

However, there are a...
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2 Answers | Asked in Business Law, Construction Law, Contracts and Government Contracts for Tennessee on
Q: Do I need a contractors license to bid on a contract in TN if I am only providing materials?

I sell traffic control devices and want to bid on a contract with the county in TN. The price will be above $25,000. Do I need a contractors license to bid if I'm not providing a service? I am a wholesale company only. If so, which contractor license would I need?

Tim Akpinar
Tim Akpinar
answered on Mar 30, 2024

A Tennessee attorney could advise best, but your question remains open for three weeks. Attorneys here aren't likely to know this off the top of their heads. It might be more reliable to check with the purchasing/procurement department manager of the county - it could depend on how they wrote... View More

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2 Answers | Asked in Business Law, Construction Law, Contracts and Government Contracts for Tennessee on
Q: Do I need a contractors license to bid on a contract in TN if I am only providing materials?

I sell traffic control devices and want to bid on a contract with the county in TN. The price will be above $25,000. Do I need a contractors license to bid if I'm not providing a service? I am a wholesale company only. If so, which contractor license would I need?

Henry Ambrose
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answered on Apr 8, 2024

If you are only selling them the device, that should not expose you to Tennessee contractor laws. But if you are performing any work, or paying someone else to perform the work for the installation you probably are subject to the contractor statutes. This question is pretty complicated and will be... View More

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1 Answer | Asked in Banking, Business Law and Constitutional Law for Tennessee on
Q: Do banks have to provide documentation if requested?

Cashapp put a temp hold on $309.09 and then never released it. They keep telling me it was put back into my account but will not provide documentation of this. And I have requested it 5 times now.

James L. Arrasmith
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answered on Mar 11, 2024

Yes, banks and financial institutions are generally required to provide documentation related to your account upon request. This is part of their responsibility to maintain accurate records and to provide transparency to their customers.

In the case of Cash App, which is a financial service...
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1 Answer | Asked in Business Law for Tennessee on
Q: HowLong can a board member be on the board ?

We have a board member who controls the board and has for seven years no elections self appoints other to be on the board

James L. Arrasmith
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answered on Mar 4, 2024

The length of time a board member can serve on a board largely depends on the organization's bylaws or governing documents. These documents typically outline the terms of board members, including how long they can serve and the process for elections or appointments. If there are no term limits... View More

1 Answer | Asked in Tax Law, Business Law and Juvenile Law for Tennessee on
Q: Is it legal for the city to open a hospitality tax account for a 12 year old's small business?

We asked the county clerks office if my son needed a tax license and they told us he was under 18 so to go enjoy his business and learn as there was no need to file anything at his age. He was not able to legally open an account. Later he set up at an event in city limits. I was sent an email... View More

James L. Arrasmith
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answered on Feb 22, 2024

The legality of a city opening a hospitality tax account for a minor's business depends on local laws and regulations, which can vary widely. While minors generally have limited legal capacity to enter into contracts or be held responsible for tax obligations, local jurisdictions may have... View More

1 Answer | Asked in Business Law, Civil Rights, Municipal Law and Employment Law for Tennessee on
Q: Can an employer put up camera surveillance in the workplace without disclosing their locations? I love in Tennessee

I understand and agree to camera surveillance in the workplace for security. But my employer wants to use it to “keep an eye on productivity”. She claims she’s not going to tell us where said cameras are, but I feel like this may be a violation of employee privacy. Especially if we need to... View More

James L. Arrasmith
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answered on Feb 4, 2024

In Tennessee, employers generally have the right to install cameras in the workplace for purposes such as security and monitoring productivity, provided the surveillance does not occur in areas where employees have a reasonable expectation of privacy, such as bathrooms or locker rooms. However, the... View More

1 Answer | Asked in Contracts and Business Law for Tennessee on
Q: I am being sued by a client that did not like the website that was built for them. How should i handle the suit?

I offer free revisions for my clients so long as they are hosting with me as well. She refused the revisions and even refused to take over the site herself. Instead decided the sue.

Nina Whitehurst
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answered on Jan 14, 2024

Even if your contract is ironclad it is usually not worth the bad will and emotional drain to litigate. My best advice to you, but this is based on very limited information so take with a grain of salt, is to offer her a full refund in exchange for a settlement agreement in which you admit no fault... View More

1 Answer | Asked in Probate and Business Law for Tennessee on
Q: In Tennessee, if a business partner dies, does the heir take over the deceased half of the business? (No will involved)

My father passed in Feb 2023 and I haven't gotten into the business part of my fathers stuff yet bc my mother passed as well this year. I am sole heir to everything in this family. My mother was 1/4 partner as well, but never kept up with the business side of things, the men did. Before she... View More

Anthony M. Avery
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answered on Dec 27, 2023

As administrator you will want to dissolve the Partnership. The assets may not be collectable but you can pursue dissolution. You will need a competent attorney and expect to pay alot. The Partnership interest is personal property and goes to the next of kin which is almost always also the... View More

2 Answers | Asked in Criminal Law, Education Law, Tax Law and Business Law for Tennessee on
Q: If a school official lied to defraud parents of an account balance or charge, is that criminal?

A school sponsored, parent funded, non-profit school support organization has been asked to pay an amount that is not correct and accounting is wrong. The school sponsor is the only person allowed to handle the budget and pay vendors. The sponsor informed parents the charge was less than what it... View More

James L. Arrasmith
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answered on Dec 25, 2023

If a school official intentionally provided false information about finances to defraud parents, this could potentially be considered criminal behavior. In your situation, if the school sponsor misled parents about the actual costs and required additional payments under false pretenses, it may... View More

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1 Answer | Asked in Real Estate Law, Business Formation and Business Law for Tennessee on
Q: Is it possible to purchase 99% of the shares of an LLC while keeping the original owner on as a non-equity/no-owner?
Mr. James Charles Wright
Mr. James Charles Wright
answered on Nov 16, 2023

A limited liability company has members and membership interests. Yes, you can purchase 99% of the interest in the LLC - but if you are leaving one percent- is that for the old owner- so they would be one percent equity owner? This sounds like a structure of membership issue. It may be... View More

1 Answer | Asked in Consumer Law, Contracts, Business Law and Small Claims for Tennessee on
Q: I have done a consent judgment on an amount I am being sued for and it was approved. Do I still have to appear in court

The lawsuit is coming from a loan company that has acquired a lawyer for representation. I think I got the term "Consent Judgement" correct. With that being said, since the judgement was approved by the courts, is it still necessary for me to go to court?

Anthony M. Avery
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answered on Nov 10, 2023

It is probably an Agreed Judgment. I recommend you still go to Court to get the agreed money Judgment entered. Sometimes bad things happen, and it is difficult to rectify them. That creditor's attorney might forget about your agreement and enter the full ad damnum, plus attorney fees... View More

1 Answer | Asked in Business Law and Education Law for Tennessee on
Q: We are a jr high and high school Fishing team for 2 counties in TN. Do we qualify for Exempt School Org?

We want to start a 501C3 nonprofit for the funding.

James L. Arrasmith
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answered on Nov 9, 2023

To determine whether your fishing team for junior high and high school students qualifies for an Exempt School Organization status, you will need to review the requirements set forth by the IRS for educational organizations. This typically involves the organization being associated with an... View More

1 Answer | Asked in Business Law for Tennessee on
Q: If you are the only member of a LLC and it is dissolved - can you represent the LLC in legal matters?

If someone is one (and only) listed member of an LLC, can they represent the LLC in legal (civil) matters? LLC has been dissolved.

Anthony M. Avery
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answered on Sep 26, 2023

If the LLC is dissolved, then it has no legal matters. Members receive both assets and liabilities, and have legal proceedings against them personally. Sometimes it may be prudent to reinstate the LLC without others knowing. That member needs an attorney.

1 Answer | Asked in Business Law and Contracts for Tennessee on
Q: Can you use your DBA when signing a lease in TN?

The contract lists the DBA and not the actual name - is that still legal?

Anthony M. Avery
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answered on Sep 26, 2023

If the other party to the lease contract accepts that name as a signature, then it supposedly becomes a contract. But I would never advise anyone to execute a contract in that function. It may be unenforceable. Usually a signature would be ...John Doe d/b/a Doe Services...

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