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Tennessee Business Law Questions & Answers
2 Answers | Asked in Business Formation and Business Law for Tennessee on
Q: Im going to start an ecommerce website. I do I need an LLC out the gate to protect myself?

Im wanting to start an ecommerce website. Do I need a LLC to protect myself just to test the business and the market. However, I do have an ok savings but I do not want to get sued. I'm scared that I would lose my personal savings if I don't.

What I mean by testing the business... Read more »

Mr. James Charles Wright
Mr. James Charles Wright answered on May 17, 2022

I'm not sure what you mean by "testing the business and the market." if you are going to have a business you should consider forming an LLC or a corporation to try to insulate from liability.

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1 Answer | Asked in Business Law for Tennessee on
Q: Is it legal for a seller to transfer my information to another car without my permission?

I bought a car for $6500 from a seller I had to bring it back to him because it needed to be worked on, he gave me a loaner car until it was supposed to be done, he proceeds to tell me that he doesn't know what I am talking about this isn't a loaner car and that he transfered my... Read more »

Mr. James Charles Wright
Mr. James Charles Wright answered on May 9, 2022

The first car would be titled in your name or you would have paperwork where you bought the first car. The dealer cannot just "swap" the cars out without your permission.

1 Answer | Asked in Business Law, Contracts and Real Estate Law for Tennessee on
Q: I am buying in Tennessee and have not signed a contract.

I am buying a rent-to-own home in TN. I have not signed a contract. Can I be charged a late fee, for first late payment?

Anthony M. Avery
Anthony M. Avery answered on Apr 7, 2022

You may want to rethink this transaction. The landlord will probably keep whatever money you pay him and file a Detainer Warrant.

1 Answer | Asked in Tax Law, Business Formation and Business Law for Tennessee on
Q: Can I use my Virginia formed LLC in TN?

I have an electricians license in TN as well as local business licenses. I have registered to pay business tax and franchise and excise tax on Tennessee. I live in Virginia and have formed my LLC in Virginia. Am I okay to use my local TN business licenses and my TN electrical license to perform... Read more »

Bennett James Wills
Bennett James Wills answered on Apr 1, 2022

You could register your VA LLC in TN as a foreign entity.

1 Answer | Asked in Business Formation, Business Law and Trademark for Tennessee on
Q: How do I get licensed to sell tumblers and products that say tennessee or vols in my small business
Mr. James Charles Wright
Mr. James Charles Wright answered on Mar 20, 2022

Try this web site:

https://clc.com/

1 Answer | Asked in Business Law, Civil Litigation, Employment Law and Contracts for Tennessee on
Q: Can I take legal action as an independent contractor against a company that didn't pay me even without a formal contract

Hi! Im an independent contractor working in the audio engineering field. Back in November, the company managing production for a local venue asked one of their regular independents for recommendations for more people to bring in and I was asked to come in for one day. After completing the gig, the... Read more »

Mr. James Charles Wright
Mr. James Charles Wright answered on Feb 4, 2022

If The company asked you to do the work -and you did the work- you should be entitled to be paid. The fact there is not a writing shouldn't prevent you from making a claim.

You may want to formally write them sending an invoice for your services - and if that doesn't work you...
Read more »

1 Answer | Asked in Arbitration / Mediation Law, Business Law, Civil Litigation and Contracts for Tennessee on
Q: I bought a business and learned 6 months later that it has three liens on the business assets. Any recourse I can take?

I have paid 85% of the contract price but stopped making payments because I want to sue the seller for the amount I’ve paid so far. Does the non disclosure of the liens by the seller open the door for breach of contract and refund?

Anthony M. Avery
Anthony M. Avery answered on Jan 31, 2022

The Bulk Sale Law is probably violated. But you will need to examine your potential defendant. If no disclosure was made, then breach of contract may not have occurred. Obviously you did not check this out prior to purchase. Hire a competent attorney to examine your choices.

1 Answer | Asked in Business Law for Tennessee on
Q: A member of our HOA owns 10 units and wants to be elected to the Board of directors. How can we prevent this?

She would have ten votes and all other Board members would have only one vote.

Mr. James Charles Wright
Mr. James Charles Wright answered on Nov 17, 2021

The owner with 10 units would likely have 10 votes as a member to vote for the board members being elected. Unless the bylaws say otherwise, that owner would have one vote on the board. Each board member has one vote regardless of the number of units owned.

1 Answer | Asked in Consumer Law, Contracts, Products Liability and Business Law for Tennessee on
Q: We bought a brand new camper from a dealership. It came from the factory missing some things and some items were in non

Working condition. The dealership assured us they would have all repaired/restored to new condition under warranty. It has now been 6 months and they have not. I have been making camper payments all this time and it has sat on their lot waiting to be restored. I want my money back and to be... Read more »

Anthony M. Avery
Anthony M. Avery answered on Nov 15, 2021

I recommend hiring a competent attorney to file an Action in Chancery for Rescission. You will not make any money but you should mitigate your losses.

1 Answer | Asked in Employment Law and Business Law for Tennessee on
Q: My husband’s employer has been deducting ins. premiums out of his check every week since Nov. 2020 and not paying ins.

My husband has had almost $8500 deducted from his paycheck for insurance premiums that have not been paid by the employer. What recourse do we have? I feel we are owed that money back. Also, we’re getting bills now for medical services / doctors appointments that we assumed we had coverage for.... Read more »

Mr. James Charles Wright
Mr. James Charles Wright answered on Aug 16, 2021

Contact the employer to determine - if this is not resolved contact the department of labor.

1 Answer | Asked in Business Law for Tennessee on
Q: I own 25acres of vacant land. Why am I not able to trade portion of land for a Vehicle through a dealership

Dealerships tell me that can't legally take land for trade.

Mr. James Charles Wright
Mr. James Charles Wright answered on Aug 12, 2021

The dealership doesn't want to deal with the logistics of a title search and closing on your property. If you want to buy the vehicle - sell the property and then go buy your vehicle.

2 Answers | Asked in Business Law, Civil Litigation, Construction Law and Contracts for Tennessee on
Q: I work for a restoration contracting franchise can we bring civil litigation against an insurance carrier that owes us $

1 insurance carrier owes us almost $20k going back to Labor Day 2020. Can we sue for that?

Mr. James Charles Wright
Mr. James Charles Wright answered on Jul 22, 2021

If the insurer had agreed to pay for your work as opposed to the insured then the insurer may be liable. If your contract/ agreement is with the insured- and the insurer is supposed to pay the insured- then your customer may have to pursue the insurer and your remedy may be against your customer-... Read more »

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1 Answer | Asked in Business Law, Civil Litigation and Consumer Law for Tennessee on
Q: Discover Bank issued a credit card to my Sole Proprietorship but did not require me to sign a Personal Guarantee.

Am I personally liable for credit issued to my Sole Proprietor Name and Tax Identity Number if the credit card did not ask for my name and SSAN? They did not have me sign a Personal Guarantee?

Anthony M. Avery
Anthony M. Avery answered on May 25, 2021

As a sole proprietor, you are personally liable for the business debts. You are the sole proprietor entity.

1 Answer | Asked in Real Estate Law and Business Law for Tennessee on
Q: Should the purchase of a commercial building be in the company's name or the owner's name for a single member LLC?

Building location: Elizabethton, TN

Building will be used for owner's business, a machine shop.

Anthony M. Avery
Anthony M. Avery answered on May 3, 2021

You will need to consult with an attorney and get this advice. Many, many considerations are involved here, and there may not be a perfect answer. The LLC operating agreement must be read, applied or changed; Who will be the insured?; Liability concerns; the Member's Estate Planning;... Read more »

1 Answer | Asked in Business Law, Copyright and Patents (Intellectual Property) for Tennessee on
Q: Have an e-commerce c2c idea. Is it possible to patent the “idea”? Think poshmark but for a niche not out there yet.
Peter D. Mlynek
Peter D. Mlynek answered on Apr 30, 2021

Sorry, but you cannot patent a mere idea. You need to have an actual invention.

Once you do have the invention (see your patent attorney what the difference between an invention and a mere idea is), then you need to figure out how you are going to make money on it. That is the hard part.

1 Answer | Asked in Criminal Law and Business Law for Tennessee on
Q: How many shares is authorized for a corporation in tennessee?
Anthony M. Avery
Anthony M. Avery answered on Feb 17, 2021

As many as the incorporators and/or directors want.

1 Answer | Asked in Business Law and Criminal Law for Tennessee on
Q: Should I file a police report to have charges pressed against my former business partners for fraud/theft?

In 2020, I joined a couple opening a business for a 25% share of the company. Since that decision I was working full time on the business putting in 80 hours a week average. My business partners told me their capital investment was through spending money on the business out of their personal... Read more »

Frank J. Steiner
Frank J. Steiner answered on Feb 3, 2021

Yes, but better to sue them for fraud and go for civil damages.

2 Answers | Asked in Contracts, Business Law, Civil Litigation and Civil Rights for Tennessee on
Q: I had a verbal contract to design a simple website for friend, didn't pay the other half for the service .

I had a verbal contract to design a simple website for someone i know. I asked the standard half up front and half when done. I started getting red flags almost halfway through the process, he didn't want a contact page for consumers etc. After that, i started recording all conversations and... Read more »

Michal Durakiewicz
Michal Durakiewicz answered on Nov 21, 2020

Based on what you have described, you may have a valid and enforceable contract. Whether or not it is a good idea for you to file a lawsuit to recover the unpaid amount depends on a number of factors. First, how much does he owe you? If you file a lawsuit in general sessions court you will be taxed... Read more »

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1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: What kind of license do I need to manufacture and sell cosmetics (NOT drugs) in Tennessee (Handcock county).

I have contacted every agency I can think of in Tennessee to find out if I need a license to manufacture lotions, soap and Bath Bombs in Tennessee. Everyone says they know if no requirement. If this is true, is there a county or city license I need?

Mr. James Charles Wright
Mr. James Charles Wright answered on Oct 30, 2020

You would need a business license for the city / county where you are dong business. Beyond this the soap products are regulated -

I am attaching below a link that may help you get some guidance....
Read more »

1 Answer | Asked in Business Law for Tennessee on
Q: Can I sue a business partner for expenses that were accrued on my personal credit card before the formation of the llc?

I formed a business with 4 other individuals. We have decided to dissolve the business. We have split the debt (accrued before and after the formation of the llc) equally. The charges were made on 2 partners personal credit cards. We all have made monthly payments on the card. I have informed... Read more »

Mr. James Charles Wright
Mr. James Charles Wright answered on Oct 12, 2020

You can file a suit- but in the suit they will be entitled to request copies of any proof of the debt- which may include the credit card statements.

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