Tennessee Business Law Questions & Answers

Q: How would i go about transferring my 50% ownership of a company to another 50% owner. Also how much money would it take.

1 Answer | Asked in Business Law for Tennessee on
Answered on Feb 8, 2018

You would sale, sign over, transfer your 50% interest either to either the company or the other 50% owner. If it is a corporation - you transfer your stock. If it is an LLC you transfer your membership interest. A simple agreement is all you would need. It shouldn't cost much at all unless there are some complicated details.
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Q: Can I advertise on social media that I will reduce my commission?

1 Answer | Asked in Business Law and Real Estate Law for Tennessee on
Answered on Feb 5, 2018

Generally, yes, any agent is free to negotiate the amount of their commission. However, any listing agreement or fee agreement should be in writing signed by both parties. As to advertising, consider checking with the State licensing board for real estate agents for specific requirements.
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Q: A law firm held a lien attached to our mortgage. But the firm dissolved. Does this release us from the lien?

1 Answer | Asked in Business Law and Consumer Law for Tennessee on
Answered on Jan 24, 2018

I am intrigued as to how a law firm ended up with a lien on your home and this may impact the response. But beyond this, if the law firm legally dissolved a proper lien right would not just disappear. The rights would pass to someone- potentially even a creditor of the firm.
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Q: What are the tennessee laws on writing up employees for being out of work b/c of snow?

2 Answers | Asked in Business Law and Employment Law for Tennessee on
Answered on Jan 19, 2018

Employers are free to have whatever "snow" or bad weather policy they want to have.
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Q: I work at a restaurant/bar. We have a guest who was involved in domestic violence incident. Can we deny him service?

1 Answer | Asked in Business Law and Consumer Law for Tennessee on
Answered on Jan 9, 2018

So long as the owner is not discriminating on the basis of a protected class, the owner can determine who can be served.
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Q: Salary Exempt have to use PTO if leaving early? Is this legal?

1 Answer | Asked in Business Law and Employment Law for Tennessee on
Answered on Dec 27, 2017

An employer can still require you to use sick leave or personal leave if they offer it. They are not required to allow you to flex the time off.
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Q: Is it legal to move money between two seperate companies with the same owners without the consent of all owners?

1 Answer | Asked in Business Law for Tennessee on
Answered on Dec 15, 2017

You should look to the Operating Agreements of the companies to determine whether the owners have taken appropriate action.
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Q: I am an Interior Designer. Am I legally obligated to provide a copy of my cost invoices to clients that I sell to?

2 Answers | Asked in Business Law for Tennessee on
Answered on Dec 5, 2017

If I understand correctly, you bought the cabinets and resold them to your customer. If so , you are not obligated to share your business information with anyone- it was your purchase and no one else has any right to make you disclose any details of your business. However, if a lawsuit gets filed, I suspect the information could be obtained through court action since it is not "privileged" ( like your medical records, etc). On the other hand, if the purchase order or invoices have your...
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Q: I signed a contract with a new waste service provider. Now my old waste service provider is in the picture

1 Answer | Asked in Business Law and Contracts for Tennessee on
Answered on Nov 9, 2017

It is very hard to truly understand and evaluate your situation in this question and answer format- a lawyer needs to see both contracts and get the facts straight. However, the most important thing I glean form you question is the statement where you say "my son signed the contact"- are you saying he signed your name ( acting as your representative ( with a power of attorney) or did he sign his own name. You are not bound by any contract unless you signed it, or you authorized someone to sign...
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Q: A business was given to my friend and the boss changed her mind and wants it back. Nothing has been signed yet.

1 Answer | Asked in Business Formation, Business Law, Civil Litigation and Contracts for Tennessee on
Answered on Nov 8, 2017

Interesting issues here. Assuming the following.

Your friend had reached an oral agreement to buy a business.

As a result he started actually operating the business including doing some construction work.

The old owner started a new job. - and was out of town. She was to sign papers formally selling the business when she returned.

On social media she published she had sold the business.

She has returned and now wants to keep the business....
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Q: How do you get out of a partnership you no longer want to be in I own 25% of partnership and he won't dissolve or buy

1 Answer | Asked in Contracts and Business Law for Tennessee on
Answered on Oct 28, 2017

If you have a partnership agreement, it should have provisions setting out how you withdraw or disassociate. You should talk to an attorney on the best way for you to accomplish what you are wanting
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Q: How do you get out of a partnership agreement that your partner won't let you get out of can he hold you

1 Answer | Asked in Contracts, Business Law and Legal Malpractice for Tennessee on
Answered on Oct 28, 2017

A partner generally can "withdraw" from a partnership. But this does not remove from liability for any existing debts. If there is a written partnership agreement it may have language that spells out how you withdraw.
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Q: I entered into an agreement with a builder. He has stolen 100k+ and mis appropriated funds. How can I prosecute him?

1 Answer | Asked in Business Law, Consumer Law, Contracts and Construction Law for Tennessee on
Answered on Oct 27, 2017

In very rare circumstances, there can be a "private prosecutor" - however, this will require the consent of the district attorney's office. You will want to meet with the elected District attorney in your district, not a deputy or assistant district attorney. Try to emphasize the number of people affected by this person's actions. Construction cases are often complicated and the DA are mostly concerned with crimes of violence and drugs. You have to convince them that a large number of VOTERS in...
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Q: I have a S corp business in TN. If I'm personally sued, can my business be collected against for a personal asset?

1 Answer | Asked in Business Law and Collections for Tennessee on
Answered on Oct 26, 2017

A corporation is a separate legal entity- it is not the same as a sole proprietorship. The corporation has its own bills and records, and hopefully, you have keep the business records and assets separate from your personal bills and records. Many people fail to appreciate the difference and co-mingle their assets and records, especially when it is a small or single owner corporation, and if you have not observed the formal requirements of dong business as a corporation, a court can 'pierce the...
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Q: Does a customer have the right to keep your rental equiptment without paying for it? If not, how do you get it back?

1 Answer | Asked in Business Law, Civil Litigation and Consumer Law for Tennessee on
Answered on Oct 23, 2017

It sounds like a lawsuit which more likely will have to be decided by a judge. If they signed agreements, you may prefer court as opposed to trying to settle with them. You should consult an experience litigation lawyer. They may be subject to being sued in your State. Ultimately, you will have to decide whether the time and expense of the lawsuit is worth what you may recover- adjust your business practices to avoid future similar situations.
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Q: Is it illegal in TN for a counselor/psychotherapist to have a romantic relationship with a former client.

1 Answer | Asked in Business Law, Consumer Law and Criminal Law for Tennessee on
Answered on Oct 12, 2017

Immorality turn into illegalities.
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Q: Is a closely-held C corporation in TN permitted to re-designate some shares as "non-voting"?

1 Answer | Asked in Business Law for Tennessee on
Answered on Oct 12, 2017

This is too complicated to answer in this type question and answer format. If it is possible ( and you can't take away or dilute other shareholders voting rights) the process would require a thorough review of the bylaws and charter. This is probably too complicated to attempt without an attorney.
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Q: Hi. Is cooperative (such as a worker-cooperative) an option as a business entity in Tennessee?

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Answered on Aug 14, 2017

This is not a recognized form of business. Consider a member managed Limited liability company (LLC).
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Q: In TN can a employer fire a employee for not signing a dock pay agreement

1 Answer | Asked in Business Law, Contracts and Employment Law for Tennessee on
Answered on Aug 5, 2017

In the absence of an employment contract or union agreement an employer in Tennessee can terminate for any reason. If there is a contract there may be a description of a disciplinary process or other terms of employment - for example a step discipline process. In the absence of an agreement, if the termination is without cause the employee may be entitled to unemployment benefits.
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Q: Can a contractor change a verbally agreed upon hourly payrate after I have completed the work?

1 Answer | Asked in Contracts, Employment Law, Business Law and Construction Law for Tennessee on
Answered on Jul 12, 2017

Any licensed contractor is subject to discipline from the State licensing board. The board has a process for hearing consumer disputes. I suggest you contact them. The legal principles fro determining whether a worker is an employee or independent contractor are the same- the key factor being the ability to control the details of the work.
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