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Tennessee Business Law Questions & Answers

1 Answer | Asked in Business Law and Civil Litigation for Tennessee on

Q: I'm a contractor and in a dispute with a customer. She is holding my tools ransom. I don't think that's legal?

Mr. James Charles Wright answered on Jun 6, 2018

I'm guessing you left them there- the custormer is claiming that you didn't finish the job- and that if you want the tools you can either finish the work or otherwise resolve things. You could contact the police but I am doubtful the police would get involved. After all the customer didn't go get... Read more »

1 Answer | Asked in Business Formation and Business Law for Tennessee on

Q: I was just trying to change my partnership into a llc or corp c. I'm looking to build Business credit.

I didn't want to use our personal ssn. Which is the best way to go about doing so?

Benton R Patterson III answered on May 31, 2018

If that is all you want to accomplish, you do not need to convert the partnership to another entity. A partnership can obtain an EIN, allowing the partnership to obtain credit and file taxes under the partnership's EIN, rather than a partner's SSN. You can apply for an EIN on the IRS website.

1 Answer | Asked in Business Law for Tennessee on

Q: Can a gas station in the state of tennessee restrict the use of thier public bathroom to "customers only"

Mr. James Charles Wright answered on May 2, 2018

Yes. A gas station in Tennessee can refuse to allow you to use the restroom-- Unless you have a medically certified condition that by state statute would require the gas station to let you use the restroom.

1 Answer | Asked in Business Law and Animal / Dog Law for Tennessee on

Q: Where can I find the local ordinances or Tennessee laws regarding pet day care centers?

I am considering applying for a management position at a Collierville dog day care center, and would like to know what the applicable laws/local ordinances are regarding the operation of such a center.

Thank you.

Mr. James Charles Wright answered on Mar 21, 2018

Check with the City of Colliersville Codes department. The City Code is online but may not be the most current.

http://www.amlegal.com/codes/client/collierville_tn/

Also, you should check with Shelby County- although the issues here would really relate to zoning- in other words is...
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1 Answer | Asked in Business Law for Tennessee on

Q: What are the spam laws regarding mailing lists with physical mail, not email in Tennessee?

I’m with a small LLC and social club and we want to target a very specific demographic. We are plan on sending out a single, one time, physical mailing list to a large amount of addresses in town in specific areas. We have concerns about spam laws in this state (Tennessee) and upon looking them... Read more »

Peter N. Munsing answered on Mar 5, 2018

Generally no such laws. Check with your chamber of commerce.

1 Answer | Asked in Business Formation, Business Law and Contracts for Tennessee on

Q: Starting a solar company, I don't have a Contractors License but know many subcontractors, can they install my jobs?

Can I list them as a subcontractor of my company in order to complete the job? or do I need to be listed as a subcontractor of the contractor that installs the job? and if I acting under them, is it possible to represent my own LLC?

Mr. James Charles Wright answered on Mar 1, 2018

Your contractor will need to pull the permit for the project. You may be able to sell the solar equipment. But you cannot be the contractor unless you are a contractor. I would explain in your agreement with the homeowner that you are selling a solar equuipment and that a licensed contractor... Read more »

1 Answer | Asked in Contracts, Business Law and Collections for Tennessee on

Q: Me and my partner were looking to buy a business and gave a check as a earnest money deposit to the business owner.

The deal went south and we have a receipt saying the money is refundable if the deal does not goes through. The amount is 25k. The receipt says money needs to be refunded within 3 months but the seller has no intention to give the money back. What can be done is this matter to recover the money.

Mr. James Charles Wright answered on Feb 28, 2018

If the seller will not return your money, look at your contract. Look to see if there is a remedy provision for what happens if one side breaches the agreement. It may include language on where a lawsuit can be brought and other terms. There may be a provision for attorney's fees if a party... Read more »

1 Answer | Asked in Business Law for Tennessee on

Q: do I have to sign an assumption of agreement for a business purchase if business is already financed and operating?

I was never given the opportunity to read agreement company had me sign. It says in agreement I should have opportunity to have a lawyer review agreement. They dated the document wrong when originally signed. Now they are telling me I have to sign it again to get financing. They have already been... Read more »

Mr. James Charles Wright answered on Feb 24, 2018

It is really difficult to answer with out reviewing the documents. A person is generally presumed to have read what they sign. In fact there is probably language that says you have read and understood. But that doesn't necessarily mean you have to sign new documents.

1 Answer | Asked in Business Law, Civil Litigation and Employment Law for Tennessee on

Q: General partnership.partner is refusing to give me my half of pay for the month that I earned.

Not answering my texts and going aroud telling everyone I stole the check when bank confirmed she cashed it and took full amount

Mr. James Charles Wright answered on Feb 23, 2018

You may have to file a lawsuit to enforce the partnership agreement.

1 Answer | Asked in Business Law, Business Formation and Contracts for Tennessee on

Q: I am looking to start my own security company. I signed a non compete clause in April 2016 for two years. Would I be ok

if I put the company in my wife's name or do I need to wait until it expires.

Mr. James Charles Wright answered on Feb 22, 2018

If your dates are accurate, if you wait 2 months you will have met the time requirement. This would be the safest route. There may be some issues as to the enforceability of the terms of your non-compete. But simply putting your business you will be doing in your wife's name is probably not... Read more »

1 Answer | Asked in Business Law for Tennessee on

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

We are both 50% owners at the moment and i want the other owner to be the 100% owner

Mr. James Charles Wright 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... Read more »

1 Answer | Asked in Business Law for Tennessee on

Q: I work at a restaurant/bar. We have a guest who was involved in domestic violence incident. Can we deny him service?

The incident did not happen on the property. The owner found out about it.

Mr. James Charles Wright 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.

1 Answer | Asked in Business Law and Employment Law for Tennessee on

Q: Salary Exempt have to use PTO if leaving early? Is this legal?

Until recently if we worked a portion of the day, as salary exempt, we were paid for the full day. We were told if we had to leave a few hours early due to a doctor appointment, we wouldn't need to use PTO but if we left for 'personal' reasons we would need to use PTO. Today, I have worked 4 hours... Read more »

Marjorie A Bristol 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.

1 Answer | Asked in Business Law for Tennessee on

Q: Is it legal to move money between two seperate companies with the same owners without the consent of all owners?

There are a few expenses shared that could justify a reimbursement but even then it would not be the amounts that have been moved from one company that has better cash flow to the other one that is not able to cover expenses.The money that is moved is from an LLC and instead of paying my percentage... Read more »

Bennett James Wills answered on Dec 15, 2017

You should look to the Operating Agreements of the companies to determine whether the owners have taken appropriate action.

2 Answers | Asked in Business Law for Tennessee on

Q: my business partners withdrew 155,000 dollars from our corporate bank account

they then deposited the funds in a personal acct with just their names and without my knowledge. I am in Tennessee

Mr. James Charles Wright answered on Dec 13, 2017

Lot of things you can do here. First you should in writing demand that they return the company's funds. The partners will avoid a lot of problems if the funds are returned. You can contact the attorney general for your county as to a potential criminal prosecution. The entity can also sue for... Read more »

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2 Answers | Asked in Business Law and Contracts for Tennessee on

Q: I am an Interior Designer. Am I legally obligated to provide a copy of my cost invoices to clients that I sell to?

I sold custom made cabinets to a client 6 months ago. They were delivered as ordered, I invoiced him and he paid for them. Now, due to budget problems, he wants to return them. I told him there are no returns on custom cabinets. He understands that but wants to contact my supplier. I don't... Read more »

Leonard Robert Grefseng 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,... Read more »

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1 Answer | Asked in Business Law and Contracts for Tennessee on

Q: I signed a contract with a new waste service provider. Now my old waste service provider is in the picture

I have a dilemma I signed a contract with a new waste service provider they gave me a better offer. New provider said they would take care of everything from removing old trash bin to closing my account. A representative from the old waste provider came to my businesssaying they have a right of... Read more »

Leonard Robert Grefseng 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... Read more »

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

Q: A business was given to my friend and the boss changed her mind and wants it back. Nothing has been signed yet.

My friend has made construction changes to the business and revamped it partially. The old boss started her new job and they are waiting for the lawyer to come back in town to sign the papers. Also, the old boss announced the change on social media that my friend was taking over and would buy her... Read more »

Mr. James Charles Wright 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...
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1 Answer | Asked in Contracts and Business Law for Tennessee on

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

Won't allow me to leave until buissness is sold and i just don't have the time or effort to stay within this buissness due to being unhappy working there

Mr. James Charles Wright 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

1 Answer | Asked in Contracts and Business Law for Tennessee on

Q: How do you get out of a partnership agreement that your partner won't let you get out of can he hold you

No longer have interest in buissness trying to get out of it to move back home won't let me leave or sue to follow

Mr. James Charles Wright 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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