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Tennessee Business Law Questions & Answers
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... View 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... View More

Michal Durakiewicz
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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... View 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....
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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... View 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.

1 Answer | Asked in Business Formation, Business Law and Contracts for Tennessee on
Q: How can an Architect w/ his own Firm (S-Corp, Prof. Corp.) in TN have a 50/50 financial partnership w/ a non-Architect?

Can he be a 50/50 shareholder?

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

Look at TCA 62-2-601 and 602 - This explanation is from the State's website: A corporation, partnership, or firm offering architectural, engineering, or landscape architectural services to the public may engage in the practice of architecture, engineering, or landscape architecture in... View More

1 Answer | Asked in Business Law, Civil Litigation, Contracts and Legal Malpractice for Tennessee on
Q: As a Notary, can you create legal documentations such as lease, living will, etc. as a service in a small business?

like sites such as Formswift, etc.

Mr. James Charles Wright
Mr. James Charles Wright
answered on Oct 7, 2020

a Notary can notarize documents. A notary should not create legal documents.

1 Answer | Asked in Business Law, Products Liability and Public Benefits for Tennessee on
Q: Can you sell food in Tennessee past the use thru date printed on the package

Or if there are any loopholes that would allow litigation/investigation

Tim Akpinar
Tim Akpinar
answered on Aug 21, 2020

A Tennessee attorney could answer best but your question remains open for five weeks. You might look into whether the Tennessee Department of Agriculture or U.S. Food and Drug Administration's Nashville office could offer you input. In terms of litigation, if someone became ill from spoiled... View More

1 Answer | Asked in Business Law for Tennessee on
Q: can a member who never signed operating agreement take control of the company

An investor never signed the op agreement it's been a year and a half his attorney wants to change the entire agreement and take control of my company in Tennessee

Mr. James Charles Wright
Mr. James Charles Wright
answered on Aug 14, 2020

I can't tell if the member just never signed or has been objecting for a year and a half as to the contents of the agreement. Lot of details needed to be able to respond to this meaningfully. For instance does the "member" supposed to have a controlling interest- investment. How... View More

2 Answers | Asked in Business Law and Contracts for Tennessee on
Q: Are "evergreen" or automatic renewal clauses in contracts legal in Tennessee?

We are a marketing firm that has to have our clients re-sign a contract every year.

We'd like to implement an "evergreen" clause so that they continue their service unless they express to leave with a 90 day notice.

Is this legally binding in the state of Tennessee where we operate?

Thanks

Mr. James Charles Wright
Mr. James Charles Wright
answered on Aug 5, 2020

I am not aware of a prohibition on clauses that auto renew in contracts. But haven't researched the issue either. I believe there is at least one state that does restrict(and there may be others) so you would need to be careful whether you are contracting with someone in a state that may... View More

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1 Answer | Asked in Business Law and Stockbroker Fraud for Tennessee on
Q: What is insider trading? And if I’m buying and selling stocks am I at risk if I buy and sell stocks based on what I see?

Example if I buy stocks in apple after a lawsuit or a product flop when stocks low and turn around and sell the stocks when they release a new product when stocks are high. Is that insider trading??

Mr. Kent Thomas Jones
Mr. Kent Thomas Jones
answered on Aug 2, 2020

Based on your statement, it looks like you are asking if insider trading is buying or selling stocks based on what you, as a member of the general public sees, for example, on the news. That is not insider trading. Insider trading would be if you are an employee of Apple, for example, and you... View More

1 Answer | Asked in Business Law and Landlord - Tenant for Tennessee on
Q: Can a landlord not refund the sec. dep. if you haven’t signed a contract & they never told you that it’s not refundable?

No contract has been signed. The agency/property managers did not disclose that the security deposit would be non-refundable prior to paying the security deposit. As soon as the payment was made they stated it was not refundable.

Anthony M. Avery
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answered on Jul 14, 2020

Landlords refuse return of security deposits all the time. You usually have to sue in General Sessions if you really want it back. The oral statements are pretty much irrelevant as the monies are supposed to be for a security against leasehold damages.

1 Answer | Asked in Business Law for Tennessee on
Q: My mayor in Chatt, TN just mandated masks on everyone when in businesses with penalty of $50 or 30 days in jail! Advice?

Just wondering what I can do to combat this insane unlawful tyranny. Thanks for the webpage and help.

Mr. James Charles Wright
Mr. James Charles Wright
answered on Jul 8, 2020

Can a government in a time of emergency - without declaring martial law order all citizens to wear a mask? I haven't seen a case on this. Emergency powers are pretty broad by statute. Is the statute constitutional? Or is the law overly broad? As to what you can do- you would need to hire... View More

1 Answer | Asked in Business Law, Civil Litigation and Consumer Law for Tennessee on
Q: Can an attorney cancel a hearing the morning of the hearing day? Also want make sure creditor remove off credit report.

A debt relief company has been taking money out of my account for last past year to pay My creditor monthly & at same time settle my case. If anything they hurt me more than helped. Months later I get a summon to court fr creditor filed L-suit of $8k up front or 4 months of $2k. That was bef... View More

Anthony M. Avery
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answered on May 18, 2020

You apparently have an attorney. Make him do his job, and do not expect this forum to interfere with your relationship. If you cannot get him on the phone, go to his office until you find him.

3 Answers | Asked in Business Law and Trademark for Tennessee on
Q: If I download a photo of actors and edit it to make it look like a sketch or art, can I use it commercially?

If I download a photo of actors or musicians or other public persons and edit it to make it look like a sketch or art, that makes it look significantly different, can I use it for commercial projects like T-Shirts or Mugs?

Barbara Berschler
Barbara Berschler
answered on Apr 27, 2020

Given that most famous people have the Right to Publicity, meaning how they exploit their own fame, you will not be able to use their likeness without their permission. Best to consult with local business/intellectual property counsel to understand fully what the Right to Publicity entails.

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1 Answer | Asked in Banking, Business Law, Civil Litigation and Civil Rights for Tennessee on
Q: I am asking for the websites of how to get an attorney under the bar for the state, federal or just the bar.

An example would be: tnbar@attorneys.org;

Anthony M. Avery
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answered on Apr 20, 2020

I have no idea what you are asking for, but start calling around for a lawyer to help you. Most attorneys will either help you or refer to somebody else that can. You can look around for websites, but you really need to talk to one either on the phone or in person.

1 Answer | Asked in Business Law, Contracts and Tax Law for Tennessee on
Q: Can a corporation retrospectively cancel their promised 401k match contribution.

I am an employed physician of a large health system in NE TN. Because of financial losses they are having due to Covid-19, they have mandated a 20% pay cut for all physicians for a 60-day period. IN ADDITION, they are cancelling the 401k match for the entire 2020 FY (July 2019 to July 2020), which... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Apr 20, 2020

Before I answer this question please allow me to sit the stage: Your employer is struggling to stay on top of the waves during the worst economic downturn since the Great Depression--which started in October 1929 and lasted for most of the ensuing decade. IMO, you and all other employees should be... View More

1 Answer | Asked in Business Law for Tennessee on
Q: Can a small business in Tennessee make you work on a stay at home order in Tennessee?
Anthony M. Avery
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answered on Apr 17, 2020

Unless you have a contract Tennessee is an employment at will State. You can be terminated at anytime. So yes the boss can require you to work from home.

1 Answer | Asked in Employment Law, Tax Law, Business Law and Social Security for Tennessee on
Q: How to get SSA withholding that my now deceased employer failed to send to SSA?

My employer failed to send SSA withholding to SSA for many years. All employees' SSA statements show $0 for those years. She passed away last year and her family closed that business entity and reopened with a new name, retaining all employees. The new company has paid SSA as required. The... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Apr 15, 2020

Generic legal advice to all humans being asked to sign anything important--ever: Before signing any document that in an y way raises concerns about the possible affect of that document you should ALWAYS send a copy of the document to your family lawyer and ask them to flyspeck it and advise you... View More

1 Answer | Asked in Business Law for Tennessee on
Q: What can be done if audit if LLC shows money missing or partner purchased personal items with LLC money?
Bennett James Wills
Bennett James Wills
answered on Apr 14, 2020

Much more information is needed here. You should first look to the operating agreement for a remedy. If there's not one, demand the money back from the member. Otherwise, you may need to consider litigation against the member for misappropriation of company funds. In any event, you would be... View More

1 Answer | Asked in Contracts, Family Law and Business Law for Tennessee on
Q: If I completed my ordination online, can I officiate a wedding in the state of Tennessee?
Johnny Quitman Rasberry
Johnny Quitman Rasberry
answered on Apr 9, 2020

No. T.C.A. 36-3-301. Persons who may solemnize marriages.

(2) In order to solemnize the rite of matrimony, any such minister, preacher, pastor, priest, rabbi or other spiritual leader must be ordained or otherwise designated in conformity with the customs of a church, temple or other...
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