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Texas Business Law Questions & Answers
1 Answer | Asked in Business Formation, Land Use & Zoning and Business Law for Texas on
Q: Do I need a permit to operate a pet food vending machine in Dallas, TX?

I am planning to operate a vending machine selling pet food in both indoor and outdoor locations in Dallas, Texas. I am unaware of any local business regulations or zoning laws related to vending machines. Do I need a permit for this?

John Michael Frick
John Michael Frick
answered on Mar 17, 2025

Operating a vending machine business requires compliance with various laws. In general, the operator of a vending machine requires a license from the State of Texas to operate such a business. Cities and counties regulate where commercial business are allowed to operate through zoning laws and... View More

1 Answer | Asked in Contracts, Probate and Business Law for Texas on
Q: Probate advance company not fulfilling payment obligations.

I was approved for a loan by a probate advance company, but they've only sent one payment and haven't fulfilled the rest of the payments as promised. They've stopped responding to my emails and calls. I have the loan agreement and written communication. What steps can I take to resolve this issue?

John Michael Frick
John Michael Frick
answered on Mar 15, 2025

You can sue the lender for breach of contract. Check your loan agreement to see if you agreed to mediation, arbitration, or a particular forum for the resolution of your dispute. These type of provisions are common in such loan agreements and are almost always enforceable.

2 Answers | Asked in Business Law, Employment Law, International Law and Internet Law for Texas on
Q: Can I sell $500,000 in cell phones for cash to an undocumented buyer?

I run a cell phone business and recently had a buyer ask to purchase $500,000 worth of cell phones in cash. The buyer is undocumented and wants the phones shipped to California. Am I allowed to proceed with this transaction, and are there any legal restrictions or reporting requirements I should be... View More

John Michael Frick
John Michael Frick
answered on Mar 6, 2025

I have a feeling that somebody wants to replicate what Mossad did to Hamas, but I don't have the answer to your legal question. This is a sufficiently odd transaction, there may not be an answer as it may implicate the laws of other nations and any advice might require knowledge of what and... View More

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1 Answer | Asked in Criminal Law, Business Law and Contracts for Texas on
Q: Have I committed a crime by using a business credit card for unauthorized purchases?

I've been using a business credit card issued by a pool technician company for pool-related expenses and gas for my truck. I ended up purchasing retail items and food from grocery stores and restaurants, which were not authorized. The employer verbally mentioned the card's intended usage... View More

John Michael Frick
John Michael Frick
answered on Mar 3, 2025

You should immediately repay any unauthorized charges in full to avoid being charged with a crime. Legally, the question is did you exceed the authority given to you by the company to use the company credit card. "Purchasing retail items and food from grocery stores and restaurants"... View More

1 Answer | Asked in Business Law and Real Estate Law for Texas on
Q: How to remove my name from a co-signed mortgage in Texas?

I co-signed a mortgage with my daughter for her house, but due to health issues, I now reside in a nursing home and likely will for life. I want to remove my name from the mortgage without causing financial hardship for her. We haven't yet explored refinancing or contacted the lender. How can... View More

John Michael Frick
John Michael Frick
answered on Feb 24, 2025

Probably refinancing the mortgage with a new lender in her sole name is your best bet. The alternative is to try to persuade the current mortgage company to release you, which is not in that company's best interest. But, legally, that company cannot object if it is paid off by a new company... View More

1 Answer | Asked in Business Law, Contracts and Employment Law for Texas on
Q: Handling conflict of interest with two competitor employers in hospitality industry in Texas.

I work in the hospitality industry and have accepted two jobs with different companies. My first job is with a large hotel chain where I work as a sales manager at the property level. The second job, which I haven't started yet, is with another chain for a business development role focused on... View More

John Michael Frick
John Michael Frick
answered on Feb 19, 2025

Even in the absence of a written agreement, an employee is an agent of his employer, the principal, and as an agent owes certain fiduciary duties to the employer. Among these is the fiduciary duty of loyalty which would preclude the employee from working for a competitor without the... View More

1 Answer | Asked in Contracts and Business Law for Texas on
Q: Consulting for employer through LLC while under non-compete in TX?

I am currently employed as a venue manager by a wedding venue in the wedding and event planning industry. I signed a non-compete agreement that states I will solely work for the company and not engage in wedding coordination or planning for other venues while employed. I also own an LLC from a... View More

John Michael Frick
John Michael Frick
answered on Feb 14, 2025

You actually have two issues.

First, the language of your non-compete will determine whether your proposed consulting work through your own LLC violates your agreement with your employer. Most non-complete agreements would prohibit such work.

Second, you appear to also have an...
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2 Answers | Asked in Landlord - Tenant, Criminal Law, Real Estate Law and Business Law for Texas on
Q: We rented a space to someone on our storage facility. He began living in the space & we allowed it but now want him gone

We own the 15-acre facility & pay taxes every year. Due to his financial situation, we allowed him to stay & work in lieu of rent. Nothing in writing was ever done about this arrangement, all verbal. He's using his truck & camper shell to live in behind our office. Last Friday,... View More

John Michael Frick
John Michael Frick
answered on Jan 23, 2025

Because there is no agreement to pay rent, you must give him 30-days advance written notice to vacate for the reasons stated in your question. If he fails to surrender possession of the premises to you after 30 days, you must file an eviction suit in the justice of peace for the precinct where the... View More

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1 Answer | Asked in Business Formation and Business Law for Texas on
Q: My lawyer has been hospitalized. I need my corporate binder. Brother has the binder. Can he return it to me?

My lawyer has my company’s corporate binder in his house. He recently had an accident leaving him hospitalized for the past 6-7 weeks. He’s 79 years old and has been a family friend (and lawyer) for years. His brother (who I speak with regularly) has located the binder but wants to make sure... View More

John Michael Frick
John Michael Frick
answered on Jan 8, 2025

The person named as the "secretary" of the corporation has the legal obligation to maintain the official records formerly customarily kept in a corporate binder. If you are the corporate secretary and hired the lawyer to keep the binder, you have right to demand it regardless of whether... View More

2 Answers | Asked in Business Law, Construction Law, Contracts and Real Estate Law for Texas on
Q: We bought a mobile home on a 25 year contract, but it is not structurally what they told us it would be. Lawsuit?

Can a mobile home manufacturer sell me a house on false pretenses? The manufacturer told us on the phone with the sales person that all studs on the interior of the home would be on 6” centers. That’s not the case. There are 24” centers in the entire inside of the double wide mobile home.... View More

John Michael Frick
John Michael Frick
answered on Jan 2, 2025

Your rights will depend heavily on your sales contract, warranty, and other written documentation. It would be extremely unusual to be able to enforce a verbal conversation with a sales representative that substantially varies from the contents of those documents.

That being said, most...
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2 Answers | Asked in Business Law and Civil Litigation for Texas on
Q: Is it possible to find out all previous lawsuits/cases filed against a company?
John Michael Frick
John Michael Frick
answered on Dec 28, 2024

Theoretically, you can search the court records of every court in the United States (with certain exceptions like the FISA court).

All federal civil cases are online in the PACER system. Many (but not all) state court civil cases are available online, many for free. For those not...
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1 Answer | Asked in Business Law and Consumer Law for Texas on
Q: Do I have to get a new loan if the finance company mistakenly closed my original loan as satisfied ?

I financed a vehicle and then received a letter from the finance company saying the loan was satisfied. The dealer has requested that I start a new loan. I’m not sure if I can negotiate a better deal since they made the mistake.

John Michael Frick
John Michael Frick
answered on Dec 27, 2024

My gut is telling me that there is more to this than meets the eye. If your loan was satisfied--meaning you repaid the loan with interest according to its terms--you do not have to get a new loan unless you need to borrow additional money to finance a vehicle.

If the letter was sent by...
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1 Answer | Asked in Tax Law, Business Formation and Business Law for Texas on
Q: Can I use an LLC I started for photography to publish a book that's not about photography?

Are there any legal or tax implications I should be aware of if I use my existing photography-focused LLC to publish a non-photography related book, and do I need to update my LLC’s operating agreement or business filings to reflect this new activity?

Jeff Trevillion Jr.
PREMIUM
Jeff Trevillion Jr.
answered on Dec 23, 2024

Generally, a limited liability company (LLC) or other business entities may conduct any lawful business, unless the type of business operations were restricted at the time of formation with the secretary of state. Normally, broad and generalized language is used when forming a business entity... View More

1 Answer | Asked in Business Formation, Business Law, Gov & Administrative Law and Municipal Law for Texas on
Q: How do you remove an alderman from the board,

We have among the alderman who never shows up for a meetings, and we have an additional alderman who has been arrested on federal drug charges however he is not yet been sworn in and at this point we do not have a core I would appreciate any advice that you can give me

John Michael Frick
John Michael Frick
answered on Dec 16, 2024

It depends on what type of municipality is involved. Some home-rule municipalities have provisions in their charter for recall of aldermen. In a general-rule municipality, a residence would have to petition the district court for removal on one of the statutory grounds set forth in the Texas... View More

1 Answer | Asked in Business Formation, Business Law, Civil Litigation and Contracts for Texas on
Q: Write a subpoena to produce documents. Store location is in a Texas County but corporate headquarters in another state.

* Subpoena Local Store Operating in Texas for Documents; However, Corporate Headquarters is in Another State

I need to subpeona a store to produce documents in a proceeding in Texas. The local store is operating in Dallas County, Texas; However, the corporate headquarters is located in... View More

John Michael Frick
John Michael Frick
answered on Dec 3, 2024

If a corporation is operating a store in Texas, it is required to obtain a certificate of authority from the Texas Secretary of State and to have and maintain a registered agent for service of process in Texas. If it fails to do so, then the Texas Secretary of State is an agent for service of... View More

2 Answers | Asked in Business Law for Texas on
Q: How long can it be since an act that we can still file a lawsuit against a bank?

Years ago our bank took money from our account to pay a Dish Network service that we never signed up for.

John Michael Frick
John Michael Frick
answered on Nov 14, 2024

To the extent that the bank actions breached its account agreement with you, four years. If the bank's act was not a breach of contract. most likely a two-year statute of limitations applies. There are certain legal doctrines which can delay or toll the running of a statute of limitations... View More

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1 Answer | Asked in Contracts and Business Law for Texas on
Q: Provided call center services for 24+ months; client now refuses to pay invoices. Can we take legal action to recover $?

Provided call center services to client for 24 months. Now they refuses to pay three invoices totaling $19,181.83. Per our contract, a $200 weekly late fee per invoice has accrued, bringing the current amount owed to $41,581.83. Client also failed to honor a three-month cancellation notice, costing... View More

John Michael Frick
John Michael Frick
answered on Nov 13, 2024

First, seeing a contract alone does not necessarily mean that the other party agreed to its terms. If I receive and read your contract, I will be aware of its terms, but that does not mean that I agreed to them. The lack of a signature indicating assent to the terms is going to be a problem. It... View More

1 Answer | Asked in Business Law for Texas on
Q: We have registered a S Corp. but haven't signed byLaws , form 2553, and Certificate of Secretary. Our we a legit company

We are a start up and have registered a S Corp. but haven't signed byLaws, form 2553, and also our Secretary hasn't signed the Certificate of Secretary. However, we have the IRS EIN#. Now we got to a point that we want ask our CEO who is also one of the co-fonder(20%share) to leave the... View More

John Michael Frick
John Michael Frick
answered on Oct 14, 2024

Your question is ambiguous. The filing of Form 2553 is what registers a corporation as an S corporation. Until Form 2553 is filed, the entity is a C corporation. There is a time limit to file the Form 2553 to elect to be an S corporation.

The Board usually can elect another CEO....
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1 Answer | Asked in Business Law and Collections for Texas on
Q: I'm being sued by Discover credit card after going through debt consolidation. do I need lawyer ?

Is debt consolidation legal? I have never missed a payment to debt consolidation. I have multiple sclerosis and am so sick most of the time, Im frustrated and scared to death . any helpful information on what to do would be so very appreciated. I didnt know debt consolidation could land me in this... View More

Joel Gary Selik
Joel Gary Selik
answered on Sep 7, 2024

The debt consolidation companies are not always clear on what they can or cannot due. The creditor must agree to the payment plan or the compromised payment. Without it they can sue. Find defenses to the defense and negotiate a settlement. If you still have many other debts, bankruptcy might be... View More

2 Answers | Asked in Tax Law and Business Law for Texas on
Q: If I transfer ownership of a business to my father, what are my options and responsibilities given there's back taxes?

My father runs a cleaning (franchise) business that is under my name, but I am not actively involved and I do not receive proceeds. It opened in late 2017 and didn't see any revenue until 2018 when it first acquired contracts. I'm looking to transfer ownership to my father for the... View More

John Michael Frick
John Michael Frick
answered on Jul 26, 2024

You can transfer 100% of your interest in the business to your father. You will be legally responsible for all taxes incurred by the business prior to the effective date of your transfer of your ownership interest.

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