Previously on our blog, we discussed the importance of understanding the relationship between an agent and a principal. Knowing the law that applies to principal-agent relationships is particularly important for business owners, so that they can prepare for and mitigate against potential legal liabilities that can arise from an agent’s actions. Agency laws also establish what fiduciary duties can arise from an agent-principal relationship. It is particularly important to be familiar with fiduciary duties...
On September 28, 2014, California Governor Jerry Brown signed into law Assembly Bill 1897, which created a new Labor Code section. The new law affects businesses that obtain or are provided workers to perform labor from a labor contractor. Once AB 1897 becomes effective, private employers can be held liable for labor contractor’s failure to pay all required wages or to secure valid workers’ compensation coverage for contract workers.
Under AB 1897, a business can be...
Under the doctrine of respondeat superior a principle (employer) is liable for the torts of its agents (employees). A principle-agent relationship exists where the employee has agreed to work on behalf of the employer and to be subject to the employer’s control or right to control the physical conduct of the employee.
Respondeat superior is Latin for “let the master answer.” In the employment context, it might be read more accurately as meaning that “the...
What is the difference between a merger and an acquisition? The terms “merger” and “acquisition” are common business terms, but they are often inappropriately used interchangeably, when in fact the two transactions are rather different. If you are planning to combine or purchase assets from another company it is imperative that you understand the benefits and drawbacks of each.
Merger
In a merger, usually two or more businesses wind down as separate entities, and then a...
There are many reasons to invest in a business, such as joining a new startup, or becoming part of an established and successful business poised for more growth. Sometimes these new or established companies just need a little additional working capital to be successful. Before committing, however, it is important to approach the opportunity with objectivity, weigh all investment considerations, and understand the risks and goals associated with the potential investment.
First, assess whether your...
Consumer review based websites like Yelp have grown in popularity and power. Consumer voices are often trusted, and a bad online review can have costly consequences. However, online anonymity has led to abuse, and if someone has posted an online review about your business that is false there may be legal recourse for your injuries.
Defamation is an action brought to defend reputation. It involves intentional publication of false, defamatory, and unprivileged information that has...
