Understanding the principal-agent relationship  is critical for all business transactions. The laws of agency govern this relationship, and they establish when an agent can bind a principal to an agreement, how far an agent’s liability extends, and what the fiduciary duties are that arise from the relationship. The Principal-Agent Relationship Generally (in terms of an “actual agency”), a principal hires an agent to act on his or her or its behalf.  The principal-agent relationship is not...

The relationship between an officer or director and a corporation gives rise to certain fiduciary obligations as a matter of law. One of the fiduciary duties that an officer or director owes the corporation is a duty of loyalty. The duty of loyalty requires every officer or director to act in good faith and with a reasonable belief that what he or she does is in the corporation’s best interest. A classic example of a...

Every day more companies move towards cloud computing, but recent cyber-attacks have raised questions about security and reliability. Several other legal considerations have been raised, and it is therefore important for businesses considering this path to make sure to weigh the legal factors as well as cost benefits. There are many reasons why companies are switching to cloud computing. According to the National Law Journal, some experts think that cloud computing could cut corporate IT costs by...

The legal conflicts that businesses most often face are contract disputes, financial disputes, and employer-employee issues. If your business is facing such a conflict, it will be encouraging for you to know that most of these disputes can and are resolved without going to court. Alternative dispute resolution ("ADR") can save your business a lot of time and money if you utilize it as a means to resolving your legal issues. There are many...

Consumers love the convenience of new ridesharing startup companies such as Uber, Lyft, and Sidecar offer. With a few taps on your smartphone, you can have a car waiting for you within minutes. State and local governments, however, are less in love with these companies, and have been trying to halt their services around the country. Most recently, the California Public Utilities Commission sent letters to all three companies informing them that their ride-share services violate state...

On September 10, 2014, California Governor Jerry Brown signed AB 1522, a law requiring public and private employers to provide their employees with at least 3 paid sick leave days per year. It is very important that employers begin implementing paid sick leave policies to make sure they are compliant with the new law, which goes into effect in July 2015. Under the new law, most employees will be entitled to one (1) hour of...