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...

Many contracts between businesses contain arbitration provisions, where the parties agree that if a dispute should arise, it will be resolved through arbitration. Sometimes when disputes arise, one party will not want to go before an arbitrator or will disagree that the type of conflict is one bound by the arbitration provision. Whatever the reason may be, there are laws that guide whether the contract provision should be followed and enforced. Whether There Should be Any Arbitration If...

Previously on our blog, we discussed the California statute that protects consumers and business competitors from unfair business practices. In today’s entry, we will further parse out what exactly constitutes an “unfair business practice.” As mentioned before, section 17200 of the California Business and Professions Code states that “unfair competition” includes any unlawful, unfair or fraudulent business act or practice. The key to knowing whether you have a case under the statute is understanding what type of activity...

California law protects both consumers and business from unfair and illegal business practices.  Unfair and illegal business practices are major concerns of business competitors, especially with increased competition, and cost reduction measures. California Law Preventing Unfair Business Practices Section 17200 of the California Business and Professions Code states that “unfair competition” includes any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any other act prohibited by the Business and Professions Code. This is...

Countless business people go into a business partnership, whether in the form of a true partnership, a joint venture, limited liability company, or corporation with the best intentions, only to find themselves in a legal dispute. Clashes amongst partners, members, joint venturers, and/or shareholders are extremely common, and occur in every type of business and industry. As in divorce, financial issues predominate over other causes of insider disputes and dissatisfaction.  Also like divorce, business partners...

One of the main reasons that contract disputes arise is because of ambiguous contract terms.  Of course, this can be prevented with meticulous drafting, but in the event that issues do come up after the contract is completed and signed, it is important to understand how the provisions will be interpreted. Most contracts include an “Interpretive Provision” or “Other Definitional Provision.”  There may also be  certain clauses that provide that some clauses or terms will...

Generally, corporate shareholders cannot be held liable for the acts or debts of their corporation because liability is specifically limited to their investment in the corporation via the purchase of shares. However, a shareholder may be held personally liable if a court permits another party to “pierce the corporate veil” to avoid fraud or unfairness to as a result of circumstances where the corporation has taken advantage others of by abusing corporate protections. Because there...

A Mechanics' Lien is a statutory remedy most often used by contractors and subcontractors.  Nearly anyone who contributes labor or materials to a real estate improvement project can use a mechanics lien as a mechanism to resolve issues with receiving payment.   What is a Mechanic’s Lien? Specifically, California law allows the use of a Mechanics' Lien to exact payment by placing a lien on the property.  The existence of the lien on the property inhibits the property owner’s...

If your business has been served with legal papers, it is important to act quickly, and determine whether you have been summoned or subpoenaed.   The information below assumes valid service and subpoena requests.  Invalid service or an objectionable request may relieve the recipient from responding, appearing, or producing documents.  It is therefore of vital importance to talk to an attorney to determine if you have been validly served and whether and how you should respond.   Summons...

A business should always be prepared for a lawsuit, and the best time to prepare for one is before any possible legal claims arise.  Corporate compliance can go a long way in preparing for and avoiding a lawsuit.  If a business has a self-monitored corporate compliance plan and audits its own practices consistently, it will not only avoid potential lawsuits, but have self-preserving support in the case of a lawsuit. Organization Organization is the most important...