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Business Law Archives

Common Examples of Business Fraud

business fraud.jpgBusiness fraud is a serious issue that can have a significant impact on those affected, including other businesses. According to a survey conducted by PricewaterhouseCoopers (PwC), 45 percent of U.S. organizations have been the victim of economic crime in the past two years. Business fraud occurs when one party uses trickery or deceit in order to obtain value or to gain an unfair advantage over another party. When a business fraud is perpetrated by one business upon another, the financial consequences can be significant. Fortunately, companies that have suffered a financial harm because of fraud can often recover for the losses they have sustained by filing a legal action against the person or party that defrauded them. There are many ways in which a business can be the victim of fraud.

The Importance of Having Your Business Contracts Reviewed by an Attorney

business contract.jpgContracts are an essential part of conducting business. In fact, every business, from a small sole proprietorship to a large fortune 500 retailer that operates in all 50 states, enters into contracts whenever a customer buys goods or services. Business contracts can cover nearly every aspect of business and can include employment contracts, nondisclosure agreements (NDAs), buy-sell agreements, and purchase orders, just to name a few.

Protecting Your Business's Trade Secrets

trade secret.jpgIn the age of technology and the Internet, many businesses are more concerned than ever about protecting trade secrets. Data shows that trade secret litigation in federal courts has more than doubled between 1995 and 2004 and it is projected to double again by 2017. In over 85 percent of these cases, the person alleged to have misappropriated trade secrets was either an employee or business partner. It is estimated that businesses lose hundreds of millions of dollars every year due to the misappropriation of trade secrets.

Back to the Basics - Valid Contracts and Breaches

breach of contract.jpgWhen two or more parties enter into a legally binding contract, they are stating that they will agree to the terms listed therein. What happens when one party does not abide by the terms of the agreement? The ramifications of a breach of contract suit in California can be costly for both parties.

Protecting Your Business from Losses Due To "Non-Conforming Goods"

NonConforming Goods.jpgCalifornia's version of the Uniform Commercial Code's implied warranty of merchantability protects the consumer from suffering losses resulting from faulty consumer goods. Business owners must be aware of their options and should consult with counsel to devise a suitable business strategy to protect your business from losses while maintaining a high level of customer service and satisfaction. An experienced business attorney can help the business owner avoid pitfalls associated with implied warranties from the sale of consumer goods.

What Is a Use Tax?

user tax.jpgTaxes collected by California retailers from in-state transactions are called sales taxes. The retailer is responsible for collecting this tax from the customer at the time of sale and for reporting and submitting that tax to the state of California. Also, thanks to California's e-fairness law, out-of-state retailers, including online retailers, are responsible for collecting taxes on sales to California customers. However, in cases where the out-of-state retailer isn't required to charge a sales tax, the customer may be required to pay a "use tax," which is a tax on personal property that is used, stored, or consumed in California. It's a counterpart to the sales tax and you should not ever pay both on the same transaction. Both of these types of taxes go to support California's government.

California Business Litigation: Understanding the Repercussions of Shareholder Disputes

shareholder disagreements.jpgAlthough the shareholders have aligned objectives when they create a corporation, or invest in one, their goals may change over the life of the corporation. This commonly leads to shareholder disputes. These disputes may arise among evenly divided shareholders (50-50) or between minority and majority shareholders. Some common issues that give rise to shareholder disputes involve control or direction of the corporation, financial difficulties, mismanagement, election of corporate officers, voluntary and involuntary dissolution, wrongdoing or oppression of minority shareholders.

Business Contract Disputes: Alternatives to Litigation

contract dispute.jpgIn today's world, business or contract disputes arise in a variety of forms. Business disputes can range from unfair competition to violations of trade secrets. Contract disputes often involve breach of contract, rescission, reformation and even subrogation, among others issues. But many businesses are unaware of the several alternatives to filing a lawsuit to settle such a dispute.

Realizing the Fiduciary Duties in Partnerships

fudiciary duty.jpgWhen two or more people engage in business for profit, with or without a formal written agreement, they are partners engaged in a general partnership. Partners have fiduciary duties to each other. Depending on the type of business relationship you have (limited or general) partnership, fiduciary duties will vary. In California, Corporate Code ยง16404 dictates the fiduciary duties of partners, along with any written terms of agreement between the partners. Fiduciary duties expose partners to liability when they fail to live up to their obligations.

Creditors' Rights: Securing Reclamation Rights to Reclaim Goods

reclaimation of goods.jpgWhen you are engaged in the business of supplying goods, you have the ability to reclaim these goods when the buyer fails to pay. In rare instances, buyers will purchase more goods than usual, stock up inventory, then file for bankruptcy in an effort to refuse paying for the goods. When the business to which you supply goods becomes insolvent, it may seek protection of federal bankruptcy laws in order to prevent you from recovering any money owed. Regardless of the situation, no business owner wants to ship goods to buyers for free, without payment.

  • Santa Clara County Bar Association | 1917
  • American Inns of Court
  • CWL | California Woman Lawyers
  • Bay Area Bankruptcy | Forun
  • The State Bar of California
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