Arbitration clauses are common in business contracts - whether that be a contract for the sale of goods or services, employee contracts, or purchase and sales agreements. In some cases, one party to a dispute has more of an interest than the other in seeing a claim settled by arbitration. In drafting...
Continue reading…
We live in politically charged times. Protests against police brutality initiated after the deaths of George Floyd and other people of color have touched every major city in this country. These occur at a time when our country is already becoming more divided in a particularly contentious election year. Adding to this...
Continue reading…
Arbitration can be an efficient method of resolving differences for both parties to a dispute. Like all contract provisions, arbitration clauses must be carefully crafted, or courts will not enforce them. Certain claims, by state and federal laws, are not subject to arbitration. When an arbitration agreement broadly includes language that would...
Continue reading…
Firing employees can be a minefield of legal issues. Done poorly, it can lead to wrongful termination claims; loss of company property and confidential information; bad publicity and damage to your company’s reputation; and loss of morale and poor performance by other employees. Conversely, if your company has decided it’s time for...
Continue reading…
Directors, officers, and employees of a corporation owe fiduciary duties to the corporation. One of these fiduciary duties is a duty of loyalty. Corporate fiduciaries cannot do harm to the company the serve. More particularly in the context of business opportunities, they cannot seize for themselves a business opportunity that would otherwise...
Continue reading…
Other employers don’t take the time to carefully draft executive employee agreements. In the excitement of finding the right fit to lead a key position in their company, they overlook what might appear as the mundane task of circumscribing an executive’s duty, responsibilities, and performance expectations. After all, this is a highly...
Continue reading…
You are buying a business and heard through the grapevine that if you do an asset purchase instead of a stock purchase, it will keep you from inheriting any of the liabilities that may have been incurred before sale. That is a pretty common belief, and generally sound advice.
Partnerships Are Risky Ventures
All things being equal, partnerships are the riskiest form of business entity. Why? First, a partner can be held personally liable for the actions and omissions of his or partners. Second, similar to marriage statistics, the breakup rate for partnerships is exceedingly high. By some...
Continue reading…
Without a buy-sell agreement in place, business owners risk face unnecessary risk, and are open to events that can disrupt their business and decrease its value. It is estimated that three out of four business owners lack documented succession plans, (to include buy-sell agreements. If government estimates are correct, and nearly 52...
Continue reading…
Historically, between one half and one third of all small and mid-sized businesses will be sued in any given year. Over a business’s lifetime, approximately 90% will face litigation. While litigation costs vary depending on the type of lawsuit, today’s business owner can anticipate legal costs alone over $125,000. This...
Continue reading…
