Example Finding The Right Lawyer Most new businesses need legal advice regarding a wide range of matters Consider the types of liability issues inherent in your business Best way to find a lawyer is a referral from someone you know who also owns a small business You can look to trade groups or industry associations
The US is an easy place to sue someone. Luckily many people like to go after the “deep pockets” and small businesses pockets aren’t very deep.
A small business should have one general attorney as their corporate attorney. You should not need to keep him on retainer but may use him with employment questions or to review contracts. Specialists may be necessary for a lawsuit depending on the content. A list of common specialists is on the next slide.
Answer: c
An attorney may be paid in a variety of ways. Hourly fees vary and depend strictly on the amount of work you need done. Flat fees may be paid for a variety of common small task such as drawing up a simple will, filing corporate papers, reviewing a contract.
Larger companies may keep a lawyer on retainer. Retainers prevent the attorney from working for anyone else which may present a conflict of interest for you company. Contingencies are frequently used in accident and wrongful death cases. In this case the lawyer gets 10%- 30% of any winnings. Contingencies are not generally appropriate for business applications.
Free legal advice is also available from a variety of sources.
A business entity is a separate ‘being’ form the owners. As such, the company can be sued, and lose, and the owner’s personal assets can be protected. Several types are discussed on the next few slides.
When choosing which structure to use consider these 6 points. The appropriate structure for one business is not the same as for another.
If you are in negotiation over pricing, contracts, or any other business matter winning may depend on these four steps. Prepare: what is your goal? Your minimum acceptable, your ideal outcome? Position yourself by showing you professionalism and legitimacy. Propose solutions putting yourself on the offensive. By suggesting balanced proposals you look fair and reasonable and are more likely to have fruitful discussions. Pounce on any part of a reached agreement. Negotiation can be done in parts of steps. Agree where you can, work out the rest.
A company is liable for actions of its employees. However, if the ‘employee’ is really and independent contractor (working for himself) then liability shifts to the contractor. Also, if employee were acting in matters not included in their duties, they in effect they were defying their job limitations and thus liability may shift away from the employee. Examples are on the next two pages.
In negotiation of an argument is it best to use: Litigation – the legal system and a lawsuit Arbitration – outside the court room but privately with judges? Mediation – an unbiased mediator. Fast, cheaper, still binding.
Contracts are written to protect both parties. In a standard contract concerning payment terms, or extension of credit, a standard form may be used. Special contracts are individually designed to meet a certain situation. These are required for large dollar transactions and all possible contingencies and their possible outcome are written in.
Contracts are written to protect both parties. In a standard contract concerning payment terms, or extension of credit, a standard form may be used. Special contracts are individually designed to meet a certain situation. These are required for large dollar transactions and all possible contingencies and their possible outcome are written in.
If the two parties involved are in different states, it is best to state if there is a problem, which state will have authority over the dispute. Noncompete clauses in employment contracts usually prevent and employee from going to work for a competitor for some length of time (6 months, a year) after leaving their company. This is normally built in to their employment contract.
Hold harmless agreement are also used with customers such as in a rock climbing gym. The customer is aware of the dangers and agrees not to sue if injured.
The internet has changes many things. Ordering can now be done automatically over the internet. Companies such as walmart have their store automatically submit orders at 2am everyday. Smaller companies may develop the order manually but still submit electronically. Before EDI is used, a contract with payment and order terms has already been negotiated.
Business to Business contracts set the rules under which the buying/selling relationship takes place. Sellers typically reserve the right not to sell. Accounts receivable also come into play as order cannot be made if the company has exceeded their credit terms.
Another legal point for small companies, and one which proves to be valuable, is patents. There are many types of patents available and their time limit is based on what is being protected. The US patent office provide downloadable information to get you started. Patents lawyers also specialize in this form of law but are very expensive to use.
Trade secrets are simply the private, secret, information of what makes the company run. The 5 steps are found on the next slide.
Do not assume you have protected the secrets then get lax in your systems or security. Some companies only let employees know one part of a process or ‘recipe’ to limit the amount of information they would be able to share.
A copyright last longer than a patent but it is not for a product. A company might copyright a logo, picture, diagram, etc….
Trademarks are renewable. Examples might include a name or abbreviation such as the NFL.
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