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BUSINESS LAW FAQs
What governs my business obligations to expect delivery on time?
All businesses will need legal advice from time to time. As a buisness grows, many even develop "in-house counsel." In-house counsel is a lawyer or a group of lawyers whose only job is the support and protection of the business.
Small and medium sized businesses don't need a department of fully employed attorneys, but they often need a law firm that is fully familiar with their business and their daily business dealings.
Perhaps your business routinely takes deliveries from vendors of necessary parts, components and supplies. Perhaps your buisness provides these things to others. Either, way, the Uniform Commercial Code (U.C.C.) applies. The Uniform Commercial Code is a complex and dense group of statutes that govern everthing from your contracts to provide or recieve goods to the method of their delvery. Obligations of payment and what triggers the legal requirements to pay are also governed by the U.C.C.
When you conduct your business, though your contracts are ruled by the U.C.C. your routine conduct with a vendor or customer that deviates from the U.C.C. may actually modify yours or the other business' legal obligations.
How do I conduct appropriate hiring and firing policies?
Hiring the right person for a position in your business can be difficult enough. It can be more difficult if done improperly. There are certain things that any employer may ask a candidate. There are certain questions that are absolutely fobiddden.
If a prospect for your position supplies you with references, there are things that their former employer may not legally disclose to you.
When youi fire an employee, if done improperly you may find yourself subjecdted to a lawsuit for reasons that may be unrelated to the reasons you let the employee go.
Please return for more information on this subject as the FAQ section of this website expands.
When I hire an employee, what are my legal obligations?
Depending upon the size of your business, you may be required by law to supply health benefits to your employees. Your legal obligation may also change depending upon whether or not you hired part-time or full-time help.
You must reliably maintain payroll records and accont for deductions of items such as social security, workers compensation insurance and unemployment insurance. Some employers pay by cash in order to avoid keeping such records and having to make these payments. This is surprisingly common practice but has the potential to place your business at the mercy of disguntled employees.
Every business should have a printed set of human resources policies in hand. They should be given to each new employee and signed for. Your policies may vary due to your particular state's laws and also due to changing federal regulations. While there are many policy manuals for sale, it is better to have an attorney draft your policies specifically for your business and industry.
Finally, some businesses utilize non-competition, restriction of future employment or other legal clauses in the hiring of employees. The retriction of future employment is meant to prevent an employee from leaving your employ and immediately working for a competitor for a period of time. But not all such clauses are enforceable. Depending upon the region of employement, the position occupied by the employee and other factors including the employee's access to "proprietary" information unique to your business, you may not be able to hold an employee to the restriction.
Non-competition clauses are often used when hiring sales-staff, among other positions. A salesperson may be legally prohibited from leaving your company and immediately working for a competitor. The reasons for this restriction are to prevent your client list from becoming known to a competing business and restrict a former salesman, who may know your profit margins and production costs, joining the enemy camp and using that knowlege to take your customers. But these provisions might by suject to "reasonable time," regional, or other limits on their enforcement. An attorney knowlegable about these issues can help you to structure your employment agreements so that when the employment ends, the restrcting convenant is not vulnerable to a court ruling that it is void due to its unreasonableness.
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