Category: Entepreneurship

Posted on

Is Your Ad Deceptive?

I. Introduction   

Small business owners often take out an advertisement in a local
paper or, more in line with the times, advertise on a website.  The
advertisement, however, can sometimes create liability for the business
owner if the ad is found to be deceptive. [1]  This article will
discuss the different sources of the law regarding deceptive
advertising and then generally describe what makes an advertisement
deceptive.  It will then explore the trends and adaptation of the law
regarding web logs and advertising.  In conclusion, this article will
present considerations that a small business owner should take into
account when deciding to post an advertisement.

II.  Sources of Deceptive Advertisement Regulation

Laws regulating deceptive advertising exist at both the state and
federal levels.  Modern advertisement law was shaped in the early
twentieth century with the intention of encouraging the dissemination
of truthful information and sanctioning the spread of false

… Read the rest
Posted on

Is a Franchise for You? Making the Right Decision on Starting a Franchise

I. Introduction

Starting a franchise can be a lucrative business. However,
franchising is also an expensive start-up venture and can have
significant legal consequences if not done properly. This article will
first define a franchise and discuss the different types. It will then
discuss financing a franchise and the legal issues of starting a
franchise. Finally, the article will conclude by discussing the best
way to go about starting a franchise.

II. Defining Franchise

A franchise is "the right or license granted by a company to an
individual or group to market its products or services in a specific
territory." [1] In other words, franchising is similar to cloning a
business. [2] The process of buying a franchise involves renting the
franchiser's trademark and business model. [3] Most franchises, like
McDonald's and Taco Bell, are considered "turnkey" business
opportunities because all the purchaser needs to do it turn a
rhetorical … Read the rest

Posted on

Lawyer-Turned-Entrepreneur: How the Collision of Diverse Careers can Blend into Success

I.  Introduction

    At first glance, it looks as though lawyers and entrepreneurs don't have much in common.  The legal profession "offers a low-risk (if high-stress) means to a long, relatively well-paid, and tightly-controlled career at a privately-held law firm or government position." [1]  The path of an entrepreneur, on the other hand, offers a high-risk means to a career with no guarantees or definite returns on investment. [2]  Yet, more than ten percent of the CEOs in the Forbes 500, a list of the 500 largest public companies in the United States, are former lawyers. [3]  How did this happen?  According to Gregg Engles, former lawyer and current CEO of Dean Foods, Inc., the discrepancy is simple. [4]  "Many lawyers let knowledge of risk paralyze them.  They focus exclusively on risk, while entrepreneurs focus primarily on opportunity.  The person who can simultaneously perceive the opportunity and the risk

… Read the rest
Posted on

Let Franchisees Decide to Arbitrate

I. Introduction

Franchises are a strong component of the U.S. economy.  In
2004, there were over 767,000 franchises in the United States which
contributed 9.8 million direct jobs to the economy. [1]  According to a
2002 study, half of the franchise agreements analyzed contained
arbitration clauses. [2]  With the passage of the Federal Arbitration
Act and subsequent court rulings, a policy favoring arbitration has
been established. [3]  In fact, most courts will enforce arbitration
clauses in a majority of the cases. [4]  In contrast to this trend,
both congressional legislation and court decisions have been seen to
back away from an unwavering support of pre-dispute arbitration. 
Should the courts and congress become more involved in the use of
arbitration in the context of a franchise relationship?

II. Benefits of Arbitration

There are many reasons that arbitration is one of the oldest
forms of dispute resolution [5] and a useful alternative

… Read the rest
Posted on

Liability Protection: The Keystone of a Successful Business

I. Introduction

For an entrepreneur, starting a new business can be a fulfilling
venture. However, if the company and its assets are not properly
protected, the risks that come along with such an endeavor can prove to
be costly. This article will first discuss the agency issues that arise
in a litigious society. It will then explain the process for retaining
liability insurance. Finally, it will conclude by suggesting some
simple ways a new business owner can ensure he or she will receive
maximum liability protection.

II. Agency Issues

Agency law issues often arise when an employee takes action on
behalf of the company without the employer's consent or the proper
authority. [1] The Restatement of the Law (Third) Agency defines agency
as, "[t]he fiduciary relationship that arises when one person manifests
assents to another person that the agent shall act on the principal's
behalf and subject to the principal's … Read the rest

Posted on

Zoning Regulations Need to Keep Pace

I. Introduction

Many Americans take the plunge and start a
small business.  The predominant form of small business in the united
States is home-based business. [1]  Nearly 8,500 new home-based
ventures are started each day with one in ten U.S. households
conducting some type of home-based business. [2]  Although many local
zoning regimes started with the same intentions they have led to
varying restrictions which may not appropriately balance the concerns
of neighbors against the benefits and characteristics of all current
home-business.

II. Impact

Government regulations have a very large impact on home-based
businesses. [3]  In fact, costs to comply with regulation have been
shown to be higher for businesses with less than twenty employees than
for those with over five hundred. [4]  For home-based businesses, local
codes and zoning ordinances often have restrictions on the use of
residences as places of business. [5]  The actual restrictions can vary
widely

… Read the rest
Posted on

The Mail-Order Bride Phenomenon

IN A WORLD OF RISING GLOBALIZATION HOW DO THE LAW AND INDUSTRY GENERATE SAFE OPPORTUNITIES FOR PEOPLE TO MEET ONLINE IN DIFFERENT NATIONS?

Contrary to popular depiction in the media and amongst the populace of western countries, the idea of a ‘mail-order bride’ no longer exists in the classical sense; in the 18th and 19th Centuries, women such as the ‘casket girls’ of New Orleans were often ordered through catalogs or sent to colonies by their Governments to marry settlers and maintain the harmony and prosperity of the colony. [1] Nowadays, the term generally refers to women from developing countries that use introduction services such as Anastasia International ( HYPERLINK "http://anastasia-international.com" http://anastasia-international.com) to meet and possibly marry men in first world countries. [2] The common misconception, at least with regard to women in the Commonwealth of Independent States (the former Soviet Union), is that they are coming to this country

… Read the rest
Posted on

Labor and Employment in the Workplace: A Hiring and Workplace Guide for New Business Owners

I. Introduction

The process of starting a business that relies on outside employees
is time consuming and often confusing. However, with the aid of a
qualified attorney and the implementation of the proper procedures, an
entrepreneur may be able to safeguard himself against many of the risks
of bringing other people on board while reaping the benefits. This
article will first discuss the basics of hiring a qualified employee
and suggest an organization for a family run business. It will then
discuss the implications of non-compete agreements, existence of trade
secrets, and creation of pension plans. Finally, it will conclude by
discussing the implications of retaining an attorney to aid in the
employee hiring process.

II. The Initial Hiring Process

There are a few basic issues every employer should be aware of
before beginning the hiring process. [1] "Unless your business is a
'one-man show,' there are a wide variety … Read the rest

Posted on

The Young and the Restless: the Inevitable Trend of New Graduates towards Solo Practice

I.    Introduction

The word is out–as of 2007, big law firms have boosted their starting salaries to as high as $160,000. [1]  Moreover, NALP has released its employment statistics for the Class of 2006, boasting a 90% employment rate for new graduates. [2]  If these statistics sound too good to be true, it's because they are.  The much publicized "BigLaw" salary only accounts for 14% of new-graduate salaries. [3]  In fact, 42% of new graduates last year received less than $55,000. [4]  What does this mean?  It means that graduates, who don't attend top-tier law schools and don't score at the top of their class, are struggling to find jobs that will cover both living expenses and law-school debts; which can exceed well over $100,000.  With job prospects looking grim, many recent graduates are turning to solo practice, hoping to create the dream career and salary that nearly dissolved

… Read the rest
Posted on

The Art of Registering a Business: Picking the Right Method of Registration for Your New Business

I. Introduction

Starting a new business can be a scary venture for a new
entrepreneur. Beyond picking a location, hiring personnel and
establishing a clientele base, deciding how to register the business
can be an important decision with lasting implications. There are five
main categories under which a new business owner can register his or
her new business: sole proprietorship, general partnership, limited
liability partnership, limited liability company or corporation. This
article discusses the pros and cons of registering under each of the
five categories and the legal implications of each option.

II. Sole Proprietorship: Description, Liability, Tax Benefits

A sole proprietorship is the most common type of business
organization. [1] In a sole proprietorship, one person owns and manages
the business and there is no separation between the business entity and
the individual, meaning for tax purposes the individual must file only
one individual tax return. [2] The advantages … Read the rest