Business Law Articles

What to consider before signing a contract with a software vendor

Many contracts that a business will sign with a software vendor (or any other professional service provider relating to software) involve sharing detailed business or customer data. This is especially true with any type of cloud computing service. Before you sign a contract, ask yourself these questions: What can the provider use my data for? Obviously, a vendor needs to be able to use your data to provide you with the contracted services. But many standard

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Commercial landlord is responsible for disability access

A commercial landlord who leased space for a restaurant and a liquor store can be held liable in court if the premises aren’t accessible to the disabled – even though the lease said that disability access was completely the responsibility of the tenant. That’s the word from a federal court in California. The case is a warning to commercial landlords that they need to be proactive and make sure that tenants are fulfilling their responsibilities under

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Time to update your company’s cell-phone policy

About 85% of American companies have a written policy that limits workers’ use of cell phones while driving. The goal is to improve employee safety, while also preventing lawsuits from people who are injured by distracted employees. That’s great – but many of these policies were adopted several years ago, and need to be reviewed now because the legal landscape has changed. Here are some of the problems with many older policies: ► They’re not inclusive

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Here’s what to think about in a distributorship agreement

If you’re a manufacturer who’s thinking about using a distributor to expand your reach into new areas – or if you’re a distributor who wants to sell products for a new company – a good contract is the key to making the relationship work and avoiding misunderstandings and conflicts. Here’s a brief list of the issues that you’ll want to think about and make clear in the agreement before you sign on the dotted line: Does

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How does your company’s 401(k) plan measure up?

The IRS has conducted a survey of 1,200 different 401(k) plans from businesses of all shapes and sizes, and has created an interesting snapshot that allows you to compare your company’s plan to other plans across the country. Here’s what the survey shows: 68% of plans provide employer matching contributions. 41% allow employees to make election changes at any time, 22% allow them quarterly, and 13% allow them once each payroll period. 5% of plans have

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Domino’s Pizza pays $9.75 million for ‘robocalls’

The Domino’s Pizza chain has agreed to pay $9.75 million to settle claims that it sent unsolicited phone calls and text messages to people’s cell phones. The messages promoted the pizza chain and offered coupons. Consumers in three states filed a lawsuit claiming that the calls were made without their consent, and therefore violated a federal law concerning telephone privacy. The federal law generally prohibits private companies from making calls to cell phones from a computer

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Sweepstakes promotions can be a legal gamble

A lot of consumer companies market their products with sweepstakes or other games. But as the A&P grocery chain found out recently, there are a lot of legal issues that shouldn’t be left to chance. The grocery company offered what it called the “A&P Frozen Food Month 2013 Sweepstakes,” and advertised that customers who bought $50 worth of frozen-food products would automatically be entered in a contest to win $350 gift cards. The New York Attorney

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‘Black Swan’ case highlights danger of unpaid internships

A recent court decision involving two unpaid interns who worked on the movie “Black Swan” shows the danger that companies can get themselves into with internships. If you offer an unpaid internship program – or even if you just bring on an unpaid intern from time to time, perhaps even as a favor to someone – it’s a good idea to carefully review the rules. Unpaid internships have burgeoned in the last few years, as the

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The law is strict about providing FMLA notice to workers

When an employee takes leave under the federal Family and Medical Leave Act, the employer is supposed to quickly provide him or her with certain notices. These may include an “eligibility” notice, a “rights and responsibilities” notice, and a “designation” notice. Although these notices can be somewhat technical, they’re strictly required to protect your rights. The Wackenhut Corporation found this out the hard way when Jacqueline Young took 12 weeks of FMLA leave. Once her leave

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Company buys rival’s assets, also buys itself a lawsuit

By the time Wisconsin-based JT Packard & Associates ran into financial trouble, it was also the target of a lawsuit by employees who claimed they hadn’t been paid overtime. Eventually, Packard went out of business, and its assets were sold to a company called the Thomas & Betts Corp. As part of the sale agreement, Thomas & Betts specifically said that it wasn’t assuming liability for the overtime claim. When a company purchases the assets of

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