In 2007, Rain, a Korean pop-star, canceled a show in Honolulu just days before the concert was scheduled to occur. After a lengthy jury trial, Rain was found liable for breach of contract and was ordered to pay the Hawaiian concert promoter $5 million in punitive damages, $1 million for damages related to fraud, and...
One of the first decisions you have to make about your new business is to choose your legal structure. Sure, this may not be the most exciting decision ever, but it’s critically important. One common legal structure for small businesses is known as a limited liability company, or an LLC. In this blog entry, we’re...
Working with an independent contractor is an effective way to increase productivity without adding dollars to your payroll. Whether you hire a contractor to perform services outside of your expertise, or to handle a short-term spike in demand, contractors are a popular option for many business owners. Working with an independent contractor, however, can lead...
Most businesses are not blessed with unlimited start-up capital. Due to a tight budget, lack of time, or a myriad of other reasons, business owners often decide to write contracts themselves and hope for the best. While watching every penny is prudent and a responsible way to operate your business, investing resources into your legal...
Starting a business is exciting, and if you’re about to take the plunge, congratulations! However, many business owners get caught up so fully in the excitement of launching, they neglect important steps in the process. The item most often omitted is arguably the most vital – the Operating or Partnership Agreement. Even though it may...
All contracts are not created equal. If your business relies on vague, generic contracts to define important relationships, you are setting yourself up for disappointment at best, disaster at worst. Without proper specificity, your contracts may not be enforceable. Or, even if they are enforceable, a vague contract could be interpreted by a court of...
If you’re planning on starting a business or already in the early stages, congratulations! Building a business is a challenging but fulfilling endeavor, and I consider myself fortunate to spend a great deal of time counseling and advising business owners and entrepreneurs like yourself. Today I’d like to identify several common legal mistakes which many...
Liability is (and should be!) a major concern for business owners. Smart policies and procedures can go a long way towards minimizing your liability – but the fact is, short of closing down your business, it’s all but impossible to completely eliminate liability risks in your business. That’s why liability management, the concept of shielding...