What truth-in-advertising rules apply to advertisers? Under the Federal Trade Commission Act: Advertising must be truthful and non-deceptive; Advertisers must have evidence to back up their claims; and Advertisements cannot be unfair. Additional laws apply to ads for specialized products like consumer leases, credit, 900 telephone numbers, and products sold through mail order or telephone…

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Exchange Act Sections 13(d) and 13(g) and Regulation 13D-G Beneficial Ownership Reporting Last Update: November 16, 2009 These Compliance and Disclosure Interpretations (“C&DIs”) comprise the Division’s interpretations of Exchange Act Sections 13(d) and 13(g), Regulation 13D-G beneficial ownership reporting and related Schedules 13D and 13G. These C&DIs replace the “Regulations 13D and 13G and Schedules…

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Independent Contractor (Self-Employed) or Employee? It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.  Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or…

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A non-disclosure agreement (NDA), also known as a confidentiality agreement, confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement, is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to…

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A non-compete clause or covenant not to compete (CNC), is a term used in contract law under which one party (usually an employee) agrees not to pursue a similar profession or trade in competition against another party (usually the employer). As a contract provision, a CNC is bound by traditional contract requirements including the consideration…

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Asset Acquisition is a buyout strategy for certain businesses that focus on key assets of a particular company in contrast to purchasing its shares.  Most buyouts of this kind occur in the event of bankruptcy, where the bankruptcy company might otherwise have valuable assets which could be used by other companies, but whose financial condition…

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Separations between principles (partners, shareholders, members, etc.)  have increased since the downturn of the economy, yet there are still many businesses that fail despite no financial stress.  Agreements and expectations should contemplate all foreseeable future scenarios.  Where they do not, there is a high risk of failure. An impenetrable fortress is always vulnerable from the…

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Separations between partners have increased since the downturn of the economy.  A business partnership divorce, so to speak, may occur in a failed business, winding down of business venture, or the worst case scenario–a hostile divorce usually caused by a breach of the partnership agreement or other bad faith dealings. Dissolving a partnership may get…

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The term “strategic alliance” is an excellent marketing lingo for a couple of parties who are forming a joint venture or other joint entity. Its purpose? Best used for new ideas or technology developed by multiple parties, a strategic alliance entity and agreement will facilitate the exposure to common legal issues that come up in…

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In case you missed the AT&T v. Verizon drama, AT&T filed sued against Verizon Wireless for their “map for that” commercial because they feel it is misleading.  AT&T says Verizon ads use large areas of white space in maps to show that AT&T 3g customers are not covered in vast areas of the U.S.  They…

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