So, you're a budding business leader with a head full of plans waiting to be implemented. But how do you begin? You're aware that formalities are associated with the law, and financial resources must be accumulated before your ideas can be shared with the world. However, you're a businessperson, not a lawyer. No one anticipates that you know everything about the law, but you should have an attorney on your side before proceeding.
Getting a lawyer's advice before launching a business is a smart move. With a lawyer's help, you can rest easy knowing your company is protected from potential lawsuits. Incorporating your company correctly and developing protocols for your business's processes can mean a rocky start and a smooth expansion.
Suppose an employee or someone in a similar position commits an illegal act. In that case, the company can be held liable for it under the doctrine of vicarious liability, even if it did nothing wrong. To establish vicarious liability against an employer, it is necessary to show a causal relationship between the employee's misconduct and position and responsibilities.
Employers should take reasonable measures to reduce the risk, including but not limited to: reminding workers of policies and procedures (such as those about acceptable equipment use and the scope of work); providing additional training on duties of confidentiality and best practices; conducting an inventory of workers' equipment and upgrading or providing additional equipment as needed; maintaining regular calls or other communications with workers to check on their progress; and so on.
The proper classification of employees and adherence to the overtime rule are two aspects of the employment relationship that are especially important to a business owner. It's common knowledge among startup founders that putting in long hours for little pay is par for the course. However, unless they are an exempt worker, your employees who work more than 40 hours per week are eligible for overtime pay. To avoid costly litigation down the line, it is crucial to determine the regular pay rate for non-exempted employees accurately and document all the time sheets, including mealtime, break time, and any bonus or commission.
You need just one great idea to launch a successful business. As an entrepreneur, you should safeguard your innovation with intellectual property law, as people often look to new businesses as the engine that propels societal transformation. On the other hand, you need to check that none of your creative concepts (like a logo, design, photo, or company name) violate the rights of any third parties. Infringement of intellectual property rights can result in severe financial penalties and even injunctions, which can devastate your company.
The scope of intellectual property law extends to the following:
Legally binding agreements can be broken into two categories: unilateral and bilateral. A contract is formed when two parties exchange offers and accept one another. The offer is made by the terms outlined in the agreements, and the offeror must extend the offer to the offeree. Any action by the offeree, whether express or implied, that indicates agreement with the terms of the offer is called an acceptance. The offeree's intent to transact business with the offeror is the most critical element of the acceptance provision. If you're an entrepreneur looking to put your money, time, and energy into a contract with the peace of mind that it will hold up in court, these two conditions must exist before proceeding.
Manufacturing, wholesaling, distributing, and retailing products puts your startup at risk for financial loss due to product liability claims. To be legal, a product must fulfill typical user expectations. A product fails to live up to consumer expectations when it has flaws or risks that are not immediately apparent. Claims for compensation in the event of product-related harm are typically filed in state courts on negligence, strict liability, or breach of warranty, all of which originate from state statutes. Product liability warranty rules will also be codified in state commercial statutes modeled after the Uniform Commercial Code. Defects in the product's design, production, or distribution can all lead to legal action against the company responsible for making and selling it.
The decision to launch a business is an exciting but significant one for any aspiring entrepreneur. If you're serious about launching a company, you need more than just a great concept. Hiring a lawyer to assist you in setting up your new business can help you avoid forgetting any of the necessary steps.