The California Supreme Court’s recent decision in Sanchez v. Valencia Holding Company, LLC clarified the definition of unconscionability with respect to arbitration provisions. Moreover, the ruling signaled the Court’s willingness to enforce arbitration agreements in consumer and employment contracts. This finding is particularly significant in light of California’s historical hesitation to enforce arbitration agreements notwithstanding the applicability of the Federal Arbitration Act (FAA), which mandates enforcement of arbitration provisions. The Sanchez decision conforms to the ruling in the United States Supreme court in the pivotal case ofAT&T Mobility LLC v. Concepcion on the issue of the enforceability of arbitration provisions.... READ MORE

On July 1, 2015, California implemented new insurance laws for drivers who are employed by ride-sharing services, Uber and Lyft. The stringent regulations are an attempt by the legislature to clearly distinguish when and whose insurance coverage takes effect during the time that workers are driving but not actively engaged in seeking rides or transporting passengers. The legislation followed a deadly car accident involving an Uber driver and centered upon a debate as to whether the driver was actually covered by the company’s insurance at the time of the accident. The parameters of the driver’s coverage raises the broader issue... READ MORE

When a purchaser acquires a business, assuming the contracts of that business is a major component of the transaction. A wide variety of contracts are utilized in a business to govern relationships and business transactions, including employment, contractor, service provider, customer, licensing and real estate contracts. Below is a review of key legal and practical considerations in assigning contracts in an acquisition. In general, the rights in any contract are freely transferable from one entity to another. However, there are a few notable exceptions to this rule. Where the assignment substantially alters the performance due or risks to the party... READ MORE

The purchase of an existing business requires a thorough examination of all the information related to that business entity. The goal of this process, known as “due diligence,” is to provide information about the legal and financial state of the business and to reveal potential risks that could impede the future transaction. A comprehensive due diligence review typically warrants the advice of various professionals, including accountants and attorneys, who guide purchasers in the following areas: Financial status. Financial documents, including balance sheets, audited financial statements, income statements, accounts payable and receivable, and tax returns for the past three years should... READ MORE

A sole proprietorship is the most common form of business structure. A sole proprietor fully owns and manages the daily operations of the business. He can sell the business at his or her sole discretion. In contrast to other business forms, a sole proprietorship is among the least cumbersome of business structures.  It has few compliance and regulatory obligations, minimal legal costs in the formation stage and very few formal maintenance obligations. Due to its low startup costs and bureaucratic simplicity, new owners of small businesses may be persuaded to start a sole proprietorship. However, there are several significant drawbacks... READ MORE

When starting a business, serious consideration should be given to forming a limited liability company (LLC). While the key advantage, as its title suggests, is the protection of owners from incurring personal liability for the debts and liabilities of the business, there are several other features that make LLCs a preferred structure for your business. LLC owners may also choose their tax treatment, are subject to less onerous compliance requirements and have increased flexibility. Limited liability. The members of the LLC are not personally liable for the debts of the business. In the event of a judgment, members can lose... READ MORE

The purchase of an existing business carries risks if key procedures are not properly executed. There are several steps to purchasing a business, including researching the type of business to purchase, deciding on the terms of the transaction and drafting legal documentation. Below is a general summary of the most important actions to be undertaken by a purchaser in acquiring a business. Determine the structure and scope of the purchase. Once the purchaser has identified the type, size and location of the business he or she wishes to purchase, the purchaser must determine what specifically is being purchased. Some business... READ MORE

South Bay Business Lawyers in Manhattan Beach goes against many stereotypes about law firms. When most people think of lawyers, they envision workaholics who charge for every little service, right down to the paper clips and Xerox copies, while providing clients very little understandable information about the work they are doing for them. South Bay Business Lawyers has a different attitude, one that emphasizes customer service and affordability. “We truly bring customer service to the practice of law,” Partner and Founder DeAnn Flores Chase said. “We talk to our clients, but more importantly, we listen to them and we help... READ MORE

South Bay Business Lawyers are excited to welcome Carol Ann Glover as Of Counsel to their established legal practice. With Carol’s addition to the firm’s roster, SBBL’s clients can expect even more comprehensive service with a new and knowledgeable adviser in all matters pertaining to real estate law, including lease agreements, landlord/tenant issues, and loan workouts. “Carol is an excellent attorney and we are excited to have her on board,” said Nancy Hersman, managing partner at SBBL. “She is a seasoned lawyer and the range of her expertise will enhance the services we offer to our clients.” “Carol has been... READ MORE

This is the first of a three-part series discussing legal steps an entrepreneur, business owner or professional should take when starting and growing a business. Many people believe that entrepreneurs are turning this economy around. We work with entrepreneurs, business owners and professionals on a daily basis. Many of them are glass-half-full kind of people. That being said, too many bright, enterprising individuals do not fully recognize the impact a lawsuit can have on their business and their family. It is vital for people starting and growing their business to do everything they can to protect themselves and their family... READ MORE