The Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030, was enacted by Congress in 1986 as an amendment to the Counterfeit Access Device and Abuse Act. While the CFAA is primarily a criminal law, an amendment in 1994 allows civil actions to be brought under the statute. While the CFAA has been amended many times in attempts to make it successfully evolve with the needs of computer users, rulings in two recent Ninth Circuit cases leave many other questions unanswered about the proper interpretation of the law, opening the door for more uncertain litigation, and perhaps the prosecution of individuals that... READ MORE

Chase Law Group provides legal services to entrepreneurs, business owners and professionals across Southern California, tailoring legal counsel to protect personal and proprietary assets through all stages of business ownership. DeAnn Flores Chase started Chase Law Group in 2007 and has practiced law for two decades. Read the full article here READ MORE

The California Family Rights Act (CFRA) regulations, issued by the California Fair Employment and Housing Council, were amended as of July 1, 2015, and contain several noteworthy revisions. As a whole, the resulting provisions are in greater conformity with the federal Family and Medical Leave Act (FMLA). Both the CFRA regulations and FMLA apply to employers with 50 or more employees. The CFRA provides a new definition of “joint employer” which is substantially similar to that issued by the FMLA. The FMLA identifies a joint employer as two or more businesses asserting joint control over the employment of an employee... READ MORE

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

Commercial leases seldom follow a standard form and do not provide the same kind of protections as residential leases. While commercial leases are generally drafted in favor of the landlord, tenants may have the flexibility to negotiate more advantageous terms. Below is a summary of items that are often amenable to modification. These clauses should be reviewed carefully to ensure that the terms are understood and acceptable to the lessee. Duration of Lease. As a commercial tenant, the flexibility to terminate or extend a lease, or to renegotiate the lease term is critical. The term of a commercial lease can... 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

California recently enacted the Uniform Voidable Transactions Act (UVTA), which introduces discrete modifications to the previous law governing fraudulent transfers, the Uniform Fraudulent Transfer Act (UFTA). The UFTA provided that a “fraudulent transfer” occurred when a debtor transferred property to a third party with the objective of obstructing or defrauding a creditor, or did not receive equivalent value for that property if the debtor was insolvent. The UFTA furnished a legal means for voiding a fraudulent transfer and returning the property to the debtor or debtor’s estate. The current UVTA revisions accomplish the same goals and are designed to conform... READ MORE

In 2014, California passed the Healthy Workplaces, Healthy Families Act of 2014 (the “Act”), which mandated the provision of paid sick leave for employees. On July 13, 2015, amendments to the Act (AB 304) took effect and were designed to clarify some of the ambiguities of the original legislation. The major modifications to the Act include the following: Amendments to rate of accrual. While the Act specified that paid sick leave should accrue at one hour per 30 hours worked, AB 304 gives employers flexibility to institute different accrual methods so long and the time is accrued on a regular... 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