Category Archives: Business Law

The Rights of Minority Shareholders upon Sale of a Corporation

A majority shareholder of a corporation generally enjoys significant discretion over how the business will be run.  However, the law nonetheless requires that a majority shareholder treat minority shareholders fairly, and avoid using the business for personal profit at the exclusion of the other shareholders.  This is especially important in the context of mergers and

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Wrongful Termination: Discrimination and Medical Leave

Employers generally are allowed to fire their at-will employees, at any time.  But there are state and federal statutes that create certain circumstances where termination is never appropriate.  For example, California has enacted the Fair Employment and Housing Act (FEHA), which prohibits the unfair treatment of employees on the basis of their sex, race, religion,

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Non-Compete Agreements in California: Are They Enforceable?

  What should an employer do if they want to make sure their employees don’t steal their customers from them after they leave?  The obvious answer is to have the employee sign a contract not to compete, also known as a non-compete agreement.  But that raises another question — are non-compete agreements enforceable?   It’s an

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Creditors’ Rights Against a Bankrupt Debtor

Businesses lend money all the time, whether it’s in the form of a straightforward loan, or by selling products or services on credit.  But unfortunately, consumers and business debtors don’t always pay their debts, and many debtors file for bankruptcy.  Once bankruptcy is filed, the Bankruptcy Code imposes an automatic stay, temporarily barring any further

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