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Business Torts Archives

Three ways to protect business assets in financial downturns

While the market has not shown much of the volatility that investors came to expect over the past few years, abrupt changes to the market can threaten investors’ confidence and lead to further financial turmoil. Because of this, prudent businesspeople plan for market tremors. In the same vein, small business owners can safeguard their company’s holdings when the market goes awry. This post will highlight a few options.

Banana Republic's 40% Off Sale Leads to Unfair Competition Claim; Misleading Advertisement Could Not Be Cured at Point of Sale

In Veera v. Banana Republic, LLC, a California Court of Appeal recently reversed a judgment in favor of Banana Republic in a false advertising class action based on in-store ads promoting a 40% off sale. The plaintiffs alleged they were lured into Banana Republic stores after seeing ads in store windows stating "40% off." Plaintiffs learned at the cash register that the discount did not apply to the items they wanted to purchase. Out of frustration and embarrassment, plaintiffs claim they bought some but not all of the items they selected at full price. They later sued for violations of California's Unfair Competition Law ("UCL") at Business and Professions Code sections 17200 and 17500, claiming the "40% Off" signs were misleading because they did not disclose that the discount only applied to certain items.

On trade libel and the controversies it can create

Imagine that you are a small business and you are trying to grow into a successful company. In order to do this, there are a lot of factors that need to fall into place just so. You need a great product or service; you need to implement that product or service efficiently; and you need to have a great reputation as a company with good customer service and dependable products. It is very difficult to achieve all of these factors.

What are the requirements for tortious interference?

All business owners, managers and sales people know about competition. Competition is actually a vital part of most marketplaces, as it drives the market forward. That doesn't mean it isn't sometimes frustrating for those involved, and there are times with other businesses or individuals do cross the line. Sometimes when those lines are crossed, there might be a case for a lawsuit for tortious interference.

Businesses subjected to unfair competition have rights

So much can be at stake in competition between businesses. Thus, it is of little surprise that such competition can get rather heated. In the midst of such heated competition, there are many different tactics a business may turn to try to get a leg up on their competitors.

When a business owner suspects their business has been defrauded

Fraud can be devastating to a business. For one, it can be a major drain on the financial resources of a company. Also, fraud within a business can destroy trust among important players in the business, such as partners in the business. Trust among these individuals can be an incredibly important thing for a business. Thus, fraud has a real potential to throw a company off the rails.

Handling a non-performing business partner

If a California business owner is dissatisfied with the performance of a business partner, certain actions can be taken to resolve the dispute. How the situation is dealt with depends on a variety of factors, including how the business is organized and the contents of any written agreements regarding this kind of situation.

What is a trade secret?

Ever wondered what Apple does to make its products cool, even though it has competitors who essentially sell the same products? Ever wonder how McDonald's makes its fries so crispy and irresistible? What about the way Krispy Kreme doughnuts are made, or the special way that BMW cars hug the road?

What are some common business torts to be aware of?

 To even the most sophisticated business person, a business tort is not a familiar term. They may even confuse it with a dessert. Unlike a pastry torte, a business tort can derail the progress of an emerging company and cost it a great deal of money in future losses. As such, businesses can be sued in California under several different claims.

FTC sues T-Mobile over bogus billing

In the continuing battle between cell phone providers, T-Mobile has offered to pay the early termination fees that consumers could be subject to if they decide to leave another provider. While this may be an enticing proposition, T-Mobile has gotten into hot water with the Federal Trade Commission (FTC) over its billing practices.

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