Consumers Legal Remedy Act (CLRA): Advertising & Other Competitive Practices

Posted by Mohsen Parsa | Sep 15, 2021 | 0 Comments

The CLRA prohibits certain kinds of competitive practices. It tells sellers what they can’t do to persuade a potential buyer to purchase or lease a product or service “for personal, family, or household purposes.” In a highly competitive market, it’s not always easy for sellers to do the right thing. And even though the customer service maxim is “the customer is always right,” sellers need to know how to handle false CLRA complaints.

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Consumers Legal Remedy Act (CLRA): False or Deceptive Representations

Posted by Mohsen Parsa | Aug 30, 2021 | 0 Comments

California’s consumer protection law — CLRA — provides ways for individual consumers (“private right of action”) and qualified consumer groups (“class actions”) to seek damages from a business — which could be anything from a mom-and-pop store to a large corporation. The businesses that offer their products or services to consumers in California should educate themselves with the CLRA requirements to avoid hefty and expensive CLRA lawsuits.

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How to Spot a Phony CLRA Letter and What to Do with It

Posted by Mohsen Parsa | Jul 15, 2021 | 0 Comments

California enacted the California Civil Code §§ 1750 et seq. in 1970 to protect consumers from being taken advantage of by businesses and allows consumers who have been deceived in this way to recover damages. As with many aspects of the law, responding to CLRA demand letters is complicated. To reach a satisfactory outcome—and to avoid paying exorbitant legal fees racked up by plaintiffs—legal help is necessary.

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How to Handle a False CLRA Complaint

Posted by Mohsen Parsa | Jun 30, 2021 | 0 Comments

There's no easy way to respond to a false or exaggerated Consumer Legal Remedies Act ("CLRA") claim for California businesses. You need to prove the claim is invalid with evidence and documentation. However, an experience attorney who specializes on CLRA defense can formulate a strategy to either mitigate your liability to completely defuse the false CLRA claim.

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Is the CLRA Demand Letter You Received a Prelude to a Class Action?

Posted by Mohsen Parsa | Jun 01, 2021 | 0 Comments

When you get a demand letter, review it immediately. If the claim is legitimate, you only have 30 days to cure the defect or provide a correction offer before the consumer can sue for damages under the CLRA. Don’t ignore the demand letter. A legitimate claim also raises a real possibility that you could face a class-action lawsuit if you don’t cure immediately.

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Understanding Correction Offers Under California Consumer Legal Remedies Act ("CLRA")

Posted by Mohsen Parsa | May 12, 2021 | 0 Comments

When a consumer suspects or discovers a CLRA violation, they must send a written notice to the business describing the violation. The business then has 30 days to respond and remedy the situation. Whatever the allegation from the consumer, if the company provides a reasonable correction to repair, replace, or otherwise remedy the situation, the consumer cannot seek additional monetary compensation from the business. There is no set-in-stone definition of what a reasonable correction offer entails, and therefore businesses are encouraged to involve an attorney who is well versed with CLRA requirements.

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Does the California Consumer Legal Remedies Act ("CLRA") Protect Consumers Who Don’t Discover Problems Until Later?

Posted by Mohsen Parsa | Apr 06, 2021 | 0 Comments

The California Consumers Legal Remedies Act (CLRA), provides consumers with protection against false advertising, fraud, and other unfair business practices. It also allows consumers to bring legal actions to recover damages when they have been misled. But what if they don’t discover the fraud until quite a bit of time has passed? It appears that absent exigent circumstances, California courts are inclined to adhere rather strictly to the three-year statute of limitations on CLRA cases.

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If You and Your Family Members Own Stock in the Same Corporation, This is What You Need to Know About the Tax Consequences of I.R.C. Section 318(a)(1)

Posted by Mohsen Parsa | Jan 11, 2021 | 0 Comments

Does the family that invests together stay together? Under Internal Revenue Code section 318(a), you might be taxed together. Or at least one of you might bear the burden for the entire family’s corporate stock investments. If you and your spouse and children all own stock in the same corporation, section 318 could lead to some surprises at tax time.

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Starting an Online Business in California

Posted by Mohsen Parsa | Dec 22, 2020 | 0 Comments

The internet makes online innovation and entrepreneurship an easy endeavor. But if you’re contemplating starting an online business in California, there are many legal considerations you should take into account. And it doesn’t end with simple contracts for business ventures. You’ll need to consider the legal ramifications of every decision you make, from your business entity to online data privacy.

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Dissolving a California LLC or Corporation

Posted by Mohsen Parsa | Dec 10, 2020 | 0 Comments

Ending a business is rarely an easy decision. But following the proper procedures to formally close it down should be a no-brainer. Formally dissolving your business entity will end its legal existence, but it also reduces the individual liability of a business’s members or shareholders. Failing to end a business formally can leave you open to creditors, lawsuits, and ongoing state filing requirements, penalties, and taxes.

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CLRA Mistakes Can Be Costly–Here's How to Avoid Making Them

Posted by Mohsen Parsa | Nov 20, 2020 | 0 Comments

The CLRA is one of the most powerful consumer protection laws in California. Not only does the CLRA make practically every type of misrepresentation illegal, but it also requires companies that are found guilty of violating the Act to pay the attorney's fees and court costs of a consumer who is successful in showing that the company violated the Act. There are several mistakes merchants frequently make that can cause them to run afoul of the CLRA.

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How an Unclear Contract Puts Your Business at Risk

Posted by Mohsen Parsa | Nov 11, 2020 | 0 Comments

Though having a less-than-meticulous contract isn't likely to impact its enforceability, the clearer your contract, the more protected you will be. Even though you may want to jump right into a new venture, think of your contract as your armor. It's important that you have your interests protected and the best way to do that is with a professionally drafted contract.

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Which is safer: a SAFE or a Subscription Agreement?

Posted by Mohsen Parsa | Oct 20, 2020 | 0 Comments

When you’re managing your startup, one of the first orders of business is to raise funding for your ventures. This will involve attracting and negotiating with investors. These investors will trade capital for equity in your business. Managing these relationships (and funds) can result in a lot of pressure and liability for your young business. It’s a good idea to get the expectations of the investor-startup agreement down in writing. There are currently two main ways to do so: Subscription Agreements, and SAFEs (or Simple Agreements for Future Equity).

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Subscription Agreements and Private Investments

Posted by Mohsen Parsa | Oct 09, 2020 | 0 Comments

If you’re the owner of a small business considering your options for raising capital, or if you’re an investor considering the wisdom of a subscription agreement, there are options for startups that allow businesses to raise money by selling stocks without first registering with the U.S. Securities and Exchange Commission (SEC).

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Sweepstakes 101: What You Need to Know about Giveaway Contests

Posted by Mohsen Parsa | Sep 28, 2020 | 0 Comments

Sweepstakes, giveaways, and contests, oh my! For business owners and consumers, a giveaway always sounds like a great idea. Who doesn’t love free stuff? But if you’re running a giveaway contest in California, you need to know where the legal lines are. While a giveaway, sweepstakes, or contest may be perfectly legal, a lottery is not.

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How to Conduct Raffles with Nonprofits in California

Posted by Mohsen Parsa | Sep 11, 2020 | 0 Comments

In general, lotteries are prohibited in the U.S. unless run by state governments. Some states, however, carve out exceptions for raffles that follow carefully delineated rules. In California, it is a misdemeanor to conduct a lottery. The only exception to this constitutional ban is a raffle that gives 90% of the gross receipts directly to charitable purposes in the state or 50/50 raffles held by major sports organizations.

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Responding to a Lawsuit

Posted by Mohsen Parsa | Aug 17, 2020 | 0 Comments

As a business owner, few ordeals are as nerve-wracking and potentially damaging to your company’s reputation as a lawsuit. Whether it’s a disgruntled employee, an unhappy client, or a discontented vendor, the repercussions could be permanently damaging without an attorney by your side. When responding to a lawsuit, your legal defense strategy makes a difference in how much impact the case will have on your business.

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How to Manage Your Business Through a Legal Emergency

Posted by Mohsen Parsa | Jul 14, 2020 | 0 Comments

At some time, every business will suffer some kind of crisis or emergency. The nature of potential emergencies is as varied as the nature of businesses. A crisis can disrupt your business’ operations, threaten to harm people, damage your reputation, and negatively impact your finances. Just as you don’t do estate planning after you die, you don’t want to be hiring a lawyer in the middle of an emergency. By meeting with a lawyer and discussing your business and all that could wrong in advance, when the emergency hits, you won’t have to start from the beginning. Your lawyer will be able to jump right in and start protecting your interests.

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