An employer or management is always at risk to be sued by an employee or customer, or subject to an action by federal or state agencies against unlawful practices. Even simple allegations can result in costly litigation and defense. To prevent expensive legal defense, employers should make policies and enforcement mechanisms to curtail the cost and prevent allegations of unlawful activity and a business liability law suit. Some basic areas where an employer needs to make proper protocols and requires proper review by counsel include:
If you are buying or selling a business, there are several obligations, disclosures, compliance orders from state and federal regulatory authorities, and commitment letters that need to be undertaken. There are business liabilities for those purchasing a business. Any purchaser of all or substantially all of a business or stock of goods of a business is liable for the seller’s tax liability. The purchaser is not relieved from such liability unless the purchaser receives from a seller a receipt from the director of the department of revenue showing that the taxes are paid. Other issues arise when a seller remains in possession of a business or continues to remain a stakeholder in a selling corporation. You can consult with us if you are in the process of purchasing a business.