Category: Business Law & Commercial Litigation

How Does a Non-Disclosure Agreement Work?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Are Here to Help You With Any Concerns About NDAs.

A non-disclosure agreement (NDA) can be a useful tool for a business to protect sensitive information, such as trade secrets, internal company plans and data, and proprietary information and ideas. Having an NDA is important for your business and may even help prevent business litigation issues that may arise.

An NDA is often referred to as a confidentiality agreement, proprietary agreement, or a secrecy agreement. An NDA can be used to keep anything secret and can used in almost any industry or setting. Even governments use a version of NDAs to keep secrets from getting out.

An NDA might cover:

  • Client or customer lists.
  • System procedures or knowledge.
  • Software plans and coding.
  • Customer order history.
  • Marketing strategies and targets.
  • Schematics for new products.
  • Lawsuit settlements.

The main goal of an NDA is to describe the information that is considered sensitive and what will happen if it is leaked in violation of the contract. The holder of the confidential information named in the NDA may lawfully force the other person to pay monetary compensation for any damages incurred as a result of its unauthorized release of the information.

Quite often, an NDA is used where a company is attempting to entice new investors by showing the new people secret information. The potential new investors would be required to sign an NDA before they could see internal company financial data and trade secrets.

Is an NDA Legally Binding?

A properly drafted NDA will be legally binding. With that being said, sometimes, NDAs can be very complicated and have to be drafted and reviewed with a fine-tooth comb. There are times when an NDA may not be enforceable if it is overly broad. For example, if you forbid your employees from ever utilizing any information they acquire as a result of their employment, your NDA might be deemed void and unenforceable. The NDA has to be specific enough to address the main concerns of the parties but broad enough to cover any unforeseen information that the person might learn.

What Should Be Included in an NDA?

The following are the basic categories that need to be included in an NDA:

  • Party identification: It is important to be very specific as to whom the NDA applies to so that all parties know their place.
  • Definitions of confidential information: This is extremely important. You should describe specifically what information you want to capture within the NDA. You may want a detailed description or a list of numerous items that are classified as confidential.
  • Scope of the agreement: The scope of the agreement describes exactly who can learn of the protected information.
  • Any exclusions to the agreement: It is possible that you would want to designate other data as non-confidential in some cases. For example, an employee’s abilities and knowledge acquired while working for you may be excluded. Other possibilities include items or circumstances that are already known to the public.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Are Here to Help You With Any Concerns About NDAs

If your company needs a solid NDA, we are here to help. Our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. can help you with any concerns you might have with an NDA. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

 

What Tips Should Business Owners Know for the Holidays?

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business owners

The holidays are here, and this time of year is busy for everyone. If you own a business, you should be aware of potential holiday-related legal issues. The holiday season is a great time to make profits, but you may see possible legal problems arise as well. The following tips will help your business stay profitable and in legal compliance during the holidays.

Track Inventory

Track inventory, as last year’s sales could provide an outline on what will sell during the holidays. Know your customers, and make sure that your shelves are stocked with products.

Make Necessary Updates

Businesses should utilize an array of current and advanced platforms that will help with handling tasks, like accounting, billing, collecting customer data, and presenting and automating business transactions. There are several apps on the market to keep track of sales, purchases, and receipts.

Formulate a Holiday Strategy

Utilize emails and social media to discuss holiday sales. Consider employing an ad campaign to promote your businesses products and services. Ad campaigns and promotions should also be utilized on major search engines.

Record customer data to make them aware of future sales and promotions. Employ a campaign that offers a discount in exchange for an email address to develop an email list.

Maintain Your Momentum

A successful holiday season can help impact your sales all year. Being organized and recording analytics relating to your customers can help you retarget them in future ad campaigns. Being organized will also help you avoid business litigation and other issues.

What Are Potential Holiday Legal Issues?

Important legal issues that business owners should be aware of during the holiday season include:

  • Fraud: You can employ several strategies to mitigate return fraud by not offering cash refunds for purchases, not accepting returns of online purchases in-store, and restricting your return period to avert items being returned weeks or months after purchase.
  • Discrimination: Title VII of the Civil Rights Act of 1964 requires employers to reasonably accommodate an employee’s religious practices. To avoid potential discrimination, employers who give workers time off for one religious holiday should allow other employees who practice a different faith time off for their religious holidays as well.
  • Unpaid wages: The holiday season is a busy time, and some employers may not pay their workers for overtime. Make sure you are keeping track of everything and complying with overtime laws.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You Make Sure That You Are in Legal Compliance This Holiday Season

If you have any holiday-related legal concerns at your business that you wish to address, our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. can help. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and Pennsylvania.

How can Small Businesses Avoid Lawsuits?

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businesses

One of the most essential ways to keep a small business running well is to do everything possible to limit risk. Neglecting to avoid risk could lead to business tort litigation. It could only take one lawsuit to put a small company out of business and leave the owner struggling with significant debt. Understanding the ways to prevent lawsuits is a must for every small business owner.

Separate From the Business

Business owners can protect their interests by separating themselves from their companies, which can be accomplished in several ways. Some individuals establish their businesses as sole proprietorships, but that is not always the right answer. If the company is sued, the owner’s personal assets could still be at risk in a lawsuit. Incorporating the business might be better. That way, the owner’s personal wealth and assets are shielded.

Another option is to run the business through a trust. When a trust is set up properly, it can protect the owner’s assets if the business is sued. A business owner can set up a trust with the help from a knowledgeable lawyer. Small business owners can benefit by having experienced legal guidance.

Have Clear Policies and Procedures

Small business owners need to create clear policies and procedures for employees. Employment laws change often, so staying informed and having an up-to-date employee handbook is the way to go. Workers must be instructed on how to handle certain situations, like alleged workplace discrimination and workplace injuries. The business owner should be well-prepared.

All employment contracts should be drafted properly, and a qualified lawyer can help. Small business owners may not be versed in the correct legal terminology and could put themselves at risk by using faulty contracts. Having a friend, family member, or business associate help write an important contract can lead to serious problems down the road.

Accurate recordkeeping is another key preventative measure. This includes having important documents prepared through a lawyer’s guidance, with times, dates, and signatures on agreements. All of the details in company communications should be recorded carefully and checked for accuracy. Emails, texts, phone calls, and transactions between companies and their employees and customers should also be documented. When business is brisk, some small business may try to cut corners with their recordkeeping, which is a mistake.

Computer Security

Since most businesses work extensively on computers, their systems need to be safeguarded. Losing important files could be devastating and could prevent a company from operating. Not being able to produce important evidence could be damaging to a legal case as well. A failure to operate might prevent the small business from living up to some of their contractual obligations or agreements.

Business computer systems should be backed up using the latest technologies. Files should be backed up monthly, weekly, and daily. Virus protection is another important concern since viruses can wipe out computer systems and steal files. Security software and current anti-virus measures should be used. Important hard copies of documents should be duplicated as well.

Appropriately Address Customer Issues

Customers will be dissatisfied from time to time, and they need to be handled with care. Angry customers who feel as though they have been seriously mistreated may attempt to escalate their claims. Small business owners must make every effort to be ethical in their dealings and to provide excellent customer service. When customers believe that they have been treated fairly, they are less likely to sue when something goes awry. Consistent good service is one of the best ways to avoid lawsuits.

Mistakes will happen, and the owner and staff should be trained on how to handle these situations in advance. Communicating openly and presenting options are both ways to calm customers down. Additionally, everything should be thoroughly documented. If the customer and business owner comes to an agreement, it should be written, dated, signed, and recorded.

Have an Insurance Policy

Even when small business owners are incorporated or establish trusts, insurance is still a necessity. A liability policy could protect the company if a customer or employee alleges that they were hurt in the place of business. When the business has a formal board of directors, these individuals may also want their own liability insurance policies to protect their personal assets.

Liability protection can also be built into contracts. For example, a clause could specify that if an uncontrollable event made it impossible for the company to fulfill their end of a contract, the business owner would not be liable for incomplete work. These insurance options can minimize the chance of being sued.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Small Business Owners Protect Their Interests

Taking precautions can minimize the chance of being sued. Having legal representation in your corner is one of the best ways to protect your small business. If you need help with business matters, speak to one of our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. For an initial consultation, complete our online form or call us at 215-574-0600. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Scope Narrowed on Computer Fraud and Abuse Act

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CFAA Violations.

The U.S. Supreme Court took much of the sting out of the 1986 U.S. Computer Fraud and Abuse Act (CFAA) by clearly ruling on what exceeds authorized access to proprietary computer systems. A divided court on June 3, 2021 ruled in favor of the defendant in Van Buren v. United States by ruling that accessing authorized areas of a proprietary computer system or database does not violate the CFAA.

The 11th Circuit previously upheld a lower federal court’s ruling of a CFAA violation against the defendant, who was a police sergeant at the time of the alleged crime. The defendant allegedly accepted $5,000 to obtain and share information on another person via a law enforcement database. The defendant had full access to the information due to their law enforcement duties as a sergeant.

The employer filed a CFAA complaint against the defendant and argued that they were not authorized to look up the information and share it. A lower court found the defendant guilty, and the 11th Circuit upheld the ruling upon appeal.

Organizations like the Electronic Frontier Foundation filed briefs supporting the U.S. Supreme Court accepting the case. The Electronic Frontier Foundation argued the CFAA is vague and overly broad, which enables abuse of the exceeds authorized access prohibition. It says virtually anyone who goes online could become a criminal by unknowingly violating terms of service for a website, database, or other informational sources.

Exceeds Authorized Access Clearly Defined

The Supreme Court agreed to hear the case in order to clarify just what qualifies as exceeds authorized access. It clearly determined that authorized access generally refers to anything the authorized person could access any file or document for virtually any purpose. If the file, folder, database, or other information source is open and available to the worker, they are authorized to access it.

A worker or other person only can exceed authorized access by going where they are not supposed to go. Any file, document, database, or other information that is off-limits to the worker and cannot normally be accessed. Doing so would be a clear case of exceeding authorized access and would be a violation of the CFAA, the Court ruled.

CFAA violations could carry very severe financial penalties and imprisonment of up to five years for each count. Repeat violations are punishable by up to 10 years per violation, and extreme cases that might involve criminal computer system hacking and similar bad acts could be punished by up to life in prison. For help with complex litigation regarding CFAA violations, an individual should speak to a lawyer.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Clients Understand CFAA Violations

If you accessed information that is available to you through a normal part of your job and with full access privileges in place, the Supreme Court ruling says that is not a CFAA violation. You would have to access information that normally is off-limits to actually exceed the authorized limits of your informational access. If you are accused of a CFAA violation, a Philadelphia employment lawyer at Sidkoff, Pincus & Green P.C. can help devise the best possible defense. Contact us online or call us 215-574-0600 for an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

What are the New Regulations Under the Corporate Transparency Act?

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At the start of the new year, the U.S. Senate voted to override former President Trump’s veto of the National Defense Authorization Act of 2021. With this development, important amendments to the United States anti-money laundering law (AML) took effect. Among these regulations is the Corporate Transparency Act (CTA), which is a set of important provisions designed to discourage “shell” companies and reduce corporate corruption in all sectors.

One of the most significant provisions included in the CTA is the requirement that all businesses file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). This fundamental transparency stops criminals and illegitimate entities from using anonymous shell companies to hide illegally gained funds.

Key Provisions of the CTA

Under the CTA, businesses operating in the United States must submit the following information every year for each beneficial owner to the FinCEN:

  • Legal name;
  • Date of birth;
  • Address; and
  • Unique identification number, such as information from a driver’s license or passport.

It is worth noting that while reporting this information to the FinCEN is mandatory, there are strict rules about how this data is stored, used, and distributed. While banking and government agencies are permitted to access beneficial owner records, the general public is not.

Several types of employees are exempt from being beneficial owners. Most beneficial owners are individuals who directly or indirectly maintain substantial control over the business or own or control at least 25 percent of the ownership interests in a business.

Does the CTA Apply to Every Business?

The CTA applies to corporations, limited-liability companies (LLCs), other related entities, and new businesses as they form. Large companies, which are generally already heavily regulated and currently reporting to other government agencies, may be exempt from the CTA. Exempt businesses include those with more than 20 employees with revenues over $5 million, most financial institutions, including banks and credit unions, and churches and other nonprofit organizations.

What Does the CTA Mean for My Business?

Businesses that do not comply with CTA provisions face civil penalties of up to $500 per day until compliance is met and criminal fines of up to $10,000 and possible jail time. For this reason, it makes sense for every business owner to consult with a skilled business attorney in their area.

An experienced business attorney can explain the CTA in great detail, help with business tort litigation matters, assess how their client is impacted by the new transparency guidelines, and take steps to ensure they are in full compliance going forward.

Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Ensure Clients Comply with Regulations and Avoid Costly Penalties

There is always a learning curve when it comes to understanding and implementing new business regulations. A seasoned Philadelphia business attorney at Sidkoff, Pincus & Green P.C. can take the guesswork out of navigating new legislation so you can focus on growing your business. To learn more about your case and an initial consultation, call us at 215-574-0600 or contact us online. Based in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Are Business Losses Due to COVID-19 Covered Under Business Interruption Insurance?

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Many businesses have been forced to close during the pandemic. Restaurants, bars, gyms, and summer camps are just some of the businesses that have recently been seeking insurance coverage for their pandemic-related business interruptions. However, as coverage is typically dependent upon direct physical damage, most of these claims have been thrown out of court. Despite consistent rulings in favor of insurance companies, businesses continue to file claims for interruption and canceled events due to COVID-19.

What is Business Interruption Insurance?

Business interruption insurance replaces lost income that a business suffers after a covered loss. It is typically purchased by companies with a physical location that serves customers and is added on to their property insurance policy. If the business should lose income due to a fire or natural disaster, business interruption insurance can replace any income or business losses. Business interruption insurance does not cover flood or earthquake damage, utilities, broken items, or any undocumented income. Rather, this type of insurance only helps businesses cover operating expenses, such as:

  • Revenue
  • Mortgage, rent, or lease payments
  • Loan payments
  • Taxes
  • Payroll
  • Relocation costs

Although insurance policies differ regarding terms, most include some type of language stating that there must be direct physical damage in order for business interruption claims to be paid out. Therefore, if a hurricane blew away a roof or a fire burned down inventory, business interruption insurance would provide coverage. However, what if there was no physical damage, as is the case with many businesses affected by COVID-19? Business owners seeking legal relief are discovering that when it comes to lost income due to the pandemic, they may be left to their own devices.

What About Pandemic-Related Losses?

A professor at the University of Pennsylvania notes that currently, there are approximately 700 coverage lawsuits brought by businesses seeking coverage for pandemic-related business interruptions. This exceeds the normal number of claims for natural catastrophes by two or three times and is more than the number of case filings for hurricanes Sandy, Irma, and Harvey put together.

So far, this widespread need is not being met; courts in California, Michigan, and the District of Columbia have sided with insurers, leaving businesses without coverage for their losses. This is because most policies require direct physical loss or damage to property for coverage to apply. COVID-19 causes no tangible property damage and therefore does not form the basis of a valid claim.

Insurance companies claim they do not have enough funds to cover all pandemic-related claims and that their policies were not meant to cover losses outside of direct physical damage. However, it remains to be seen whether they will be compelled to do so as policyholders continue to file business interruption claims, attempting to convince the courts to construe ambiguous language in their favor.

Philadelphia Business Litigation Lawyers at Sidkoff, Pincus & Green P.C. Help Business Owners Recover Pandemic-Related Losses

If your business suffered losses due to the pandemic, contact a Philadelphia business litigation lawyer at Sidkoff, Pincus & Green P.C. Our knowledgeable and dedicated attorneys pride themselves on staying abreast of all developments in business law and will fight to obtain the benefits to which you are entitled. Contact us online or call us at 215-574-0600 for an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Small Business Fraud Discovered During Pandemic

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Due to the Coronavirus pandemic and to address the financial fallout experienced by many small business owners, the federal government instituted the Paycheck Protection Program. This program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was initiated in March to prevent further unemployment and ease the financial burden faced by many small business owners throughout the nation.

The program sought to prevent unemployment by allowing applicants’ loans to be forgiven if they were used to cover payroll and other specified expenses related to the pandemic. The program meant to support small businesses was exploited by several people who lied about having legitimate businesses and instead used the money for luxury items. Several of the loans were disbursed to large, publicly traded companies and financial firms instead of small businesses that truly needed it.

Program Offerings

The program allowed small businesses to borrow up to 2.5 times their monthly average payroll costs. The loan could be forgiven in full if the small business owner retained employees for at least eight weeks after the loan was procured. Small business owners could also put a portion of the loan toward rent, utilities, and other specified expenses. The program’s loan administration was outsourced to the Small Business Administration (SBA) and a network of banks nationwide. Due to the high demand for loans, the SBA and banks involved were overwhelmed with having to administer 10 times the volume of loans they were used to.

Issues Discovered in the Program

Lack of a definition of what constituted a small business in order to be eligible for the program led to many large businesses partaking in the loans, even if they were able to withstand the financial stress of the pandemic. This limited the funds available to small business owners who truly needed them.

Banks were also uncertain about how the loans should be distributed and how they would be forgiven. Because the program offered immediate loan processing, many banks could not look over paperwork and lacked the necessary documentation and materials to process the loans at the scale and demand presented. Many banks were inexperienced in administering the loans at the scale required. They had to process loans rapidly for which they were not prepared.

Criminal and Fraud Charges Waged by the Justice Department

The Justice Department has charged at least 57 people for stealing from the program. The total amount stolen is more than $175 million. These individuals and groups sought loans ranging from $30,000 to $24 million. Those accused have lied about their businesses or fraudulently claimed to use the money for purposes other than those specified by the program. Some of those who procured the loans involved criminal rings.

The Justice Department is investigating these crimes with the help of the SBA, the Treasury Department, the Internal Revenue Service (IRS), and the United States Postal Service (USPS). They recovered and froze more than $30 million from those who violated the program or acted fraudulently.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Advocate for Business Owners Affected by the Pandemic

If your business is being accused of not using SBA loan funds appropriately, contact the Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. We specialize in compliance matters and can help you navigate federal and state regulations and policies affecting business owners. For more information, contact us online or call us at 215-574-0600 for an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Common Types of Business Lawsuits

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According to the Small Business Administration (“SBA”), up to one-half of all businesses are likely to be sued in any given year and practically all businesses are the subject of a lawsuit at some point during their existence. Lawsuits can be very costly on several levels, especially to small business owners. Litigation can cause both emotional and financial hardship. It may also force a business to change the way it operates. Business owners can save time and money, and potentially avoid lawsuits, by becoming familiar with the types of business lawsuits and reaching out to a qualified attorney if they become the target of litigation. The SBA groups business lawsuits into the following categories:

  • Employee
  • Customer
  • Business-specific

Some lawsuits do not fit neatly into these categories, such as personal injury claims arising from auto accidents. When an employee gets into an accident while driving a company vehicle, a commercial auto insurance policy will likely cover the costs.

Lawsuits Filed by Employees

Lawsuits filed by employees can be expensive and oftentimes command attention from the press. In one 15-year period alone, Merrill Lynch paid nearly half a billion dollars to settle sexual harassment and racial discrimination claims. Lawsuits filed by employees may include the following:

  • Claims of discrimination due to age, race, sex, religion, gender identity, or disability
  • Harassment claims, including bullying and sexual harassment
  • Whistleblower claims
  • Wrongful termination
  • Breach of contract
  • Minimum wage complaints, denial of overtime pay, or other complaints involving misclassification

Many employee lawsuits can be avoided by hiring a qualified employment lawyer to assist in drafting policies and employee handbooks, as well as reviewing employee contracts. Employers can also take steps to create a company culture that does not enable sexual harassment in the workplace.

Lawsuits Filed by Customers

Lawsuits filed by customers tend to fall into three categories: premises liability, discrimination, and customer satisfaction. Premises liability lawsuits include slip-and-fall accidents, such as when a customer in a grocery store slips on a wet floor and sustains an injury. Premises liability lawsuits may also involve situations in which the business failed to provide adequate lighting, security cameras, or locks, which resulted in an injury sustained by a customer or other third party. If a business refuses to provide service to a customer because of their sexual orientation, race, religion, gender, or disability, that business may be the target of a discrimination lawsuit.

Customer satisfaction lawsuits typically focus on consumer rights. Customers may allege that they did not get what they paid for, or that the business violated the Fair Credit Reporting Act (“FCRA”) or other consumer-related regulation. In general, a small business may be able to avoid customer satisfaction litigation by reimbursing the customer for the product in question or providing additional services at no charge. In most cases, it costs business owners less to satisfy the customer rather than proceed with litigation, even if they know they customer may be wrong.

Lawsuits Involving Other Businesses

Suppliers, vendors, and competing businesses may file lawsuits involving breach of contract or intellectual property rights. Breach of contract essentially means that the business failed to adhere to the terms of the contact they signed. According to the SBA, approximately one-third of all litigation involving small businesses concerns breach of contract. Breach of contract may take many forms, which include the following:

  • Delivering damaged goods
  • Failing to pay for goods
  • Failing to deliver goods
  • Revealing trade secrets

Issues involving intellectual property rights may also arise with competing businesses. Another firm may claim that their company’s logo, image, or slogan was copied. Within the high-tech industry, lawsuits involving trade secrets are not uncommon.

Cost of Business Lawsuits

According to the SBA, legal costs for small businesses typically range around $10,000 but can easily exceed $150,000. Large companies may pay higher fees. However, the real cost to small businesses is the emotional hardship and upheaval caused to their future operations. Seeking the advice of skilled legal counsel can help businesses avoid these catastrophes.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Business Owners Facing Litigation

If you are a business owner facing a lawsuit, the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. are always available to advise your business regarding the best course of action when you face legal challenges. We can help you stay focused on running your business while we handle your legal matters. Whether you have a pressing legal challenge now or are looking for skilled counsel to avoid lawsuits in the future, please reach out to our staff by calling 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Why Should I Avoid Copying Another Business’s Contract Language?  

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Every business should have a contract, often called Terms of Use or Privacy Policy, that is specific to their company, and includes detailed information about the parties involved, the goods or services that are being exchanged, and the details of the agreement. Start-up companies or entrepreneurs who are building a business may be tempted to use language from another company’s contract to avoid paying a lawyer to draft a new contract. Tempting as this may be, there are a number of reasons why this is highly discouraged. The cost of hiring a lawyer to generate a business contract will save you money in the long run and protect your company from lawsuits or regulatory investigations.

Reasons Why Copying a Contract is Discouraged

  • Bad Publicity: Negative media attention can be very damaging to a small company. Depending on how small the company is, it may not survive the bad publicity. A company can run into trouble if the contract they copied was drafted to comply with laws from another jurisdiction. In addition, it could be out of date or include protections for goods or services that are different from those provided by your company. This could leave the company vulnerable to lawsuits.
  • It could scare off investors: Potential investors may walk away if they find out that your company is involved in a lawsuit or is being investigated by state or federal regulators.
  • A strong contract distinguishes you from the competition: The terms and conditions of a contract should reflect the company’s mission and values. It does not need to contain complicated legal jargon. In fact, the best contracts are easy to read and understand, legally accurate, and on brand.
  • Copying a contract is illegal. Copying another company’s contract without their permission is a violation of copyright law. It also sets an example within the company that it is acceptable to break the rules.
  • The company’s entire user agreement could be invalidated. If it is discovered that a company copied another company’s legal contract, it could invalidate the contract and leave the company vulnerable to steep fines, class action lawsuits, and put the future of the organization at risk.

There are contract templates available online. However, they are often written by individuals who do not have a legal degree and are unqualified to write a business contract. Therefore, it is highly discouraged to go this route. Invest the time and money in hiring a business lawyer to draft a legal contract for your company.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Assist Clients with Business Contracts

If you are starting up a new company, or you require assistance with important legal documents for your existing company, do not hesitate to contact the Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. We have extensive experience in drafting business contracts that are concise, legally accurate, and reflect your company’s brand and mission. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Amazon Can Now Be Held Liable for Damaged Third-Party Products

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In addition to the products that Amazon sells itself, the online retail giant also allows third-party vendors to sell products through its website. There are times, however, when the products are damaged or defective. Depending on the product and the nature of the defect, this can cause injuries to the consumer. Until recently, Amazon could not be sued by consumers if a third-party product was defective because the law stated that Amazon was not considered a seller. However, a federal district judge recently ruled that Amazon can now be held liable for selling defective third-party products.

One example of a defective third-party product involved a consumer from Pennsylvania who ordered a dog collar from an Amazon Marketplace seller. The collar broke while she was walking her dog, causing the leash to snap and recoil. It hit her in the eye, causing permanent blindness. A district court in Pennsylvania ruled in favor or Amazon, saying that the retailer was protected by Section 230 of the Communications Decency Act, which protects platforms from the actions of people using those platforms. After she appealed the ruling, the Third Circuit Court of Appeals in Philadelphia ruled in her favor.

In the Court’s ruling, the judge stated that Amazon could be held liable for being part of the sales chain. In addition, the Court stated that Amazon is protected for speech, but not for the sale of goods in the real world. According to the Circuit Judge, Amazon may be liable because its business model allows third-party vendors to essentially be hidden from the consumer. If a consumer is injured by a defective third-party product, this makes it difficult for the consumer to hold the vendor liable for the injuries.

Third-Party Products Make Up Significant Percentage of Amazon Business

Roughly half of the products sold on Amazon are third-party products. In the third quarter of 2019, Amazon’s profits from third-party products totaled approximately $11 billion. The defective collar sold on Amazon by the vendor, Furry Gang, is just one example of a damaged third-party product that caused injuries to the consumer. Another defective third-party product that got a lot of attention in 2015 involved the Chinese hoverboards. Problems with the battery caused them to catch on fire, resulting in hundreds of fires and burn-related injuries. State Farm is seeking to hold Amazon liable for the $600,000 in damages associated with a house fire that occurred when the hoverboard caught on fire.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Handle Third-Party Liability Issues

The Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. handle a wide range of legal matters, including cases involving third-party liability issues. Our skilled legal team has a proven track record of reaching successful outcomes for our clients. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.