Archive for the ‘Business Law Articles’ Category

Case #1: Introduction

The main issue in this case is about whether  Maxine is entitled to a refund of her money or a new pair of sneakers from Cheapest Ever Shoes Pty Ltd. Maxine made the purchase of the pair of sneakers despite noticing the sign stating ‘No refunds, customer must choose carefully’. In order to determine whether Cheapest Ever Shoes Pty Ltd is liable to refund the money to Maxine or give her a new pair of sneakers, we must determine whether the practice by Cheapest Ever Shoes Pty Ltd of fixing a very low price on a pair of sneakers which proved to be of poor quality was an unfair practice and or a misleading/deceptive conduct.


Section 53a of Trade Practices act of 1974 states that a business organization involved in trading activities shall not in connection with the supply or in connection with the promotion of goods and services “falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use” (Trade Practices Act 1974, 2004).  Under section 55A which stipulates certain misleading conduct in relation to services, it states that, “a corporation shall not, in trade or commerce, engage in conduct that is liable to mislead the public as to the nature, the characteristics, and the sustainability for their purpose or the quantity of any services” (Trade Practices Act 1974, 2004). Section 56 of the same act continues to say under bait advertising provision that, ” a corporation shall not, in trade or commerce, advertise for supply at a specified price, goods or services of there are reasonable grounds, of which the corporation is aware or ought reasonably to be aware, for believing that the corporation will not be able to offer…” (Trade Practices Act 1974, 2004).


According to the terms and conditions of trade, the buyer has a right to inspect the goods delivered or purchased by him/her and notify the seller within seven days of delivery or purchase of any defect, shortage of quantity, damage or failure to comply with the description given on the product label or given to the buyer on time of delivery or purchase. The buyer also has a right to be given an opportunity by the seller to inspect with a reasonable period of time after purchase or delivery and then report back to the seller for refund or for exchange with another product (Terms and Conditions of Trade, n.d.).


In relation to the provisions of Trade Practices act of 1974, a business organization or corporation should not engage in any practice that is deemed to be unfair to the consumer is that is likely to mislead the consumer. At Cheapest Ever Shoes Pty Ltd, there was a pair of sneakers which was placed in as bin labelled ‘sports shoes’. The shoes were being sold at a very low price compared to other sports shoes sold in other retail stores with the price at Cheapest Ever Shoes Pty Ltd being almost half the price of sports shoes in other sports shoes retail stores within. It is also clear that a good sports gear for playing tennis is quite expensive and this is not the case in Cheapest Ever Shoes Pty Ltd.

Therefore, it can be said that Cheapest Ever Shoes Pty Ltd was engaging in misleading or deceptive conduct. Displaying a cheap pair of sneakers in a bin labelled ‘sports shoes’ was a deceptive conduct. Since on the first day of use of the pair of sneakers purchased by Maxine from Cheapest Ever Shoes Pty Ltd, they had proved not fit for sports as they had already started to wear off. Though comfortable, the pair of sneakers was not fit for sporting activities. It can be said that Cheapest Ever Shoes Pty Ltd was selling a good pair of sneakers, most probably at the right price but with the wrong label or displayed at the wrong category. This can be said to be a misleading or a deceptive conduct as customers like Maxine were deceived to purchase the pair of sneakers for sporting activities yet it was not fit for sporting activities.

To prove that the seller (Cheapest Ever Shoes Pty Ltd) was aware of the misleading conduct it was engaged in, there was a sign on the front counter stating ‘No refunds, customers must choose carefully’. It can be said that the seller was aware of the product displayed in the bin labelled ‘sports shoes’ was not fit for the stipulated purpose and therefore, customers were likely to return the products claiming for refunds or for new products having not being satisfied with the performance of the products purchased. Therefore, Cheapest Ever Shoes Pty Ltd was engaging in unfair practices. This is because, as earlier mentioned, it was engaging in misleading/deceptive conduct which was even further soiled by the sing on the front counter. In fact, it is not mentioned whether Maxine was made aware of the specific purpose of the sneakers she found in the sports shoes’ bin. The seller ought to have explained to the buyer or made the buyer aware of the specific use of the product displayed. The pair of sneakers purchased by Maxine might have been for sporting activities but not fit for tennis thought it looked suitable for the game. Therefore, the seller should have made an effort of informing the buyer the specific use of the product or at least ask the buyer the intended use of the product purchased so that he/she could advice accordingly.


Cheapest Ever Shoes Pty Ltd was involved in unfair practices and misleading/deceptive conduct. This is against the Trade Practice act of 1974 in section 53a, 55A and 56. The remedy available to Maxine is that she should sue the Cheapest Ever Shoes Pty Ltd for damage (Goldring, 2001). Since she reported defect on the product bought from the seller within a reasonable period of time, she is entitled to refund for her money or a new pair of sneakers which will suite her purpose. However, since the seller through the manager of Cheapest Ever Shoes Pty Ltd is of the opinion that Maxine cannot be refunded back her money neither can she be given a new pair of sneakers, she should than sue the seller for the damages caused out of purchase and subsequent use of a pair of sneakers placed in a bin labelled ‘sports shoes’ but they got worn out on the first day of use.



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This video is in response to some excellent questions I received regarding Articles of Organization & Employer Identification Numbers.

How long does it take to hear back after I filed Articles of Organization with the Secretary of State?

As with the answer to most questions of a legal nature: it depends. Mostly, it depends on your state. The Colorado Secretary of State, for example, generally gives you confirmation of the filing immediately. In Colorado the Articles of Organization are filed electronically with the Secretary of State and in most cases your LLC is immediately registered upon filing. The turn around time in other states may be different, but in Colorado, registration is instant after you file the Articles of Organization with the Secretary of State.

Do I need a DBA or Trade Name?

“DBA” stands for “doing business as.” Some states use the term DBA, some (Colorado included) use the term “trade name” instead. The main reason you might want to register a DBA or trade name is if you are going to operate your business under a name different from the name you registered with the Secretary of State when you filed the Articles of Organization. So, for example, let’s say your LLC has one name but you want to do business under a similar or different name; you would register that DBA or Trade Name by filing a Statement of Trade Name with the Secretary of State. (In Colorado, it is a Statement of Trade Name; other states may call it something else.) However, if you are going to do business under the name that you filed under your Articles of Organization, then you don’t need to file a trade name. You may also need to register a DBA or trade name if you are operating your business as a sole proprietor and have not formed any legal business structure like an LLC or corporation.

Do I need to be registered with the state before I file an application for a Federal Tax ID number or an Employer Identification Number (EIN)?

Yes, if you are going to register your business as an LLC or a Corporation, or some other legal entity that requires registration with the state, then it is typically a good idea to register the business with the state before you submit the application to the IRS for a Federal Tax ID number. The Form SS-4, which is the application for the EIN/Federal Tax ID number (both terms mean the same thing), requires your entity name, entity structure, and the state and date the entity was formed. So, you will definitely need to have a name and structure already worked out and registered before you file an application for a Federal Tax ID number.

How long do I have to wait after filing my Articles of Organization before I can amend them?

Let’s say you successfully filed your Articles of Organization for your new LLC. (Woohoo!) Then five minutes later you realize you transposed the numbers of your business address (Oops!) or misspelled your own name (hey, it happens). You’ll need to amend the Articles of Organization to correct whatever info you messed up. If you are forming your LLC in Colorado or another state where you get confirmation of registration instantly after you have filed your Articles of Organization, you can generally file Articles of Amendment or some sort of other paperwork to make changes in your Articles of Organization instantly after the Articles of Organization have been filed. Otherwise, if your state takes a bit longer or does not automatically confirm your registration, then you should wait until you receive confirmation from your state before amending the Articles of Organization. This is because something may come up where your Articles of Organization do not get approved or registered. In that case, you would need to re-file your Articles of Organization anyway, so filing Articles of Amendment prematurely may make no difference at that point.

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Jan. 26 (Bloomberg Law) — David Segal, a reporter for the New York Times, talks with Bloomberg Law’s Lee Pacchia about his series of articles on legal education. David examines the roles played by the US News & World Report law school rankings, the American Bar Association and the schools themselves in a system that seems resistant to change, despite recent difficulties many law graduates have had finding their first jobs.
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With the advent of the internet world, creating articles have emerged to a whole new way to reach out to your prospects. Business articles happen to be the best way to market your service or business. Articles help to gain exposure for you as well as your business. Writing informative content and facts about your business proves to be one of the key strategies to promote and advertise your business on the web.
Every business aims to provide services and products to its customers. It’s the major role of the entrepreneurs to manage, organize and assume all the risks associated with starting a business especially if he or she wants to earn profits. Businesses therefore make use of the best possible resources available to them.
Resources in the form of men, machines and materials may not be enough to reach out to your business goals. The major importance of a business is to utilize innovative ways to create customers. The significance of a business can even be judged from various activities untaken by a business. These include the various promotion techniques involved by the businessmen to make his business successful. This is where the importance of business articles lies. Business articles hold the right information about the business. All of which is the major key to the success of the business.
Business articles add a unique way for people to gain information they may need. With the use of the business articles, you can reach customers as well as clients to know about your services and organization. Through your given information or business message, the customers will then decide whether they will purchase your services or products or not. Not only this, you even gain the trust of the customers and clients in the process.
When writing business articles, you need to make sure that you have the right information about your own company or the services and products you’re dealing with. This is significant for your customer or client because that’s where they will be able to base their confidence and trust in your product or company. You should make sure that the articles should be interesting and fun to read. In addition to this, your articles should be informative and easy for the reader to understand.
Today, most businesses have an online presence which makes your job a lot easier to reach out to your targeted customer base and clientele. Business articles bring you the most ideal way to advertise and promote your products and company in the global business market. Through this your products and company will be able to increase its overall demand in the market.

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Hope you enjoyed this video on Articles of Association by SuperProf Sudhir Sachdeva
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About the subject: Company Law is the collection of different legal aspects that govern the formation, operation and dissolution of a business.

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Amending a business’s articles of incorporation involves checking a state’s statute to determine what is required, but make sure the amendments comply with company bylaws. Change business articles of incorporation by contacting the state office with tips from a lawyer in this free video on business law.

Expert: Robert M. Todd
Bio: Robert Todd is the managing partner and president of Robert M. Todd, P.A. and Family Law Solutions.
Filmmaker: Christopher Rokosz
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