Consumer protection laws in Illinois are designed to ensure fairness and honesty in the marketplace. In this article, we’ll discuss… What qualifies as deceptive business practices or consumer fraud in Illinois. How to recognize early warning signs of consumer fraud. What steps you can take to stay compliant and safeguard your reputation. What Qualifies As Consumer Fraud Under The Illinois Consumer Fraud And Deceptive Business Practices Act? Under the Illinois Consumer Fraud and Deceptive Business Practices Act, consumer fraud generally refers to any unfair or deceptive act or practice that occurs in the course of trade or commerce, or during business activity. Violations typically happen when a business commits a deceptive or unfair act that causes harm to a consumer who relied on the company’s representations. What Are Some Early Warning Signs That My Business Could Face A Consumer Fraud Claim? One of the earliest warning signs is…Read More
In this article, you can discover… What breaches of fiduciary duty in business partnerships might look like. How Illinois courts determine if a partner breached their fiduciary duty. Effective alternatives to litigation when a fiduciary breach has occurred. What Are Some Real-World Examples Of Fiduciary Duty Breaches In Business Partnerships? One of the most common breaches of fiduciary duties we see in business partnerships involves some form of self-dealing or unfair competition. This often occurs when one of the partners is either skimming money from the business for their personal benefit, or poaching customers from the business to a side business they may be operating in secret. We see this most often in service-based industries. For instance, someone running a home repair business with a partner might get a call from a friend or neighbor. Instead of routing that job through the business, they perform the repair on…Read More
In this article, you can discover… When your business should consider a shareholder buy-out agreement. The events that trigger a mandatory or voluntary shareholder buy-out. How buy-sell agreements help protect businesses during shareholder exits. When Should A Business Consider A Shareholder Buy-Out Agreement? I always recommend that shareholders put a buy-out agreement in place from the very beginning. A well-drafted shareholder agreement should clearly outline the roles and responsibilities of each shareholder. In addition, these agreements should also lay out the specific circumstances under which a shareholder can request or be required to sell their shares, whether to the other shareholders or back to the company. What Events Typically Trigger A Mandatory Or Voluntary Shareholder Buy-Out? Mandatory buyouts are rare and typically only occur when they’re outlined in advance in a shareholder agreement. These agreements often spell out specific events that may trigger a buyout to protect the…Read More
In this article, you can discover… Why employers most commonly misclassify independent contractors as employees. The proper way for a business owner to respond to a misclassification claim. How hiring an attorney can help if your business is accused of employee misclassification. What Qualifies As Employee Misclassification Under Illinois Employment Law? Employment misclassification typically occurs when an employer labels workers as independent contractors when, under the law, they should be classified as standard employees. There are several key elements that state auditors consider when determining the correct classification of an employee, including the degree of control the employer exercises over the worker’s tasks, the method of payment (whether hourly or salaried), the nature and extent of the work performed, and other relevant factors. The auditor uses a multipart test to help with their determination and considers many of the factors mentioned above. If the results show that most…Read More
In this article, you can discover… The types of employment-related lawsuits that are most common. What an employer should do immediately after being served with an employment lawsuit. How long employers have to respond to a workplace discrimination claim. What Types Of Employment-Related Lawsuits Are Most Common In Illinois? The three most common employment-related lawsuits in Illinois typically involve wage and hour disputes, workplace discrimination, and violations of restrictive covenants. The first and most common of the three are wage and overtime claims. These involve employees alleging that they weren’t paid for all the hours they worked or that they weren’t paid the proper overtime rate as required by law. The second category involves a wide range of discrimination claims. These might involve failure to accommodate a medical condition or disability, or claims of discrimination based on race, sex, or sexual orientation. We encounter numerous cases like this…Read More
Preparing For A Consultation With A Business Law Attorney During an initial consultation, a business law attorney will ask you several key questions to gain a deeper understanding of your background and goals. They will want to hear your story. They may ask whether you’ve been dreaming about starting a business for years or whether it’s just a fresh idea you’re eager to develop further and get a sense of what realizing it might entail in the meantime. Understanding your vision helps an attorney in their ability to provide you with tailored legal advice that aligns with your ambitions. As part of their dive into your background, they’ll ask about your current work and personal situation. This information will help them understand what this business truly means to you. Is the business a side venture, merely a passion project, or something you want to dedicate yourself to on…Read More
In this article, you will discover: The role of mediation in contract disputes. The pros and cons of mediation vs. litigation. What to do if the opposing party doesn’t negotiate in good faith. How Does Mediation Work In Contract Disputes? Mediation is one of various forms of Alternative Dispute Resolution (ADR). Mediation may be performed by a judge at the courthouse. In that case, it is frequently free of charge. In more complex cases, the parties may choose to engage an independent, third-party mediator to assist them in settling a case. Independent mediation, however, may require the parties to compensate the mediator for their time. In either scenario, the mediator will assess the strengths and weaknesses of the plaintiff and defendant’s claims in a breach of contract case. The mediator will also have frank discussions with the parties about those strengths and weaknesses, their likelihood of success and…Read More
Common Reasons New Businesses Face Litigation Litigation often arises from communication breakdowns between business owners, clients, customers, or vendors. Early recognition and transparent communication about issues can help you prevent these sorts of conflicts from emerging before they escalate. Modifying agreements or renegotiating terms can sometimes resolve disputes before legal action is necessary. Breaches of contract are also common. Frequently, they arise due to poor communication or inadequate record-keeping, which genuinely drives home the importance of maintaining thorough records. As businesses grow, HR-related claims, such as those from current or former employees, can lead to litigation. Finally, issues around restrictive covenants and non-compete agreements can also cause litigation, especially as the workforce expands. Protecting Your Business From Lawsuits Costly and time-consuming lawsuits can be a massive burden on your business, so it’s essential to fully understand your obligations under each contract and maintain clear communication with your clients,…Read More
In this article, you will discover: Whether mergers and acquisitions are only for large companies. If mergers and acquisitions can lead to layoffs. Whether mergers and acquisitions are typically adversarial. Are Mergers And Acquisitions Only For Large Corporations? Most of the acquisitions we handle for clients are for smaller companies. For example, we represent entrepreneurs who started up their companies and have achieved enough success and attention in the marketplace that a larger competitor wants to acquire them for a generous amount. In such a case, we will help you maximize your value and protect your interests as you sell your business. Is It True That Mergers Always Lead To Layoffs? It is true that sometimes an acquiring entity will lay off some employees of the entity being acquired. However, many of the clients we have represented are smaller entities with few or no employees at all. Sometimes,…Read More
Foundational Records For Illinois Startups Illinois startup owners need to maintain thorough business and financial records. Business records should include Your articles of incorporation or organization Your EIN Shareholder agreements for corporations or operating agreements for limited liability companies (LLCs). You’ll also need to document meeting minutes, even if your business consists of only one person. On top of this, you’ll additionally need to create corporate resolutions for any significant business activities. Financial records are equally important. Work with your accountant to keep the following organized: Loan documents Promissory notes with investors Receipts for business expenses All invoices and records of payment These documents ensure clear financial tracking and compliance, laying a strong foundation for the long-term health of your business, as well as its management and growth. Retaining Business Records I generally advise that you keep business records for seven years. This timeframe aligns with typical bank…Read More