Posts Tagged business
Summer Reads For Businesses in Iowa
Posted by Christine Branstad in Business Law, Corperations, Employees, Starting a Business on August 23rd, 2011
Summer Reading for business leaders often includes motivational books. Classics include:
Good to Great – Jim Collins
Getting to Yes – Roger Fisher and William Ury
How to Win Friends and Influence People – Dale Carnegie
If you read my blog, you are likely a family member or recognize the need to “brush up” on the law before your business is in trouble. With so many topics of interest for savvy business people to cover, I have developed my list of “Summer Reads for real Businesses in Iowa.”
Summer Reads for Businesses in Iowa:
Cyber Law: A Legal Arsenal for Online Business – Brett J. Trout
Cyber Law offers a guide to online business, including navigating pitfalls Cyber Law effectively translates “online geek” to “everyday business owner.” Unlike, the rest of my list, this book is actually fun to read.
The Human Resources Manual of a large organization or state agency.
You can get one from a business associate or buy an up to date version. As you read the manual, ask yourself why each provision is in the manual and if your business (no matter how small) may use some of those ideas.
Your own Human Resources manual.
Each business owner should be the expert in the business’s human resources manual. If you don’t understand it, talk with your lawyer about re-writing it. No business owner ever won a case by saying “I did not understand my own manual.”
The “standard” contracts used by your business.
If you don’t understand it, talk with your lawyer about re-writing it. No business owner ever won a case by saying “I did not understand my own contract.”
The actual regulations of your industry (and then the website that explains the regulations that you just read).
For this I recommend an iPad, Kindle or reader. State and federal regulations are free to the public and published in the Code of Federal Regulations (“CFR”). The US Government site provides a keyword search.
Some agencies provide websites with quick explanations of their regulations as well as FAQ pages. Additionally, many agencies publish updates on their websites, of which a complete listing is available here.
Iowa also publishes administrative regulations in the Iowa Administrative Code, available from the Iowa General Assembly’s website. Familiarizing oneself with these resources can not only consume numerous hours of free time, but also allow a quick answer to be found when issues do arise.
Iowa Supreme Court cases (just the business cases).
The Iowa Supreme Court regularly releases opinions which touch on business, as does the Iowa Court of Appeals. The Iowa Supreme Court and Iowa Court of Appeal opinions are well reasoned, concise, and usually enjoyable to read. More often than not I find my weekly review of recent opinions has bearing on a client’s matter or a personal interest. My next blog will be about recent Iowa Cases.
The Iowa UCC.
Iowa has adopted the Uniform Commercial Code (“UCC”), which governs myriad aspects of business, from creation of a contract (see Article 1) to sales of goods (see Article 2) to transactions involving security interests (see Article 9). The UCC is no light afternoon read. An entire law school course may only cover one Article of the UCC; though this should not dissuade you from reading it. Knowing the actual language of the law will help any business leader to ask the right questions when the next contract is negotiated.
Anything your tax advisor tells you to read.
Finally, a bit of a reminder that professionals are here to help you. Often, articles or other materials that are “suggested” for reading could end up saving a business (and any professionals employed by that business) time. Whether it is keeping receipts or ensuring a document is signed and notarized, advice from professionals is meant to aid a business. My advice is to take some time and read up on a topic which affects your business. Not only will you be more knowledgeable, you may just head off a “situation” before it arises, or prevent one from growing exponentially.
New Administration—->New Rules
Posted by Christine Branstad in Business Law, Business Records, Corperations, Employees on May 4th, 2011
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Despite the refrain of pundits, new administrations are not “same old same old.” New leaders come in with new ideas, new agency leaders, and plans to “make a difference.”
The most direct effects are felt at the agency / administration / department level (I will just use “agency” for the remainder of the blog). If your company has someone dedicated to the regulatory process, that person will get to know the new guard and review changes. If, like most small businesses, that job falls on you, take steps to recognize upcoming changes.
1) Check the agency website every week until June.
2) Call and find out if the agency sends out a newsletter. Get on the list.
3) Call the lobbyist for your business association and ask to be in on the lobbyist’s newsletter.
4) Check your association website regularly.
If you are tech-savvy, get the appropriate RSS feeds. If you are not, ask a teenager to help you.
Most agencies want you to be in compliance and want things to move smoothly. Find a liaison who will help ensure that you have the appropriate information to be in compliance.
My next blog will focus on proactive steps you may take regarding the laws/rules before you become ensnarled in red tape.
Mediation in Business
Posted by Christine Branstad in Business Law, litigation, mediation on August 6th, 2010
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Most of my business clients see mediation as the thing you do when you are almost at the end of litigation.
Mediation can be a cost-savings tool if used early when a dispute is still minor.
Times to use mediation early:
1) You have a good business relationship that you would like to save
2) You suspect the other party “doesn’t get it”
3) The other party says you “don’t get it”
4) The best solution involves something other than just money
A mediator may help you find resolution while you can still afford it. You may use mediation to resolve issues with suppliers, contractors, employee and customers.
Find a great mediator the same way you find a great lawyer:
a) Ask trusted advisors
b) Research credentials
c) Interview more than one and make comparisons
Getting to the solution may be easier if you have someone who specializes in facilitating calm meaningful negotiation. As Abraham Lincoln said, “Discourage litigation. Persuade your neighbors to compromise whenever you can.”
Avoid litigators – Don’t Destroy That Document
Posted by Christine Branstad in Business Law, Business Records, Corperations, Liability, litigation, Starting a Business on October 7th, 2009
My posts deal with avoiding litigation. My last post addressed the benefit of putting business dealings in writing. Once you put something in writing, the next logical determination is how long to save that document.
Business owners regularly tell me they keep records for seven years because it is “the law.” The magic seven-year rule may be a tax guideline, but it is a business and legal myth.
Prior to going Enron on your corporate records, take a look at the IRS’s Starting a Business and Keeping Records. The Record-keeping section addresses records for taxes. To address concern about potential lawsuits, work with your attorney to design a record retention plan. Be sure the plan covers paper records and electronic data. Once you have a record retention (and destruction) plan, integrate that plan into your business processes.
What if you don’t follow the plan?
Under Iowa law [Iowa Civil Jury Instructions contain a model instruction] if a jury concludes you intentionally destroyed or failed to produce evidence, it can assume that evidence would have been unfavorable to you. The jury may see the missing evidence as the :”smoking gun.” A saved receipt may nail your case down; a prematurely destroyed receipt may become a nail in the coffin. Well kept records may be more productive than winning lawsuits; they may convince opposing parties not to sue you in the first place.
How do you devise and regularly apply a sound plan to avoid problems?
In Iowa, most oral contracts have a five-year statute of limitations [section 614.1] to enforce a contract (or to be sued for a breach). Depending on your business, you may wish to retain supporting documents for five years after the contract ends.
In Iowa, most written contracts have a 10-year statute of limitations [section 614.1]. Does your record retention plan keep the contract for 10 years after performance of the contract ends? How long do you keep record of payments made or received? Should you keep emails about the contract?
Under Iowa law, as a designer, manufacturer, distributor or seller of a product, can you be sued 10 or 20 years after production and multiple re-sales if the product causes damage? What are the time limits or Statutes of Repose [614.1(2A)] for such claims? What if your product is a Web-based application? How long must you keep the records of product testing? Of use? Was your product sold with warnings or safety devices, or for a Web-based application, was a warning included with installation or initialization? Do you have records that show your product was altered?
Although the questions are complex, setting consistent policy will make later involvement in litigation less likely or, at least, less painful.
Record retention is important. Failure can subject you to legal presumptions that could end your business. Find out the factors that affect your particular business. Implement a record retention and destruction policy. Put it in writing. Stick to it.
Or wait until you have a problem. Then come see me.
