Chicago Business Lawyer Blog

A recent U.S. Supreme Court ruling in the case of communications giant AT&T in California found that companies are allowed to add clauses to contracts that require consumers to waive the right to take part in a class-action lawsuit.

Chicago Business Attorneys believe it would be prudent for Chicago businesses to include such a clause in contracts for consumers as protection against large and expensive multi-plaintiff lawsuits. A review of business contracts in light of this ruling would be advisable. Large-scale lawsuits can drain a company's funds and provide troublesome media coverage.

The case came down to a couple who sued the communications company because they were taxed some $30 for "free" phones as part of a two-year cell phone contract. They sued in California federal court, alleging false advertising and fraud.

It was lumped in with another case and became a class-action lawsuit, after which the court denied AT&T's motion to compel arbitration, which was part of the couple's contract. It found the clause unconscionable because it didn't allow class wide proceedings under prior California cases. An appellate court agreed. But recently, the country's high court disagreed and sent the case back with its opinion applied.

Businesses know that contracts and agreements are the essence of business law in Illinois. But whether this is done with a handshake, a one-page agreement or a 100-page document, it is critical that it is done right. It is the foundation of a business.

Because there are many types of documents that your business may need prepared, count on Chicago Business Lawyers. Some types of contracts that the firm can prepare and negotiate:

• Shareholder agreements concerning the formation, organization and control of corporations and other business entities;
• Mergers, acquisitions, alliances, joint ventures and exclusive licensing deals;
• Distribution, sales, supply, services, consulting and loan arrangements;
• Confidentiality, patent, trademark, trade secret, non-competition, software and outsourcing matters; and
• Real estate sale and lease agreements.

It's unfortunate, but inevitable that just about every business will end up pursuing legal action or being on the wrong end of a lawsuit. With decades of experience in this area of law, Chicago Business Lawyers are committed to handling litigation for small and large businesses.

Continue reading "AT&T Supreme Court Ruling Aids Chicago Businesses" »

In Silicon Valley, it's becoming increasingly common for large corporations to acquire smaller competitive businesses in order to shut them down and steal their engineers, The New York Times recently reported.

If your start-up is in a position to benefit from a larger competitor trying to purchase your company, Chicago Business Lawyers believe it is essential that agreements to retain the company's employees and executives be carefully handled. All areas of small business law in Illinois are important, but protecting a company and its employees is perhaps the most crucial. Without experienced attorneys handling the negotiations and paperwork, a potential windfall could be devastating.

Companies like Facebook, Google and Zynga are using their financial backing to buy start-ups at a rapid pace. The larger companies distribute stock to founders, employees and investors and then give the acquired employees a rich salary and more stock options.

Some believe the companies are paying too high a price, while others believe it does nothing but benefit software engineers who have stumbled upon a great idea. Top talent is thin and so these corporations are dangling perks and incentives, including big salaries, to lure them. Sometimes, the buyers keep the products going, but often, the newspaper reports, they dump the products and make the deals solely to get the talent.

This is often a win-win situation for young entrepreneurs and investors, who strike gold by getting large salaries and big bonuses. But it's important that these businesses take care of the employees who helped make the company successful enough to catch the eye of these large corporations.

Many companies find themselves involved in the area of mergers and acquisitions, which requires a team of attorneys experienced in this area of business law. It is critical that your business have lawyers striving to meet your company's long-term vision and plans.

Small businesses, without teams of attorneys on retainer like large companies, need a firm of experienced Chicago attorneys ready to represent and stand up to big business. We represent clients in many fields of business law, such as shareholder agreements, non-disclosure agreements or other types of contracts in order to protect what you've worked hard to create and develop.

Continue reading "Sales Contracts Critical when Selling or Acquiring a Business in Chicago" »