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Detroit Business and Insurance Defense Law Blog

Helping you plan and form a new business

Whether you are seeking to start a new business or purchase a business in Detroit, there are various business formation and planning steps to take. No matter the size of the company or the plans you might have for the future, every business needs to go through a process to ensure it was properly formed. This does not only protect the business itself but also those owning, operating, representing and working for the business.

At Kauffman, Payton & Chapa, we understand the time, effort and investments business owners put into forming and running a business; therefore, our legal team is dedicated to serving and protecting these interests. Our law firm handles legal matters that could impact a business owner from the day of formation until that business is expanded or sold.

Parties may have rights when contracts are breached

Collaboration is often necessary for finding business success. Many Detroit-area businesses choose to work with other entities in order to secure support for their operational and performance needs. However, when businesses look outside of their own walls for services or support they must ensure that they know exactly how their relationships with their collaborators will be formed.

One of the main ways that businesses work with others is through securing contracts. Contracts form a system of legal expectations between parties that are based on the offer and acceptance of particular terms. Contracts can be used to provide businesses with a wide variety of goods and services and each contract should be particularly suited to serve the interests of those subject to its conditions.

What due diligence is necessary prior to a merger?

When there is a major transition in play for Michigan business owners, it is important for those involved to do their homework. This concept is not only advised, but an essential part of pursuing a strategy of mergers and acquisitions, which was discussed last week in this blog.

The buyer in merger and acquisition must do a substantial amount of due diligence, which essentially means the buyer must know what it is buying. It is not only important to know this information to discover the value of the new company, but also to know what liabilities and obligations might exist.

Detroit brewery expands through mergers and acquisitions

There is nothing quite like the satisfaction Michigan business owners receive after achieving success or reaching a major milestone. An immense amount of planning, hard work and dedication go into the business's objectives, and it is rewarding to see these strategies pay off for the company.

For example, businesses often make it a goal to expand their operations. This is the case for a local Detroit company, Atwater Brewing, which is in the craft brewing industry. The brewery has spent $2.5 million upgrading its brewing equipment over the past 18 months, as it attempts to increase its capacity and become a player in the ever-expanding national craft beer market.

Do you know what to look for when negotiating a contract?

Even the seemingly smallest of things can turn out to have major consequences for Michigan businesses. For instance, a minor mistake in production can lead to significant financial repercussions down the line. In other cases, some small infractions can contribute to the break-up of an important business relationship, costing both sides time, money and resources.

Recently, this blog has discussed how this same principle can manifest itself when it comes to contract law. Whether in real estate contracts, employment contracts or other kinds of contracts, there are often provisions in the agreement that may be glossed over at first glance and which may not seem all that important. And yet, these seemingly minor provisions can turn out to be very significant if a contract dispute arises between the parties.

What importance does a choice-of-law clause have in a contract?

Before any game is played, one of the first steps that must be determined is to lay the ground rules. These rules will determine how the game is played, and, in some instances, they can end up determining who wins.

In some respects, the legal system is similar. Michigan residents who become involved in litigation need to know first what rules apply in the case, as these rules can end up determining who will win the lawsuit.

Contract drafting essential to business success

One of the most sought after principles for Michigan business owners is predictability. Business owners often prefer to have a stable environment so they can engage in proper planning, without unexpected variables adding new costs into the equation.

Last week, this blog discussed how proper business planning requires careful consideration of the various laws and regulations that are at stake in a particular decision. For instance, a new business setting up shop has to know the zoning requirements for the area, along with employment laws and laws regulating the sale of the particular product or service at issue.

Fourth of July holiday means big business in Michigan

It was another exciting Fourth of July holiday for many Michigan residents. Many individuals chose to celebrate our nation's independence with fireworks, whether by lighting off their own or watching displays put on by local groups and communities.

The increased demand for fireworks around the holiday can result in big business for sellers around the state. Statistics show Michigan residents increased their spending on fireworks by $9 million in 2014, up to a total of $26.5 million.

Who is involved in the corporate structure of a business?

Although a properly formed Detroit business may function as a "person" for legal matters, it cannot run itself. As a result, every business must have some sort of corporate structure that delegates decision-making and responsibilities to individuals associated with the business's operations. Common parties associated with the running of a business are corporate officers like a chief operating officer, members of a business's board of directors and shareholders in the business.

Corporate officers are generally those individuals who are involved in the day-to-day decision-making events of a business. A business may have a chief executive officer who is responsible for binding the business through contracts and who reports to the business's board of directors. A chief financial officer may have the exclusive or near-exclusive control of the business's financial state of affairs. Different businesses have different corporate needs so not every entity will have the same corporate officers in place.

When employment disputes arise, do you have a strategy?

Michigan employers work hard to find qualified, hard-working employees who are dedicated to the company and its future. Difficult situations can arise from time to time with even the best employees, however, such as when allegations of wrongdoing arise.

Recently, this blog discussed just some of the complicated legal issues that may arise in the employment context. For example, there are numerous laws just in the area of discrimination claims alone, including Title VII and other federal laws, and several state laws that may be implicated.

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Kaufman Payton & Chapa
200 Kaufman Financial Center
30833 Northwestern Hwy.
Farmington Hills, MI 48334
Phone: (248) 626-5000
Toll Free: (800) 763-4818

Other Offices
40 1/2 East Ferry Street
Detroit, Michigan 48202
(248) 626-5000
(800) 763-4818

Suite 205-C
161 Ottawa Avenue NW
Grand Rapids, Michigan 49503
(616) 459-4200
(800) 763-4818

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