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P Adam Davis

P Davis’s Answers

6 total

  • Can a franchise be investigated for fraud?

    Bought a franchise 5 years ago. The products, support and marketing have been woefully inadequate and caused many franchise failures. Their failure rate is now 80% over 6 years. They are still selling franchises. We know that we are past the s...

    P’s Answer

    Absolutely. Regardless of whether you are in a franchise protected states, most states have legislation making deception and fraud a crime. They usually will fall under statutes geared to the buying and selling of "business opportunities". Nevertheless, consumer protection acts in each state can be utilized as well. While little FTCs (meaning state franchise acts) are thought of as a battering ram against wrongdoers, don't forget that in the absence of this battering ram you may still have a baseball bat in the trunk that will get the job done as well (i.e., referring to other state laws of course...and to the bat as well).

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  • Can my parents take my car away if they cosigned for it even though I'm making the payments?

    I am 23 years old and last year my parents cosigned for my car. Now I am getting married and they don't like it and said if I get married without it being paid off then they get to take the car. Both my name and my dad's name is on the title.

    P’s Answer

    The answer has nothing to due with whether or not they have guaranteed (pay if you don't) and/or cosigned (obligated as you are) a loan for the vehicle. The question is about ownership and then, maybe, control. First, the title holder can do what they want so long as it doesn't divest another owner. Your parents can exercise control over the car, but not to your exclusion if they are on the title. If not on the title, perhaps they have some type of agreement with you that if you don't pay and they cover a payment, they get the car. In this situation, if they can prove it, then yes they can exercise control over the car. However, unless someone has a power of attorney that I am unaware of, the fact of the matter is that neither can legally divest the other of ownership with the consent of the other or as a result of Court order.

    So, assuming there is not agreement to take back the car, you father cannot divest you of ownership nor exclude you from the car. However, this isn't a legal question. The amount at issue isn't that great I would assume, if your father is taking the car back and excluding you then you have a good case for sticking him with the debt (not that you don't owe the bank, but that you would probably be able to force him to cover your part).

    No,this isn't a legal question worth an attorney, it is a common sense question. From your father's perspective, getting married has nothing to do with the debt as marriage in now way effects his ownership in the car. What he should be thinking is that you are already being punished enough by getting married. As a result, he should have your back. Conversely, you have to ask yourself whether you wife is hotter than the car!!!!! Funny, I know. But seriously, don't worry about the car. Your future wife is worth the risk or she shouldn't be your future wife. Incidentally, since you are getting married, it may be strategically beneficial that you call you dad's bluff, but only if there isn't room in vehicle for kids. Indeed, call the bluff, have him take the car back, sue him to buy you out due to his unauthorized exclusion and control. Start World War III over this marriage. Your wife will love that!

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  • Can a business name be changed after the EIN was already requested online and confirmation letter received from the IRS?

    I forgot to perform the name search prior to requesting the EIN online and didn't realize it until after the EIN was already given. At this point, I performed the search and found that two other businesses in the state already carry the same busin...

    P’s Answer

    Yes, business owners and other authorized individuals can submit a name change for their business. The specific action required may vary depending on the type of business. If the EIN was recently assigned, send Business Name Change requests to IRS-Stop 343G, Cincinnati, OH 45999. This is as easy as writing a letter on company letter head explaining the change. However, be cautious. A change of an official company name is rarely necessary. Most of the time, the trade name will suffice (i.e., ABC, Inc. d/b/a John Doe's PUb to ABC, Inc. d/b/a Sally's Pub). If it is the latter, no EIN change is necessary and the process is far easier.

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  • I own two businesses. they are both LLCs. one is a stand alone entity. can i acquire the second business with the first

    or merge the two

    P’s Answer

    First, I am not sure what you are trying to accomplish as the goal will justify the means. However, to answer your questions, you can merge the companies whereby one of the companies survives by encompassing the other. However, there are several other strategic maneuvers that can be made (LLC 1 owns membership units in LLC 2, LLC 1 Holds assets and Leases to LLC 2, LLC 1 employes, LLC 2 operates, LLC 1 rents, LLC 2 holds land, etc.). If your inquiry is really limited to whether two entities can become one, the answer is yes (even if, I might add, the entities are not of the same type: inc., llc, llp, etc.). However, I doubt that this is the extent of your inquiry as it is the goal that justifies the means. I would venture to guess that there is more to you inquiry than you may have known and I would suggest you find a business attorney. Mergers are great but limited tools and there are a number of easier and more effective tools that can be utilize that apply to a broader range of business issues.

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  • Are leading questions permitted on direct examination, related to FRE 806?

    FRE 806 states that if a hearsay statement is admitted against a party, if the party calls the declarant as a witness, the party may examine the declarant on that statement as if on cross examination. Does “as if on cross examination” go to the ex...

    P’s Answer

    Yes, as this is an exception to the Federal Rules (i.e., an exception to the rule prohibiting leading questions on direct examination).

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  • My son is 18 and accepted a netbook from the local school corporation. He lost the computer, am I responsible for this debt?

    I did not sign, accept or receive this netbook, my 18 year old son did. Am I legally responsible to pay for this lost computer?

    P’s Answer

    You are not responsible for the debt unless you signed a written agreement as a cosignor or guarantor. Don't let them bully you. If they do, you may have a FDCPA claim.

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