The Racketeer Influenced and Corrupt Organizations Act (RICO) was enacted in 1970. This statute, part of the Organized Crime Control Act of 1970, is designed to prevent and punish “racketeering activity.” RICO was aimed at mobsters and organized criminals. However, I’ve used the RICO statutes very effectively in lawsuits involving fraud by business people.
Imagine a corporation with three shareholders – or 10 – where a single shareholder owns a majority interest and can basically make all of the decisions for the corporation. What does a minority shareholder do when the majority shareholder takes advantage of his power [Read more…] about What Rights Does a Minority Shareholder Have in a Small Corporation?
I have defended and prosecuted dozens of cases against insurance agents and brokers. Interestingly, the law in California is unsettled as to whether an insurance broker owes its clients a fiduciary duty. Nonetheless, in my view, an insurance broker undoubtedly does, in fact, owe fiduciary duties to her client.
Are Oral Agreements Legal?
Business people commonly make deals based on a handshake. After all, who needs more than “my word is my bond” to trust that the other guy intends to honor his promise? Handshake deals are even more common between good friends or relatives. Sometimes, maybe even the majority of times, these informal arrangements work out just fine and everyone makes millions. But, sometimes they don’t. Then what?
Roseville Attorney, Jeffrey Ochrach, answers the question, What is Vicarious Liabilty?
Under California law and the law of most states, a company is liable for the wrongs of its employees that were committed within the scope of his employment. This is called vicarious liability. So, for example, if an employee is driving to pick up supplies [Read more…] about When Is A Business Liable For The Wrongs Of Its Agents?