Business Law

We are the expert in Texas Business Law. Whether it’s a start-up or an established business, we can assist you in setting up your business or with navigating conflicts that may arise in doing business. We pride ourselves in using a fearless approach and drafting contracts that analyze potential pitfalls in doing business.

Texas Business Law

Texas Business Law or Business law in general is a wide-ranging field that addresses various aspects of creating and running a business, including interactions with the public, government, and other companies. It encompasses many different legal disciplines, such as contracts, tax law, corporate law, intellectual property, real estate, sales, immigration law, employment law, and bankruptcy.

One of the most important areas of Texas business law is contract law, which businesses need to be familiar with. Other important aspects of business law include disputes and dispute resolution, business ethics and social responsibility, business and the United States Constitution, criminal liability, torts, labor and employment law, unfair trade practices, and regulations from the Federal Trade Commission, international law, and securities regulation.

When it comes to disputes and dispute resolution, there are a variety of mechanisms that companies can use to settle disputes through alternative dispute resolution (ADR), such as mediation, settlement, and arbitration. Many states now require companies to use ADR before filing a lawsuit to encourage swift resolution, contain costs and time, and reduce the burden on the judicial system. Conventional litigation remains an option if other efforts fail or are rejected.


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Texas Business Law Information

Business Ethics and Social Responsibility In the course of conducting business, employees are often required to make decisions. Business ethics establish the moral principles or framework that corporations expect employees to abide by when making decisions, as well as the behavior that the companies consider appropriate. Adhering to ethical decision-making can also assist businesses in avoiding legal repercussions and reputational harm. Generally, an ethics code and/or code of conduct outlines a company's guidelines and policies, while also serving as a significant tool for corporate governance.

In addition to business ethics, companies must also take into account their social responsibility and the laws related to it, such as consumer and investor protections, environmental ethics, marketing ethics, and ethical issues in financial management.

Since the early 20th century, broad interpretations of the Constitution's Commerce and Spending Clauses have expanded the scope of federal law to encompass many areas of business activity. The Constitution's Commerce Clause has been interpreted to allow for federal lawmaking and enforcement in relation to various aspects of business activity. Furthermore, the Constitution's Bill of Rights extends certain protections to business entities that are also guaranteed to individuals.

Criminal liability is one method used to regulate companies. The extent of corporate responsibility for an illegal act determines whether a company will be held accountable for the actions and omissions of its employees. Criminal consequences may include punishments such as imprisonment, fines, and/or community service. In addition to criminal liability, civil law remedies are typically available, such as the award of damages and injunctions, which may include penalties. Most jurisdictions apply both criminal and civil systems.

In the context of Texas business law, torts can refer to either intentional torts or negligence. Additionally, companies engaged in specific industries should consider the risk of product liability. Product liability involves legal action against a company by a consumer for a defective product that resulted in loss or harm to the customer. There are several theories for recovery under product liability, including contract theories that deal with the product warranty, which details the promises made about the nature of the product sold to customers. These contract theories include Express Warranty, Implied Warranty of Merchantability, and Implied Warranty of Fitness. Tort theories deal with a consumer claim that the company was negligent and therefore caused either physical harm, emotional harm, or financial loss to the plaintiff. The tort liability theories that can be used in this context include negligence, strict liability, and acts committed under the Restatement (Third) of Torts (which outlines the basic elements of a tort action for liability for accidental personal injury and property damage, as well as liability for emotional harm).

The primary purpose of a contract is to document legally enforceable commitments. The key to an agreement or contract is that there must be an offer and acceptance of the terms of that offer. Sales contracts typically concern the sale of goods and include terms such as price, quantity and cost, how the terms of the contract will be carried out, and the method of delivery.

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There are various types of agreements that should be considered for your company's employment documents, depending on the complexity and nature of the business. Not all agreements will apply to all businesses and some may be unnecessary.

Most employees are given "At-will Employment" status, meaning that they can be terminated at any time without cause. In these cases, courts typically deny employees any claim for damages resulting from the dismissal.

Severance agreements can be offered to terminated employees in exchange for a waiver of their right to sue the company. These agreements typically outline the terms of the termination and are usually provided in the event of retirement or layoffs. In some cases, they may also be offered to employees who are being fired or resigning.

Severance agreements are not typically arranged until termination or resignation is imminent and are often tailored to the specific situation, so it is important to consult with legal counsel. Elements that may be included in a severance agreement include:

These agreements prohibit employees who are leaving the company from entering into a similar profession or working with a specific competitor within a designated period of time and geographic area after their employment has ended. These agreements can be complex and should be reviewed by legal counsel, as courts are often reluctant to enforce them if they impose undue hardship on the ex-employee. For a non-compete agreement to be valid, the employer must prove that the employee took action in violation of the agreement and that the agreement is reasonable.

Also known as a "Confidentiality Agreement," these agreements protect information that the company considers vital to its operations, such as trade secrets, inventions, procedures, knowledge, or work in progress. These agreements are often some of the most important documents an employer should have on file to protect their interests. As with non-compete agreements, these agreements are typically signed upon hire, but should also be obtained upon termination. Waiting to obtain them until termination may lead to a situation where the employee refuses to sign or is terminated in a manner that does not allow for further agreement signing, which is often a sign of acrimony that would make this type of agreement necessary in the first place.

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