Newberry Comics operates in multiple states, but started off as a single store i
ID: 385841 • Letter: N
Question
Newberry Comics operates in multiple states, but started off as a single store in Boston. They encountered cross-jurisdictional legal issues and complaints about products that were sold. They did not have staff attorneys; as a result they utilized outside counsel on a retainer basis to address such issues as employment law, vendor, customer, and product issues. Discuss what a small business will need to legally comply with when operating in more than one state as it relates to employees, customers, products, and vendors.
Explanation / Answer
Small businesses face more legal issues when it comes to employees ,customers and other small factors .These issues get maximised of the business operates in more than one state. A small business need to have working contracts with it's employees and each and every clause like their compensation , required behaviour, timings etc., must be clearly mentioned so that they do not face legal isuues like discrimination. When it comes to customers small businesses face issues like lack of trust , dissatisfaction . Customers when dissatisfied will spread negative talk about the business which will cause other customers to back off. They might even file lawsuits on the business. Small businesses might face wrath of customers redarding the type of products sold depending on the region as some people might like the product while some may not. It is very difficult to get good vendors as they tend to show difference in the way they supply to local business and business from other state . Small businesses must be aware of these legal issues or hire a good practitioner to be saved from various legal problems that will arise while operating in various states.