The Entrepreneur's Guide to Business Law, 4th Edition
Constance E. Bagley
Format: PDF / Kindle (mobi) / ePub
The updated 4th Edition of THE ENTREPRENEUR'S GUIDE TO BUSINESS LAW takes you through the various stages of starting a business--from start-up and growth to an initial public offering--while highlighting the legal preparations and pitfalls that go along with them. Packed with practical strategies for managing legal issues, the text presents the essentials on leaving your job, competing with a former employer, contract law, and bankruptcy, as well as on the most current issues like clean energy, e-commerce, and the effects of the recent recession on entrepreneurship.
typically one year, after the termination of employment. Such agreements are not per se invalid. One court found, for example, that an agreement was valid and enforceable as it related to ideas and concepts based on secrets or confidential information of the employer even if conceived of within one year after the termination of employment. It is important that any restriction on an employee’s future inventive activities be limited in time. Thus, although some agreements providing for assignment
must use their best efforts to ensure that adequate procedures are in place to prevent violations of law.15 Under the Sarbanes-Oxley Act, directors of public companies must establish procedures for receiving and acting upon anonymously submitted concerns about accounting and auditing issues.16 The Business Roundtable’s revised guiding principles also emphasize the role of directors as monitors.17 While directors are not required to search out Chapter 6 Forming and Working with the Board 119
attractive to potential investors. Akiko immediately thought of her former accounting professor William Danner. Prior to joining the faculty at the Stanford Graduate School of Business, William had spent 14 years as CFO of American Wafer, the second largest U.S. producer of silicon wafers. A Certified Public Accountant, William obtained a B.A. in economics from Yale University in 1965 and an M.B.A. from the University of Chicago in 1969. William was a well respected and insightful commentator on
Sarbanes-Oxley Act of 2002, supra note 8. 17. The Business Roundtable, supra note 6, at 2–3. 18. Revised Model Bus. Corp. Act § 8.30 cmt. 2 (regarding §8.30(b)) (2001). See also Graham v. Allis-Chalmers, 188 A.2d 125, 130 (Del. 1963) (“It appears that directors are entitled to rely on the honesty and integrity of their subordinates until something occurs to put them on suspicion that something is wrong”). 19. J.L. Ward & J.L. Handy, Survey of Board Practices, 1 Fam. Bus. Rev. 289–308 (1988). 20.
product; this situation can give rise to management problems. The respective management teams may be unwilling to give up their autonomy to the extent necessary. Furthermore, because two parallel management groups will be trying to control the same personnel, it may be difficult to manage the alliance effectively without creating a supermanagement group. Another problem with a strategic alliance is that each party may be liable for the other party’s wrongdoing. For example, if one company