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Know Your Legalese: Promissory Estoppel

Yesterday, I talked about detrimental reliance, which is known to lawyers as promissory estoppel. The reason why lawyers call detrimental reliance by that weird-looking term, promissory estoppel, has to do with the way the lawsuit works operationally in court.  In a typical breach of contract, the nonbreaching party sues for damages under the contract that the breaching party fulfilled to do its obligation.  The nonbreaching party has to prove there was a contract and that to have a contract good consideration needed to be a part of it.
In the case of detrimental reliance there is no consideration.  It is just a promise that one party relied on.  Therefore, in a a standard breach of contract suit the nonbreaching party would lose the case.  However, this is where promissory estoppel steps in.  A party that has reasonably relied to their detriment can assert promissory estoppel as the basis of a cause of action for damages.  It operates by estopping the promisor from denying the existence of a contract due to lack of consideration.

Basically, in an employment type of situation it goes like this, “Hey, you cannot say there wasn’t a contract. I moved across the ocean to work here because of what you promised.”  Even though the speaker, gave no consideration to the prospective employer, he is saying that due to a promise he changed his position (he moved).

*That it is why, in my opinion, promissory estoppel is a contract-like situation because there is no consideration. We are using a legal device (promissory estoppel/detrimental reliance) to enforce a promise where no consideration has been given between the parties, only a promise.

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

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Sorry Draw the Law Delayed to Wednesday

Hey everyone, thank you for your continued support and reading Draw the Law. Unfortunately, I have been extremely busy and will not be able to get to today’s Draw the Law on Conditions in Contract law.  It will be up tomorrow, Wednesday, March 14, 2012.
In the meantime, please check out this other great websites for entrepreneurs, small business owners, social media marketers, and lawyers:

Pardon the delay, and check back Wednesday!

-RKH

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BTW Legalese: Parties that end in “or” or “ee”

By the way, you may have noticed, contract law there are a lot of terms that describe the parties involved that end with “or” or “ee”. For example, offeror and offeree from this week’s Draw the Law.  If you see this in a long legal document you can immediately recognize the relationship of the parties involved.
The ”or” person is the originating person of the action.  It starts with them, and then ends with the “ee” person.  Like’s take the example of offerror and offeree.  The offeror is the one making the offer, whereas the offeree is receiving the offer.

This works for other relationships like in an assignment, where there is the assignor, the one assigning property or interest rights in something, and the assignee, the one receiving the property or interest rights.  Some relationships, do not necessarily follow this categorization, as you will see below (i.e. trustor and trustee).

Consider the following pairs:

  • Offeror/offeree – offeror makes an offer to the offeree
  • Payor/payee – the payor makes payment to the payee (i.e. the payee is the one who endorses a received check)
  • Lessor/lessee – the lessor leases property (or the right to use property) to the lessee
  • Licensor/licensee – the licensor grants a license of the right to use something (IP) to the licensee
  • Assignor/assignee – the assignor transfers rights or property to the assignee (via an assignment)
  • Grantor/grantee – the grantor grants title in real property to the grantee
  • donor/donee – the donor donates (gifts something) to the donee)
  • *Settlor (trustor)/trustee – the settlor creates the trust, which the trustee holds and manages for the benefit of the trust’s beneficiaries

Social Media and the Law Talk at The Greenhouse Innovation Hub


Hey everyone be sure to sign up for a seat at my talk next week on Social Media and the Law. If you missed How to Create a Social Media Policy with Social Media Club Hawaii last week or you made it and still have questions this is a good talk for you:

The details are as follows:

  • What: Social Media and the Law Talk
  • Description: a discussion of the laws that affect social media use, from defamation to trademark infringement, find out some of the legal landmines that may alter your perception of using social media.  This talk is particularly geared for small business owners, start-ups, and social media marketers.
  • Date: Wednesday, March 7th, 2012
  • Where: The Greenhouse Innovation Hub in Kaka’ako – 685 Auahi Street
  • Time: 6:00 – 7:00 p.m.
  • Price: $20.00, includes all materials

For more information and ticket purchase please click here.

See you then!

-RKH

Social Media and the Law Events


Hey everyone,

Lots to talk about and tell you about today on this great Presidents’ Day so let’s get to it:

Hawaii Innovation Alliance, Peter Kay, and ThinkTech Radio

This is a little late notice, but I will be joining Peter Kay (of Your Computer Minute fame) on ThinkTech Radio this afternoon from 4-5 p.m. We will be discussing the emergence of the Hawaii Innovation Alliance, an association of tech industry folks interested in becoming more involved with the legislative process with regard to tech laws.

ThinkTech is on from 4-5 p.m. (M-F) on station 760 KGU AM.

Social Media Club Hawaii: Creating a Social Media Policy Event

If you remember my prior posts on Social Media Policy and want to know more join me, and fellow panelists experts at Social Media Club Hawaii’s event tomorrow night discussing how to Create a Social Media Policy.  It is free and being hosted at the Amuse Wine Bar in the Honolulu Design Center. It starts at 6pm and runs to 730pm. For more information on the panelists and the event click here.

Social Media and the Law at The Greenhouse Innovation Hub

Finally, if you miss out on tomorrow night, I will be having a more in-depth discussion of the legal pitfalls that small business owners and startups should worry about when it comes to social media at The Greenhouse Innovation Hub on March 7th. There are pre-sale tickets for $20.00 and the purchase price includes materials and handouts for that evening. For more information click here.

Hope you can check one of these things out. See you IRL or in cyberspace!

-RKH

Social Media and the Law, as well as other Fun Legal Info

Well, it’s amazing isn’t it? The month of January of 2012 is almost done and so much has already happened. Here are some interesting social media and the law news that I found, as well as some other fun pieces to carry you over for the day until tomorrow’s Draw the Law.

Google and Privacy Concerns (this well continue to be an issue for 2012 for all Social Media)

Have you noticed that Goolge is making some major pushes lately?  Well come March 1 the search engine plans on doing a turnabout and begin combining information it collects about the user from various sites/services into a single profile. Definitely a privacy issue brewing, especially when the privacy officer has to issue statements. Click: Google to merge user data across its services – CNN.com You can also read the lengthy notification, which you keep bypassing when you log onto your Google+ page.

GPS = 4th Amendment “Search” as Determined by SCOTUS

For all of you interested in criminal law, like Marcus Landsberg criminal lawyer extraordinaire, notice that the Supreme Court- GPS Tracking Is Illegal Without Warrant. Basically, SCOTUS feels that the use of a GPS Tracking device is a “search” for the purposes of the 4th Amendment, thus cops must get a warrant.

Mutant Toys or Mutant Dolls? Yes, it Matters

This was a great listen if you love comic books and would like to theorize that certain superheroes are not human. Basically, the point of this podcast: Mutant Rights – Radiolab, was showing the importance of the word “doll” versus “toy” – you may not think it means much, but if you are an IP attorney and have an import business getting a cheaper rate for your action figures is a must and it all boils down to if a mutant is a human or not.

Department of Homeland Security Following Facebook Posts

Earlier this month DHS released a document stating it is monitoring social media and news sites. They cited federal law that they have to “provide situational awareness” to federal, state, local and tribal governments. You can read more about this here: DHS watching social media, news sites | Greeley Gazette.

NLRB Finds Certain Arbitration Clauses Violate Labor Laws

The National Labor Relations Board (NLRB) has determined that mandatory arbitration agreements that prevent employees from joining together to pursue employment-related legal claims in any forum, whether in arbitration or in court violate federal labor laws. Check that announcement here: Board finds that certain mandatory arbitration agreements violate federal labor law.

Local Startup and Social Media Infromation

For you startup lovers, don’t forget tomorrow night will be Startup Hawaii kickoff. For more information, check it out here: Startup America Comes to Hawaii | Aloha StartUps. It will be at Bar 35 downtown. Definitely come on down if you started or are going to start a business!

Also check back at Alohastartups.com as I will be writing some future posts talking about Hawaii’s new legal non-profit aimed at helping entrepreneurs and startups, Business Law Corp. (businesslawcorps.org). I hope to get some interviews with the founders soon!

Finally, clear sometime in February as I will be getting down with Social Media and the Law as I will be trying to schedule a talk at The Greenhouse Innovation Hub and will be a panelists at Social Media Club Hawaii’s Creating a social media policy for business – what, how and when? event at Amuse Wine Bar on Feb. 21st. Hope to see you there!

Interesting Updates: Succession Planning, Discussing SOPA, and Podcasting

Well, hopefully you got a chance to read this morning’s Draw the Law. This post is just highlighting some of the more interesting pieces of information that I would like to share with you.

Alohastartups: Succesion Planning and Crowdfunding Posts

Once again, Alohastartups was nice enough to put up my post on Succession Planning. This part 1 of a two part series. Check it out here. If you remember I conducted a co-talk with my friend and 2011 Leadership Institute fellow Scott C. Suzuki, a successful estate planner and elder care lawyer here in Honolulu about the benefits of thinking about your business should you die, become incapacitated, or would like to leave.

If you also recall, I did a piece on crowdfunding, which I found a couple of newer posts that you may find interesting. First of all, Entrepreneur.com has an opinion piece on “Why Crowdfunding is Bad for Business” – do you agree/disagree?  Anyway, whatever your opinion on the matter it appears that the Crowdfunding bill is stuck in the Senate. In fact, it isn’t just stuck, it multiplied, as there are now three bills in the Senate. Want to know more check out good in-depth analysis by following Fizzlaw.com’s link.

The Greenhouse: Innovation Hub Talks SOPA and Helps Me with Podcasts

Speaking of federal legislation, the Stop Online Piracy Act (SOPA) (as well as it’s Senate counterpart PROTECT IP Act (PIPA)) continues to make headlines, as Wikipedia now joins the ranks of the growing number of sites that have vowed to blackout in protest of the bill.  Anyway, The Greenhouse: Innovation Hub is definitely living up to its creed of being a “learning lab” as they have set-up a discussion on SOPA and PIPA tonight, starting at 6pm. Click here for details.

In addition, The Greenhouse has worked with me to bring legal podcasts to you busy small business owners and people thinking of starting their own business. While, not as extensive as my talks, these podcasts should give you legal information to think about. Look for those to roll out soon and check back here for more information.

Who Owns a Twitter Account? Are Bloggers Journalists? What about CAN-SPAM?


Well, it’s 2012, but social media is still around and as you are trying to figure out how Timeline works on Facebook these are some of the interesting social media and the law stories that have cropped up:

Item #1: Who Owns a Twitter account?

A former employee is being sued by his South-Carolina based company. For? Taking their twitter account. Noah Kravitz of Oakland, CA is being sued by PhoneDog, a mobile phone news site company for multiple claims pertaining to his act of switching a Twitter account used by him for the company. This account had amassed a following of 17,000 followers, and PhoneDog is seeking damages of $2.50 per follower over eight months for a total of $340,000.

Based on the couple of articles I read on this story the only thing clear is that the terms agreement surrounding the account were unclear. As more and more companies continue to see social media as a valuable tool and resource and are actually having workers use them the reality is that we will see more lawsuits arise. I think the valuable lesson here is to have a social media policy, a worker agreement for social media marketers, and transfer procedures in cases of ending events, like termination. Without agreements in place you will be left at the mercy of a court.

You can read more about the situation in this New York Times article.

Item #2: Bloggers are NOT Journalists.

BLOGGERS PAY ATTENTION! You may think you dig up the facts, do solid research, and ask serious questions, but you may have to face the fact that courts may not see your as a journalist. Why is that important? In many states there are media shield laws. For example, Oregon has such a law.

Blogger Crystal Cox sought to defend herself from investment firm Obsidian Finance Group against a $10 million lawsuit for defamation. The blogger lost the case even though she argued that she was an “investigative blogger.” The judge disagreed because she was not employed by some official media entity, and therefore she could not take advantage of Oregon’s media shield law. She lost and the judgment against her was for $2.5 million.

I am not sure if this had any effect, but just from casual observation and what I am told from litigators and trial attorneys is that pro se (representing yourself) litigants often lose, and often lose badly.  So that may have been a factor. However, what is clear is that just blogging and acting like a journalist is not enough. For more info read this article from Seattle Weekly.

Item #3: Optimal Social Media Marketing Plans Can Help you Comply with CAN-SPAM Act

I ran across this post, “How to Make Optimum Use of Social Media Platforms for Marketing Your Business” while flipping through my Zite app on my IPad. If you are a small business like me and are trying to get a handle on this thing called social media you know it isn’t always easy making a connection via Twitter, Facebook, or even your blog. So I really appreciated the tips it gave in this short post.

However, when the biggest things that help me to help you (via this article) is that last section, “Automation doesn’t turn out to be Helpful Always” – why? Well, I did a Law Lunch with The Greenhouse Innovation Hub back in December where I talked about complying with the CAN-SPAM Act.  It seems that good marketing mirrors what CAN-SPAM Act is trying to curb namely:

Whenever you are searching for consumers, you need to strike real conversations and do not spam their inbox with auto-generated mails.  This can even turn a potential customer away from you.  It is necessary that you engage in regular conversations with qualified leads.

So do yourself a favor and stop relying on spam and do real conversations and follow-ups. In addition, make sure you are complying with the other requirements of CAN-SPAM Act (because it does not apply just to bulk e-mails) when sending that personal touch e-mail.

Have a great first work week of 2012! Lookout for Draw the Law next week. If you can’t wait to see my doodles “Subscribe” today!

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

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Last Post of 2011 and Looking Forward to 2012


Aloha Everyone!

Hope you are having an awesome Friday for this last aloha Friday of 2011. I just wanted to take the time, as I close out for the day to wish you all a happy and safe New Year’s Eve and for a start of a good New Year. In addition, I would like to thank all my friends, acquaintances, clients, readers, supporters, and yes even my Twitter followers for making 2011 a good start for me.

Storytelling in 2011 

I appreciate getting to know you all in the various settings that I have and welcome meeting new people and reconnecting with old friends whether it be in social media, IRL networking, or for coffee. Also thank you for allowing me to tell you all my story and journey of an attorney that loves the intersection of law, business, and politics in the realm of small business and startups.

Past Highlights 

I would like to highlight thanks to all of you for the positive feedback regarding this site and my services. In particular, I would like to continue to make this site a place a resource for small businesses and startups navigating transactional and compliance issues. Thus from this 2011 you will continue to see posts series like the following:

Because I care about the Hawaii community and am finding that I meet new people of this great state via social media I will continue to do special write-ups on:

New Features for 2012 

Although like all good growing businesses, their ideas change and grow I will be rolling out new features and ways to get information into struggling business owners’ hands. In fact, I’ll admit that being an attorney who just started going solo there were times I wish there were resources for me, and there were, but I will continue to try to deliver information to the people who want its and need it. I would like to thank various people and organizations that have given me feedback before I talk about my 2012 features.

First the Thank Yous

Thank you to my friends at Off-Menu Catering, all of you give so much support and thoughtful feed back to carry me through continuing to serve small business.

Thank you to The Greenhouse: Innovation Hub and in particular Doc Rock (@docrock) and John Garcia (@johngarcia) for creativity and inspiration, Jill (@swamwine) of SWAM, Danny (@wangchungs) of Wang Chung’s, and Shawn of Small Business Planning Hawaii (@SBPHawaii) for bouncing ideas off of to deliver services and information to small business owners. Melissa Chang (@Melissa808), Jennifer Lieu (@jlieu), and Capsun Poe (@capsun) always guiding lights for social media use.

Mahalo to the Young Lawyers Division, HSBA, and Leadership Institute for providing guidance to an attorney.  To fellow attorneys Wayne J. Chi and Scott C. Suzuki thank you for doing talks with me, some more planned in the future! To William (@alohastartups) of Alohastartups.com, much thanks as you are providing a great resource for startups in Hawaii and I am excited for the plan in 2012. However, I think I still owe you a post from 2011! Thanks to Rechung (@TheBoxJelly) of The Box Jelly for providing a space for legal talks and helping Hawaii coworkers.

Finally, thank you to Marcus Landsberg, a fellow Hawaii attorney that has helped out and set down this path of being a solo practitioner like me and showing that solo does not mean alone.

. . . Back to New Features of 2012

Ok, enough with the thank yous and let me get to the new features that you readers can look forward to from me in 2012 for this site in particular:

  • PODCASTS – that’s right Hawaii small business owners, no worries if you cannot make it down to one of my talks! I will be providing portions of them for you to watch in your store or at home.
  • One-sheets – simple pdfs talking about one particular issue for you to download, print, and share.
  • Newsletter – I am not sure what the frequency will be, but definitely watch your e-mail inboxes!
  • REVAMP of blog and website – I will be shifting gears and making sure that I deliver to you content in a more user-friendly style!

That’s it for this year! Have fun and be safe this New Year’s Eve and see you in 2012 (Year of the Dragon!).

-RKH

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Event Reminders AND Draw the Law – Payment Issues, Part IV: Equal Credit Opportunity Act

Hey everyone before I get to today’s Draw the Law, let me remind anyone in the Honolulu area that I will be having two talks next week.

Events

First, on Monday (12/19), come join me at The Green House Innovation Hub, a center of creativity, innovation, and coworking down in Kaka’ako. I will be talking about CAN-SPAM Act, primarily for small business and marketing points of view. I covered a little bit about it back in this post for Draw the Law. This Law Lunch will be more in-depth and starts at 12PM. Click on the links to find out.

Then the following evening, Tuesday (12/20), starting at 7PM at The Box Jelly, I will be conducting a talk about Succession Planning with fellow attorney and Estate Planner Scott Suzuki. We will primarily focus on what happens to your business and personal assets of when you are gone, and the need to plan for the future. For more information, click here.

If you are a business owner, marketer, curious about advertising or tax planning come join us down in Kaka’ako the place to be for work and play!

Draw the Law: Equal Credit Opportunity Act

So last week I talked about thinking about extending credit, and that you would need a policy and application. Moreover, when you advertised about this credit application process you would be regulated by the Truth in Lending Act (TILA). Today I turn how you must treat a consumer’s  credit application under the Equal Credit Opportunity Act (ECOA).

What is ECOA?

ECOA is a law that prohibits entities that extend credit from discriminating against certain aspects of the applicant.

What are those Factors?

If you are familiar with human resource management or remember the prior discussion on Employee Protection laws, then you can kind of guess what factors ECOA protects.

The factors you are prohibited from considering when deciding whether to extend credit or not are as follows:

  • Race
  • Color
  • National Origin
  • Sex
  • Marital Status
  • Age
  • Receipt of Public Aid
  • Exercise of the Person’s Legal Rights as a Credit-Seeker

Age? Does that mean I have to Give Credit to a 14-year old?

No, age as a factor is not a straight-forward analysis; first, the person has to have reached the age of majority (which is 18 in most states) to be protected by ECOA. With that being said, from the age of majority and up, you as the credit grantor cannot discriminate based on the applicant’s age, whether young or old. However, you may be favorable toward older people and may consider their future income stream. Furthermore, retirement complicates matters and generally you should consult an attorney if you are going to have a highly nuanced credit policy with regard to age.

Are there Factors I can Consider?

Yes, there are factors you can consider for granting credit, and they do get to the heart of the matter, which is why did you want extend credit in the first place? To make money, thus here are factors to look at:

  • Assets – what do they have as collateral? If they are asking for a huge extension and have very little to their name, where are you going to get your money if they default? Leads to the next factor –
  • Ability to Repay – what is the applicant’s current job or income source?  (usually, a mortgage lending practice and not consumer credit)
  • Credit History – how much money does the applicant owe? Do they pay bills on time? Have they ever declared bankruptcy?
  • Credit Foundation – do they own a home? How long have they been there? The ability to maintain a home and long residence there usually indicates sound money management by the applicant.


See you next week and look out for announcements for changes to this blog for 2012. If you enjoyed this post or any of my others please “Subscribe” to this blawg!

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.