Extending Consumer Credit Requires Compliance With Federal Laws

Written by Henry J. Fasthoff, IV


It is important for any prospective business purchaser to perform due diligence in researching a potential target business. Some ofrepparttar documents you will need to collect and review in your analysis of whether a particular business would be a good acquisition includerepparttar 119268 following types of documents.

1. Corporate and Organizational

o Certified copy of articles of incorporation and bylaws of company and subsidiaries as currently in effect;

o Partnership agreement and any amendments thereto;

o A copy ofrepparttar 119269 most current organization chart available ofrepparttar 119270 company;

o A list of states and foreign countries (if any) in whichrepparttar 119271 Company is qualified to do business; and

o All names under whichrepparttar 119272 company has done business inrepparttar 119273 past five years; this includes registered and unregistered trademarks, fictitious name statements (commonly referred to as “d/b/a filings”).

2. Financing Documents

o All loan agreements, debt instruments, and other financing instruments, and all related material documentation, to whichrepparttar 119274 company is a party.

o A list of all mortgages, liens, pledges, security interests, charges, or other encumbrances to which any property (real or personal) ofrepparttar 119275 company is subject and all related material documentation;

o Schedule of all short-term and long-term debt (including capitalized leases, guarantees, and other contingent obligations).

3. Financial Statements

o All audited and un-audited financial statements;

o Brief description of contingent liabilities involvingrepparttar 119276 Company, such as pending lawsuits and threatened litigation;

o Name of accountants and length of relationship with accountants; indicate whetherrepparttar 119277 accountants own any interest in or hold any position withrepparttar 119278 Company or its subsidiaries;

Electronic Evidence as the Smoking Gun

Written by Henry J. Fasthoff, IV


Electronic communications--particularly email--may contain a treasure trove of evidence in commercial litigation matters. There are three key reasons for this fact. First, email is a very informal means of communication. Why? I don't know, it just is. Though I personally insist on specific grammer and sentence structure in my "hardcopy" written correspondence, court pleadings, etc., in emails I sometimes choose not to followrepparttar rules of written English.

Second, though intellectually many of us know it is not, email "feels" anonymous. I'm sure there have been studies conducted in effort to understand why email feels anonymous. Maybe it's because ofrepparttar 119267 instantaneous nature of email--you can simply vent your emotions and knee-jerk reactions immediately and pressrepparttar 119268 send button, rather than having time to reflect on your written thoughts as you otherwise would if you were forced to sit down and write a letter; sign it with your own hand; put it in an envelope; put a stamp on in it; and take it torepparttar 119269 mailbox and mail it. Whateverrepparttar 119270 reason(s),repparttar 119271 fact ofrepparttar 119272 matter is that email does feel anonymous.

The third reason email evidence can contain critical evidence in a commercial litigation case: permanence and retrievability. Most people don't realize that when they "delete" an email from their email program it actually remains onrepparttar 119273 computer or network unless and untilrepparttar 119274 portions ofrepparttar 119275 computer's memory containingrepparttar 119276 email are overwritten by other information. You can be certain, however, that every single electronic commuincation you make--email or otherwise--is being recorded somewhere. Perhaps on your company's network server, perhaps at your Internet service provider, or perhaps on your own computer's hard drive. Savvy litigators know this fact and, dependingrepparttar 119277 stakes ofrepparttar 119278 case, you could end up receiving a letter such as this should your business find itself in a business dispute:

Dear Mr. John Doe:

This is a notice and demand that evidence identified below in paragraphs 2 through 5 must be immediately preserved and retained by you until further written notice fromrepparttar 119279 undersigned. This request is essential, as a paper printout of text contained in a computer file does not completely reflect all information contained withinrepparttar 119280 electronic file.

The continued operation ofrepparttar 119281 computer systems identified herein will likely result inrepparttar 119282 destruction of relevant evidence due torepparttar 119283 fact that electronic evidence can be easily altered, deleted or otherwise modified. THE FAILURE TO PRESERVE AND RETAIN THE ELECTRONIC DATA OUTLINED IN THIS NOTICE CONSTITUTES SPOLIATION OF EVIDENCE AND WILL SUBJECT YOU TO LEGAL CLAIMS FOR DAMAGES AND/OR EVIDENTIARY AND MONETARY SANCTIONS.

Cont'd on page 2 ==>
ImproveHomeLife.com © 2005
Terms of Use