LegalZoom = bar complaint and allegations of deceptive advertising

We’ve all heard the adds for LegalZoom on the radio.  They claim LegalZoom was developed by “expert attorneys.”   Hmmmm…. It always made me wonder.

But read for yourself their disclaimer, which in part says:

LegalZoom is not a law firm, and the employees of LegalZoom are not acting as your attorney. LegalZoom’s legal document service is not a substitute for the advice of an attorney.

LegalZoom.com, Inc. (“LegalZoom”) is a registered and bonded legal document assistant, #0104, Los Angeles County (exp. 12/09). LegalZoom cannot provide legal advice and can only provide self-help services at your specific direction.

LegalZoom is not permitted to engage in the practice of law. LegalZoom is prohibited from providing any kind of advice, explanation, opinion, or recommendation to a consumer about possible legal rights, remedies, defenses, options, selection of forms or strategies.

Well, somone filed a bar complaint in North Carolina.  The complaint alleges that the software that creates the legal documents constitutes the practice of law because it selects the content. 

So does this mean all forms are bad?   I think not, and remember this is just a complaint, not a decision.  I think that it depends upon the extent to which the forms are reviewed for changes before they are distributed to the “clients.”   But, time will tell…

Of course, although you can do some documents yourself, there are so many things to consider that in most cases, you need a professional.  Biased?  Yes, but I also speak from experience.  Legal issues are not like doing your taxes.  Taxes have a defined set of rules (albeit large).  Legal documents reflect the breadth of creativity in business and life, and there are so many “reasonable” rules whose application can vary by jurisdiction.  One size does not fit all. 

For more information, see eLawyeringBlog’s post here.  For a nice discussion of the allegations of LegalZoom’s deceptive advertising practices, see For Connecticut Lawyer’s blog post here.

Free 2009 Community Business Law Forum

In this uncertain economy, it is more important than ever to know how to deal with the legal issues that surround you. Your clients or customers may be threatening or filing bankruptcy, you may be contemplating a new advertising campaign, or you may be contemplating a lay off. What do you need to know? Let us help.

Free registration online at: http://www.daybar.org/html/events/community_business_forum_registration.html

Itinerary below.  Have general questions you would like answered?  Leave comments on my blog here.

The brochure is available on the Dayton Bar Association’s site at: http://www.daybar.org/pdfs/DBA_BLD_Community_Business_Law_Forum.pdf

8:00-8:30 – Continental Breakfast
8:30-9:00 – Bankruptcy: Ira Thomsen, Esq.
• How can I collect my accounts receivables when my clients are going bankrupt?
• What does bankruptcy mean for my business?
• How will the bankruptcies around me change how I do business?
9:00-9:30 –Internet and Intellectual Property, Katherine L. Early, Esq.
• What are the hidden dangers of advertising on the internet that I should know so I do it right and effectively?
• What types of intellectual property does my business have?
• What do my employees need to know about intellectual property so my business doesn’t lose money?
• How can I protect what intellectual property I have, but do it economically?
9:30-9:45 -Break
9:45 -10:15 –Human Resources/Labor and Employment: C. Mark Kingseed, Esq. and David Pierce, Esq.
• How will the economy affect the types of employment claims I will see?
• Why is management of workers compensation cases so important?
• What types of federal and state laws are seeing increased use and how are they changing under the new administration?
• What can I do now to protect myself and my business?
10:15-10:45 –Insurance: John Ferneding, C.I.C.
• What types of insurance are out there? (You might be surprised!)
• How do I make a claim, and what is the process?
• What do reservations of rights letters mean?
• How are insurance products affected by this market?
10:45-11:15 –Corporate Forms: Richard Boucher, Esq.
• Are you protected by the right form?
• What do you have to do to stay in compliance?
• What are the tax implications of each form?
• What are potential issues that arise with each form?
11:15-12:00 – Q&A

Reminder – Non-competes are ENFORCEABLE

In this down economy, companies look to shore up what they have – including protecting their IP and going after what they see as unfair competition.  As a result, there is more litigation over non-compete clauses in employment contracts.  So, employees out there: Beware.  I hear a lot of you say to me at parties and other places – I have a non-compete, but it is not enforceable.  While that may be true in certain cases IN CALIFORNIA, we are in OHIO.  OHIO and virtually EVERY OTHER STATE enforce them.  It is also true that if it is written too broadly, say, perhaps saying that you can’t work in any state  in the union for 50 years, then the court won’t enforce it so broadly.  BUT it will generally enforce it TO SOME REASONABLE EXTENT.  That might mean, say 50 miles and 2 years – or something else entirely.  How far and for how long it is enforced will depend entirely on the industry.  Hairdressers might have a more limited enforceable radius than, say, computer sales folks. 

For all my friends out there, just be careful.  Please.