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The Hawkins Law Firm
256.571.2829

2303 Court Street PO Box 899
Guntersville, AL 35976

256.705.3593

600 Boulevard South SW Suite 104
Huntsville, AL 35802

256.586.4510

1209 Spring Valley Drive, NE
Arab, AL 35016

Business Law Newsletter

The Reputation of a Business

The “good will” of a business is an intangible asset, like the reputation, skill, or experience that is associated with the business. It also refers to the rate of recurring patronage that a business has developed over time with the general public.

Ownership

The good will of a business belongs to the business owner. It might be owned by either an individual or a corporation, but not by stockholders. The representative of a business is not personally connected to the business’ good will.

The ownership of good will may be transferred when the business is sold, but it cannot be sold apart from a business’ physical property. Good will ownership may also be transferred even when it is only implied and not specified in a contract. For example, the good will of a business trade name or trademark would be automatically transferred upon the sale.

Unfair Competition

The former owner of a business may conduct a similar business and even draw in former patrons. But it is not fair play if the former owner purposely confuses the public into thinking that a new business is the former business. This is unfair competition, and the new owner may be able to take action.

Remedies

An injunction may be imposed upon the former owner, disallowing any further activity that would cause public confusion and loss of profits to the new owner. If fraudulent activity has occurred, monetary damages may be awarded.

  • Regulation of Securities
    “Securities” is a term that generally refers to shares of a corporation, promissory notes, and other liabilities. The laws regarding securities are very complex. Securities are regulated by both federal and state... Read more.
  • Employer Precautions When Sharing Trade Secrets
    Generally, a “trade secret” is any valuable business information that is kept confidential in order to give the business a commercial advantage in the marketplace. Trade secrets are valuable forms of property and thus, the... Read more.
  • One-Time Deduction for Business Furniture & Equipment
    Under certain circumstances, you may be able to take a one-time deduction for certain business furniture and equipment purchased during a particular tax year. This is commonly referred to as a Section 179 deduction. Why... Read more.
  • The PERM System for Obtaining Labor Certification
    One avenue that allows an employer to hire a foreign worker to work permanently in the U.S. entails a “permanent labor certification” through the Federal Department of Labor (DOL). Before the employer can submit a petition... Read more.
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