QUESTION
What are my legal actions if the buyers are still operating under my company name?
Asked on Mar 15th, 2014 on Patents - Massachusetts
More details to this question:
In September of 2013, my father sold his limousine business to another company. The sale (prepared by a lawyer) clearly states, sale of 3 vehicles, telephone numbers and clients affiliated with the business. We did not sell the company itself. I wanted to run a company in another town away from the new buyers. Just last week, I have noticed that the buyers are still operating under now my company's name. They printed business cards, answer the phones as "- limousine service" and even receiving and depositing checks which clearly states my company's name and my father's name. My father is out of the country for the past 4 months. I wanted to learn what can I do about it? I thought it was illegal to deposit the check. I took few pictures of the checks that came in the mail (it came to my mailbox).
3 ANSWERS
Sorry this is not an intellectual property question - it is a contract or business law issue.
Answered on Mar 18th, 2014 at 5:09 AM
You state that your father sold his business, including the client list, and left the country. Unless you were part-owner of the company, you have no claim to any part of your father's company, including the business's name. There's nothing to prevent you from starting up your own business (unless you were included in a non-compete clause as part of the sale agreement) in another community and under another name.
Answered on Mar 17th, 2014 at 12:15 PM
Appellate Litigation Attorney serving Boston, MA
at
Banner & Witcoff, Ltd.
Update Your Profile
Go back to the lawyer who did the bill of sale. It should have specified that the business name was NOT included in the sale of the assets. It would appear that the buyers thought they were buying the business name as part of the assets. Check your state records (corporations division) to see who the name of the business belongs to at this time. If the origin business name is still in your father's name - you can ask the new business to stop using that name.
Answered on Mar 17th, 2014 at 12:03 PM