Legal Question in Business Law in California

I am going to sign a contract with a business intermediary for my furniture brand in CALIFORNIA.

In this contract my company is the "SELLER" and her company is the " BROKER".

In essence she will introduce client to my business and be paid a comission when this introduction lead to a sale.

MY QUESTION IS :

In terms of legal compliance, does she require any certification or licensure to be a "BROKER" ? Is this legally correct to use the term BROKER or is there a more appropriate terms ?

She already mentioned that she is not sure if her company is licenced to be a broker or it one is required in first place and I don't have this knolwdge neither.However her company does have the right to offer services or make slaes.

Asked on 11/12/13, 6:21 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law
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Brokers dealing with securities, or with real estate, need licenses. To my knowledge at least, one does not need a special license to engage in the business of being a furniture broker. To be sure, the "ordinary" licenses would be required, e.g., a city or county business license, but these are general licenses and not occupation-oriented like barber or broker licenses.

If the person running the business isn't sure of what licenses she needs, that might be a sign that she might be unprepared to act in her role in other ways. Have you investigated her ability to perform the services you'll be counting on her to carry out professionally? Indeed, what kind of a company is it (proprietorship, partnership, corporation) and what is its track record?

You might be wise to take the proposed contract to a business lawyer near you to ask whether it is shipshape in all regards or whether it is one-sided or unprofessional.

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Answered on 11/12/13, 6:48 pm

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