Legal Question in Business Law in California

Hello I have a website that works as a job board for tattoos. The client comes in and post a tattoo that they want and Artists in their city will bid on the job. When the client chooses a winner they are redirected to paypal to pay a 20% deposit in order to set up online appointment (this is the fee that we keep as referral). After payment client can set appointment and then show up ar tattoo shop to get tattoo. I was wondering if I can get in legal trouble if for some reason the Artist does a bad job or the client get's an infection. Can I cover my business if I make up a good Terms & Conditions page?


Asked on 2/09/14, 5:20 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First, everyone who's in business needs insurance, or at least needs to understand the risks they are assuming by not carrying it. Claims can come from unexpected sources -- the only business-insurance claim I've ever made was when a large tree limb unexpectedly fell on a client's new car, parked outside my office under what I thought was a perfectly healthy tree. So, I suggest you select a good business-insurance rep. in your area and discuss whether and how to cover your risks with insurance.

Next, as a lawyer, I'm going to suggest that you develop at least a loose working relationship with a business lawyer near you. Have occasional discussions about your business -- not just the risks of client suits, but other aspects, such as whether your business should be incorporated, etc.

Finally, to address your question specifically, yes, you can get into "legal trouble." I'd say the probability is rather low, but certainly not zero, and if you are sued, defending will cost a lot even if you eventually win. Properly-drafted "terms and conditions" in a contract with your clients can have two effects: diminish the likelihood you'd be named as a (co-) defendant in any lawsuit, and if you are named, provide you with an additional defense.

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Answered on 2/09/14, 6:14 pm
John Laurie Gertz and Laurie

In addition to the above I would suggest that you require an indemnity agreement with the tattoo shops, proof of their insurance with your company listed as an additional insured. Our office helps clients in your situation. I would suggest that you consult with an attorney and spend the money necessary to protect your interest. I recently had a tattoo shop owner come in as they were being sued as a result of their employee accidentally putting a tattoo on backwards. He was shocked at the cost of litigation and how much damages the plaintiff was seeking from him. Better to spend the money up front and make sure you have the proper insurance and agreements in place to make sure you are protected. You need to have an attorney look at the whole picture. If you have other questions feel free to call

John Laurie

Gertz and Laure

18321 Ventura Boulevard Suite 900

Tarzana, Ca 91356

818 345-0123

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Answered on 2/09/14, 7:25 pm
Frank Natoli Natoli-Legal, LLC

I agree with my colleagues here. In this country one can get sued for almost any reason. Whether they have a good case is another question.

Whenever you are in the line of distribution so-to-speak, you are exposed, although in your case it is not likely that you will be sued for the tattoo shops negligence. But if the injury was severe enough and the artist had no insurance, etc. it might give cause to join you. This is another good reason to make sure you handle your entity structure correctly as well.

As noted, this is why you really need to start a relationship with a lawyer and have them create the proper terms of service/use and privacy policy for the site. This will be well worth the money. Obtaining an insurance product is also a very smart idea.

I suggest that you consult several lawyers in private, perhaps call around for some free phone consultations. If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 2/10/14, 7:20 am


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