Johnson City Startup Attorneys & Lawyers

What Is an Arm's Length Transaction?

"Arm's length" refers to a legal transaction in which buyers and sellers of products or services have no relationship to one another either by blood, marriage, or business dealings. Without a relationship, buyers and sellers can act independently. Without previous ties, an arm's length transaction makes sure neither person feels pressured by the other or acts in connection with one another.

The idea of an arm's length transaction, also known as an arm-in-arm transaction, came about in the real estate market as a way of handling tax authorities. Generally, family members and businesses with related shareholders are not acting at arm's length, which can cause ethical problems. Such ethical issues include a company's supervisor who forces an employee, under the threat of termination, to buy real estate using the boss's name.

In the 1997 case McNichol et al v. The Queen, the tax judge

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Key Takeaways

• A subscription agreement outlines the sale of private company shares to an investor, defining terms like price, quantity, rights, and restrictions.
• These agreements are commonly used in private placements, limited partnerships, and venture capital arrangements.
• They allow companies to raise capital without SEC registration under Regulation D exemptions.
• Accredited investors typically participate, and they must meet strict financial criteria.
• Terms often include indemnity, confidentiality, and non-compete clauses.
• Private placement memoranda often accompany subscription agreements, providing crucial company and financial disclosures.

What Is a Subscription Agreement?

A subscription agreement is between a company and a private investor to sell a specific nu

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Key Takeaways:

• Cyber law or internet law is concerned with online privacy, data protection, intellectual property rights, and cybercrime.

• Key regulations such as GDPR, COPPA, and CCPA ensure the privacy of users as they interact online.

• Copyrights, patents and trademarks are crucial for protecting your content when you share them online.

• Cyber law is concerned with many different branches–including e-Commerce and consumer protection.

As our society becomes more and more connected with the rise in digital technology and communication, understanding

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What are Representations and Warranties?

Representations and warranties in business contracts provide facts (representations) and security against loss (warranties) if the statements made are not true. Representations and warranties may also be shortened to "represents and warrants" in a contract.

If the representation in the contract is found to be false, it is called "inaccurate," while a false warranty is considered breached. Representations always refer to past information, as it is impossible for a company or individual to present future information as factual.

Every contract between two parties includes representations and warranties. For example, if you decide to go to an auto dealership to buy a car, you would enter this transaction with several representations, such as:

• The car is actually what

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