Woolley & Co E-Zine January 2007
Tips and ideas for keeping your business on the right side of the law


Welcome to the January 2007 Woolley & Co ezine. 

January 2007 has already seen a new piece of legislation which is likely to affect most if not all ezine readers.  Take a look at the first article detailing the requirements for companies to include detailed company information on all emails and websites.  In this month’s question and answer there’s a cautionary tale, reminding business owners of the importance of using a contract when entering into a new business relationship.

We welcome your feedback - if there is any particular legal issue you'd like to see covered send the details through to marketing@business-lawfirm.co.uk.

Andrew Woolley
Andrew Woolley, Senior Partner, Woolley & Co

CHANGE YOUR WEBSITE NOW TO COMPLY WITH NEW REGULATIONS

An update to the Companies Act 1985 requires all companies to include specified information about themselves in electronic communications, including websites and emails.
 
The required information includes:

  • The name, postal address, and email address of the company
  • If the sender is a registered company, the registration number should be provided as well as the place of registration
  • If the business is a member of a trade or professional association, details of these should be provided including membership numbers
  • If the business has a VAT number, it should be listed even if the website is not being used for e-commerce transactions

Companies and company officers who fail to comply with these regulations are liable to a fine.

This rule currently only applies to companies. It’s not applicable to sole traders or partnerships, but in our view it’s good practice to provide such information as your name, address and registration details on websites and emails. After all you have nothing to hide, do you?

For more information on this and other rules relating to electronic trading call Woolley & Co on 01789 267377 or visit trading on and offline on the Woolley & Co website.

NEW RULES HIT SUPPLIERS OF ELECTRICAL EQUIPMENT

New rules which put the onus of disposing of electrical equipment like computers and mobile phones on the supplier could cost businesses thousands of pounds.

From 1 January 2007 the new Waste Electrical and Electronic Equipment (WEEE) Regulations came into force.  Although there’s still uncertainty about exactly how the law will be enforced, the new law will mean that if you are a business which is supplying, for instance, desktop computers to a company, you are likely to have a responsibility to dispose of the older machines they are replacing, and will be financially liable for the disposal of the new machines when they are no longer needed.

Many electrical equipment suppliers are unprepared for these changes and could quickly find that they are failing to comply with the new rules. This may have a serious financial implication for the business, but it could also end up with the business or its principals being held to be criminally liable!

Any producer of electrical equipment should act now and find out what they should do in order to comply with the new regulations.

To find out more about WEEE Regulations contact Stuart McIntosh or visit
www.business-lawfirm.co.uk

“OPT IN” AND “OPT OUT” REVISITED

Previous Ezines have included guidance for business owners on the use of email, fax and telephone in marketing a business.  The Information Protection Commissioner has recently issued updated guidance which all business owners and marketers should be aware of.

A quick run through shows:

  • “opt in” and “opt out” are often misunderstood: the main point being “is there consent to marketing?”
  • Callers (and faxers for that matter) must screen their phone number list against the telephone and fax preference service lists both for corporate and private subscribers
  • It is easy to make a complaint against a wrongful marketer.

Guidance is available on Marketing by electronic means, which includes automated call systems, mobile, fax and email marketing and also on the corporate telephone preference service: how to register and your responsibilities if you make direct marketing calls to companies.  It’s worthwhile checking that any data you collect from prospects is available to you to use for marketing purposes – this includes for example subscription data on your website.

For more details or advice on marketing your business legally contact Woolley & Co

YOUR QUESTIONS ANSWERED

Q. I run a small business and have been working on a large job carrying out repairs at a local plant. As they required me to start work immediately, I didn’t get a written contract.

I have been on site for a month now and have paid for all the materials myself. I put in an invoice at the end of the month but they are saying that they won’t pay until the whole job has been completed and they are satisfied with the quality of my work.

I pride myself on my work and can tell you it’s 1st class – and they know it – so why won’t they pay me? The project is due to go on for another 2 months but I’m running out of money and can’t afford to keep going unless they pay me. In fact, I think I’ll have to walk off site next week as I can’t afford to carry on.

Is there anything I can do to get paid quickly?

A.   Unfortunately, because you failed to get a written contract drafted there is very little you can do.

Unless you agreed with them (preferably in writing, although contracts can be oral too) that you would be paid at regular intervals (e.g. monthly), or after certain stages had been reached, the courts will take the view that you are not entitled to be paid until the entire job has been satisfactorily completed.

If you had agreed a written contract, it could have contained clauses such that you would be reimbursed for materials as the job went along and paid on a monthly basis for the work completed that month, or at least a large proportion of it, with the remainder to be paid at the end of the job.

The further bad news is that if you walk off site now, you could find yourself in breach of contract and may have to pay them damages. How much will depend on the losses they incur by your walking off site and how quickly and cheaply they can get someone else to complete the work.

Unfortunately there is nothing you can do now legally to ensure a quick payment before the entire job has been completed. You could try to negotiate some payment terms with the other party or otherwise weigh up the pros and cons of walking off the job and paying damages or borrowing some money from other sources to enable you to stay on and complete the job.

Next time make sure there is a contract in place.  You might even consider having a standard contract prepared for such circumstances. That way, no matter how urgent the work, you can send a copy of your standard terms before any work is started.

To find out more about these and other legal issues visit the Woolley & Co website at www.business-lawfirm.co.uk/. The site also contains articles and back copies of our E-zine – which might be a useful place to start if you have a legal problem you need help with.

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