Valenti Hanley PLLC Louisville Business Law Attorney | Lexington KY Business Litigation Lawyer | Kentucky Contract Dispute Attorney 2026-09-04T19:53:43Z https://www.vhrlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1500921/2020/07/cropped-vh-site-icon-512px-32x32.png On Behalf of Valenti Hanley PLLC <![CDATA[Are you liable if your franchisee makes a mistake in Kentucky?]]> https://www.vhrlaw.com/?p=49352 2026-08-28T18:07:58Z 2026-09-02T18:06:45Z What makes a franchisor responsible for a franchisee's conduct? While it is true that you hold greater control over the way a franchisee represents your brand, this is rarely enough to prove vicarious liability. Courts want to see real evidence that proves you controlled the specific action that caused the harm. For example, if you directed or had the contractual right to direct the exact activity that led to the lawsuit, a court may hold you liable.

How do Kentucky courts determine the level of control?

In business law cases, Kentucky courts look at several factors before reaching a conclusion. When evaluating vicarious liability, Kentucky courts may consider:
  • How much the franchise agreement gives you authority over daily operations
  • Whether you stepped in and made specific operational decisions
  • How much the franchisee stayed independent in running the business
  • Any real-world actions that suggest control beyond what the contract clearly says
If vicarious liability is proven, you are usually responsible for any damages that follow.

Protecting your franchise business when a liability claim arises

Determining whether you crossed the line from protecting your brand into controlling daily operations could be difficult. It requires careful review of franchise agreements, operational manuals and digital communications. An attorney experienced in business law can analyze these documents and develop a strong defense strategy based on the contractual and operational facts]]> On Behalf of Valenti Hanley PLLC <![CDATA[What records should Kentucky cannabis businesses keep? ]]> https://www.vhrlaw.com/?p=49344 2026-08-17T15:07:41Z 2026-08-25T15:03:47Z Kentucky’s medical cannabis industry is regulated, and good records can help you prove that your business operates responsibly. Whether you run a dispensary, cultivation site, processor or facility, paperwork should tell a clear story about products, employees and operations.  Record keeping can affect renewals and inspections. Kentucky’s program includes rules for inventory control, training, security, transportation, packaging, labeling and testing. So, your files should support each compliance area. 

Paper trails that help keep your license safe

Your records should be accurate, current and easy to find. If regulators ask questions, you do not want to search through scattered notes or incomplete spreadsheets.  Key records may include: 
  • Inventory records showing cannabis received, transferred, processed, tested, sold, returned or destroyed.
  • Seed-to-sale tracking entries that match your physical inventory.
  • Employee files, including training records, role assignments and identification details.
  • Security records, such as visitor logs, surveillance checks, alarm reports and access logs.
  • Transportation documents showing delivery dates, routes, manifests and receiving parties.
  • Testing records, including lab results, batch numbers and product release information.
  • Packaging and labeling records that show products were prepared correctly.
  • Waste disposal records showing how cannabis waste was handled, witnessed and documented.
  • Sales and patient transaction records, where applicable, while protecting private information.
  • Incident reports for theft, loss, diversion, equipment failure, recalls or rule violations.
  • Maintenance and equipment logs documenting inspections, repairs and calibration of critical systems.
You should also keep copies of:
  • License documents
  • Local approvals
  • Vendor contracts
  • Procedures and internal audit results
These files can show that your business has a real compliance system, not just a written policy. Strong records can make inspections smoother and reduce confusion. Because cannabis rules can change, it helps to review your recordkeeping practices with a legal professional familiar with Kentucky’s program before a small gap becomes costly. ]]> On Behalf of Valenti Hanley PLLC <![CDATA[Taking action when aging parents fall victim to investment fraud]]> https://www.vhrlaw.com/?p=49337 2026-08-17T15:07:27Z 2026-08-24T15:03:46Z especially vulnerable to investment fraud. Their concerns about not only preserving their assets but also maximizing the returns they receive on their investments can make them ideal targets for those promising unrealistic returns on investments. For adult children who learn about major losses suffered by their parents, questionable promises or a lack of investment transparency, encouraging them to take legal action may be the best option available.

Fraud can warrant litigation

When investment professionals do not fulfill their duty to their clients and put their own enrichment or the benefit of outside parties ahead of what is best for their clients, they may be responsible for the losses their clients suffered as a result. Civil lawsuits can help those defrauded by financial professionals recoup the funds they lost. The people impacted by securities fraud may be able to file lawsuits to recoup the funds lost to the fraudulent scheme -- especially in cases where clear violations of securities law have occurred due to misrepresentation of key facts and unethical conduct. When older adults may still have funds under the management of an unreputable or fraudulent investment advisor, taking immediate action is often necessary to protect them from additional losses and help them recover funds lost due to fraudulent conduct. Concerned adult children may want to help their parents schedule an appointment with a securities fraud attorney and encourage them to take action before losses leave them without the resources they need in their golden years. Litigation can help recover lost investments and hold inept or corrupt parties accountable.]]> On Behalf of Valenti Hanley PLLC <![CDATA[Understanding marijuana business law in Colorado]]> https://www.vhrlaw.com/?p=49318 2026-08-13T08:53:56Z 2026-08-24T08:50:15Z Colorado has played a major role in the growth of the cannabis industry. For business owners, this creates opportunity, but it also requires careful attention to state rules and ongoing compliance. Marijuana business law in Colorado covers licensing, sales, product handling, public safety and taxation. Understanding these areas is important for anyone who wants to operate legally and reduce risk in a highly regulated market.

Licensing and regulatory oversight

Any marijuana business in Colorado must operate through the proper state approval process. This includes meeting licensing standards and following rules enforced by the Department of Revenue Marijuana Enforcement Division. Businesses must also understand that state permission does not remove all legal concerns. Marijuana remains illegal under federal law, which means owners should plan carefully before opening or expanding operations.

Recreational and medical market differences

Colorado law treats recreational and medical marijuana differently in several key ways. Recreational sales are limited to adults who meet the age requirement, while medical sales follow a separate system tied to patient eligibility.

Sales limits and consumer access

Colorado places clear limits on how much marijuana a person may purchase or possess. Businesses must monitor these limits closely during every sale to avoid violations. Retail operators should also remember that public consumption is still restricted because even when marijuana products are legal to buy, where and how they are used can still create legal issues for customers and businesses.

Payment rules and tax obligations

Marijuana businesses in Colorado face special tax and payment issues where recreational sales attract taxes that can affect pricing, reporting and profitability. Recent changes have expanded payment options in some situations, but strict procedures still apply. Also, businesses must maintain accurate records and ensure every transaction meets state requirements. Strong planning and reliable legal guidance can help marijuana businesses stay compliant and operate with greater confidence in a fast-changing industry.]]> On Behalf of Valenti Hanley PLLC <![CDATA[What is unauthorized trading and how can investors spot it?]]> https://www.vhrlaw.com/?p=49346 2026-08-17T15:06:51Z 2026-08-21T15:03:44Z What is unauthorized trading? Unauthorized trading occurs when a broker or investment adviser purchases or sells securities without your consent. In many accounts, you must approve each trade before the broker places it. Even in discretionary accounts, brokers must act within the authority granted and comply with applicable legal and regulatory duties.You give that authority in writing before the broker begins trading. Federal securities laws prohibit fraudulent or deceptive conduct involving the purchase or sale of securities. One example is Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b). Review your account agreement so you understand who controls trading decisions. Once you know your account type, you can recognize signs that deserve closer attention.

Warning signs to watch for

One unexpected trade does not always mean someone acted improperly. Still, these warning signs deserve a careful review:
  • You find trades that you did not approve
  • Your account suddenly shows many more trades than usual
  • You receive confirmations for transactions that you do not recognize
  • Your portfolio includes investments that you never discussed
  • Your broker cannot give a clear explanation for recent trades
Review your account statements often so you can spot unusual activity quickly. If you notice a concern, start collecting information right away.

What should you do next?

Keep your own copies of any communications you exchange with your adviser or broker, along with transaction confirmations and account statements.Note the dates of any unexpected transactions and document the discussions you had about them. If you did not grant discretionary authority, your broker generally should not place trades without your approval. FINRA Rule 3260 limits when brokers may exercise discretionary authority over customer accounts. Regular account reviews can help you identify unauthorized trading before it causes greater losses. Ask questions whenever something seems unusual and keep records of your concerns. If you have questions about this topic, you may consider reaching out to a legal professional for guidance.]]> On Behalf of Valenti Hanley PLLC <![CDATA[3 must-have clauses in a business contract]]> https://www.vhrlaw.com/?p=49348 2026-08-17T15:06:36Z 2026-08-20T15:05:53Z In business contracts, the absence of important clauses may land you in trouble. That is why you must craft an iron-clad business contract that includes all essential terms. Here is what you need to know about them.

Termination Clause 

Be it a relationship or business contract, there is always a chance of things ending on contentious terms, though unintentional. While nothing can be said conclusively about the former, you can definitely control how things end in the latter. The termination clause can explain how and when the agreement should come to an end. It must include the following details:
  • Notice period
  • Basis for termination
  • Post-contractual obligations
This clause can also include directions regarding the future of ongoing projects. 

Force majeure clause

A force majeure clause explains how both the parties mentioned in the contract should act in the case of unforeseen circumstances. A contract with no (or a vague) force majeure clause can lead to major financial losses during an unexpected event. One of the best examples is when retail chains in the U.S. attempted to withhold rent during COVID-19 but failed due to a lack of specific force majeure clauses. Some of the force majeure instances are:
  • Natural or man-made disasters 
  • War and civil unrest
  • Pandemics 
  • Labor disruption 
Including these specifics helps clarify the scope of protected events, ensuring both parties have a clear understanding of their obligations during such times.

Indemnifying clause

Businesses are always susceptible to lawsuits. If one partner commits a mistake and a third party sues the business, who should cover the legal expenses? A properly drafted indemnifying clause can protect the innocent partner from resulting cost. 

Draft an iron-clad business contract

There is no room for error in business contracts. A single clause mishap can become a costly mistake and lead to contract disputes. With the help of an attorney experienced in business law, you may be able to prepare a meticulously drafted contract that can protect you from foreseeable risks.]]> On Behalf of Valenti Hanley PLLC <![CDATA[FINRA arbitration process: What investors should expect]]> https://www.vhrlaw.com/?p=49332 2026-08-13T08:53:19Z 2026-08-20T08:51:41Z Facing a dispute with a brokerage firm is often overwhelming. Many investors are surprised to learn that most claims must go through the Financial Industry Regulatory Authority (FINRA) arbitration system.  While this aims to resolve cases without the need for court intervention, the process still requires careful preparation. This overview explains what investors can generally expect during arbitration.

How FINRA arbitration begins

FINRA arbitration starts when an investor files a Statement of Claim that outlines the dispute and describes the losses. The investment or brokerage firm then formally responds to each allegation. This sets the foundation for the rest of the case, which typically involves:
  • Initial review helps determine whether the dispute involves unsuitable advice, misrepresentation or another form of misconduct
  • Timeline planning allows both sides to prepare for deadlines and required filings
  • Early strategy decisions often shape how evidence will be presented during the hearing
These early tasks help organize the case and promote a hearing phase that proceeds in a structured and efficient way.

What happens during the hearing process

A panel of one to three arbitrators hears the case. The size of the panel depends on the amount of the claim. Each side presents testimony, documents and arguments and the arbitrators may ask questions to better understand the facts. The hearing essentially functions like a streamlined trial in many situations.

Decisions and outcomes

Unless parties reach a settlement, arbitrators review all evidence and issue a written award, which is final and binding with extremely limited appeal options. If the investor wins, the award may include damages or interest, which the firm must pay within a set period.  A legal representative can help by guiding the case through arbitration, building evidence and presenting the investor’s position.]]> On Behalf of Valenti Hanley PLLC <![CDATA[Why are older adults often targeted for fraud?]]> https://www.vhrlaw.com/?p=49319 2026-08-14T12:54:47Z 2026-08-20T08:50:15Z Reports show that older adults are often the target of fraud, such as investment fraud, bank fraud, wire fraud and similar schemes. For instance, one report looked at those who had lost over $10,000 in a scam between 2020 and 2024. The number of people who had been scammed quadrupled in that short time. It was even more pronounced when looking at those who had lost over $100,000. In the same time period, the amount of money lost increased eightfold, and there were seven times as many reports of these scams occurring.

Access to financial assets

As this demonstrates, one of the biggest reasons why older adults are often targeted is simply that they have access to more assets. Young people are often also targeted by scams, but their losses may be lower. In many cases, older adults are at or nearing retirement age, so they have been saving assets their entire lives. They may have financial assets exceeding $1 million, so they are simply a more lucrative target for someone carrying out a scam. Ironically, they are also often very concerned with protecting their assets, and scammers sometimes use this vigilance against them by posing as members of official businesses or organizations.

Taking legal action

When considering investment fraud, securities fraud and other types of scams, it is very important for those involved to understand exactly what legal options they have and what steps they can take moving forward. This is especially true when significant sums of money are on the line. An experienced attorney can help at this time.   ]]> On Behalf of Valenti Hanley PLLC <![CDATA[Business partners and conflicts over ownership percentages]]> https://www.vhrlaw.com/?p=49333 2026-08-13T08:53:14Z 2026-08-19T08:50:12Z Business partners can run into conflicts over a wide variety of issues. Many of them are financial, such as how to split up revenue or how much each person needs to contribute to the business. There can also be conflicts over roles and responsibilities, long-term goals, creative decisions and much more. When making a business partnership agreement, it is often wise for partners to address their ownership percentages. Defining this in advance can remove one of the main reasons for conflict. But why is the ownership percentage so important?

Making crucial decisions

To start with, the person who owns the majority of the business may be allowed to make important decisions on their own. These decisions could include hiring new employees, merging with another business, opening a second location and much more. If one person owns 51% or more of the business, they may have the power to make these decisions themselves. But if ownership is split 50-50, then things often need to be put to a vote. This dramatically changes the power that each business partner has.

Selling the company

Ownership percentages are also crucial to determine because the company may eventually be sold to a third party. If the business partners had equity in the company and made money in the sale, they may need to divide it based on their ownership percentages. So both partners need to know precisely how much of the business they own and exactly what percentage of the sale price they should expect to receive. It is helpful to set up official contracts and partnership agreements to address these types of issues in advance. But they can also lead to partnership disputes and conflicts, and business owners need to know what steps to take.  ]]> On Behalf of Valenti Hanley PLLC <![CDATA[Can an investment advisor get you involved in insider trading?]]> https://www.vhrlaw.com/?p=49316 2026-04-13T13:14:48Z 2026-04-16T13:13:46Z People who have a fair amount of money to invest look for an investment advisor who can navigate them through the twists and turns of the economy, stock and bond markets and U.S. dollar fluctuations. They want professionals who can foresee upcoming changes as much as possible.  When someone acts on information that was not supposed to be shared, however, that can be considered “insider trading.” The “tipper” (the person who shares the information) and the “tippee” (the person who receives and acts on the information) can both face serious criminal charges.

What kind of information is illegal to share?

Insider trading doesn’t involve just any information. It must be material nonpublic information (MNPI). Further, the tipper typically must be aware that they’re breaching their fiduciary duty by sharing that information with someone who isn’t authorized to have it. Finally, the tipper must be sharing the MNPI for some type of personal benefit. For example, maybe a broker wants a client to invest in a particular company or stock, so they disclose information they have about an upcoming acquisition or merger, a new product or something bad that’s about to befall a leading competitor.  The “personal benefit” element is critical when it comes to criminal liability. This is referred as the Dirks test – named for a U.S. Supreme Court case. The personal benefit doesn’t have to be monetary. Some unethical investment professionals share MNPI simply to impress others or in expectation of receiving an insider tip in return.

Can a tippee be charged with insider trading for receiving the information?

If a client receives MNPI, understands that it’s information they shouldn’t have and directs their advisor to make a purchase or trade based on it, they can find themselves charged with insider trading.  Even if they don’t act on it but share it with someone else, that can still be considered insider trading. That’s because once they’ve received the information, they have assumed a fiduciary duty to guard it. What a person who isn’t an investment professional knew or should have known about the confidentiality of a piece of information can be key to a criminal case.  The best way to avoid problems if someone receives MNPI may be to cut ties – at least as a client or a business colleague – with that person and remove any assets from under their control. If it’s a friend or relative sharing insider information, that can be trickier. Whatever the situation, it’s smart to get early and experienced legal guidance.  ]]>