Legal Question in Business Law in Tennessee

Taking Over a Business

I will be taking over a Home Decor/Gift business June 1. The present owner will be working from her studio in the back of the shop doing permanent makeup application and facials. The present name of the business is Southern Accents. The present owner wants to keep that name as her make-up business. I want to name the shop (my business) Southern Accents of Rossville. Since we will have two separate tax id numbers do you foresee any problems with this?


Asked on 4/30/08, 1:09 pm

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Taking Over a Business

As I see it, the answer is a resounding "probably not." There are several issues, most of which are resolved by either the nature of the business or the agreement of the parties (which should be written). The primary issue is customer confusion. Since the businesses are different, this should not be too much of an issue. Related to customer confusion, however, is the issue of infringement. If a little time goes by and the former owner says that you are trading on the name she built up during her time and are damaging her reputation, then there may be an issue. However, if it is spelled out in the written agreement that you will be doing business as Southern Accents of Rossville, this should solve the most likely of problems.

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Answered on 4/30/08, 3:51 pm


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