Category Archives: Articles

Various legal articles from the law firm of Zamzow Fabian PLLC.

Executive Order No. 2020-21: General Public.

Zamzow Fabian PLLC is a law firm, this is meant as general information, contact us directly before relying on the broad statements made herein. That is, the information contained herein must not be construed as legal advice. Every business and situation is different. To receive legal advice that may be relied upon, you must consult directly with your legal counsel.

Section 14. Penalty: “Consistent with MCL 10.33 and MCL 30.405(3), a willful violation of this order is a misdemeanor.”

Section 1. Interpretation. This order must be construed broadly to prohibit in-person work that is not necessary to sustain or protect life.

Section 2. Order. [A]ll individuals currently living within the State of Michigan are ordered to stay at home or at their place of residence. [A]ll public and private gatherings of any number of people occurring among persons not part of a single household are prohibited.

However, abridged from section 2 includes exemptions.

Individuals may leave their homes if necessary to: (section 7(a))
(1) undertake outdoor recreational activities;
(2) critical infrastructure activities (healthcare, public health, necessary government functions, work on behalf of needy persons, work on behalf of disabled persons, and work on behalf of persons who are suffering from COVID-19, and persons who are designated as critical infrastructure by their employers (may be oral until March 31, 2020 at 11:59 pm);
(3) maintain minimum basic operations (as designated by employer) i.e. maintain the value of inventory and equipment, care for animals, ensure security, process transactions like payroll and benefits, and facilitate other works to work remotely;
(4) those government operations (as also listed in #2 above, section 6 of EO);
(5) to perform necessary health and safety functions;
(6) obtain supplies (use delivery to the maximum extent possible);
(7) care for a family member or a family member’s pet (even in another household);
(8) care for minors, dependents, elderly persons, and persons with disabilities;
(9) to visit persons in health care facilities;
(10) to attend court proceedings of essential or emergency purposes (court ordered);
(11) to work or volunteer as described in #2 above.
(12) travel between your own homes and residences, and as required by court order or law enforcement.

Full Text of EO 2020-21: https://www.michigan.gov/whitmer/0,9309,7-387-90499_90705-522626–,00.html

Criminal Liability for Disobeying Shelter-in-Place (or equivalent) Executive Order No. 2020-21.

Michigan’s Govenor Gretchen Whitmer ordered the closure of all physical business locations, unless exempt. However, many of the exemptions do not apply if they otherwise would (i.e. the order does apply) if the work can be reasonably done remotely. Speak with an attorney before keeping your business open to avoid (a) a criminal penalty, (b) causing unnecessary exposure through close person-to-person contact, and (c) public backlash for noncompliance.

What happens if I violate the order? A 90-day misdemeanor, see MCR 10.33 and MCR 30.405. While there is some ambiguity in the order, it is in the interest of you and your neighbors to obey the spirit of the order.

What does the order say? In essence, Executive Order 2020-21, says do what we can to suppress the spread of COVID-19. It orders individuals to shelter in their place of residence beginning March 24, 2020 at 12:01 am, continuing through April 13, 2020 at 11:59 pm unless exempt.

Relevant to a law firm, court proceedings are permissible, however other lawyer activities are not.

Permissible activities. You may leave your residence for medical care or another other essential service, or care for family members. You can obtain necessary supplies, food, medicine, cleaning products, fuel, etc. You can undertake outdoor activities, and you can work as a critical infrastructure worker. People must abide by physical distancing (more often called “social distancing”) of six feet or more. When maximally possible: “[i]ndividuals must secure such services or supplies via delivery…”

Critical infrastructure workers “are those workers described by the Director of the U.S. Cybersecurity and Infrastructure Security Agency in his guidance of March 19, 2020 on the COVID-19 response (available here).” This includes some workers in each of the following sectors: Health care and public health; Law enforcement, public safety, and first responders; Food and agriculture; Energy; Water and wastewater; Transportation and logistics; Public works; Communications and information technology, including news media; Other community-based government operations and essential functions; Critical manufacturing; Hazardous materials; Financial services; Chemical supply chains and safety; and Defense industrial base.

But it is the spirit of the order that is most important to protect others and yourself.

What about my employees? If you have specific questions about your particular employment situation, you may contact Zamzow Fabian PLLC for more information. Including naming certain individuals to act in certain essential functions.

Michigan Antitrust Law and Restrictive Covenants in Employment Agreements

In Michigan, antitrust law generally prohibits agreements or practices that restrain trade or competition. However, Michigan law also recognizes a limited exemption for restrictive covenants in employment agreements, such as non-competition agreements and non-solicitation agreements.

Under Michigan law, restrictive covenants are generally enforceable if they are reasonable in scope, duration, and geographic area, and if they are necessary to protect a legitimate business interest of the employer. Such interests may include protecting trade secrets, confidential information, customer relationships, or the investment of time and resources in training employees.

The Michigan antitrust exemption for restrictive covenants in employment agreements is rooted in the Michigan Antitrust Reform Act (MARA), which was enacted to modernize and clarify Michigan antitrust law. MARA includes a provision that exempts certain types of agreements from the general prohibition on restraints of trade, including agreements between an employer and employee relating to the employment relationship.

The Michigan Supreme Court has interpreted this exemption of restrictive covenants to allow for the enforcement where reasonable, as long as they are necessary to protect legitimate business interests, do not pose an undue burden on the employee’s ability to work, and do not harm competition in the marketplace.

However, it is important to note that the enforceability of restrictive covenants in employment agreements can vary based on the specific facts and circumstances of each case. Courts will consider factors such as the employee’s job duties, the length of the restriction, the scope of the geographic area, and the overall impact on competition in the relevant market.

Moreover, Michigan law also imposes specific requirements for the enforceability of non-competition agreements, such as requiring that they be in writing, signed by the employee, and provided to the employee at the time of hire or as a condition of continued employment.

In conclusion, Michigan antitrust law recognizes a limited exemption for restrictive covenants in employment agreements, such as non-competition and non-solicitation agreements, as long as they are reasonable in scope and necessary to protect legitimate business interests. However, employers should be aware of the specific requirements and limitations imposed by Michigan law, and should carefully evaluate whether such agreements are appropriate for their particular circumstances.

Understanding the Uniform Commercial Code (UCC)

The Uniform Commercial Code (UCC) is a set of laws that governs commercial transactions in the United States. It was first published in 1952 and has since been adopted in some form by every state in the country. The UCC provides a standardized set of rules for buying and selling goods, financing transactions, and other commercial activities.

Here are some key aspects of the UCC that attorneys should be familiar with:

  1. Article 2: Sales

Article 2 of the UCC governs the sale of goods, including contracts for the sale of goods, warranties, and remedies for breach of contract. It defines what constitutes a “good” and provides rules for determining when title to goods passes from the seller to the buyer.

  1. Article 3: Negotiable Instruments

Article 3 of the UCC governs negotiable instruments, such as checks and promissory notes. It provides rules for the transfer of these instruments and establishes the rights and obligations of parties involved in these transactions.

  1. Article 4: Bank Deposits and Collections

Article 4 of the UCC governs bank deposits and collections. It provides rules for the transfer of funds between banks, and establishes the rights and obligations of parties involved in these transactions.

  1. Article 9: Secured Transactions

Article 9 of the UCC governs secured transactions, such as loans secured by personal property. It establishes the rules for creating and enforcing security interests in personal property, including the requirements for perfection and priority of these interests.

  1. Electronic Transactions

The UCC has been amended in recent years to address electronic transactions. Many provisions of the UCC, including those relating to negotiable instruments and secured transactions, have been updated to reflect the use of electronic records and signatures.

In conclusion, the Uniform Commercial Code is an essential body of law for attorneys who work in the area of commercial transactions. It provides a standardized set of rules for buying and selling goods, financing transactions, and other commercial activities, and has been adopted by nearly every state in the United States.

The Carmack Amendment: What Brokers Need to Know

The Carmack Amendment is a federal law that regulates the interstate transportation of goods. It provides a framework, and exclusive cause of action, for determining liability for loss or damage to goods during transit and sets forth procedures for filing claims against carriers.

As a broker, it is important to understand the provisions of the Carmack Amendment and how they impact your business. Here are some key things to keep in mind:

  1. Liability for Loss or Damage

Under the Carmack Amendment, carriers are generally liable for loss or damage to goods that occur during transit. However, this liability is not absolute and is subject to certain limitations.

  1. Filing Claims

If goods are lost or damaged during transit, shippers or their brokers must file a claim with the carrier within a specified time period. Failure to do so can result in the loss of the right to recover damages.

  1. Defenses to Liability

Carriers can assert certain defenses to liability under the Carmack Amendment, such as the “act of God” defense. However, carriers must prove that the loss or damage was caused by an event beyond their control and not the result of their own negligence.

  1. Limitation of Liability

Carriers can limit their liability for loss or damage to goods by including provisions in their contracts with shippers. These provisions must be written and agreed to by both parties in advance.

  1. Insurance Requirements

Brokers should ensure that carriers have adequate insurance coverage for the goods they are transporting. This can help protect against losses that exceed the carrier’s liability under the Carmack Amendment.

In conclusion, the Carmack Amendment is an important federal law that brokers must be familiar with. Understanding the provisions of the Carmack Amendment can help brokers protect their clients’ goods and ensure that they are adequately compensated in the event of loss or damage during transit. If you have questions about the Carmack Amendment or need assistance with a transportation-related matter, consult with an experienced transportation law attorney who can provide guidance and assistance.