As your business scales, your exposure to legal risks increases. In some cases, this entails dealing with documents such as cease and desist letters. But what are they, exactly? What to do if you receive one? Keep reading to find out.
What Is a Cease and Desist Letter?
As the name suggests, a cease and desist letter is a written document that notifies a person that they are incurring in an illegal activity and asks them to stop said activity, or else they’ll face legal action.
Cease and desist letters are a common tactic used by businesses to stop people from engaging in unwanted behavior, so don’t panic if you are served with one.
Here are some key facts you need to know about cease and desist letters:
- Cease and desist letters are NOT filed in court and do NOT automatically lead to lawsuit
- Cease and desist letters are NOT enforceable; their purpose is solely to serve as a warning
- Even with all the above in mind, you should never ignore a cease and desist letter
What Do I Do if I Receive a Cease and Desist Letter?
The first thing you should do if you receive a cease and desist letter is to talk to a lawyer you trust.
The assistance of an attorney is essential because, as EBL Law Group Managing Partner Estefan Encarnacion puts it, “There’s just so much that you are expected to know as a business owner. If you don’t know what you’re getting yourself into, you’re going to get railroaded”
Encarnacion cites the example of a restaurant owner who received a cease and desist letter from a mixed martial arts promotion company because the restaurant was allegedly showing fights without permission.
“It was a pretty intense letter,” Encarnacion says. The substance was “If you don’t stop immediately, we are going to pursue litigation.”
“That’s the reason why corporations put all these disclaimers,” Encarnacion explains. “They mean it.”
And that’s why you should always seek the assistance of an attorney if you get a cease and desist letter. The good news is that all you have to do to schedule a free consultation with EBL Law Group, is to click on this link and fill out a short form.
We look forward to assisting you with even the most challenging legal matters. To learn more about this topic, read our blog “Can a Cease and Desist Letter Be Mailed?“
DISCLAIMER: The material on this website is for general information only and is not to be construed as legal advice or opinion, and does not constitute or create an attorney-client relationship between you and EBL Law Group.
EBL Law Group: Business Attorneys in Rancho Cucamonga
We are a team of lawyers determined to provide legal representation of the highest level to all our clients.We are located in Rancho Cucamonga, California. Call us at (909) 581-4351 for a free consultation, or fill out the contact form on this website to get in touch with our team.
For more business law tips, read our previous blogs, “3 Things You Need To Do Before Starting Your Own Business” and “What Is a Lawyer Retainer?”