by Jack Guarnieri, PinballSales.com & ShuffleAlley.com

A Good Lawyer is a Must

Recently I heard a story about an operator who suddenly passed away. He was not really sick but apparently he had a health issue that went undetected. His business was still there, but he was gone. His second wife wanted her uncle to take over the business. His will called for his natural son, meaning her stepson to take over the business. Last I heard, they were going to court. I don’t really know what happened, but that’s not the point.

People in business sometimes find themselves with an opportunity to go into a partnership. It makes sense that different parties with the same goal in mind would be able to meld their time, talents, financial abilities and commitment to create a bigger and/or better company.

When operators buy equipment and owe notes on that equipment, the right and title is usually still in the sellers name, usually the distributor who sold the equipment to the operator. Now the operator places that equipment on location. What protection does the operator have if the equipment is stolen or lost in a fire, flood or other event?

That new location you have been working on finally comes through. You plan out everything, what games to operate and where they will be placed. Now all you need to do is collect your money, right?

These are four examples where many different outcomes are possible. A common thread is that all four of these examples should involve an attorney in the planning stage as well as during the operation of the business.

We have all heard the lawyer jokes and they are funny. Many people look at attorneys as a last resort or a necessary evil in their business lives. Attorneys charge a lot of money and dealing with them is often likened to a visit to the dentist.

I know some businessmen who do not practice business, but I also know several attorneys who no longer practice law. They have told me that they do not like to deal with other lawyers! All of that may be true, but it’s still important to get yourself a good corporate attorney who can help guide, grow and protect your business.

It took me a long time to follow this advice myself but, out of necessity, I was fortunate to find a law firm that could represent my interests. We know that everything should become a learning experience but there is a cost attached to that education. The cost is financial and emotional, plus it takes time and commitment. 

When you have an attorney write or review a contract there will always be changes between parties. Once you negotiate those changes and sign the contract you really need to trust that the other party will honor what it says and what they promised to do. If they violate the contract, you will then need to spend time and money to make the ink on those papers come alive in the form of action.

At that point an attorney may become necessary to protect your interests. Better yet, if you bring your attorney into your business beforehand and they have an understanding of what you do and how you do it, they can advise you along the way and not just when you have a legal problem. My attorney David calls it Prophylactic Law.

Don’t wait until you have a legal problem to retain an attorney. Do it before you have a legal problem. Take the time to meet with different attorneys and find out what their practice specializes in. Find a firm that can offer different strengths to meet your needs. If you are fortunate to form a relationship with an attorney, have trust in them and take their advice. You’ll be paying for it. But not taking their advice will cost you a lot more in the long run!

Jack Guarnieri started fixing electro-mechanical pinball machines in 1975 and has been involved in every phase of the coin-op game business since then. He operated a substantial game route in Brooklyn, N.Y., developed amusement centers and was called in as a consultant to manage Mondial Distributing and State Sales in New Jersey. In 1999, he founded PinballSales.com to sell coin-op to the home market. In 2002, he founded ShuffleAlley.com and released the Parker Bohn III Pro Bowler game, reviving the shuffle alley. His positive attitude, honest insights and opinions have made him a popular figure in the trade. While managing and growing his businesses, he still consults inside and outside the industry, and his marketing, promotional and business management expertise are widely sought. He's very active in his church, community and charitable causes as well. You can learn more at his websites (www.PinballSales.com and www.ShuffleAlley.com) or by phoning him at 866/323-JACK. Email is Jack@Pinballsales.com.