Donn wrote:Rick Denney wrote:Normal daily business seems to me to include requesting payment from a deadbeat customer.
As he has been doing. I think the question that just got chewed over was whether your proposal to threaten a customer with seizure also falls within that ordinary business routine. Apparently it isn't obvious that it does.
Well, in my example wording, I did back the threat down to "pursuing" sale of the instrument. If he talks to a lawyer, it's that pursuing? What else would he do? Would that really be criminal, as was suggested? Personally, I can't imagine it.
My experience with attorneys is that they always present reasons for doing nothing (or consulting more), and always risk in doing anything. I've never yet heard a lawyer say that a given course of action eliminates risk. I understand the rant--I've had business responsibilities for a long time and I'm not unaware of those risks.
Think of it this way: If the repairs to the sousaphone cost $600, then the profit on those repairs (after Harv covers his overhead and pays himself) will only be about $60. If he gets billed $300 for an hour of an attorney's time, he has to do five times as much work to overcome the loss of profit. (I'm not one who thinks sole proprietors should think of their salary to themselves as profit.) So, it takes $3000 worth of work to pay for a $300 legal bill or you're losing money. So, while it's easy to fall back on the low-risk recommendation to consult a lawyer, there's already considerable risk in just doing that--if it's unlikely that doing so will generate (or save) $3000 worth of revenue.
Of course, the lawyers one might consult aren't paying for it or considering the amount of business one needs to bring in to overcome even a modest legal bill, so they overestimate the risk ratio of not doing so.
When incorporating, writing policy documents, reviewing someone else's proposed contract for a large transaction, reviewing large transactions, business mergers--those are the times when the risk ratio is much more favorable for some attorney time. I don't think anyone should expect Harv to spend $300 chasing $60 in profit, and too often people compare the $300 against the possible gross revenue and not to the profit on that revenue, which doesn't seem to me good business. But it is also seems to me utterly unreasonable to expect him to eat it.
Hence, were I in Harv's shoes, I would write a letter demanding payment, with the threat to
pursue the sale of the instrument to pay the bill if the payment isn't made. I would only change my mind if a PA attorney told me that doing so was criminal (civil I wouldn't care about--nobody is going to bring a civil action in a case like this), but if that was the case, I'd move. What Harv decides to do is up to him--he's had an opportunity to hear a lot of perspectives.
Rick "who would also start demanding a deposit" Denney