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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37952
Experience:  Retired (mostly)
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I'd like to know what is the right legal way to generate

Customer Question

I'd like to know what is the right legal way to generate home remodeling sales leads on the web and sell them to local contractors.
I need to put an agreement together to have lead buying contractors sign
Need to protect us from exposure the contractors' activity with end clients.
Submitted: 12 months ago.
Category: Business Law
Expert:  socrateaser replied 12 months ago.

Hello,

Bus. & Prof. Code Section 7152 defines a "home improvement salesperson" as "a person employed by a home improvement contractor licensed under this chapter to solicit, sell, negotiate, or execute contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs."

The code section does not define the term, "employed." Nor does any California Court of Appeals decision. Consequently, under well established rules of statutory interpretation, the term is defined by its plain meaning, which is a person who is subject to the control of an employer as to the manner and method of his labor. What this means is that if you are running a website (e.g., homeadvisor.com, angieslist.com, etc.), as an independent business, and you allow contractors to register for referrals in the system, without your specifically generating leads to the specifications of the contractors, then you are not subject to the contractors' control -- rather the contractors are simply using your website to advertise their services. Thus, you do not need to register as a home improvement salesperson.

Creating a specific contract for your website would depend on a thorough understanding of your particular business model. This is not something that can possibly be accomplished in this forum, because it is a bona fide legal service, which is unlawful to perform in this forum. Moreover, it would require hours of consideration and legal contract drafting. If that's something you would be interested in, I can send you an additional services offer, and we can take this offline (customary legal services fees will apply).

If not, then I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

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