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  • 2018-10-15
  • 4 minutes Read
Whether the Testimony would be Valid, if the Witness fails to appear in Court?

Company A sued Company B for default. Company B provided a written testimony from its warehouse staff, Chen, in which Chen said that he had not received any relevant goods, and the signature of the recipient on the receipt was not his. However, Chen did not appear in the court. Company A claimed that because the witness failed to appear in court, his testimony should not be deemed as a valid evidence. Then, if a witness fails to appear in court, whether his/her testimony shall be deemed valid? The validness of such testimony shall be decided case by case. Overall,…

  • 2018-09-30
  • 3 minutes Read
“E-Commerce Law” will come into force on 1st Jan, 2019.

The fundamental law for the e-commerce industry —- “E-Commerce Law” has been issued on 31st Aug., 2018, and will come into fore on 1st Jan., 2019. The promulgation of this law has prescribed many regulations on the obligations and liabilities of the e-commerce operator, and other aspects, which might impact the parties who are involved in e-commerce transactions. “E-Commerce Law” is divided into 7 chapters and 89 articles, including the definition and obligations of e-commerce operators, the formation and implementation of e-commerce contracts, the dispute resolution and so on. In practice, the disputes between consumers and e-commerce operators are very…

  • 2018-09-30
  • 3 minutes Read
Pay Attention to the Change of a Registered Trademark Registrant’s Information

There is a misunderstanding on the management of registered trademarks that once the trademark has been registered, the registrant only has to pay attention to the renewal procedure. However, if the registrant changes its name or address and etc., it shall file the relevant changes to the Trademark Office in time, otherwise, someday, it might encounter unexpected risks. Risk No.1: The registered trademark might be revoked due to failure to file the changes in time. Paragraph 1, Article 49 of “Trademark Law” stipulates, where, in using a registered trademark, the registrant changes the registered trademark, the name or address of…

  • 2018-09-30
  • 4 minutes Read
The Application of the Penalty Rule for Deposit

Both parties agreed in the purchase contract that if the seller delays the delivery for more than 15 days, the deposit amount to RMB100,000 shall be refunded, and the seller shall also undertake the default fine amount to 20% of the total price. Later then, the seller failed to deliver on time, the buyer filed a lawsuit to the court, and required the seller to refund doubled amount of the deposit, in addition with the default fine. Whether the court would support the buyer’s claim? This question brings out 2 sub-questions. Whether both parties could agree to rule out the…

  • 2018-08-15
  • 3 minutes Read
“Interpretation of the Supreme People's Court on Several Issues concerning the Application of the Extinctive Prescription Rules in the General Provisions of the Civil Law of the People's Republic of China” (“Interpretation”) shall come into force on July 23, 2018.

Since the implementation of “General Provisions of Civil Law” on October 1, 2017, the difference on the Extinctive Prescription Rules between this law and “General Principles of Civil Law” has not been solved. Recently, the Supreme People’s Court issued the “Interpretation”, and clarified several rules. The details are as follows: 1.The two-year or one year prescriptive period has been abolished. Where the prescriptive period begins after “General Provisions of the Civil Law” come into force, the provision of Article 188 of “General Provisions of the Civil Law” on a three-year prescriptive period shall apply. A party’s claim for the application…

  • 2018-08-15
  • 3 minutes Read
Risks Related to the Jurisdiction Objection

Company A and Company B entered into a sales and purchase contract, in which it prescribed that the disputes should be under the jurisdiction of the court where Company B is located. Later, Company B filed a lawsuit to the court for the dispute on the payment under this contract. Company A immediately filed a jurisdiction objection, with the reason that the contract was performed where Company A is located. The court of the first instance dismissed the jurisdiction objection. Company A filed an appeal. At this time, Company B got to know that Company A might be transferring important…

  • 2018-08-15
  • 4 minutes Read
Is it Legal to Pay Social Insurance in the Name of a Third Party?

Company A is headquartered in Shanghai. The employees who are working in the Hangzhou office of Company A, and they require Company A to pay social insurance in Hangzhou. Since Company A has not establish a branch in Hangzhou, it could not obtain an independent social insurance account, it has to entrust a third party to sign labor contracts with those employees and pay social insurance for them. The HR department is still worried about this arrangement. In practice, due to many reasons, it is not rare for a company to entrust a third party to pay social insurance for…

  • 2018-08-01
  • 3 minutes Read
The First “White Paper on Trials of Cases with the Non-competition Restrictive Covenant Disputes was Issued by Shanghai No.1 Intermediate People's Court” on July 5, 2018.

On 5th July, 2018, Shanghai No.1 Intermediate People’s Court issued the first “White Paper on Trials of Cases with the Non-competition Restrictive Covenant Disputes” (hereinafter referred to as the “White Paper”). The “White Paper” has selected 5 typical cases, and put forward the judicial judgement standards in dealing with the relevant disputes from 5 aspects, which has a certain guiding significance for the practical operation. 1.Where an employee is obliged to the non-competition restrictive covenant, shall not be employed by another employer which engages in production or business in the same type of products or provision of the same type…

  • 2018-08-01
  • 3 minutes Read
The Determination on Changing Registered Trademark without Approval

In commercial activities, in order to cater to the promotion design style or for other reasons, many trademark owners might change registered trademarks. For example, if a registered trademark containing characters and pictures, the owner might use the 2 elements separately. However, these changes may be accompanied with legal risks. Article 49 of “Trademark Law” prescribes that where, in using a registered trademark, the trademark registrant changes the registered trademark without approval, ……the local administrative department for industry and commerce shall order the registrant to make correction within a prescribed time limit; and if the registrant fails to do so…

  • 2018-08-01
  • 4 minutes Read
How Important Leave Request Procedure Is?

Due to the bone hyperplasia, Jia submitted the application for sick leave and proofs to the department head. The department head approved the application, but the HR department refused to approve, because proofs did not meet the requirements, and the general manager did not approve as well. Later, the company dissolved the labor contract with Jia, by the reason that proofs submitted by Jia did not meet the requirements as stipulated in the “Employee Handbook”, in which an employee should provide the diagnosis of the hospitals designated by States Social Security Administration, the records of the diagnosis(medical records, payment receipts)…