canna law blog

Doing Business with Pot Businesses #2: Cannabis Business Contracts

The best cannabis contracts are those that never need to be enforced. The most important goal in contract negotiation is for the parties to determine their obligations and when those obligations are due to each other. Everything else is secondary. That said, things can and do go wrong in business transactions. Maybe a party tries to

canna law blog

Oregon’s Hazy Law on Smoking Marijuana in “Public Places”

So where exactly are people now allowed to smoke marijuana in Oregon? I get this question often from business clients, who understand that smoking marijuana in public is generally verboten. In the business context, the real question is whether the subject business constitutes a “public place” in the eyes of the state. If the answer

canna law blog

Marijuana Taxation: 280e Ain’t Getting Better Anytime Soon

The marijuana industry is finally beginning to experience meaningful movement on the national level, slowly chipping away at federal prohibition. With the most recent Cole Memo, FinCEN guidelines, legalization in two additional states and D.C., improving Veteran access to cannabis for medical use, and a tiny take-down of at least one significant federal barrier to marijuana

canna law blog

Marijuana Product Recalls: You Can’t Touch This

We’ve blogged before about products liability and the cannabis industry and we all know it’s just a matter of time before a plaintiff successfully sues a marijuana company for injuries caused by a defective marijuana product. When most businesses hear the term “products liability,” they start to sweat and then to pray that their insurance carrier will

canna law blog

Cannabis Businesses Laws: It’s Almost All Local

Cannabis businesses far too often come to one of our cannabis lawyers after they’ve opened their doors in violation of applicable local laws. Making matters worse is that they never learn of their violation by poring over their city or county code in their spare time; they find out by being on the wrong end of a

canna law blog

The Future of Marijuana Licensing: Greater Barriers to Entry?

We’re starting to see a distinct trend with state-sanctioned marijuana operational licenses: the “pay-to-play, greatest barrier to entry” model. In this sort of system, there is usually some combination of the following, all geared towards reducing the number of cannabis businesses actually granted a license and towards making sure that those with licenses are very well-funded:

canna law blog

Top 10 Marijuana Industry Red Herrings

A red herring is “something that misleads or distracts from a relevant or important issue.” Sad to say the marijuana industry has more than its fair share of red herrings, including the ten that are most prevalent these days: Federal enforcement memos mean the Feds are taking it easy on the marijuana industry. We wish this

canna law blog

Inaccurate Marijuana Testing Will Lead To Lawsuits

The media is currently abuzz about the inadequacy of lab testing for marijuana and marijuana infused products, which once again raises a critical issue for business owners: lawsuits. There are circumstances under which marijuana producers, processors and retailers alike can be held liable for a defective product, even without any knowledge of the defect. Anyone

canna law blog

Marijuana Commercial Leases: This Industry Is Different, You Know

As so many of you know, few landlords are willing to rent to marijuana businesses. They are afraid of the very real possibility of losing their property in a federal civil asset forfeiture action. The federal government has been known to seize property being used for cultivating, manufacturing, or selling marijuana. In the last seven

canna law blog

Marijuana And The SEC

One of my clients sent me a link to this story, asking me to comment on whether it was really newsworthy. My response was not really; the U.S. Securities and Exchange Commission’s (SEC) decision to allow a listing of Terra Tech Corp. is not a major surprise. It is progress, yes, but it was also somewhat inevitable,