The right to settle all one’s own professional disputes is not simply given away. A commitment to settle in court needs to be signed. Once given, the consent is irrevocable.
Comfortably Numb to Legal Responsibility
Peddling professional services with a half done commitment can be a short lived pretense for good business. A contract to sell real estate can fall through, and the buyer left with no options to recover fees. With a real estate license application in limbo, it is too easy to rest on one’s own rules and ignore the laws both sides took advantage of. A casual attempt to settle differences, ending with no movement in position, simply avoids any financial responsibilities.
Overconfidence in Ethics Not Enough for Simple Security
Business does not always go smoothly. Professional characters range from patronizing and cheap to merely inquisitive. With all the ins and outs of business deals, your client may not always get their bang for their buck. An auctioneer from out of state, in Minnesota, can have to put up with a claim on antique furniture given a low bid when they hold their line on bottom cost. An off-hand attempt to dignify the bid could do nothing more than upset the auctioneer.
A dedication to professional justice can prevent any shoddy attempts to resolve differences. Court settlement is not out of the question. But, states have traditionally asked professional real estate agents, auctioneers, corporation heads and sole proprietors to get a license to practice. In California, if you want to be a registered franchisor, you have to file an irrevocable consent agreement. As part of the agreement, the professional signs an application with a statement of irrevocable consent to submit to a court’s jurisdiction when summoned.
The credentials can not be forgotten. Any client or customer can serve the professional with a summons to appear in court.
The Humility of Having An Agent
Refusal of service is not first hand. A Florida real estate agent appoints the Director of the Division of Real Estate to receive process. The California franchisor picks the corporations commissioner. For the Minnesota auctioneer, it is the Secretary of State that first gets their hands on the summons to appear in court. They each rely on an expert’s judgment for the formality.
The advantage is an agent is always ready to receive a summons and accept or refuse. The document does not have to be laid in the hands of a professional on the move. The process can go smoothly.
Legal proceedings can end business discord. Instead of going to all lengths to strike a good deal, the professional can end the situation in court. Fulfilling the commitment serves them well.
California Corporations Code Sec. 31155
Application with Irrevocable Consent, Application by Nonresident Auctioneer, as Required by Minnesota Statutes, Section 330.11, Subdivision 1, 2 and 3
State of Florida Department of Business and Professional Regulation, Irrevocable Consent to Service for Real Estate