Structuring Enforceable Contracts in the Cannabis Industry: Managing Risk Under State and Federal Law
Subject Matter Description and Contract Invalidation, Choice-of-Law and Marijuana-Friendly Courts, Arbitration Provisions
Recording of a 90-minute CLE webinar with Q&A
This CLE course will examine contractual enforcement issues presented by the conflict between the legalized use of marijuana in many states and its treatment as a controlled substance under federal law, and guide counsel through structuring contracts with cannabis-related businesses. The panel will review how courts have ruled on the interpretation and enforcement of these agreements, explain the potential risks associated with their use, and provide best practices for carefully drafting provisions to mitigate those risks given the current regulatory environment.
Outline
- Risks of entering into a contract in the cannabis industry
- Federal law enforcement policies and state law conflicts
- Cannabis-related contract enforceability issues
- Recent judicial decisions
- Specific techniques counsel should consider when drafting contract clauses for cannabis businesses
- Preliminary statement
- Express acknowledgment of marijuana illegality
- Subject matter description and contract invalidation
- Choice-of-law, venue, and conflict-of-law provisions
- Severability terms
- Independent consideration
- Remedies
- Arbitration and mediation clauses
- Best practices for different types of cannabis-related contracts
- Additional legal concerns for counsel representing marijuana businesses
Benefits
The panel will review these and other high-priority issues:
- What are the risks of entering into a contract in the cannabis industry?
- What are the practical implications of federal and state law conflicts?
- What are the primary marijuana-related contract enforceability issues?
- How effective is arbitration as a dispute resolution mechanism for cannabis-related business contracts?
- What are the specific techniques counsel should employ when drafting arbitration clauses for cannabis businesses?
- What concerns should counsel have regarding remedies given the illegal nature of the subject matter under federal law?
- What are the most marijuana-friendly jurisdictions?
Faculty
Jeffrey S. Gard
Founder
Gard Law Firm
Mr. Gard represents numerous patients, doctors and marijuana businesses throughout the state of Colorado and has... | Read More
Mr. Gard represents numerous patients, doctors and marijuana businesses throughout the state of Colorado and has advised people from all over the country. He advises both state and local governments in their development of medical marijuana business regulations. Mr. Gard is widely considered one of Colorado’s leading marijuana attorneys. Since the passage of Amendment 64, which legalized adult possession and cultivation of marijuana in Colorado, he has been working with state and local officials in developing regulations for the retail marijuana industry and was appointed by the state to participate in the rule-making progress. Over the last several years, Mr. Gard has been working with the U.S. Congress to assist with an analysis of the Federal Code to determine the various areas which are impacted by the state marijuana laws in hopes of reconciling state and federal law in the near future.
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Katy M. Young
Managing Partner
Ad Astra Law Group
Ms. Young’s areas of practice are mainly business and commercial litigation, including partnership disputes,... | Read More
Ms. Young’s areas of practice are mainly business and commercial litigation, including partnership disputes, breach of contract, computer fraud and abuse litigation, financial services litigation, business torts, professional negligence, and general counsel work. She also handled real estate disputes including non-disclosure matters, construction defect, neighbor disputes, and landlord/tenant issues. Many of Ms. Young’s clients are cannabis businesses, breweries, tech companies, and various startups- all of which reflect the San Francisco Bay Area’s best and brightest. Ms. Young is a member of the Board of Directors of the National Cannabis Bar Association and is a frequent presenter on cannabis law issues.
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