Legal Information

Firm news, insights on new laws, and frequently asked questions.

24 2026-10

What should I do if I have agreed to both arbitration and litigation?

If the provisions stipulating both arbitration and litigation are invalid as a whole, the parties may file a lawsuit according to statutory jurisdiction or supplement the arbitration agreement afterwards; any objection to the validity of the agreement shall be raised before the first hearing of the arbitration tribunal.

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24 2026-10

Can the contract stipulate which court to file a lawsuit in?

The contract may stipulate in a written agreement that the court with jurisdiction over the dispute shall be the court located at the defendant's domicile or the place of performance, etc., which have an actual connection with the dispute, but it shall not violate the provisions on hierarchical jurisdiction and exclusive jurisdiction.

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24 2026-10

What should I do if the agreed arbitration institution does not exist?

If the agreed arbitration institution does not exist or the agreement is unclear, a supplementary agreement can be signed to re-select it; if no supplementary agreement can be reached, the arbitration agreement will be invalid, and the case will be brought to the court at the defendant's domicile or the place of performance of the contract for litigation.

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24 2026-10

Can an enterprise's proactive compliance rectification help reduce the penalties it faces?

The enterprise can be given a lighter or mitigated punishment according to law if it takes the initiative to comply with regulations and make corrections: Article 32 of the Administrative Punishment Law stipulates that if the enterprise takes the initiative to eliminate or mitigate the harmful consequences, it shall be given a lenient punishment. It is advisable to make corrections as soon as poss...

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24 2026-10

Can I apply for a reduction or exemption if the administrative fine is too high?

The principal amount of the fine generally cannot be reduced or waived afterwards, but it can be mitigated, applied for a deferral or paid in installments; the penalty for overdue payment is 3% of the principal amount per day, and the total amount cannot exceed the principal. It is possible to seek a reduction or waiver through an enforcement agreement.

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24 2026-10

Can the company appeal against an administrative penalty?

The company has the right to make a statement and defend itself if it is subject to administrative punishment. Article 45 of the Administrative Punishment Law stipulates that if the defense opinion is well-founded, it shall be adopted and the punishment shall not be aggravated because of the defense; for more severe punishments, the company may apply for a hearing, which must be submitted within f...

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24 2026-10

Is the non-compete clause imposed on employees valid without a compensation agreement?

The non-compete agreement without an economic compensation clause is not necessarily invalid: after the employee has fulfilled his obligations, he may request compensation equivalent to 30% of his average monthly salary during the 12 months prior to his departure. If the employer fails to pay the employee within three months, the employee may terminate the agreement. The maximum duration of the ag...

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24 2026-10

How to evaluate and price the intellectual property contributed as investment for shareholding?

Investment in intellectual property must be evaluated and transferred in accordance with the law. According to Article 48 of the Company Law, it can be evaluated using the income method, the market method, and the cost method. If the investment is not genuine, the difference should be made up. It is recommended to conduct a thorough investigation of the ownership before transferring the ownership.

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24 2026-10

What responsibilities do those who engage in the practice of fake orders and fraudulent reviews need to bear?

Forging orders and fabricating reviews may be subject to a fine of not more than 1 million yuan. If the circumstances are serious, the fine shall be not less than 1 million yuan but not more than 2 million yuan, and the license may be revoked; the infringed party may claim compensation, and the organizers may also bear criminal responsibility if the circumstances are serious.

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24 2026-10

Is the non-compete agreement valid if it doesn't specify the scope of the restriction?

The non-disclosure agreement is not necessarily invalid if the scope is not specified: The court shall, in accordance with the rules of contract interpretation in the Civil Code, determine the scope based on the actual knowledge of the trade secrets and the competitive relationship, and the term shall not exceed two years. The part exceeding the necessary limit shall be invalid.

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24 2026-10

Can articles generated by artificial intelligence enjoy copyright protection?

Whether AI-generated articles enjoy copyright protection depends on the human's creative contribution: purely automatically generated content is not protected, but content with substantial intellectual input can constitute a work. Platform contracts may affect ownership, and users should pay attention to proper labeling and avoid infringement risks during use.

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24 2026-10

What items should be listed on the list of sealed medical records?

The list of sealed medical records shall specify the time, place, persons present, the number of pages of the medical record title, the form of the carrier, and be signed by both parties; the sealed medical records can be unsealed after three years, and the cost of copying the medical records can be charged. In the event of a dispute, the medical records should be sealed immediately.

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