To Make Or Not To Make The Cake? (Long)

Decorating By xiswtsawluiix Updated 17 Nov 2009 , 10:33pm by pattycakesnj

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-K8memphis Posted 16 Nov 2009 , 12:31pm
post #31 of 98
Quote:
Originally Posted by aundrea

it sounds like your company as well is unaware of the laws reguarding selling a cake that is not from a licensed business.
sounds innocent enough-but there may be severe consequences.
do you want to make this cake? if so can the cake be donated to the party? i can see why you are on the fence with this? especially at this time of year-extra money would be beneficial.




What are the severe consequences? I'm serious. What are they?

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springlakecake Posted 16 Nov 2009 , 1:11pm
post #32 of 98

I understand what it is like to be on both sides. I do have a legal business now in my home with a separate commercial kitchen that we installed. I am not going to tell you that I never sold a cake before we put the kitchen in. But I was pretty careful about the orders I accepted. I mainly just did the cakes for people I knew or maybe friends of friends. I did turn down a few big orders becasue I wasnt legal. It just didnt feel right and I was worried a little-like you. Probably everything would have been fine. But you know what? it was the kick in the pants I needed to become legal. I hated turning down the orders so it really got me thinking about how I was going to make this work. I figured that (for me) it was going to have to stay at being a hobby, or I was going to have to go for it.

I think the fact that you work for the company makes it a little better. If you didn't I would feel pretty uncomfortable doing it (if it were me). I understand that everyone starts somewhere, I really do. But I think if you are going to get serious about it and start taking large orders, then it is probably a good idea to look into legalizing a business.

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springlakecake Posted 16 Nov 2009 , 1:16pm
post #33 of 98
Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by aundrea

it sounds like your company as well is unaware of the laws reguarding selling a cake that is not from a licensed business.
sounds innocent enough-but there may be severe consequences.
do you want to make this cake? if so can the cake be donated to the party? i can see why you are on the fence with this? especially at this time of year-extra money would be beneficial.



What are the severe consequences? I'm serious. What are they?




Well obviously you could be shut down and fined by the reglulating authority. You could be sued if someone were to get sick. Chances are no one is going to get sick eating cake, but it can happen. People have been sued over it. My health inspector lady told me that she knew of a case that the norovirus (I think) spread through cake (icing I think) because the person making the cake was sick. I just wasnt willing to put my family on the line over cake, that is why I got legal and got insurance icon_biggrin.gif

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Mike1394 Posted 16 Nov 2009 , 1:35pm
post #34 of 98
Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by aundrea

it sounds like your company as well is unaware of the laws reguarding selling a cake that is not from a licensed business.
sounds innocent enough-but there may be severe consequences.
do you want to make this cake? if so can the cake be donated to the party? i can see why you are on the fence with this? especially at this time of year-extra money would be beneficial.



What are the severe consequences? I'm serious. What are they?




In MI Kate it's a misdemenor punishable up to 89 days, and $500. Is that severe enough?

Mike

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-K8memphis Posted 16 Nov 2009 , 1:39pm
post #35 of 98

I have never been legal from my home and I do a random cake here and there. I realize we all have our differing opinions on this. And these are my thoughts, cafeteria style, take 'em or leave 'em.

First and foremost, if I'm not a business there's nothing to shut down.

And I think proper sanitation is of course crucial but to me if we focus on the most disastrous things possible we'd all hide under the bed. If somebody's gonna get sick from your cake then it doesn't matter if you're legal or not.

You don't have to be legal to have business insurance.

People don't always wily nily sue people over dumb stuff. There is some amount of reasonableness to any lawsuit. I think it's wise to consider the ramifications of all of our actions. But a random cake for your own workplace is not dangerous or illegal nor does it have negative consequences.

These are just my ideas.

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-K8memphis Posted 16 Nov 2009 , 1:40pm
post #36 of 98
Quote:
Originally Posted by Mike1394

Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by aundrea

it sounds like your company as well is unaware of the laws reguarding selling a cake that is not from a licensed business.
sounds innocent enough-but there may be severe consequences.
do you want to make this cake? if so can the cake be donated to the party? i can see why you are on the fence with this? especially at this time of year-extra money would be beneficial.



What are the severe consequences? I'm serious. What are they?



In MI Kate it's a misdemenor punishable up to 89 days, and $500. Is that severe enough?

Mike




For baking a cake for your own workplace?

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-K8memphis Posted 16 Nov 2009 , 1:44pm
post #37 of 98

I mean I can see that if you are running a cake business from an unlicensed place sure fines and jail time. But I don't see it for baking a cake for your own workplace.

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LaBellaFlor Posted 16 Nov 2009 , 1:51pm
post #38 of 98

She is not baking a cake for her work place, she is selling a cake to her work place. When money is involved it is a business transaction, perios. And I'm sure the I.R.S. sees it that way too. Heck, if you barter goods the I.R.S. expects you to put a value to it & report that. And just cause your local health department doesn't feel like being bothered with a few illegally sold cakes here and there, it doesn't mean that they still aren't illegally sold cakes.

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Mike1394 Posted 16 Nov 2009 , 1:59pm
post #39 of 98
Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by Mike1394

Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by aundrea

it sounds like your company as well is unaware of the laws reguarding selling a cake that is not from a licensed business.
sounds innocent enough-but there may be severe consequences.
do you want to make this cake? if so can the cake be donated to the party? i can see why you are on the fence with this? especially at this time of year-extra money would be beneficial.



What are the severe consequences? I'm serious. What are they?



In MI Kate it's a misdemenor punishable up to 89 days, and $500. Is that severe enough?

Mike



For baking a cake for your own workplace?




There is no distinction of who it's for. If you sell from an unlic. that's the risk.

Mike

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-K8memphis Posted 16 Nov 2009 , 2:24pm
post #40 of 98

"Hey, what are you in for." embezzling, extortion, kidnapping.

"Hey what are you in for." Oh I baked a cake.

I'll be writing the prison epistles then. icon_biggrin.gif

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-K8memphis Posted 16 Nov 2009 , 2:26pm
post #41 of 98

I do not mean you all, each of you, my cyber Cake Buddies, but legalism bores me to death. <yawwwwwwn>

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G_Cakes Posted 16 Nov 2009 , 2:32pm
post #42 of 98
Quote:
Originally Posted by xiswtsawluiix

Quote:
Originally Posted by CakeMommyTX

Is this your company party or a random business that found you?



It is for the company party I work at. A colleague from the holiday party planning committee approached me to make a cake for the holiday party after she saw a cake I made for a friend. She said the company would pay for the cake.




I would go ahead and do it...you work there so it's not a big deal IMHO.

My husbands works asked me to make cupcakes for their year end inventory...8 dozen of them and I said sure they offered to pay me for but all I asked was that they cover the ingredients and supplies that I needed to make everything.

They gave me my expenses and were nice enough to buy me a some cake tools that I just couldn't afford as a token of their appreciation.

If you plan on becoming a legal baker in the future this would be a great opportunity to add to your portfolio...don't stress it, make it and enjoy it!

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__Jamie__ Posted 16 Nov 2009 , 2:42pm
post #43 of 98
Quote:
Originally Posted by K8memphis-

Quote:
Quote:

The concept of a trade secret would come into play if the baker refused to provide the information on the basis that they have value in their unique recipe. The scenario you propose is different. In that scenario the issue depends on the meaning of "scratch." The Tennessee Consumer Protection Act, TCA Section 47-18- 104, lists unfair or deceptive acts which are prohibited. This section of the law contains a provision that states:
"Engaging in any other act or practice which is deceptive to the consumer or to any other person;"

This catch-all provision could be applicable to your proposed situation. The issue will be the parties understanding of the term "scratch." If this involved a written contract, the term would likely be defined in that agreement. In your scenario this appears to be a verbal agreement. As such, the common meaning of the term would be appropriate to consider. Webster's Dictionary defines "scratch," in this context, as "to scrape together" or to "collect with difficultly or by effort." See: http://www.merriam-webster.com/dictionary/scratch

Dictionary.com includes the idiom, "from scratch" which the source indicates the meaning "from the very beginning" or "from nothing." See: http://dictionary.reference.com/browse/scratch

The issue remains the understanding of the consumer and baker in determing if the use of the term is deceptive when a baking "mix" is used in part rather than starting "from nothing." Even baking flour has been processed to a certain degree so few chefs truly start "from nothing" when baking "from scratch." The term "scratch" is subjective. If the baker used a mix, but also added to the mix to make it their own unique combination of ingredients the client would not likely be succesful in a suit based on the consumer protection act.

To bring such an action, the plaintiff would need to show the baker was deceptive. Based on the definition and usage of the term "scratch" in cooking and considering that most ingredients are premade to some degree, it seems unlikely that the baker would be considered to be acting deceptively. If the customer had addressed the issue directly and asked if any mix was used and the baker deceived the client, then the client could likely file a consumer protection act cause of action and potentially be succesful.

The determining factor will be deception. The term "from scratch" alone is rather vague and does not clearly indicate deception is present when a mix is used in combination with a bakers own blend of other ingredients. If the goal is to avoid an angry client and a potential suit, the best route is to disclose the use of the mix and provide a written agreement defining "from scratch."

Thank you





Quote:
Originally Posted by K8memphis-


I do not mean you all, each of you, my cyber Cake Buddies, but legalism bores me to death. <yawwwwwwn>




I agree! icon_cool.gificon_lol.gif

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khoudek Posted 16 Nov 2009 , 2:45pm
post #44 of 98

Are you selling the cake to them or are you gifting it as a donation? The legality of this has to do with if you are trying to make a profit without a licensed kitchen inspected by the health dept. If you are donating the cake as an individual with cake decorating expertise I don't see a problem. It won't get you a profit, but I imagine people would take notice of your skills and keep that in mind when you do become legal. Tell the lady you would love to donate your time if she reimburses you for the ingredients so you don't want to incur the cost.

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AmandaGudi Posted 16 Nov 2009 , 2:53pm
post #45 of 98

I definitely think you should do it. I agree with the post above mine that the company should reimburse you for the cost. If your own company asked you to bring in a cake and are reimbursing you for the cost then I don't think that is a problem at all. Since when can you not bring treats into work? I've brought my practice cakes into work frequently and the employees were thrilled...if anyone has a problem with it then they shouldn't eat it. They all knew I made it and no one seemed to have an issue with it. And if the company is going to reimburse you for the cost then that's awesome!

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-K8memphis Posted 16 Nov 2009 , 2:54pm
post #46 of 98

That quote is a posting of what a lawyer said.

Jamie, are you equating asking a lawyer a question with legalism?

Quote:
Quote:

Main Entry: le·gal·ism
Pronunciation: \\ˈlç-gə-ˌli-zəm\\
Function: noun
Date: 1928
1 : strict, literal, or excessive conformity to the law or to a religious or moral code <the institutionalized legalism that restricts free choice>




I err consistently on the side away from legalism.

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__Jamie__ Posted 16 Nov 2009 , 2:57pm
post #47 of 98
Quote:
Originally Posted by K8memphis-

That quote is a posting of what a lawyer said.

Jamie, are you equating asking a lawyer a question with legalism?

Quote:
Quote:

Main Entry: le·gal·ism
Pronunciation: \\ˈlç-gə-ˌli-zəm\\
Function: noun
Date: 1928
1 : strict, literal, or excessive conformity to the law or to a religious or moral code <the institutionalized legalism that restricts free choice>



I err consistently on the side away from legalism.




icon_biggrin.gif No, pointing out the whole process of legalism/lawyers/law/to the letter of the law/answers from lawyers always being long and winded....is exhausting. Not what you wrote, not what lawyer wrote....the whole package of it. Ouch! Aspirin STAT! icon_smile.gif

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-K8memphis Posted 16 Nov 2009 , 3:00pm
post #48 of 98

What if they asked her to make the spaghetti?

Do spaghetters or lasagnites get jail time too?

What about the Parkerhouse rollers?

What if she was a barrista and she did cafe macho mocha loco miatata's?

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cjford Posted 16 Nov 2009 , 3:00pm
post #49 of 98

I guess this is a serious thing in some states. Maybe I should check the laws of LA, but then I've bought A LOT of cakes from people that I know wasn't licensed and have NEVER heard of anyone getting in trouble. I guess they just sell to friends of friends. I don't plan on running a business out of my kitchen, but I don't see a problem with making a celebration cake every now and then and getting paid for it. IMHO that is!!

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Mike1394 Posted 16 Nov 2009 , 3:03pm
post #50 of 98

K8 go to the medicine cabinet take the needed dose. LOLOL icon_biggrin.gif

In MI if you produce ANY kind of edible item it is punishable.

Mike

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cjford Posted 16 Nov 2009 , 3:09pm
post #51 of 98

I just checked and it's NOT legal in Louisiana...interesting...I know people that have been doing it for YEARS...making cakes, squares, cookies, food for showers, etc. I guess someone would have to complain for them to get in trouble. I don't see that happening b/c they mostly do it for family, friends and friends of friends. The things I find out on CC!!! I'll just keep my opinion about that to myself!

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-K8memphis Posted 16 Nov 2009 , 3:14pm
post #52 of 98
Quote:
Originally Posted by Mike1394

K8 go to the medicine cabinet take the needed dose. LOLOL icon_biggrin.gif

In MI if you produce ANY kind of edible item it is punishable.

Mike




I bet dispensing medical advice is probably prohibited too.
Although I'll see you that dose & raise you one!

Cheers icon_biggrin.gificon_lol.gif

Good thing I don't live in Michigan huh. They were fixing to prosecute babysitters last month too. Cra.zee.

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Mike1394 Posted 16 Nov 2009 , 3:21pm
post #53 of 98
Quote:
Originally Posted by K8memphis-

Quote:
Originally Posted by Mike1394

K8 go to the medicine cabinet take the needed dose. LOLOL icon_biggrin.gif

In MI if you produce ANY kind of edible item it is punishable.

Mike



I bet dispensing medical advice is probably prohibited too.
Although I'll see you that dose & raise you one!

Cheers icon_biggrin.gificon_lol.gif

Good thing I don't live in Michigan huh. They were fixing to prosecute babysitters last month too. Cra.zee.




Maybe ten yrs ago. There was a guy that made a kickin cannoli cream. The best there ever was. He was making $$$$ hand over fist. He mentioned to someone that he was having to move from his house to an actual factory to produce it. Next thing you know he no longer has a house, or business.

Mike

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-K8memphis Posted 16 Nov 2009 , 3:25pm
post #54 of 98

I mean he did not say yes to making cannoli cream for the office get together once--he had a b.u.s.i.n.e.s.s.

I see a vast difference in the two scenarios. 1984 much?

I understand that some of us do not see a difference.

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Mike1394 Posted 16 Nov 2009 , 3:29pm
post #55 of 98
Quote:
Originally Posted by K8memphis-

I mean he did not say yes to making cannoli cream for the office get together once--he had a b.u.s.i.n.e.s.s.

I see a vast difference in the two scenarios. 1984 much?

I understand that some of us do not see a difference.




There isn't a difference. You provide service, you take $$$ for service, you have a business. Doesn't matter profit, how large, how small.

Mike

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-K8memphis Posted 16 Nov 2009 , 3:37pm
post #56 of 98
Quote:
Originally Posted by Mike1394

Quote:
Originally Posted by K8memphis-

I mean he did not say yes to making cannoli cream for the office get together once--he had a b.u.s.i.n.e.s.s.

I see a vast difference in the two scenarios. 1984 much?

I understand that some of us do not see a difference.



There isn't a difference. You provide service, you take $$$ for service, you have a business. Doesn't matter profit, how large, how small.

Mike




I understand your point, my friend. I disagree.

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khoudek Posted 16 Nov 2009 , 3:48pm
post #57 of 98

K8memphis, I think here in TN we're a little luckier than MI as we're able to bake from home via the farm market ruling. There are strict health rules as to food storage, prep areas etc., but nonetheless doable. I find it interesting though how some states views homebaking business a no go while others accomadate these cottage industries. Who knows, maybe MI will eventually allow it if people get on the bandwagon there. The state is definitely missing out on some tax revenue.

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Loucinda Posted 16 Nov 2009 , 3:54pm
post #58 of 98

There is no tax revenue from it here in Ohio, we don't tax food products! (there is tax however on delivery fees or rental fees that may be charged)

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-K8memphis Posted 16 Nov 2009 , 3:58pm
post #59 of 98
Quote:
Originally Posted by khoudek

K8memphis, I think here in TN we're a little luckier than MI as we're able to bake from home via the farm market ruling. There are strict health rules as to food storage, prep areas etc., but nonetheless doable. I find it interesting though how some states views homebaking business a no go while others accomadate these cottage industries. Who knows, maybe MI will eventually allow it if people get on the bandwagon there. The state is definitely missing out on some tax revenue.




I'm not lucky here at all. I know TN has those allowances. They do not help me in Shelby County doing celebration cake. That comes under catering rules & regulations.

Several different cake buddies who did run businesses as opposed to doing a handful of cakes a year--I mean one of 'em had a phone book ad and I know they did bridal shows--they were all shut down here recently.

But yeah if Michigan is that literal they do need to lighten up maybe that would eventually help them out of the heart breaking economic condition.

I know some people go for every jot an tittle of every letter of every law but not me.

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Mike1394 Posted 16 Nov 2009 , 4:01pm
post #60 of 98
Quote:
Originally Posted by Loucinda

There is no tax revenue from it here in Ohio, we don't tax food products! (there is tax however on delivery fees or rental fees that may be charged)




Do you get small business tax?

Mike

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