Tuesday, 17 May, 2011 09:06
Written by Scott Nyman

By Scott Nyman
When speaking with potential clients, I often get asked, “So why shouldn’t I just use a service like LegalZoom?” This is a big question, and requires a big answer. So big, in fact, that I am answering this question in a series of articles.
Previously, I have addressed the work product and services you may receive by using online legal document generation services, such as LegalZoom. This week, I will cover just how these services guarantee their work. In the next article, I plan to discuss the value provided by online legal document generation services. Also, since I deal with patents and other intellectual property, I finish the series with an article about using sites such as LegalZoom for patents, trademarks, and copyrights.
And, as a block copy disclaimer from the previous article, I am a lawyer and I do make a living by providing legal services to (paying) clients. However, I only provide my services to advise clients that will benefit from legal representation. If a person is not ready for a patent, or if they are trying to patent the common fork, I will inform them that they do not yet require the services of a patent attorney.
So, how much do online legal document generation service, such as LegalZoom, stand behind the product they produce? How much faith should you put into the documents generated by such services? To avoid appearing biased, below I am going to include a collection of quotes from the terms and conditions of the most popular online legal document generation service, LegalZoom (http://www.legalzoom.com/terms-of-use.html, http://www.legalzoom.com/satisfaction-guarantee.html, and http://www.legalzoom.com/terms_of_service.html). Similar to my last article, I will also follow the quoted language with my personal comments.
First, as you may notice on the front page, LegalZoom DOES offer you a “100% Satisfaction Guarantee.” Let’s dig into how they define your satisfaction, and how they guarantee it.
“If you’re not satisfied, simply call us toll-free at (800) 773-0888 during our normal business hours. All requests made under this guarantee must be made within 60 days of purchase.”
You be the judge as to whether 60 days may be enough time to determine if the documents can hold up against litigation from a zealous opposing counsel.
“Please note that we cannot guarantee the results or outcome of your particular procedure. For instance, the government may reject a trademark application for legal reasons beyond the scope of LegalZoom’s service. In some cases, a government backlog can lead to long delays before your process is complete. “
“Problems like these are beyond our control and are not covered by this guarantee.”
I wonder if this covers the situation where a customer uses LegalZoom to draft a patent application, and two years later (considering the current USPTO backlog) a patent Examiner objects to your claims because they lack antecedent basis. Is the customer not allowed to be dissatisfied?
“Since we’re dedicating time and effort to your legal document preparation, our guarantee only covers satisfaction issues caused by LegalZoom – not changes to your situation or your state of mind.”
Here’s a wild question. Is going from a satisfied state to an unsatisfied state a change of one’s state of mind? Oh, and thank you for spending the time LegalZoom, but I thought your services were automated.
“LegalZoom.com provides an online legal portal … to provide an automated software solution to individuals who choose to prepare their own legal documents.”
So aside from your 100%* (*conditional) satisfaction, what other guarantees can a customer of LegalZoom enjoy?
“At no time do we review your answers for legal sufficiency, draw legal conclusions, provide legal advice or apply the law to the facts of your particular situation.”
Not legal sufficiency.
“Accordingly, while communications between you and LegalZoom are protected by our Privacy Policy, they are not protected by the attorney-client privilege or work product doctrine.”
Not confidentiality.
“…the legal information on this site is not legal advice and is not guaranteed to be correct, complete or up-to-date.”
Not the use of current or correct law.
“LegalZoom is not responsible for any loss, injury, claim, liability, or damage related to your use of this site or any site linked to this site, whether from errors or omissions in the content of our site or any other linked sites, from the site being down or from any other use of the site.”
Not any loss, injury, claim, liability, or damages you may incur from using LegalZoom.
“LEGALZOOM MAKES NO WARRANTY THAT … THE RESULTS THAT MAY BE OBTAINED FROM THE USE OF THE SITE, OR ANY MATERIALS OFFERED THROUGH THE SITE, WILL BE ACCURATE OR RELIABLE.”
“In short, your use of the site is at your own risk.”
In short, not anything.