Commercial litigation is sweeping the country. 36% to 53% of small businesses face a lawsuit every year.
ContentsBreak of contractNon-competition issuesInsurance disputesBreach of obligationFraudIntellectual propertyThe essence of business litigationSome of these lawsuits are legitimate, while others are fraudulent. Almost all lawsuits can be avoided if both parties know the law and their rights.
What exactly happens in the event of a breach of contract? What problems can arise from a non-competition clause? What is intellectual property and what can a company do to protect its ideas?
Answer these questions and you can avoid costly business litigation in a few simple steps. Here's your quick guide.
Breaches of contract are the cause of many commercial disputes. Two people can enter into a written or verbal agreement with each other.
Any term of this agreement may be violated. One person may not provide a product that the other is requesting. Someone may not deliver the goods in a timely manner or pay someone for their work.
You can prevent many violations from occurring. Get everything you need for a successful business partnership in writing. Write a description of the expectations you have for a position and include several agreements in the document.
You must specify what your steps will be if the person has a dispute over the contract. You can use mediation or arbitration, and you can talk about legal jurisdiction. In the event of a breach of contract, you must contact business lawyers to protect your rights.
Many contracts contain a non-competition clause. An employee cannot work for a competing company for a few years after leaving their current job. They cannot share classified information like customer lists with their new business.
A number of non-competition issues may arise. An employee can breach the clause and work for a competing company after leaving their job. But the clause itself may be poorly drafted or a company may file an improper lawsuit.
A company must be careful when drafting its clauses. They should be led by a team of lawyers who specialize in business litigation. An employee who is about to sign a contract should contact a lawyer to see if the clause has legal value.
Non-competition lawsuits are evolving rapidly as they involve current business practices. Both parties want to resolve the conflict as soon as possible.
This may mean that one party offers the other a settlement. Both parties should take the time to draft the terms of the settlement and devise approaches to avoid future disputes.
Most insurance disputes arise after a provider refuses to cover a claim. They can refuse because they have misrepresented their services. But they can refuse because the customer violated the policy through malpractice or negligence.
On rare occasions, a company may refuse to extend coverage to its employees. This has become a problem with the COVID-19 pandemic. Some companies are refusing to extend workers' compensation coverage to employees who contracted COVID-19 on the job.
It is very important for business owners to review the terms of their insurance contracts. They have to execute the agreements by lawyers before signing them. Any differences in interpretation or ambiguous language should be ironed out.
A duty is a high standard of care that one should naturally expect of another. A customer can expect a company to prioritize security. They will keep their information confidential and provide a safe space to meet with employees.
A customer or vendor can sue for breach of duty when this standard is not met. A breach of duty may include aspects of civil and commercial law such as sexual harassment and privacy violations. This means that you should find a lawyer experienced in different types of laws.
A lawsuit for fraud can arise after many incidents. Someone can deceive another person by selling a counterfeit product. Someone can misrepresent themselves, claiming they have more experience than they actually do.
An employee can commit fraud against his own company. This may involve stealing from the company or covering up an accident.
Fraud can damage an entity's reputation and result in criminal penalties. Both parties involved in the dispute should be careful and spend a lot of time talking to each other. Lawyers must investigate the relevant issues and determine whether the fraud has criminal dimensions.
Intellectual property covers copyright, patents and trademarks. It can also extend protection to trade secrets, even if a business cannot record them. Google "hayes hunter trade secrets" to find out how you can protect your secrets.
An employee may leak trade secrets to the media, which violates company intellectual property. A company can steal someone else's copyright by reproducing their original works.
Intellectual property lawsuits can be costly and time-consuming. The defendants lost millions of dollars at trial for violating someone's copyright protections.
You must protect your own intellectual property by filing a protection request. You must file a patent and trademark application with the government. You should also talk to any vendors who will replicate your products so they don't steal your ideas.
Business litigation covers many business practices. A breach of contract occurs when the terms of a contract are violated.
Non-competition and insurance issues are breaches of contract. They can be expensive, so both parties need lawyers.
A breach of duty relates to the expectations of a service provider. A customer expects a company to protect them, and they can sue the company when they don't. Fraud and intellectual property violations can devastate a business.
The more you are aware of your rights, the more you can defend yourself. Find additional legal guides by following our coverage.
