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What are some forms of business litigation?

On Behalf of | Apr 13, 2022 | Business Litigation |

Starting up a new business can be an exciting time for many people, but if you are planning to make the leap into the business world, you should know that a courtroom visit might be in your future. Many businesses face legal disputes, and you should know what kinds of lawsuits you might face or initiate as a business owner.

According to Business News Daily, there are certain kinds of lawsuits that could arise over the course of operating a business.

Suing over a breach of contract

Your business contracts form the legal basis of your relationship with a vendor, a client or another company. If you or another party to the contract fail to live up to the agreement, it could result in a lawsuit. Common examples of a breach of contract include a failure to render payment for goods or services, violating a non-disclosure agreement, or rendering incorrect or inferior services.

Litigation from a company car accident

Your business may have one or more company vehicles that your drivers use to transport goods and supplies to customers. However, you should understand your liability exposure when it comes to your vehicle fleet. Problems may arise if your company vehicle becomes involved in an automobile accident. Your business might become the target of litigation for negligence.

Breaching intellectual property rights

Establishing your company name, putting content on your business website and creating your products should include making sure that you do not violate the intellectual property of another business or an individual. Anything including product designs, photographic images, video, music, or a company logo may be under legal protection. If a court finds you have copied one or more of these forms from another party, you could end up paying a lot in damages.

The possibility of avoiding litigation

While preventing all forms of litigation might not be possible, you can avoid many kinds of lawsuits by understanding the laws that your business operates under. You may avoid civil rights suits by knowing how to treat your employees. Your company might also need workers’ compensation insurance to help employees who suffer an injury on your property. Also, make sure your contracts contain understandable provisions and protect your rights.

Given the variety of business litigation that exists, you should anticipate possible ways your business could incur liability so that an unnecessary lawsuit does not financially ruin your enterprise.