Any business must prepare for the possibility of business litigation. The potential exists for nearly every company in the U.S., and the larger the enterprise the more likely lawsuits will crop up from time to time.
Lawsuits come from other companies, employees or customers.
The most likely business lawsuits
Business News Daily lists the most common lawsuits that might visit a company. A breach of contract occurs when someone accuses a company of failing to carry out the terms of a contract. This type of legal action could take many forms, from failing to pay an employee a negotiated wage to failing to deliver a product on time. The following situations also often result in business litigation:
- Slip and fall accidents
- Premise liability
- Discrimination against employees
- Discrimination against customers
- Harassment charges
- Workplace injuries or illness
Intellectual property rights disputes occur frequently, too. This could involve an argument over the proper use of a logo or the co-opting of a competitor’s unique idea.
The possibility of partnership disputes
Forbes takes a look at another common source of business litigation: partnership disputes. These disagreements often end up in a court of law in the form of a company dissolution or an intractable argument. This common source of lawsuits makes it a priority for potential partners to take a serious look at who to partner with. Some steps can make disputes less likely to occur:
- Choose a compatible partner
- Do not argue with a future partner
- Take an unbiased view
- Use creativity to solve problems
- Craft a clear contract
Business partnerships eventually inevitably involve complex issues. Litigation is often the only way to clear up certain disputes.