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Common Lawsuits Your Business May One Day See (and How to Save Face)

Common Lawsuits Your Business May One Day See (and How to Save Face)

September 5, 2019

For business owners, a lawsuit is something that is always on their mind, but most never really think it could really happen to them. However, many business owners will need to deal with a lawsuit at some point, be it from a customer, employee or client. The following are some of the most common lawsuits business owners see. Here's how you can help protect your reputation.

Breach of Contract

Breach of contract essentially means that you didn't do exactly what was agreed upon in the initial contract. Examples of this include failing to deliver a product or service, providing damaged goods, not staying within the agreed-upon timeline and so on. Management must attempt to save face with their customers in order to maintain a well-respected business after a contract dispute. This does not mean going online and trying to explain yourself. Instead, customers want to know that you have understood the situation and learned from it. 

Product Liability

Product liability lawsuits are often filed after people are injured by a company's products. They tend to be aimed at the manufacturer or business that placed the product into a person's hands, but more often than not, both are sued. So, how do you go about making sure you are protected? You'll want to know what constitutes a product liability case in order to know what you need to do to properly handle one if the time comes. Businesses who have had conflicts over defective products should research their reputation. Check reviews for any signs of uncertainty from your customers and figure out how you can address their concerns.

Intellectual Property

The internet has provided us a plethora of ideas to implement into our businesses, but it can also place us in a situation for a potential lawsuit. Similar logos or phrases can often ignite a lawsuit against your company for illegal use of intellectual property. You may not have done this intentionally, but it is nevertheless a bad look for your company. This type of lawsuit can have a severe impact on your business as customers may believe that you are merely a copy of a better product. Therefore, business owners can consult with their lawyers before making any company logos or phrases public.

Owning your own business comes with incredible opportunities to do meaningful work and be paid for it. However, with all good things also come potential liabilities. Keep this information in mind to stay prepared in case of a legal dispute.

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