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What are common lawsuits for small businesses?

On Behalf of | Dec 18, 2020 | Business Disputes

As a small business owner, one of your top priorities is probably making sure that you protect your business. Most business owners take a hands-on approach to running the company. This enables them to make the decisions they feel are best, but there’s a major concern that they have to think about. What will happen if there is a lawsuit against the company. 

What types of lawsuits do small businesses typically face?

There are four primary types of lawsuits that might be levied against a small business. These include:

  • Contract disputes: These hinge on one party breaching the terms of the contract. Fully understanding the terms of every contract your company enters into can help to prevent these lawsuits.
  • Employment issues: Always be sure that you’re following employment laws. It’s possible that an unhappy employee or former employee is grasping at straws with the lawsuit, but being sure that there aren’t holes in your employment policies is beneficial.
  • Claims of fraud: Misleading customers and similar matters can lead to a lawsuit against your company. Getting immediate legal representation is imperative in these cases because developing a defense strategy may be a complex undertaking.
  • Intellectual property claims: It’s easy to get confused about what kind of intellectual property is in the public domain and what isn’t, but that can lead to big problems.

What can a small business owner when faced with a lawsuit?

One of the best things for a small business owner to do if they’re facing a lawsuit against their business is to find representation they can trust. Trying to work through a defense strategy for a lawsuit can take up considerable time if they don’t have assistance. Working closely with an attorney can help the business owner to focus on running the company while the lawyer works on the case. 


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