• September 08

How and Why Business Litigation Happens

If you have a thriving business, then it’s crucial to reduce the risk of litigation. When something doesn’t go as planned, it can lead to serious impacts on profit, flow of operations, and reputation in the community. Business owners are wise to consult with a lawyer about how they can safeguard their company from litigation that can have a drastic impact on the success of their business. So why does litigation happen in the first place? Here are questions many business owners have about how and why litigation occurs. 

What causes a breach of contract?

No matter what field your business is in, there will come a time when you will have to use a contract. Whether that be to outline the agreements between business partners, contractors, vendors, clients, employees, or someone else. The purpose of contracts is to list every party’s responsibilities and duties. If a contract is not written well, then disputes can quickly develop that need to be resolved as soon as possible. A breach of contract can happen when one party fails to uphold their terms of the agreement, and this is true for both an oral and written contract. The parties may choose to resolve the issue between themselves or in court. 

What is intellectual property infringement?

Intellectual property infringement is a violation of an intellectual property right. For instance, using another party’s trademark, design, image, etc., without proper permission from the rights owner, may constitute intellectual property infringement. Business owners must register their logos, slogans, patents, copyrights, and trademarks. By taking the steps to register these with help from a lawyer, such as a team member from Silverman Law Office, PLLC, a business owner is more protected against intellectual property infringement. And if infringement were to occur, then a business owner will have the necessary documentation to support their claims. 

How can a business respond to employment discrimination claims?

A business may face a lawsuit for harassment, wrongful termination, discrimination, and more. Federal laws protect employees from being treated adversely due to a protected characteristic, including disability, age, pregnancy, sex, religion, and race. Business owners can respond to claims about employment discrimination by recognizing when a complaint has been made, choosing an investigator, gathering more information from the employee, speaking to witnesses, reviewing documentation, avoiding committing retaliation, and taking appropriate action to remedy the situation. 

There are a multitude of reasons why business disputes happen. Many people get help from a law office as soon as they suspect litigation is on the horizon, such as a business litigation lawyer Montana business owners trust from Silverman Law Office, PLLC. Litigation can have a serious impact on the success of a business, which is why it should be responded to with a sense of urgency and tact. And even better yet, business owners are encouraged to take litigation preventative measures before their company launches. Business owners who take precautions now can help reduce the likelihood of litigation occurring in the future. 

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