How To Avoid Business-Related Litigation?

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Rather than wasting your resources on litigation, working to prevent getting yourself into that situation as much as possible is a lot more favorable for your business. Yes, that is a highly-attainable goal. But how? – you might ask. Perhaps one of the most effective ways is to ensure that all your business-related transactions are free from loopholes that anybody can use to his advantage. In connection with that, it is imperative that you know very well the most common issues brought to litigation processes so that you can avoid any legal battle and settlements yourself.

Based on some studies, the following are the common reasons why businesses end up in courtrooms:

• Buy-sell agreement loophole – this usually occurs between companies and their minority shareholders. Many companies overlook ‘buy-sell’ provisions in their shareholder agreements. Remember, an intelligent business owner knows the importance of this provision because he knows that this gives the company the right to buy out a minority shareholder according to a stipulated price formula.
• Employer-employee-related issue – this is another yet a common cause of litigation. As an employer who is thinking for the welfare of both sides (the company and its employees), it is imperative that you have company policies that are crystal clear and they should be clearly written in the handbook so that both parties can avoid any potential legal battle. A law firm who has lawyers who have expertise in both business law and litigation can really be a big help; thus, it would be an advantage in your part if you have one for your business.
• Purchase and sales – many companies also have issues brought to courtrooms because of disagreements with their customers. To avoid this happening in your business, it is important that you and your lawyer review the terms and conditions pertaining to purchase and sales agreement.
• Copyright and Intellectual Property Rights – very important to any business entity and is also a common cause of many litigation happening today. It imperative that you pay close attention to this area as your company might experience what other companies are having. For instance, as simple as your business name can be a cause of a legal predicament. A lawyer who is expert in civil litigation should be able to help you in working for trademark and should be able assist you as you process trademark protection at the U.S. Patent and Trademark Office. Remember, trademark, copyright, patent – these are not only applicable to company names; they are for works that are produced out of intelligence and innovations as well (e.g. new inventions, established processes, designs, etc.)

Again, a law firm with lawyers who are experts in both business law and litigation can be a big help for you to avoid business-related litigation, which is necessary for you  to run your company smoothly and achieve your business goals.