What are the most common small business lawsuits?
Small business lawsuits arise for a variety of reasons.
It's difficult, if not impossible for businesses, especially small businesses, to avoid disputes. Even if a business owner did everything right most days, one small mistake one time could land them in hot water. All it takes is one unsatisfied employee or one interaction with a disgruntled customer to expose them open to a lawsuit.
Some of the most common reasons for small business lawsuits include:Employee complaints:
- Harassment
- Discrimination
- Wrongful termination
- Overtime pay
- Wage and hour violations
Vendor complaints:
- Breach of contract
- Misrepresentation of product or services
Customer complaints:
- Fraud or misrepresentation of product or services
- Defective products
- Personal injury lawsuit
Competitor complaints:
- Intellectual property claim
- Unfair competition
- Defamation
What can a small business do to avoid lawsuits?A small business may not want to spend the money for legal advice, but in the long run, having contracts drafted, companies structured, and complaints handled, by a professional legal team will save a small business not only money but valuable time.
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