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An Overview Of The Common Types Of Business Disputes

Sep 10, 2019 | Articles

Business Disputes

Business disputes can be an unavoidable cost of running any type of business, and typically, arise between businesses or companies when they disagree over the terms of a contract that binds both parties. However, a business dispute can occur in any number of ways depending on many factors, including the nature of each business involved, their history of dealings, as well as state and local jurisdictional laws.

Role Of A Business Dispute Attorney:

It should be noted that even seemingly minor business disputes can be very complicated, time-consuming and difficult to resolve. A business dispute attorney can help the parties resolve a business dispute, whether through binding arbitration, mediation, or litigation, and can help resolve your case favorably and quickly in order to save resources.

Common Types Of Business Disputes:

Business disputes mainly arise or result from various types of transactions or conduct, but there are certain types of business disputes that are more common than others. Businesses that specifically appoint contractors, business partners, purchasers, or suppliers often have disputes over the contract terms. For example, one party might not believe they were paid the proper contract price. Or, a party might believe that they weren’t delivered the goods or service they were promised, or the delivery of the product was outside of the agreed-upon timeframe. Contract disagreements, regardless of the case, can form the basis for many types of business disputes.

Businesses that deliver goods or services to customers can also have disputes with their customers, which can involve issues such as whether the goods or services were delivered or up to the standard expected. Businesses typically offer implied warranties that the products sold are functional and operational. Claims against the business can often be filed when the products are not up to these standards, or if the products harm any consumers.

Employment claims are often filed in relation to businesses, particularly in relation to hiring, promoting, and termination practices. Businesses aren’t allowed to discriminate or harass their employees; those that do expose themselves to business claims and several legal consequences.

Last, but not least, business disputes can also arise from the unapproved or unauthorized use of trade secrets, confidential information, intellectual property, and other sensitive or protected business information. An example of this is where one company uses the logo of another business without their permission. A business dispute, in such cases, can arise over any of the profits generated by the unauthorized use of the logo.

Tips To Prevent A Business Dispute From Occurring:

Although businesses generally can’t make themselves immune from all legal liability; they can, however, limit the possibility of certain business disputes from happening by creating sound policies and procedures governing day-to-day interactions with employees and transactions with other businesses, which may reduce the possibility of disputes.

When it comes to hiring and firing their employees, businesses should have clear policies in place, too. A proficient employment attorney may help you draft such policies so that you remain consistent with current business and employment laws.

If you are a business that works directly with retail customers, using liability waivers or making sure all products have clear and visible product warnings can help avoid liability for injuries caused to consumers.

Resolving Business Disputes:

  1. It may be necessary to rely on a small claims court filing if your business is unable to prevent a dispute, which can help address or resolve outstanding bills, debts, or employment issues, but only when the damages amount falls within the small claims’ filing limitations.
  2. In a business contract, businesses may often use an Alternative Dispute Resolution (“ADR”) clause. Clauses of these types require that any legal disputes relating to the contract be resolved through binding alternative measures besides the court, such as arbitration or mediation. It should be noted that these types of dispute resolution processes must generally be exhausted before a lawsuit can be filed.
  3. Arbitration is a type of process for resolving disputes between two parties outside of the standard court system, which is, however, similar to a standard trial in that both parties must argue their case before an “arbitrator” who reviews the claims and arguments of the disputing parties and then decides on a workable resolution that can benefit both parties.
  4. Mediation is yet another similar type of conflict resolution process between multiple parties, which is also facilitated by a neutral third-party (the mediator). Keep in mind that mediation is not the same as arbitration, in that the mediator does not make an actual decision regarding the parties and the resolution. Instead, the sole aim and responsibility of the mediator is to try to help the parties come to a workable resolution on their own.
    One party may have to file a lawsuit against the other for damages or other business remedies if the parties are unable to resolve their business outside of traditional court channels. That is where a business dispute lawyer comes.

Call Florida Entrepreneur Law at (954) 800-0484 for a consultation. We will fight to help you achieve the best end result, which we do with the end goal of keeping your costs low and resolving the matter efficiently and expeditiously.

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