When people discuss lawsuits relating to businesses, most tend to think about high profile multi-million dollar litigation involving large companies suing each other for violation of intellectual property rights or lawsuits by individuals with a personal injury defense lawyer to claim that the business was responsible for their injuries. An example being the woman injured by McDonald’s coffee which had been heated to temperatures in extreme of most coffee makers. For those who find themselves involved in a business lawsuit, they might want to get in touch with someone like these business litigation attorneys Austin, TX to help them with their case.
Moreover, in case you were not already aware, from a legal perspective, personal injury refers to physical or psychological injury or illness that is caused by the negligence of another. A successful personal injury claim will typically result in financial compensation for the injured party. Consequently, you can learn more about some of the different arguments that legal professionals arguing for damages can use by taking a look at some of the useful resources on websites like Lawtx.com.
However, litigation is not only the domain of big business because increasingly even small businesses have tended to face the heat from other companies or aggrieved individuals. It has been studied that a company with annual revenues of about $1 million can expect to be spending around $200,000 in legal fees per annum. Many companies are regrettably paying far more than this average, and history is replete with examples of businesses collapsing under the weight of legal expenses.
It is quite evident that the threat posed by lawsuits is not going to disappear anytime soon; conversely, statistics show that business litigation is constantly on the rise, with people looking for personal injury lawyer near me quite often (to name one example area). Entrepreneurs who are only fired by their grand vision may be inclined to overlook the hazard of lawsuits, but it is not a very practical thing to do keeping in mind its potential for immense disruption to the operations, profitability, and longevity of the business. It thus becomes very important for small business owners to safeguard themselves from the possibility of litigation. To this extent, the first step towards getting ready is awareness regarding the various types of legal threats.
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How An Injury At Work Can Impact You
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Some common types of lawsuits that small businesses may expect to face:
Employment-Related
The employees of your company may initiate a lawsuit against you for any perceived violation of the terms of employment. Depending on the local laws applicable, there may be a great variety of litigation because of the complexities of hiring, managing, remunerating, and firing workers. The best way of not getting involved in employee litigation is to be completely aware of the applicable rules and regulations pertaining to worker engagement, and consciously stay clear of any action that could violate their rights. You need to obtain the services of business lawyers specializing in human resources and employment rights to stay out of trouble.
Intellectual Property Rights
Whether consciously or inadvertently, if your company violates intellectual property rights of any other company, in that casethe aggrieved company may sue you for the profits earned by you as well as damages caused. Violation of IPR can involve deliberate theft or plagiarism or even any action that may not have been consciously or maliciously done. For example, the business may have issued an advertisement using an image taken from the Internet not appreciating the fact that the image is owned by someone who is entitled to the benefits accruing out of such ownership. Exercising due diligence is the only way that a business can protect itself from being sued for IPR violation.
Fraud
This is one of the biggest worries of a business entity. In the early days of the startup, when the size of the company is very small and the number of people less, it is easier for the entrepreneur to keep a strict vigil against fraud. However, as the company keeps on growing, it becomes progressively more difficult to be vigilant to that degree as a lot of work has to be delegated. Any action by your workforce that can tantamount to misleading the company’s customers, suppliers, vendors, financial institutions, regulatory bodies, and other such stakeholders can be held as being fraudulent and invite legal action. The repercussions of corporate fraud are usually enormous and may lead to dilution of the brand’s hard-earned reputation and market status, or even its demise if the litigation leads to a huge claim.