Launching a Successful Business

Sandwiched Disasters: 3 Secret Sauce Ingredients To Protect Your Business From Messy, Pickly Lawsuits

Are you a new business owner? If so, you are likely happy about the future of your business. Perhaps you have not considered the possibility that your business could be involved in a lawsuit in the future. Lawsuits for businesses may originate from unhappy customers or disgruntled employees. Sometimes the allegations made are true, but there are times when litigious individuals file lawsuits against business owners. If you are not prepared for this type of business issue, the aftermath may be severe enough to force you into going out of business. The following tips can be used to protect your business.

Take all negative customer reports seriously.  

You may get notified of something that you feel is outrageous. Rather than dismissing the allegation, it is sensible to show compassion and research the issue. If you refute the allegation and do not perform an in-house investigation and documentation process, the customer might attempt to sue at a later date. They may even infer that you were in agreement with what allegedly occurred if you do not take immediate action to determine what may have gone wrong. 

Ensure contractual agreements are legally acceptable.

Do not make the mistake of trying to word your own contracts. This is because there are consumer laws to protect customers. Employees will also be protected by employment laws. If you plan to use any types of contracts, they should be drafted and finalized by a business attorney. These professionals are familiar with what can be legally enforced as well as any wording that violates laws. If an employee or customer signs a contract that contradicts the laws in your jurisdiction, their signatures may be considered as null and void, which means that even though they agreed to signing the documents, you will not be able to enforce the contract. 

Be mindful of new discoveries within your business that could put you at risk for litigation.

As time passes, your business may develop to the point that new risks arise. For example, you may begin to offer new services, which may mean that you need to amend some of your business practices to protect your business. Employees who participate in the day-to-day operations may be more inclined to spot things of concern. This is why you need to take their reports and observations seriously and make changes as needed.

A business attorney is a good resource to use if your business is sued. They can investigate the legal validity of the claims. They may also be able to negotiate a settlement, which may save you from a costly business lawsuit. For more information and advice, contact a business attorney at a law firm like Strauss Troy.