Business disputes are any type of conflict that arises within the operations of the business. They can arise between co-owners of the business, with customers, with employees or with others. If not properly handled, business disputes can disrupt the business and make it vulnerable to claims by others.
Common Causes of Business Disputes
Business disputes can take on many forms. Some of the most common reasons for business disputes include:
- Breach of contract – Claims that the business did not fulfill its obligations under a contract or issues with a vendor not fulfilling its obligations are the subject of many business disputes.
- Employment claims – Employees may feel that they have been discriminated against or harassed and may make a legal claim against their employer.
- Business torts – The company may have issues stemming from the unapproved or unauthorized use of trade secrets, intellectual property disputes, allegations of fraud or the interference of contractual relationships.
- Shareholder disputes – The owners of the company may disagree about how to manage the company’s assets or the business itself.
Ways to Resolve Business Disputes
Many people have probably heard of big trials involving big businesses. However, many smaller businesses want to avoid the negative publicity, time and expense of litigation and may engage in alternative dispute resolution. The business agreement may even call for disputes that arise within the course of business be resolved through ADR, such as mediation or arbitration.
Mediation is a process in which a neutral mediator tries to help parties involved in a dispute reach an amicable decision. The mediator does not impose a decision on the parties. Instead, he or she guides the parties to a settlement and tries to help the parties reach an agreement that will meet the interests of all involved parties.
Arbitration is a process that resolves disputes outside of the traditional court system. The format is similar, but the process is confidential and the parties can agree whether the decision will be binding or non-binding.
Help from a Business Disputes Lawyer
Because the stakes of business disputes can be so great, many business owners and representatives seek the assistance of a qualified business disputes lawyer to help them resolve their legal issues.
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