In the US, around 50% or more of small or midsized businesses experience Common Legal Issues every year. Unfortunately, legal ramifications are a significant part of operating a successful business, and you must be prepared for them to weather the storm.
What should you do when your business is inevitably exposed to frustrating legal issues and threats?
Read on as we explore the common legal issues to expect in business and the best practices to diligently follow when they appear.
What Are Some Common Legal Issues To Expect When Running A Business?
Some Common Legal Issues are actually avoidable and only occur due to accidental negligence. Others, however, are entirely out of your control. Here are some of the challengingly common legal hiccups you can expect to come up at some point or another when operating a successful business:
1. GDPR Breaches:
Even if your cybersecurity strategy and data protection policies are as fit as a fiddle, there’s still the possibility that a third party could covertly and unscrupulously gain access to client and customer information. If this happens, you could be held legally responsible for anything the corrupt third party does with that information, such as stealing credit card details.
2. Personal Injury Claims:
Although you can cautiously invest in stringent health and safety training and measures, there’s still the slight chance that an employee or customer could haplessly experience an injury due to your business practices. They are also rightfully entitled to make a claim if you fail to provide passable health and safety measures.
3. Slander And False Claims:
Whether your business makes a false claim about a product or someone else slanders your business, there will need to be a legal process to resolve the issue.
4. Contractual Breaches:
To operate a business with employees, private contractors, and partners, there will be a plethora of contractual agreements. Should you or another party backhandedly breach this contractual agreement, there will be some legal ramifications.
Maintaining an awareness of your legal vulnerabilities will help you avoid the costly, time-consuming, and stressful consequences of legal issues. This is why it is important to consult with a legal professional and have them consistently review your exposure in terms of legal ramifications.
5 Steps When Your Business Is Dealing With Common Legal Issues ?
In the terribly unfortunate event that a legal issue comes across your desk, it’s not the time to rip your hair out and raise your heart rate with unpleasant worry. You can take many actionable steps to prepare your company for the storm and increase the likelihood of a brawny recovery.
1. Enlist Legal Aid
Once you have performed the above mentioned steps, it’s time to carefully appoint a dependable legal representative. Using a legal firm you have worked with before will work to your advantage, as they will be advantageously familiar with your business already.
If you can’t afford legal representation, you can use online resources to help you take on the challenge yourself. Self-serve justice platforms provide the support you need to approach the legal process every step of the way and manage your documentation. Jody Iorns, Executive Director of the CCCBA, endorses the JusticeDirect platform for its ability to bridge the access to justice gap:
“While it’s true only lawyers can give legal advice, there’s a lot that we can do with technology to provide someone in financial need tailored legal education so they can make the best decisions and stand up for their rights.”
2. Take An Unemotional Approach
Rationality is your friend in legal battles. However, it can feel like a personal attack when someone comes after your business legally.
But, an emotional approach will only overcomplicate things. Rather than focusing on the solution, you will approach the issue from a place of insecurity and will be more likely to make decisions out of spite rather than thinking about what’s best for your company.
3. Gather Your Documentation
Evidence is the only thing that can support your defense against legal action. Taking the time to gather extensive evidence will strengthen your case and the more information you can provide, the better.
Some places to start include emails, written communications, contracts, and records and notes that could be relevant to the legal matter.
You should also take a moment to jot down your experience relating to the matter so that you can present it to a lawyer when you discuss it. Since lawyers charge by the hour, you should start the process as prepared as possible, reducing the need for excessive and expensive back-and-forths.
4. Familiarize Yourself With The Law
Will you win this case? By familiarizing yourself with the law surrounding this matter, you can manage your expectations for the outcome. You should understand whether you can squash the claim or whether it’s a case of settling the matter quickly and quietly with the lowest cost to your business.
5. Take Confidentiality Seriously
You shouldn’t discuss the case with anyone. Not your stakeholders, not the media, and not your employees. Resolving the matter quietly will reduce the buzz and thus reduce any outrage or loss of trust from customers and stakeholders.
Summary
When your business faces Common Legal Issues, you might feel the urge to panic. But it happens to most businesses at some point, and it’s best to focus on the solution. This isn’t the dreadful end, and you can ensure your business survives by taking a solutions-focused approach and following the helpful tips listed above.
