Exposing A Couple Of Myths About Business Litigation
Owning and managing a business can expose you to a number of financial risks, but there are many people that fail to appreciate the legal liabilities and conflicts that can also accompany owning an enterprise. Due to this lack of knowledge and experience, you may believe some myths when it comes to handling this aspect of entrepreneurship. To help you make sound choices for helping your enterprise meet its legal needs, you may need to have the following business law myths refuted.
Myth: Business Litigation Always Involves Lawsuits
When many people think of legal disputes, they may automatically think of lawsuits. While lawsuits are a common way of resolving these disputes, there are other options that are available to businesses. For example, it can be effective for your enterprise to use mediation and binding arbitration to avoid the need to pursue a lengthy and expensive lawsuit.
During mediation, the two parties will attempt to negotiate amicable terms to resolve the dispute under the guidance of an independent professional. The mediator lacks the power to issue rulings over the fact of the case, which can give you the freedom to decline unsatisfactory offers without fear of the mediator issuing a binding ruling over the issue. During arbitration, an arbiter will act as a judge and hear arguments from both sides before issuing a legally binding ruling.
Myth: Business Litigation Always Involve Injured Customers
It can be easy for a customer-focused business owner to assume that these disputes always revolve around an injured or otherwise unsatisfied customer. Yet, you should know that litigation can involve your business being in conflict with your competitors and suppliers. Additionally, it can be possible for you to face disciplinary action from the government for violating regulations. Failure to amicably resolve these regulatory violations can result in expensive fines or even the revocation of your business license. Fortunately, your business litigation attorney will be able to help you navigate these disputes so that you can protect your investment in your company.
Business disputes can take many forms, and it is an unfortunate fact that many people may not be overly informed about these issues. By making sure that you appreciate the fact that not all instances of litigation result in lawsuits and not all of these disputes are between people that know each other, you will be in a better position to understand the process of litigating your enterprise's disputes with vendors, suppliers and customers.
