Business owners realize they must keep their enterprises solvent to keep them operational. Reduced cash flow and changing market conditions are not the only factors that might hamper a business in California. Civil litigation could prove costly, and business owners must become aware of common lawsuits and how to deal with or prevent them.
Lawsuits against businesses
Personal injury lawsuits may take many forms, and ones involving slip-and-fall accidents or other incidents that cause harm to others are among the cases. Business owners might find it valuable to perform risk assessments and take deliberate steps to reduce hazards. Fixing broken railings or steps could prevent costly litigation.
Breach of contract lawsuits could take numerous forms since a business might have many contractual agreements with various parties. Contracts may include employment contracts and office building leases. When a party violates a contract’s terms, litigation may ensue. Sometimes, a business owner could be the victim of a breach, so signing agreements with responsible parties seems advisable.
Wage violations could get a small business owner into significant legal trouble. Mandating employees to work more than 40 hours without paying overtime or compensating them at all might violate state law and lead to civil actions. Companies attempting to save money with these dubious practices could lose more than they sought to save.
Discrimination lawsuits could prove highly damaging to a business. Under California business law statutes, discrimination is an illegal practice and does not only involve issues related to employers and subordinate employees. Discrimination against third parties may cause legal woes, as well.
Business owners not familiar with areas of state law might need to review pertinent statutes. Sometimes, a business inadvertently finds itself involved in a lawsuit. Again, taking preventive steps to mitigate legal woes could help a company avoid trouble.