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Civil LitigationDecember 14, 20220 comments

Common Business Litigation Mistakes and How to Avoid Them

Good business owners know that litigation is sometimes unavoidable. But many don’t realize that there are a number of common mistakes that can lead to unnecessary costs. In today’s blog post from Munger • Denker • Ruiz • Barbour, we are going to discuss some of the most common business litigation mistakes and how to avoid them. Read on to learn more, and if you’re in need of an experienced business litigation attorney in Phoenix, Tucson, or throughout Arizona, contact us today.

1. Not Documenting Communications

In today’s business world, a lot of communication takes place via email, text, and social media. It’s important to make sure that all important communications are properly documented. This includes not only communications between you and your employees, but also communications with customers, vendors, and other business partners.

2. Failing to Comply with Contracts

If you have a contract with another party, it’s important to make sure that you comply with its terms. Failure to do so can lead to a breach of contract claim, which can be costly to defend.

3. Ignoring Employment Laws

Employment laws are complex and ever-changing. As a business owner, it’s important to stay up-to-date on the latest laws and make sure that your policies and practices comply. Ignoring employment laws can lead to costly lawsuits and fines.

4. Not Protecting Your Intellectual Property

If you have developed a unique product or service, it’s important to take steps to protect your intellectual property. This includes registering copyrights and trademarks. Failure to do this can lead to someone else stealing your ideas and profiting from them.

5. Violating Consumer Protection Laws

There are a number of consumer protection laws that businesses must comply with, such as the Fair Credit Reporting Act and the Truth in Advertising Act. Violating these laws can potentially lead to a lawsuit or fine, which can negatively affect your bottom line.

6. Failing to Comply with Environmental Laws

If your business operates in an industry that is regulated by environmental laws, it’s important to make sure that you comply with those laws. Failing to stay in compliance can lead to fines and penalties.

7. Not Keeping Accurate Financial Records

As a business owner, it’s important to keep accurate financial records. This includes maintaining accurate books and records of all income and expenses. Not keeping proper records can lead to legal problems, especially if your business is audited by the IRS.

8. Not Having Adequate Insurance

All businesses should have adequate insurance coverage. This includes liability insurance, which can protect you from lawsuits.

9. Failing to Comply with Government Regulations

If your business is regulated by any government agency, it’s important to make sure that you are knowledgeable about all applicable regulations and comply with them.

10. Not Having a Written Business Plan

If you don’t have a written business plan, it’s important to create one. A business plan will help you map out your business goals and objectives and will also help you avoid making common mistakes that can lead to litigation.

The Business Litigation Law Firm You Can Trust

The best way to prevent these common business litigation mistakes is by having a business lawyer on your side.