One of the biggest threats to your business is legal action. This can come from anywhere, anyone, at any time! More often than not, it is completely unexpected. However, by avoiding specific issues, such as copyright and misclassification, you can avoid some of the worst.

Failing to Retain Legal Counsel

A business can face many legal pitfalls. And when the brown stuff meets the fan, you need a top-notch law firm at your side. There are many types of law firms, and some specialize in specific areas of business law. For example, it is common for a medical or life sciences company to retain a false claims act attorney due to the problems that arise within these industries. Legal retention helps the firm become familiar with your specific needs.

Copyright and Trademark Disputes

The past few decades have seen the rise of copyright and trademark disputes. These are potentially lucrative for someone who can make a case and could cost your business so much that you may not survive. At the least, you may have to completely rebrand. Fortunately, many are frivolous, such as Rockstar Games taking Remedy Games to court over the use of the letter “R.” You can guess how that turned out! However, a strong case can be the end of you.

Legal Business Mistakes with Contracts

Contracts make the business world go around. However, many are drafted incorrectly, and contract disputes can be a costly mistake. According to one study, only 31% of contracts are written correctly, while 71% aren’t checked for ambiguous terms. A contract needs to be rock solid and understandable by all parties. Never create a complex contract yourself (unless you have studied contract law), and always use a reputable contract service or law firm to do this.

Wrongful Classification of Employees

One of the most common legal disputes in business is the incorrect classification of workers as independent contractors. There are varying laws concerning this from country to country, but it can be a severe issue, costing a ton of money and legal action. The problem is that there are very clear distinctions between employees and contractors, and misclassification can result in heavy fines and penalties. You can prevent this with compliant contractor agreements.

The Problem of DEI

Diversity, Enquiry, and Inclusion (DEI) has spread to pretty much everything these days and has a massive influence on internal business decisions. Due to companies competing for ESG scores to gain favorable loan terms, DEI is glorified across most businesses. Of course, equal rights are essential, and you can avoid many legal issues using DEI initiatives as a guide. Yet, DEI programs are also proving that they could end up costing more money than they bring in.

Summary

Not keeping legal counsel for the various issues that can arise is one of the most common legal business mistakes you can make. You also need to use professional contract services to avoid ambiguity. There is also a clear need to use DEI programs as a guide rather than the culture.