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Do you own and run a small business in the Kansas City area? Do you want to protect your business from lawsuits? Whether you are currently facing litigation or you just want to have a wealth of knowledge, you may be asking – what are the causes of small business litigation? We can help answer any and all small business litigation questions at Saxton Law Firm in Kansas City, MO.

Top 4 Common Causes of Small Business Litigation

The legal world can be complicated – and we are here to help at Saxton Law Firm. We practice in business litigation for small businesses. Business litigation can be defined as legal disputes related to business and commercial transactions and occurrences of a non-criminal nature. There are a lot of reasons that you may face business litigation as a business owner and entrepreneur – but there are a few reasons for business litigation that are more common than others.

1. Breach of Contract

No matter what type of business you own and operate, if you partner with suppliers, distributors or contractors, you will have to define that partnership via a contract. The most common cause of business litigation is breach of contract disputes between businesses and partners. A contract will outline the rights, responsibilities and obligations of each party named in the contract and will protect you and your assets if parts of the contract are not upheld. A small business attorney, like Saxton Law Firm, can help you write, understand and uphold contracts.

2. Employment Discrimination

Another common cause of business litigation are employment discrimination lawsuits. When you employ a diverse group of people as a business, you may face allegations of discrimination, harassment and wrongful termination that may be based on sex, race, religion, disabilities, age and more. Federal laws protect employees against this discrimination and businesses can protect themselves by having a better understanding of discrimination laws, having structured human resources processes in place and documenting all employee complaints. Saxton Law Firm can help you better understand discrimination laws and protect your business.

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3. Negligence

When you run a small business in Kansas City, MO, you will see your fair share of accidents, and negligence is a common cause of business litigation and lawsuits. A majority of negligence claims involve dangerous circumstances on a business’s property that result in an injury or damage to an individual’s property. Injuries and property damage can result in lawsuits against your company that feature negligence as the cause and will result in you paying for lost wages and medical bills. Product liability and defective products are an added element of negligence you must also be aware of.

4. Intellectual Property Infringement

Do you have intellectual property attached to your business? A creative work, invention or document that is vital to your business may be considered intellectual property. Intellectual property infringement is a common cause of business litigation – either when someone uses your intellectual property without permission or you use someone else’s intellectual property unknowingly. Register your intellectual property to keep it protected and prevent business litigation in the future.

READ MORE: What Insurance Do I Need for My Small Business?

Are you starting a small business? Do you want to minimize legal risk for your business? You may want to ask – what are the causes of small business litigation? Use this overview by Saxton Law Firm to gain a better understanding and protect your business assets. Contact Saxton Law Firm today to get a FREE case review!