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Lawsuits in Tennessee aren't limited to major corporations

Lawsuits involving major corporations routinely make the nightly news and receive a lot of attention. This is because there is often a great deal of money involved in these lawsuits, and when a company is a household name its reputation is on the line. However, even small businesses can be the subject of business litigation. Small business owners in Jackson should be aware of the fact that a lawsuit could cause their business to suffer financial damages that could ultimately lead to it shutting its doors and ceasing operations for good. There are certain types of issues that could lead to business litigation that small business owners should know about.

First, there are lawsuits brought by employees. For example, an employee could claim they were sexually harassed in the workplace or were wrongfully terminated. In fact, employment law actions are very common, so it is important to understand the laws regarding employment in Tennessee.

Also, unfortunately, sometimes a business is accused of fraud. This usually arises from situations such as deliberately misleading clients or not treating each client fairly. Sometimes these lawsuits even go so far as to accuse the small business of doing something malicious.

Lawsuits can also be based on intellectual property rights. For example, trademark infringement, copyright infringement or plagiarism can all lead to a lawsuit. It is important to carefully research developing a logo or using an image from the Internet, to ensure you are not breaching another business' intellectual property rights.

Contracts often form the backbone of small business operations. However, this also means that contract disputes can arise. If one side of the contract believes the other side did not fulfill their duty under the agreement, it could lead to a lawsuit. It is important that small business owners understand what they will be responsible for in a contract and that contracts are executed in a thorough and proper manner.

Potential lawsuits may not necessarily be at the forefront of a small business owner's mind. However, business litigation can arise in numerous circumstances. There are steps a small business owner can take to avoid a lawsuit, but should they find themselves facing business litigation, they should take every measure necessary to defend their interests, as the viability of their company could be at stake.

Source: Entrepreneur, "4 Potential Lawsuits to Watch Out for in Small Business," accessed May 15, 2018

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