What Is A Business Dispute?
A business dispute is any kind of disagreement between businesses over the terms of a contract signed by both parties. Disputes can happen over any kind of business contract and are inevitable over a business’s lifetime. The most common business contract disputes are either between business partners or between a business and its contractors, clients, or suppliers. They frequently arise when one of the parties believes that the amount of payment, the goods or services, or the timeframe were not executed according to the contract terms, so they engage a breach of contract attorney in San Francisco, CA.
Often, business disputes occur when a product does not meet the stipulations made in its warranty, it harms the consumer in some way, or there is a disagreement between an employer and former employees. If the former employee feels threatened or harassed by the company, they have a right to contact a business disputes attorney and file for business claims in San Francisco, California.
How can I avoid Business Disputes?
No company can remain immune to business claims, although certain preventive measures can reduce the odds of one occurring:
- Create procedures and policies and make them well known both by your employees and your clients or business partners.
- Have a policy in place regarding hiring and firing in order to prevent as many disputes as possible. A well-trained employment or business disputes lawyer in San Francisco, CA should be able to advise you on which language to use and which language to avoid.
- If you work with customers, identify any potential hazards your product might contain and clearly label the product with appropriate warnings.
How do I resolve a Business Dispute?
If your company is large, some business disputes will be unavoidable. Depending on the nature of the dispute, there are a few ways to attempt to resolve it. If the claimed damages are within the limits of what is considered to be small claims territory, you can appeal to a small claims court and resolve your dispute there. However, most business contracts include special clauses that require the parties involved to seek alternative dispute resolution, such as arbitration or mediation, before filing suit.
Arbitration is quite similar to an actual trial. Both parties will argue their claims to the appointed arbitrator. He or she then takes everything into consideration and offers a fair solution. Mediation is another way of finding a solution to a business dispute, where an appointed mediator works with both sides in order to find a compromise and resolve the conflict. An arbitrator is there to decide on a solution for the parties, while a mediator’s role is only to help the two parties find common ground to come to their own solution and settle the issue out of court.
Whether you are required by your business contract to seek out alternative dispute resolution or not, it is always in the best interest of your business to consult with an experienced breach of contract attorney in San Francisco, California.
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