The highly nervous young lawyer stepped up to plead his case before the court. Laying his coat and hat on the bench, he stood before the judge.
"Is this the first time you've practiced in this Court?"
"Yes, your honor," replied the lawyer, fearing that he'd already committed some grave procedural error.
"Then get your hat and coat and put them where you can keep an eye on them!"
It is a fact of life that trusts is a virtue to be practiced but not taken for granted. And for the business owner, it is only a matter of time before that trust is somehow violated, resulting in legal problems.
As business owners, awareness about the legality of every aspect of one's business can mean the difference between the occasional "course correction" and the damaging effects of a lengthy and expensive trial.?
So, how best to avoid legal troubles?
While solutions differ depending on the nature of one's business, there are prudent measures any manager can take to reduce the likelihood of business litigation.
·???????? Education. Make sure that personnel are being kept up to date on current laws, regulations, and statutes. Also ensure that best practices within the company are adopted, communicated and followed. Ongoing employee training sessions about harassment, discrimination, safety and other concerns will greatly reduce the incidence of lawsuits now and in the future.
·???????? Accounting. Are your books in order? Are you ready if the Tax Man stops by for a visit?
·???????? Protection.
§???????? Find and purchase business liability insurance.
§???????? Do background checks on all potential employees, business partners, lending institutions, customers and suppliers. Know who you're dealing with.
§???????? Establish arbitration agreements to avoid complications should a future dispute arise.
·???????? Compliance. Ensure that an advisory or compliance committee is monitoring every company action for adherence to legal requirements.
·???????? Counsel. Hire an attorney to review all contracts, purchase and sale agreements, leases, patent applications, non-compete agreements, real estate concerns and other legal documents or issues.
·???????? Respect. Treat everyone and every business entity with the same respect you would accord yourself. Many potentially disastrous situations have been avoided or resolved by the offending party admitting fault (after consulting an attorney, when necessary), and seeking a peaceful resolution. Arrogance is the first step to war- humility is the only insurance against it.
But what happens if, despite your best efforts, the business is facing a lawsuit?
Depending on the situation, you have the following options:
·???????? Arbitration. As stated before, some situations can be steered away from the courtroom and into a neutral location where a peaceful resolution can be secured. This may only take a phone call or two, but may ultimately involve lengthy meetings between the opposing parties, the result being an internal policy change or an agreement to improve particular business practices for the good of all concerned.
·???????? Alternative Dispute Resolution (ADR). While ADR may not be the best answer in some cases, many companies and other business entities have found this a viable alternative to litigation. By seeking resolution through mediation, binding fashion jackets arbitration or conciliation, parties have greater control over the outcome and costs of the proceedings, as well as flexibility in dealing with the process itself.
·???????? Go To Court. In some cases, dispute resolution in court is the only option. Some legal matters are so complex that it may be in the best interest of both parties to have the matter settled legally, once and for all. But even here, the case may not go to trial. Some clients, not comprehending the full impact of business litigation to their profits and image, may decide to settle out of court.
Business owners can avoid most legal trouble by educating themselves and their employees, managing responsibly and treating their customers and fellow business partners with respect and trust. It's not a perfect world out there, but competing enterprises can peacefully coexist if they share these common goals.??
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