There are many uses for legal representation in the business industry. Most business professionals never imagine needing litigation, but there are actually entire areas of law that specialize in business legalities. When legal representation is needed, it is important to have an attorney who is experience in business law and is qualified to assist with a variety of business law tasks. A business or corporation may need legal representation for any of the following reasons.
Bankruptcy claims. Unfortunately, many business fail. The failure can be due to a lack of research and knowledge in the field, an underestimation of the demand of services offered, or simply an overcrowding of the business type in the field. Whatever the reason, businesses fail. Sometimes, going through bankruptcy first can help to restructure the business to make it successful again. It also gives other the opportunity to purchase the business.
Either way, an effective neutral mediator is needed to represent each side of the sales process. A bankruptcy case can also be difficult, depending on how many owners the business has and how many assets they hold. Approximately 90% of all chapter 11 debtors have less than $10 million in assets or liabilities, less than $10 million in annual revenues, and 50 or fewer employees.
Internal employee lawsuits. Businesses are set up with strict regulations. For example, businesses are not allowed to discriminate on their employees or customers. They cannot hire an employee based on age, race, or gender. Sometimes, employees or customers will feel that they were discriminated against and will attempt to sue the business. When this occurs, an effective neutral mediator that is well versed in civil rights cases is helpful.
Copyright and patent law problems. Most businesses are developed with a unique idea or product. It is important to patent or trademark the items that make a business successful, so that another company does not come along and steal the success and the idea. Some businesses may have difficulty with other people stealing their ideas or patents or they may be accused of stealing another businesses unique idea. An effective neutral mediator can be helpful in obtaining necessary documentation and in filing the necessary reports to show who really patented the idea first.
Class actions cases. A class action lawsuit often occurs when multiple customers feel that they were harmed by one product or service. Hiring an attorney for legal representation against a business can be expensive and time consuming. The class action lawsuit allows multiple customers, from all over, to share one legal team. In most cases, they do not pay unless they receive any compensation. An effective neutral mediator is often needed when a business is being charged with a class action lawsuit.
Having legal representation for a class action lawsuit can actually save the business money in legal costs, as well. Most class action attorneys will recommend settling to avoid long and drawn out court cases that can quickly get expensive. In 1962, 11.5% of federal civil cases went to trial. Today, experts say the percentage of civil cases that actually reach trial in the Federal courts is estimated to be about 1%. Except to the extent modified by the parties, class actions will be handled by FedArb Arbitrators or Panels in the same manner as they are handled under FRCP 23, including certification, notice, and settlement.
Negotiating commercial contracts. Businesses deal with a lot of contracts. In most cases, contracts are supposed to be legally binding. However, sometimes the legality of a contract may come into question. When this occurs, for either part of the contract, an effective neutral mediator can be helpful. They can analyze each part of the contract, focusing on the areas that surround the disagreements, and come up with a new, agreed upon contract.
Business lawyers provide many benefits to businesses of all sizes. There are many situations that a business might be charged legally. When this occurs, it is necessary to have a highly qualified and effective neutral mediator to handle the case. Business attorneys can save the business money and they can ensure that they have the best chance in winning the legal case.