Tips for Running a Company While Staying Out of Trouble with the Law by William D King

Company owners are faced with many challenges, but law troubles shouldn’t be one of them. Yet an increasing number of companies are falling prey to what the National Federation of Independent Business (NFIB) has dubbed “the lawsuit explosion.”

While there’s no way to completely eliminate lawsuits against your company, there are steps that you can take to reduce the likelihood that you’ll face litigation for running your business.

Here are some tips: William D King

• Address consumer complaints quickly and honestly. If a customer complains about damaged merchandise or late delivery, offer a quick response — whether it’s sending out replacement goods or providing compensation for lost time or inconvenience. Don’t wait until this disgruntled customer takes legal action against you before you respond — having to deal with several lawsuits will make running your company much more difficult.
• Avoid disputes by sticking to contracts and warranties. While many businesses have a hard time saying no, being too agreeable is one of the biggest mistakes a business owner can make when it comes to creating a contract with a customer or client. If you say yes to everything without fully reading the fine print, you could find yourself in hot water later down the road — even if that’s just accepting liability for another person’s actions.
• If someone slips on ice outside your store and sues for damages, for example, they may be able to pin part of the blame on you because you didn’t have salt out on the sidewalk when it was cold enough to warrant using salt in order to prevent customers from slipping.
• Make sure your customers understand what they’re signing on for. Just as you wouldn’t sign a contract without reading it, neither should your customers. If you don’t want to lose business because potential customers are turned off by the time commitment or other conditions imposed by a service provided to them, make that clear up front.
• For example, if you run a day care center and put into writing that parents must pick their kids up no later than 6 p.m., then be sure to follow through with this requirement if necessary. Otherwise, it could lead to complaints about “unfair” treatment — which could leave you vulnerable in court.
• Limit personal liability for corporate debts and actions. One of the biggest mistakes entrepreneurs make is putting their personal assets on the line to help launch or grow their companies. If you do this, all of your savings, your home and other personal property could be at risk if your company faces legal problems or goes bankrupt.
• File for patent protection on all valuable ideas and products. Protecting a valuable creation from being copied by competitors can prevent expensive litigation later down the road — so it’s important not to overlook this step. In order to get a patent, an inventor must prove that his product is new and non sobvious — something that others have not thought of before.
• Patents must be renewed every few years, but they’re often well worth the trouble once they’ve been granted.

For more information, check out “Patent, Copyright and Trademark: What Every Writer Needs to Know.”

1. Address consumer complaints quickly and honestly.

2. If a customer complains about damaged merchandise or late delivery, offer a quick response — whether it’s sending out replacement goods or providing compensation for lost time or inconvenience. Don’t wait until this disgruntled customer takes legal action against you before you respond — having to deal with several lawsuits will make running your company much more difficult.

3. Avoid disputes by sticking to contracts and warranties. While many businesses have a hard time saying no, being too agreeable is one of the biggest mistakes a business owner can make when it comes to creating a contract with a customer or client. If you say yes to everything without fully reading the fine print, you could find yourself in hot water later down the road — even if that’s just accepting liability for another person’s actions.

4. If someone slips on ice outside your store and sues for damages , for example, they may be able to pin part of the blame on you because you didn’t have salt out on the sidewalk when it was cold enough to warrant using salt in order to prevent customers from slipping.

5. Make sure your customers understand what they’re signing on for. Just as you wouldn’t sign a contract without reading it, neither should your customers. If you don’t want to lose business because potential customers are turned off by the time commitment or other conditions imposed by a service provided to them, make that clear up front.

Conclusion by William D King:

Limit personal liability for corporate debts and actions. One of the biggest mistakes entrepreneurs make is putting their personal assets on the line to help launch or grow their companies. If you do this, all of your savings, your home and other personal property could be at risk if your company faces legal problems or goes bankrupt.