Running a business requires you to track huge amounts of information about company sale, practices and more. It is difficult enough to plan and enact measures for the company's financial growth, but this is even more stressful if another party interferes and hurts your business.
Here are 3 common wrongdoings you could face. These are illegal and can warrant legal action if they happen to you.
1. Tortious Interference
A "tort" refers to financial or reputational damage to a business. Tort laws allow you to seek compensation for present or future profit loss because of another party's actions.
Tortious interference, then, refers to any interference with your business relations. An example of this might be one of your competitors persuading your employees to quit and work for them instead. When pursuing a tortuous interference case, you will have to prove that the other party's interference actually caused financial loss that you would not have suffered without their interference.
2. Theft of trade secrets
Trade secrets are vital to many companies. A trade secret is any confidential method or practice that benefits a company's ability to compete with other businesses. This can include ingredients in a food product, software, sales or production methods and more.
Trade secrets can be stolen in a number of ways, such as fraud or breaching a contract of confidentiality within the company. It is important to understand that you must take reasonable care to keep your trade secrets hidden, such as locking away papers or keeping electronic secrets protected by password. Otherwise, you may not be legally protected if these secrets are revealed.
3. Fraudulent misrepresentation
It is common for businesses to make deals with each other. However, giving false information could be cause for legal action. For example, say another party is selling a product to your business. They explain the features the product has, which influences you to make a deal with them. However, afterwards, you find it does not have the features they described and the price you paid was far too high for the worth you actually received from the product.
Fraudulent misrepresentation is intentional. If, for example, you were sold a defective product that the seller honestly did not know was broken, you may still get a refund or take other action, but it is not as severe as fraudulent misrepresentation.
If you face these actions or any other business tort issues, you have every right to seek legal help for the damage done to your business.