Small business owners already have it tough when it comes to running a business. They generally have to compete with larger size firms with limited resources. The last thing that they want to face legal action relating to the product or service that they provide. Costs of a legal battle can easily deplete the bank accounts leading to a sort of financial meltdown for the company.
In this respect, it is important to take preventive steps to avoid getting caught in a legal battle in the first place. Here we will share with you some important tips on how you can avoid getting sued for your product or services.
Tips for Small Business Owners to Avoid Lawsuits
A litigation regarding products or services can negatively affect the course of one’s business. Here are a few tips that can help you avoid lawsuits.
- Make sure that your disclosure information and/or legal disclaimers are properly posted on all publications, including your websites and social media
- Announce change of policies immediately in both digital and paper format
- Clearly explain products defects, if any, in easy to understand language
- Keep records of every transaction including verbal agreements. Note: Verbal agreements may benefit you in court
- Always honor your promises to the customers
- Train the customer relation representatives on how to properly educate the customers about product limitations, proper usage, and possible defects, if any
- Create a standard limitation of liability provision relating to product or services
Keeping the above tips in mind can help you avoid the financial and mental stress involved in costly lawsuits. Other than that, you should also consider getting the help of a professional and qualified attorney to avoid getting sued and be liable for damages.
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