Business Legal Pitfalls

In this article we will have a look at Your Complete Guide To Business Legal Pitfalls.

Running a business will always involve numerous challenges and this includes legal pitfalls. No one is expecting you to be an expert with the law if you start a business, but you do need to make sure that you think about some of the commercial issues that you can encounter. Here are some of the key examples. 

Why Are Legal Issues A Problem?

There are numerous reasons why legal issues can be a challenge when you are running your company. Let’s explore some of the key possibilities and how you should manage them effectively in the future. 

The Cost

First, you should think about the cost of a legal issue in your company. Don’t forget, this isn’t just about paying for legal representation. There are other factors at play here as well. For instance, you might want to think about the issues relating to the losses that you will incur if people decide to stop using your business due to the legal issue that you have encountered. A legal issue could also grind production to a halt in your company which means that you will struggle to continue to make a profit. 


Another issue that stems from a legal concern relates to your employees. You might find that you struggle to find employees who want to work for you because you have developed a negative reputation due to the legal challenges that you have encountered over the past couple of years. There’s no easy way to fix an issue like this and you’ll need to spend some time completely damage control. This is going to cause headaches for you as a business owner further down the road and it’s a problem that you should keep in mind. 

Your Reputation 

Next, you do need to think about how a legal issue in your business is going to impact your reputation overall. Ultimately, people are going to think twice about buying from your business just like how people are going to question whether they should work for you. The way a legal issue impacts your reputation will depend on the dispute in question. That said, any run between the law and your company is going to cause massive issues in the future and it’s always something to keep in mind. Particularly, when you are deciding how much you should spend to avoid concerns like this.


As mentioned, a legal issue likely will cause your business to grind to a halt completely. It’s the last thing that you want but it is also – unfortunately – completely unavoidable. So, how can you avoid a problem like this? Well, we recommend that you make sure that you hire the right professional to help you with the issue. They may even be able to get you a settlement rather than getting you involved in a lengthy legal battle that could ultimately drag on for months or even years. 

What Legal Issues Can You Face?

Now that you understand the reasons for legal trouble in a company, let’s explore some of the common specific legal issues you could face when you are running your company in the future. 


The first legal issue that you should think about is copyright. When you are running your business, you are going to have to put a marketing strategy in place and this will likely include creating unique content. That could be blog posts or long form content such as a white paper. Regardless of what you create, it’s important that it does reach the right standards and it needs to be original. One of the key issues to be aware of these days is generative AI. There’s a lot of speculation that content created by AI isn’t always completely original. 

Damages From Customers

Another point to consider is damages from customers. An example of this could involve a class action lawsuit. These usually occur if your actions as a business have impacted multiple people and that will usually mean your customers. However, it could also refer to the general public. Again, it depends on the type of business you are running as well as the products and services that you are offering your customers and clients. Legal issues like this can have massive consequences and result in huge fees. This is one of the key reasons why you do need to be aware of your legal requirements when running a business. 

Employee Disputes

Another possibility could be your employees. The issue here is often a personal injury claim. A few years again, there were so many of these coming through that the government considered putting new laws in place to prevent them from continuing to be an issue in the future. 

This isn’t the only issue that you can have with employees and a claim may not simply be a physical injury. It could be emotional and might include a problem like harassment or even bullying. This is something that you absolutely need to be aware of as the manager or owner of a company because it will be your job to fix the situation.

Supplier Disputes 

You could also have problems with your suppliers which may lead to legal disputes further down the line. This will usually occur if you do not hold up your side of the contract or alternatively if your suppliers fail to do the same thing. This is always going to be a complicated dispute and it is something businesses will go to court for because it will disrupt their ability to make a profit both now and in the future. It’s particularly common for B2B companies to run into this problem. 

Cyber Trouble 

Another point worth thinking about is cyber trouble. Business owners often assume that the biggest issue with a cyberattack is going to be the financial loss but this may not be the case. Indeed, it’s possible that a much more significant issue is going to be the legal dispute that comes with it. This is one of the reasons why you need to take steps to protect your business from hacks in the future. There are lots of steps that you can take to do this including hiring an IT support team. They’ll check for any security issues and plug the gaps in your security as soon as they are spotted. 

What Can You Do To Avoid Issues?

The good news is that there are lots of steps that you can take to avoid legal issues. Here are some of the key examples that you do need to be aware of if you are eager to ensure that your business remains on the right track. 

Invest In The Right Solutions 

First, you need to make sure that you are investing in the right legal solutions. An example of this would be hiring a legal advisor. A professional legal advisor will mean that you always have someone to call and talk to whenever you have a legal issue. This could be a small problem or a massive concern that does have the potential to cripple your company. In either case, it’s great to know that you always have someone who you can trust and depend on. You might also want to think about your choice of packaging here too if you are selling a product. For instance, if you are selling medical supplies, then you will need to make sure that you invest in medication adherence packaging. This will help ensure that your products are legally compliant. 

Appoint A Health And Safety Officer

You also need to make sure that you are recruiting a health and safety officer in your business. The right health and safety officer will mean that you can keep things on the right track and avoid someone getting injured in your business which always runs the risk of ending in a legal dispute. 

If you are concerned about this, we recommend that you do use someone with the right training. This could include someone who is already working in your business, or it might be a brand new employee who takes charge here. It’s just a case of finding the best possible choice for your company. 

Be Careful When Outsourcing 

We did mention that outsourcing is a possibility and this is true. However, you do need to be careful about the companies you use. It’s important to find a business that is going to deliver the results that you are searching for here and that won’t leave you with the possibility of a legal dispute. 


We hope this helps you understand some of the key legal challenges that you can struggle with when you are running your company. By being aware of these issues, you can make sure that your company continues to run smoothly both now as well as in the future. Remember, one of the most important things that you should think about here is a legal advisor. Again, while this may seem like a costly choice, there are solutions that will fit into almost every budget regardless of your company size.

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Haider Khalid

IP MPLS & Enterprise Core Network Engineer, CCIE# 52939
Haider Khalid is an IP MPLS & Enterprise Core Network Engineer (CCIE# 52939) who has worked with several ISPs & Telecom operators in Pakistan, Middle East and the UK. He is always keen to learn new technologies and likes to share them with his peers and other people. In case of any questions or feedback, please feel free to drop a comment below or connect with him on LinkedIn.

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