Businesses of any size or type in Southern California can face legal risks from a number of different sources.
For example, competitors of the business may file a lawsuit on a number of grounds. On the flip side, a business may have to initiate litigation to protect their interests, including an interest in a trade secret or a confidentiality agreement.
Likewise, a business may run into contract disputes with affiliates, customers and vendors. Even disputes with the business’s creditors, investors or insurance carriers are also a real possibility.
Businesses can also have internal disputes erupt in litigation. A business’s leadership, including shareholders or partners, can wind up in a contentious parting of ways, for example. On that note, one of the biggest legal risks to a business are suits at the hands of one or even a whole group of disgruntled employees.
Businesses also need to be aware of legal action from regulatory authorities
A business in the Los Angeles area will also likely have to work closely with at least a handful of state and federal government agencies. For example, any for-profit business is going to have to pay taxes at the local, state and federal levels.
Depending on the nature of a business’s operation, an organization may even need to dedicate some of its full-time resources to complying with a web of laws and regulations.
Most of these agencies have some power to enforce their rules through fines and other penalties. They may even be able to stop a business from operating legally.
In a dispute with a regulatory agency, a business will need to understand its legal options and be able to work to negotiate a reasonable solution. In situations, the business may wish to contest the agency’s action at a formal hearing.