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Common legal concerns encountered by business owners

| Dec 20, 2021 | Business Law And Litigation |

Not understanding the different facets of business law means an increase in the risks of litigation. There are different rules and regulations that a business must follow to remain in legal operation. Otherwise, owners in Texas may face multiple legal problems that they could have prevented, but which may take years to overcome.

Product liability

Business owners can be punished for promoting and selling defective products. An example is a small vitamin shop that continues to sell supplements which have been recalled. Consumers who have been injured by a defective product may sue the retailer, the manufacturer, or both for compensation.


Licensing problems occur when a business fails to obtain a new license or renew an old one, for a business that requires a license. Local and state governments often require licensing to operate certain types of legitimate business, and the failure to obtain and maintain the required licensing could subject you to fines and other legal consequences.


Some small business disputes involve trademarking. There are sometimes problems with brands intentionally stealing the names or logos of other businesses. However, startup business owners may also unintentionally run into conflicts with existing businesses that have the same or a similar name. In some cases, they choose a name that is not appropriate for the business’s products and services. Other times, they fail to go through the registration process of filing for a trademark or copyright. Many such disputes could be avoided with due diligence and the help of legal counsel.

Workplace accidents and compensation

A common legal problem involves accidents and injuries that occur at work. Injured workers can sue their employers for compensation, but most of them do not because workers’ compensation programs guarantee their payments. To prevent legal problems brought on by workplace injuries, most states require that employers carry workers’ comp insurance.

Know how the law affects your business

Business owners are always busy and constantly taking on multiple roles. In the midst of their work, they sometimes overlook or put off basic tasks like registering a trademark or maintaining a property. They face a wide range of legal issues that are entirely avoidable if they’re mindful of business laws and cautious when following any procedure.