What is business litigation?
If I make a
verbal business deal, am I held responsible for the deal?
What is a class
action lawsuit?
Can corporations
avoid class action suits?
What are the
different types of business agreements?
What is
securities fraud?
Do shareholders
have any legal responsibility to one another?
What is business litigation?
Business litigation is the legal process by which people,
companies and other entities resolve their disputes and recover
damages for losses and injuries, through the legal system.
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If I make a verbal business deal, am I held
responsible for the deal?
Written contracts are preferable however, verbal contracts are
just as enforceable as a written contract. A contract must be in
writing if it effects real estate, contracts that will not be
completed within one year, contracts assuming the debts or
obligations of another, and agreements to pay debts discharged
in bankruptcy. This list is not conclusive, however, and you
should check with an experienced business litigation lawyer if
you are not sure if you need to have a written contract.
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What is a class action lawsuit?
A class action suit is a lawsuit which involves more than one
person. The individuals filing a class action suit are stating
that the same wrong was done to all of those in the group. The
advantages of class action suits are that the claims can be
decided in one suit rather than in hundreds of individual
lawsuits and it is less expensive to prosecute than on an
individual basis.
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Can corporations avoid class action suits?
Corporations often use arbitration clauses in consumer sales
agreements in order to limit the types of dispute resolution
available should difficulties arise. Such a clause requires that
the parties to the agreement resolve any disputes through
arbitration. Arbitration involves the competitive presentation
of evidence to a neutral decision-maker. The arbitrator makes a
binding win/lose decision that usually cannot be appealed.
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What are the
different types of business agreements?
- Sole proprietorship – a
business owned by one person.
- Partnership - the legal
relationship between two or more persons who enter into a
business together in order to make a profit. Partners share
responsibility for running the business, and share the profits
and losses equally.
- Corporation – exists as it’s
own legal being. The owners of a corporation are its’
shareholders.
- LLC – Limited liability
company. Offers its’ shareholders both the protections of a
corporation and the tax advantages of a partnership.
- Non-profit organization - any
society, association or organization that is not entered into
for the profit or gain of any member. Non-profit organizations
have rules that do not allow money, property or any other
benefits to be distributed to any of its members.
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What is securities
fraud? Securities fraud occurs when your rights as an investor have
been violated by your registered representative or broker
dealer. Large losses do not necessarily prove broker wrongdoing,
thus, losses that are the result of market forces or other
considerations should not be considered securities fraud. To
learn more about your rights and securities fraud contact an
experienced business litigation attorney.
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Do shareholders have any legal responsibility to
one another?
The traditional legal view holds that shareholders have no
special responsibilities to one another. In closely held
businesses, however, majority shareholders can damage the
interests of small shareholders. Since most investors do not
want to buy closely held shares, minority shareholders have few
options when their interests are compromised. In response, some
states and courts developed fiduciary duties among shareholders
of closely held businesses.
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