Archives for August 2020

avoid-legal-disputes-contracts

How to Avoid Legal Action Should a Conflict Arise

Managers and company owners fear a few items more than litigation.  Legal actions against a corporation can potentially damage an otherwise sterling reputation, create disputes, and of course result in the loss of large sums of money and staff talent.  It has been said and could be argued that we live in a litigious society.  Fortunately, with every new legal issue that can arise, there are just as many ways savvy business owners can protect their company, assets, and interests.  Ideally even the most negative situation can be spun into a win-win situation where owners, staff, and customers are given a positive outcome when a potential violation or lawsuit could arise.

Avoiding the Courts and Protecting Yourself

Did you know that corporations pay out more than 20 billion dollars a year to litigation attorneys?  This alarming figure does not account for lost money due to settlements, or perhaps more importantly lost business-related relationships that were once mutually beneficial.  There are countless potential risks and legal issues that can arise.  We want to highlight some common situations and potential strategies that can be implemented to avoid the court system should a misunderstanding or disagreement come forth.

Disputes between Partners

Every company starts out a little differently.  Some begin as a simple sole proprietorship, other times successful business owners combine their resources and make a corporation.  Regardless of how a company starts, it is important to make necessary changes along the way you grow, add new resources, and bring on new employees.  One of the most efficient ways for partners to reconcile differences is to draft a partnership agreement that outlines certain protocols.  Primarily a dispute resolution clause is guidelines that can be agreed to beforehand to help avoid courts and possible legal ramifications.

Keep Terms in Writing

Contracts are essential for any business to outlines terms between employees, contractors, vendors, and customers.  It is a sound investment to have any contract drafted, reviewed, and altered by a business consultation law firm.  This will help ensure that terms are properly outlined, risks are assessed and most importantly, the contract is legally binding in your jurisdiction.  Valid contracts can act as an important reference point, clarify misunderstandings, and provide legal protection should a disagreement arise.

Take Action Before Things Escalate

As a general rule of thumb, ignoring an issue won’t make it go away, and it could lead to the issue becoming worse.  By taking swift action you can help alleviate negativities and prevent issues before they get out of hand.  As time goes on people tend to become entrenched in certain ways of thinking and small issues can grow into bitter situations.  Ensure that management and staff members are trained to see potential risks as they arise and know what company policies should take place to alleviate the issue.  It is a good idea to make certain that employees understand what actions to take and feel comfortable bringing an issue, glitch, or mistake up to management so it can be dealt with.  Please consult with a business-risk assessment attorney to learn more about how you can protect your company and assets.

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social-media-influencer-protection

Protecting Your Company When Using Social Media Influencers

The internet and social media platforms are rich with independent users that have built sizeable audiences ranging from hundreds of thousands to millions of followers.  In many cases these grass-roots campaigns have resulted in viewers that rival or top conventional media outlets.  As a result, many companies have learned that they can get their product or service in front of like-minded individuals at a lower cost than television or radio commercials.  In many cases, these social media endorsements are more powerful and engaging because people have a connection with the influencer they follow.  As with any marketing endeavors, it is important to protect your company and follow the Federal Trade Commission (FTC) rules and regulations.

How Companies Should Protect Themselves

In a recent article by Legal Matters we have read more about his subject, and how some companies have been flagged for non-disclosure violations.  These brands include Lord & Taylor and Warner Bros. Home Entertainment.  Both of which had to make settlements with the FTC for violations.  Specifically, they had failed to release the relationship they had with big-follow social media creators.  In these specific cases, the followers were compensated roughly $4,000 for an endorsement of their product.  Instagram has become feverishly popular over the last couple of years and companies need to ensure they are marketing their products or services within certain guidelines to avoid violation.

What Can Be Done to Avoid Penalties?

The most important take-away is to understand that according to FTC guidelines, consumers have a right to know whether a certain brand is being endorsed by the influencer’s own violation, or if they have a partnership with a company in exchange for free products or future payments.  In this case, the influencer and the companies failed to disclose their relationship, which violates FTC’s disclosure recommendations.  Remember that if your company is investing in advertising it is well worth your time to speak with an attorney to help ensure you are following FTC and online regulations.  The money you pay an online influencer can pale in comparison to the amount certain violations may bring.  In some cases, these disclosures can be adhered to with an online statement, or #hashtag such as #ad #paidadvertisement or #sponsoredpost at the beginning of the post.  Please feel free to contact our office to learn more about how law firms such as BLPG can help protect companies in their online and social media marketing strategies.

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