Running a business in Pennsylvania involves many responsibilities, including ensuring compliance with state laws and protecting one’s company from legal disputes. Yet, despite an entrepreneur’s best efforts, business litigation may arise due to a variety of circumstances, including contract disputes, partnership conflicts, employment matters and regulatory compliance violations.
Ultimately, understanding the basics of business litigation in Pennsylvania can help entrepreneurs mitigate risks and respond effectively if a legal dispute does develop over time. Business litigation can take many forms, but some of the most common disputes Pennsylvania entrepreneurs face include:
- Breach of contract: When one party fails to fulfill the terms of a contract, it can lead to significant financial losses. Contract disputes may involve suppliers, customers, employees or business partners.
- Employment disputes: Businesses may face claims related to wrongful termination, unlawful forms of discrimination, wage and hour violations or breaches of employment agreements.
- Partnership and shareholder disputes: Disagreements between business owners can lead to litigation over company control, financial responsibilities or alleged breaches of fiduciary duty.
- Intellectual property disputes: Issues involving trademarks, copyrights, patents and trade secrets can result in lawsuits that impact a company’s ability to operate and compete.
- Regulatory compliance violations: Businesses must comply with state and federal regulations governing their industry. Failure to adhere to these laws can lead to legal action by government agencies or competitors.
Succeeding in business litigation matters in Pennsylvania
Pennsylvania business litigation is governed by a combination of state statutes, federal laws and case law precedents. Some of the most important legal considerations for business owners include:
- Pennsylvania Uniform Commercial Code (UCC): Governs commercial transactions, including contracts for the sale of goods and secured transactions.
- Pennsylvania Business Corporation Law (BCL): Regulates corporate governance, mergers, shareholder rights and dissolution procedures.
- Employment laws: Businesses must comply with Pennsylvania’s wage and hour laws, anti-discrimination regulations and workers’ compensation requirements.
- Consumer protection laws: Companies engaged in selling goods or services must follow Pennsylvania’s Unfair Trade Practices and Consumer Protection Law to avoid deceptive practices claims.
While avoiding business litigation isn’t always possible, entrepreneurs can take proactive steps to minimize the risk of business disputes and costly litigation dragging on. Seeking legal guidance and support is a good way to get started.
