The U.S. Department of Treasury claims the country averaged about 430,000 new business applications monthly in 2024. It’s a sign that entrepreneurship is booming; good news for businesses and consumers.
Whether joining the ranks of business owners or needing a refresher course in the legalities, it’s good to know you’re on the right side of the law.
If there’s anything we’ve learned from David going against Goliath, even big brands can fall foul of a lawsuit.
A case in point is Swiss chocolatier Lindt’s attempt to have a lawsuit dropped by a U.S. consumer association. The lawsuit had been ongoing since 2023 after the company was questioned about heavy metals in its dark chocolate bars.
Lindt’s Lawsuit Conundrum
Lindt prides itself on quality ingredients, a cornerstone of its marketing strategy. Unfortunately, a New York district court ruled that their use of “excellence” was nothing more than “product puffery.”
Despite its attempts to dismiss the lawsuit, the harm was already done. According to Bakery&Snacks, the legal battle not only affected Lindt but also had significant implications for the confectionery industry.
Whether Lindt could have avoided litigation remains to be seen. However, the brand’s reputation suffered an immense blow. It’s a cautionary tale for other companies to take heed and protect themselves from the threat of litigation. We’ll explain how below.
Your Legal Responsibility as a Property Owner
As a business that owns a property, it is your legal responsibility to ensure the premises are reasonably safe for visitors.
Referred to as premises liability, the regulation protects your clients or customers from foreseeable hazards. According to premises liability law, the property owner is held liable for injuries caused by unsafe conditions on their property.
Owners must maintain a reasonably safe environment and could be liable for accidents such as slips and falls, dog bites, or elevator malfunctions. In a worst-case scenario, injured individuals can rightfully seek compensation for damages.
Of course, if you take out business insurance, you’ll be covered for these types of accidents, including workplace injuries and theft.
Car Accident Liability
In November last year, a family sued a commercial truck driver and the company he worked for following the death of a mom and her two daughters.
A report stated that the motor vehicle accident occurred in South St. Louis County when Michelle C. Yaeger veered off the left side of the road. She hit the rear of a tractor-trailer parked in the concrete median at the highway merge.
Probably on the advice of a St. Louis car accident lawyer, the victims’ family filed a lawsuit alleging that safety violations by the defendants caused or contributed to the deaths.
The last thing you want is to find yourself in a similar situation and deal with car accident claims. This especially pertains to your business if you own a fleet of vehicles. A company-provided vehicle involved in a car accident can cause unnecessary pain and legal headaches.
If you are found to be liable or negligent, the fallout can be astronomical. To make matters worse, TorHoerman Law says experienced car accident attorneys can secure maximum compensation for car accident victims. And not only from insurance companies. Your company will be out of pocket and have a damaged reputation.
Defective Product Liability
Product liability lawsuits are nothing new. However, there’s been a noted surge in liability claims over the years.
Not everyone is above the law. Amazon found itself in hot water with the federal regulator. According to GeekWire, the company has long argued it shouldn’t be held liable for defective products sold by third-party merchants. It asserted that responsibility lies with the sellers, not the platform.
The ruling has potentially wide-reaching effects on its eCommerce arm. Amazon can be liable as a distributor for defective products sold on its marketplace.
It’s in your company’s best interest to avoid defective products altogether. If you’d like a refresher on what the law says, it maintains that defective product liability holds manufacturers, distributors, and retailers responsible for injuries caused.
Now do you see the importance of familiarizing yourself with business liability laws in the U.S.?
Nobody wants to see their company hauled before a court. Even if the ruling is in your favor, the damage to your brand cannot be undone. The court of public opinion will always haunt you and your business reputation.
So, instead of being reactive, take proactive steps to protect your company from a legal standpoint. You can thank us later.
