Common Business Disputes And Ways To Overcome Them

Businesses are like a jigsaw puzzle where each part helps to complete the picture. It is impossible to achieve goals without these parts representing various functions, such as marketing, sales, administration, human resources, supply chain, distribution, finance, etc.

The final result is the effort of every department slogging hard to accomplish their specific targets. Thus, the organisation has to work as a cohesive and united workplace aiming towards the same goals.

However, when people from different backgrounds, cultures and perspectives come together, tempers are bound to fly. The reasons for arguments can vary from a lack of communication to incompetence and unfair competition. These can quickly transform into full-fledged conflicts that can impact the revenue.

Here is a list of common business disputes and ways to overcome them. It will help to prevent these problems and find solutions before they escalate.

1. Contract-Based Supplier Disputes

Legal contracts are an integral part of business operations. Entrepreneurs have to sign various agreements with suppliers, employees, shareholders, property owners, contractors, third-party service providers, etc. These contracts are breached when one of the parties fails to adhere to the terms and conditions.

Such disputes can pose a hurdle when entrepreneurs wish to sell business online since buyers will not be interested in dealing with conflicting suppliers. Entrepreneurs can sue the suppliers for the loss caused due to their negligence or violation of terms or terminate the contract after providing a notice to remedy a breach.

2. Commercial Lease Conflicts

Commercial lease agreements are signed between entrepreneurs and property owners. The common differences that arise between the two parties are related to annual rent review and payment for repairs and restoration of the property. Thus, entrepreneurs must read the agreements carefully with the help of a lawyer to understand the clauses.

In case of a dispute, the aggrieved party must speak to the other party and come to an agreement. The agreed terms must be added to the contract. If the conflict persists, they can seek the help of alternative dispute resolution to resolve it. In extreme cases, they have to go to the court or tribunal to settle the matter.

3. Disagreements With Customers

Consumers can have various complaints, including exaggerated brand claims, unsafe products, damaged items, lost packages, fake products, contest scams, etc. If these complaints are genuine, the Australian Competition and Consumer Commission can protect customers from deceiving businesses and poor-quality products.

However, if problems arise due to lax delivery or service provided by the business, the brand must resolve the issue quickly. Disgruntled customers can create negative publicity and impact the brand image. Thus, businesses must understand the complaint and check the reason behind it to get it fixed promptly. This improves credibility, which helps sell businesses online without hassles.

4. Disputes With or Among Employees

Disputes with employees can occur over unpaid salaries or unfair working conditions. They must seek help from Fair Work Ombudsman to deal with salary issues. Other common problems that occur in workplaces include disagreements between colleagues that affect productivity, harassment and bullying of employees, ego clashes with the management, etc.

Tensions and quarrels in the workplace must be resolved through discussions and mediation from the Fair Work Commission. Employers must ensure that discords do not take place in the office by adhering to industry best practices and maintaining open communication with a positive work culture.

5. Clashes With Shareholders

Shareholders own equity, which entitles them to a share in the profits earned by the business. They receive the profits in the form of dividends and also have the right to play an influential role in strategic decisions. Entrepreneurs and shareholders can come to loggerheads for various reasons, such as budgeting, buying assets, business management, etc.

In case of a conflict that is not resolved amicably, the parties must seek help from alternate dispute resolution. However, if mediation and negotiations with the help of an independent party do not work out, the conflicting parties can file litigation to resolve the issue. It must be the last resort because it can malign the brand’s image and affect sales. It can also create hurdles when you try to sell a business online.

6. IP Ownership Disputes

Intellectual Property (IP) ownership disputes can occur between business owners and anyone who copies trademarks or copyrighted designs and brand materials. They can also take place when a disgruntled employee leaks trade secrets to competitors in exchange for money. Other disputes include patent ownership conflicts and design ownership issues.

IP disputes are resolved in Federal courts and as the rightful owner, it is vital to have relevant proof of the same. Since the IP infringement is a complex process, the infringement must be evaluated by a lawyer before going ahead with a lawsuit. IP issues can arise in franchises because the franchisees are given the licence to use the patents and trademarks for a given period. Thus, franchise contracts must be navigated carefully.

Wrapping Up

Entrepreneurs must understand the impact of business disputes on their brand and its popularity. It is better to resolve matters amicably through negotiation and mediation from a third party. Avoiding litigation can help sell business online for a rewarding amount when you retire and continue to enjoy goodwill in the market.