Business litigation can be the result of a partner’s misconduct or an employee violating a contract. In some cases, it may relate to unfair competition.
There are a handful of key rules regulating domestic businesses. When companies engage in unfair competitive practices, the organizations affected by that misconduct may have legal rights.
Filing a lawsuit against another business or an individual who engages in unfair competition could lead to a cessation of the behavior or possibly an award of financial damages. What common forms of actionable unfair competition lead to litigation?
1. Business defamation
Companies sometimes try to smear their competitors online, in print or in person. Negative, untruthful stories about a business competitor can provide the basis for litigation. Defamatory reviews and claims about specific products, if false, could also justify litigation.
2. Price fixing
If two or more competitors conspired to manipulate the local markets, that may constitute unlawful price fixing. Trying to undercut a competitor to force them out of business is unfair and illegal behavior regulated by federal antitrust statutes.
3. Trade secret misappropriation
Trade secrets include non-public information such as client lists and recipes. Competitors may engage in corporate espionage, such as hacking, to attempt to access and misuse trade secrets. They may offer financial incentives to current or former employees to gain access to trade secrets. Their conduct can diminish an organization’s competitive advantages unfairly.
Documenting unfair competition and responding appropriately can help organizations maintain a competitive advantage and hold other businesses accountable for misconduct. Business leaders with legal support can evaluate situations to determine if they can pursue business litigation.