When a company is started, it is because it has had an idea and has created a business plan, but when it begins to materialize, the entrepreneur must face many difficulties for which he must be prepared. Some of these problems will be related to legal issues, which will have to be dealt with by a lawyer. These are the most frequent legal problems in companies:
Supplier default
When planning a business, one of the first actions is to find the right suppliers. However, problems may arise, for example, that they do not deliver their product or service or that they do not deliver it on time, or that it is of a different quality and quantity than agreed. It will therefore be necessary to sign a contract drawn up by a specialist, detailing the characteristics of the product or service, so that you have a clear basis for claiming performance or even suing. This is one of the most frequent legal problems in companies.
Customer complaints
In the course of business activities, it may happen that a customer is dissatisfied with the product or service received. In order to avoid this, it is best to protect the company’s relationship with the customer by means of a contract.
If a contract has not been signed and the customer claims something different from what was agreed, the customer will most likely be lost, since he will have the feeling that the company did not comply and he could sue or file complaints as a consumer.
On the other hand, if they signed a contract, it will be enough to read it and clarify the misunderstanding, since it will serve to delimit the customer’s rights and the company’s obligations to him. This is one of the most frequent legal problems in companies.
Non-payment by customers
What happens if a customer fails to pay? Simply put, customer default can cripple a company by depriving it of the cash flow it needs to continue its activities.
To prevent customer default, it is necessary to: Analyze whether the customer is creditworthy and draw up a contract. If, in spite of this, the customer does not pay, judicial or extrajudicial collection should be carried out. It should be noted that the success of a lawsuit will depend on the drafting of the appropriate contract. This is one of the most frequent legal problems in companies.
Lawsuits for workers
The search for employees should be carried out by people who can determine the characteristics of the position, however, at the time of hiring them, this should be the task of a lawyer, because the way it is done can save a lot of time and money in case of labor lawsuits.
Thus, labor management (hiring, dismissals and lawsuits) must be carried out by a lawyer specialized in labor law. It may depend on this that a company may terminate an employment relationship with a worker without liability for the company or that it may do so paying a lot of money. This is one of the most frequent legal problems in companies.
Tax fines
A company’s tax strategy should be designed by the accountant, with the active participation of a lawyer. The coordination between both can avoid fines, for example, for not filing tax returns, not registering tax obligations or the tax domicile..
Failure to comply with tax obligations may also result in liability for a tax offense, which could greatly complicate the legal and financial situation of a company. This is one of the most frequent legal problems in companies.
Affectation of personal assets
It is necessary to make a financial separation between the company and the CEO, for example, by assigning a salary and controlling the company’s expenses. This separation should not only be financial, but also legal, so that in the event of a problem arising from business management, only the company’s assets and not the owner’s are affected. This is one of the most frequent legal problems in companies.
Fines for improper management of customer data
When a company does not use its clients’ data correctly, i.e., illegally transfers them to third parties or does not have a privacy notice for personal data, it is exposed to a fine by the National Institute of Transparency, Access to Information and Protection of Personal Data (INAI). To avoid this, it is necessary to obtain the appropriate advice to manage their personal data.
In conclusion, most of the legal problems that your company could have can be prevented, so your business needs to have a labor lawyer who can advise you at all times. This is one of the most frequent legal problems in companies.
Where to hire a lawyer for my company?
Are you in Baja California Sur, Mexico? Todos Santos, Los Cabos, La Paz, Loreto, San Jose Del Cabo, Los Cabos, El Pescadero… Are you in Nuevo Leon, Mexico? Apodaca, Cadereyta Jiménez, El Carmen, García, San Pedro Garza García, General Escobedo, Guadalupe, Juárez, Monterrey, Salinas Victoria, San Nicolás de los Garza, Santa Catarina and Santiago…
At Cabo Lawyers we seek to satisfy the different legal needs of our clients, both in their business and personal matters. Contact us at: (+52)8119384461, where we will gladly advise you.
You may be interested in: https://lawincabo.com/can-a-foreigner-have-a-company-in-mexico
