Consumers regularly purchase and constantly use products and services offered by businesses. What happens when those products and services mislead consumers, involve fraud or otherwise cause harm?
Consumer protections exist in many forms to protect individuals against unscrupulous and unfair activities by businesses. Examples include government regulations, advocacy groups and business litigation for individuals.
Business litigation is a very broad practice area. It covers nearly all disputes that can occur between a business and another person, group or organization. That includes customers along with other businesses, employees, government agencies and other parties.
The term commercial litigation is sometimes used to distinguish legal issues between a business and another company or an individual. No matter what you call this practice area, it’s important to understand how business litigation can support you.
Keep reading to learn more about business litigation. You’ll find information about the legal landscape of consumer protection, ways in which disputes are settled and more.
Business Litigation: Laws and Legal Standards
Consumer protection laws can be a basis for business litigation. These laws exist at the local, state and federal levels. They focus on protecting consumers from issues including:
- False advertising and misleading statements about products and services.
- Scams and fraud.
- Product recalls and product safety.
Investopedia points out the broad range of consumer protections at the federal level. They range from protecting privacy online to enforcing warranties and fair housing standards.
Individual states, as well as some towns and cities, also have consumer protection laws. These vary in their specifics, creating a complex legal landscape. Working with a knowledgeable business litigator is especially important in this context.
Class-action lawsuits are an important part of consumer protection standards. This type of litigation allows representation for many consumers without their active, ongoing participation.
Instead, an individual or group essentially represents the larger class of affected consumers. If the litigation ends with a positive result for the class, everyone involved shares in the settlement, rebate or other restitution.
Other types of laws also protect consumers. Consider a legally binding contract with a service provider as an example.
If the service provider doesn’t complete the work they were paid to perform, the consumer could take legal action in return. Although this example is related to the field of contract law, the end result is still protection for the consumer.
The Consumer Bill of Rights: 4 Basic Rights of Consumers
In 1962, President John F. Kennedy gave a speech to Congress that focused on four basic rights for consumers. This has since been called the “Consumer Bill of Rights.”
The Consumer Bill of Rights is not a specific piece of legislation or a legally enforceable law. However, the four rights listed in it are guiding principles used in developing consumer protections.
A consumer may feel a business violated one of the following informal rights. In those cases, it may be worth consulting with an attorney to discuss moving forward with a business dispute.
1. The Right to Safety
Consumers should not fear harm or injury when they use products for their intended purpose and follow safety instructions.
2. The Right to Choose
Consumers should, in most cases, have a variety of product options available to them. Even if many options aren’t available, consumers should be able to expect a level of quality and reasonable prices.
3. The Right to Be Informed
Information about products directed at consumers should be accurate and empower those consumers to make informed decisions.
4. The Right to Be Heard
Consumers should have an avenue to share information with product manufacturers and potentially have their issues resolved by the business.
How are Disputes Related to Business Litigation Resolved?
There is no single process for resolving issues related to business litigation. State and federal courts are two examples of venues used. However, private arbitration and administrative hearings are increasingly common.
Private arbitration is based on an agreement to avoid traditional litigation. Instead, the parties involved agree to settle disputes with an arbiter or group of them.
The arbiter or arbiters are neutral third parties. They make a final decision after reviewing the facts presented. An attorney can provide assistance and support during arbitration to help a consumer effectively present their case.
Administrative hearings are similar to court proceedings in many ways. However, they are held under the authority of a government agency or similar organization. A business litigation lawyer can provide valuable assistance and support during these proceedings as well.
