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There are many different types of lawsuits, also known as litigation. When a business is involved, it is generally known as commercial litigation. There are many types of commercial litigations:
Fraud and Deceptive Practices means that a business may not have been completely honest in representing their service or products, while conducting business. There can be a misuse of Intellectual Property as well. If a trade secret is revealed to potentially harm a business, this applies. Further if business information is leaked when it is deemed valuable to competitors, this is also a breach of confidentiality, especially if the information given outside the business devalues the company in any way. The Abuse of Trust that can be litigated if someone within the business structure is privy to sensitive information that if leaked, would cause harm to the business value.
Employer/employee disputes, like overtime, health, or discrimination issues, can cause businesses legal battles. Agreement Limiting the Competition is basically when an employee quits and goes to work for a competitor, when they signed something that stated they would not do so. This can result in a court case. The Violations of Securities Law is when there is deception that is practiced during the sale of stocks, or other securities.
Breach of Contract is when a service, vendor, representative of any business asset, or others who refuse to keep their end of the agreement or contract break any contract that is drawn up on behalf of the company, then they are in breach. Tortuous Interference is when a separate party tries to interfere in order to prevent a contract from being drawn up by a business and a second party.
While this doesn’t completely cover all types of commercial litigations, it gives one a basic guideline for what constitutes reasons to suggest that litigation may be appropriate.