Starting and managing a successful business is the end goal for most entrepreneurs. Managing a business is not a walk in the park. You need to be aware of the day-to-day activities of your business.

Your business has different kinds of stakeholders who can affect business operations. You will interact with suppliers, banks, customers, employees, and even the government as you manage your business.

If your business has been operating long enough, sooner rather than later, you will encounter yourself in some form of business dispute. If you are located in New Jersey, you need to be aware of the most common business disputes you can encounter and the procedure of resolving a business dispute in New Jersey.

This blog post will discuss five common business disputes and how you can avoid or resolve them:

1.  Workplace Dispute

The first dispute you are likely to encounter is a workplace dispute. This arises when there is a dispute among your employees. The dispute can be between a senior and junior employee where there is discrimination.

There could also be a scenario where work rules are not followed, such as drinking while at work, sexual harassment, attendance policies, and pay-related disputes. To avoid or solve work-related conflicts, it is good to have policies and procedures inside the employee’s handbook. If a work dispute arises, consult a work dispute lawyer for guidance.

2.  Downsizing or Workforce Reduction

Running a business is costly. You have to pay salaries, taxes, loans, buy equipment and raise profit for your business to be sustainable. Many companies don’t succeed since they don’t make a profit, and for them to operate, they may be forced to terminate a huge number of employees to reduce costs.

Downsizing impacts a large number of employees, and it could lead to legal action taken against employers. Employers should be careful when terminating employees and make a substantial reason as to why they need to downsize.

Employees have the right to be free from employment discrimination during the termination process, even if they might be employed on an at-will employment basis. Workforce reduction can not be based on race, religion, gender, or age.

3.  Breach of Contract

A contract stipulates what is expected from each of the singing parties. There are different types of contracts that a business has, such as employment, partnership, loans, non-disclosure agreements, indemnity agreements, and more.

When one party fails to follow the laid-out terms in the contract, that can lead to a lawsuit seeking compensation.

4.  Intellectual Property Dispute

Intellectual property is innovative products owned by the product’s creators, such as designs, images, music, art, and names. They are primarily digital products that are intangible and easily accessible from the internet.

As a business owner, you need to ensure everything you own is patented, copyrighted, and trademarked. This will communicate to people that you are the sole owner of the product and need your permission to reuse it. You should also not use other people’s creations unless they have permitted you, you bought the product, or will give them the credits as the owners.

5.  Consumer Disputes

Businesses cannot stay afloat without customers. They are the driving force and are always right. A successful company is customer-centric, which means they place the customer first. However, dealing with customers is not as easy as it may sound.

Customers are people too, and they vary from one customer to another. When dealing with them, you need to be very careful as the slightest mistakes can make you face litigation in court. You need to ensure that you provide high-quality goods and services. Shoddy goods or service delivery may lead to accidents, and you may be liable and forced to compensate customers.


You need to be ready to face business disputes. At one point in time, your business will find itself in a dispute. Having a business dispute lawyer will help you in the litigation process and negotiations if you decide to settle out of court.

Workplace dispute stock photo by fizkes/Shutterstock