Business litigation in Brazil involves any type of lawsuit filed by or against a business. There are many different reasons why someone might file a lawsuit against a business, and why a business might file a lawsuit against someone else. While these reasons are wide-ranging and unpredictable, there are some common reasons why business litigation takes place in Brazil. If you’re thinking of opening a business or simply doing business in Brazil, you should learn what common reasons business litigations could go into effect.
Common Lawsuits Filed By Businesses
- Breach of Contract – When a contract agreement between two businesses is breached, the injured party faces legal consequences. Especially when he or she does not receive the products expected or the money deserved, his or her business may suffer severe losses. For that reason, it is not uncommon for businesses to sue offending parties when a contract is breached. Even more importantly that punishing the offender, these businesses file lawsuits to repair the damages.
- Interference with Business Relationships – In some cases, businesses rely heavily on the relationships they have with their customers and their businesses contacts. When a third party intentionally interferes with those relationships and breaks them, the business can file a lawsuit.
- Patent or Trademark Infringement – In Brazil, patent infringement is considered both a crime and a civil offense. When a business has its own trademark or patent, it is truly a defining factor for its brand in the eyes of the consumer. For that reason, when another business passes it off, the creator must file a lawsuit to ensure that the integrity of their business is not compromised.
- Unfair Trade Practices – To stay in business, companies must make sure they are on par with their competition. In some cases, competing businesses use unfair methods to get way ahead, and such behavior could call forth a lawsuit. Some of these practices include price gouging and predatory pricing to draw customers in.
Common Lawsuits Filed Against a Business
- Wrongful Discharge – When an employee of a business is fired, it is usually because he or she was not performing well in his or her position. Sometimes, other factors come into play, and these discriminations are illegal. For that reason, lawsuits filed against businesses related with a wrongful termination of employment are common.
- Bad Faith – When an agreement is undertaken in bad faith, it means that the agreeing party never had any intention of actually upholding its end of the bargain. In some cases, businesses do not follow through with their agreements, and their clients may file a lawsuit against them.
- False Advertising – When a company purposely misleads customers with false advertising, those customers can file a lawsuit against it. For example, companies often exaggerate the size of their products on TV. If people purchase these products based on their size and the actual size is completely different, the customers can file a lawsuit against the business.
- Personal Injury – If you walk into a restaurant, slip on the wet floor and break your arm, you can file a personal injury lawsuit against the business. This type of lawsuit includes any instances where an individual was injured in a place of business due to negligence. If you own a business, you should make sure there are no opportunities for personal injury, as the lawsuits are often hefty.
Business Litigation specialties in Brazil
How to Get Help
All of these lawsuits are different reasons for business litigation in Brazil. If you’d like to learn more about Brazilian business litigation, you should speak with a professional attorney.