Business/Corporation law FAQ's

Q: What is the difference between civil and criminal liability in business?

A: Civil liability in business arises out of the relations between a business and their associates that are governed by the laws of contract and tort. Cases against a business such as breach of contract or negligence are disputed by those people directly involved. On the other hand, criminal liability in business involves a business committing a crime against the state or public. Criminal law applies across several business activities such as the labeling of goods and services - particularly food products.

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Q: What is Tort?

A: Tort is an area of the law concerned with injuries to people or property that come about because of a breach of a duty imposed by the law rather than by some contractual arrangement between two parties. Individual torts include trespass, defamation, nuisance, negligence and passing off. Each tort has its own rules.

Q: How does Negligence relate to business activity?

A: Negligence is a tort, meaning it is a kind of wrongful act giving rise to a civil court action, usually for damages. Business activity can give rise to negligence in many different ways, for example, through the selling of defective goods or services.

Q: When is a company considered to be in Breach of Duty?

A: A company is in breach of duty if it has failed to do what should reasonably be expected of it to do or not do. A company that is in breach of duty must meet certain criteria for negligence. In order to determine 'reasonableness', the court takes into account several factors such as the likelihood of a company's action or inaction causing damages, the extent of damages caused, and how easy it would have been for a company to prevent damages.

Are you seeking a business lawyer in Michigan and need information regarding business corporate laws? If so, contact Christopher Trainor & Associates business lawyer in Michigan to help you today!