The free marketplace exists to allow companies to thrive. Many Houston businesses benefit from the ability to grow and expand as they see fit. However, there are some regulations that determine how businesses will run and interact with each other. For example, two companies in the same area often compete for customers, and a misstep can quickly result in a lawsuit claiming unfair competition. It is important to be able to substantiate such claims and avoid wasting time in court.
The proliferation of technology has made it increasingly more difficult for firms to protect their trade secrets. Domestic and global competitors alike are often able to reverse-engineer computer codes and other intellectual property in order to develop rival products. This can lead to international business disputes and the need to pursue legal action.
Competition amongst businesses is said to be a sign of a healthy marketplace. As such, antitrust laws are in place to help ensure that competition remains healthy. When a company is accused of antitrust violations, the accusers must then prove that the company’s practices have created an air of unfair competition in an attempt to monopolize the market. Often, these sorts of business disputes in Harris County will center on certain restrictive practices that a company employs that don’t allow for other options. If and when other companies recognize this activity, they may file an antitrust claim.
When businesses are able to set competitive prices, it helps to encourage a healthy, open marketplace that gives consumers the chance to get items at a fair price. This also gives competing companies the chance to develop loyal customers and strong business partnerships. If the ability to change prices for fair competition is taken away, it not only isn’t fair for businesses who don’t have the choice, but also for consumers and the industry in general. Also, it opens the path for business litigation from consumers against companies that practice unfair competition.
Some businesses have non-compete clauses in their contracts which employees are required to adhere to for a certain period of time after they’ve stopped working for the company. This is to prevent unfair competition, when a former employee might have an edge by knowing some of his or her previous employer’s business secrets. Additionally, it can hurt the company if a former employee takes some of its clients away after he or she leaves the company and starts up a similar business nearby.