What are Unfair Business Practices in San Diego and throughout California and why is this an important business concept to understand? Unfair Business Practices are a subset of California Unfair Competition laws as well as the California Business and Professions Code that are generally designed to address the relationships of people within the context of an entity or business profession.
The key element of unfair business practice is fraud or deception. It often involves wrongful acts by one person with a duty to or power over the other. This includes a breach of fiduciary duty, breach of contract, self-dealing, embezzlement, theft, commingling, and/or unethical bookkeeping or financial reporting.
Misappropriation and accounting fraud are another common source of unfair business practices. Creating false accounts, vendors or payroll and supporting records in order to steal money from the business represents unfair business practices. The misappropriation of trade secrets can absolutely constitute and unfair business practice.
What are Unfair Business Practices From the Perspective of a Shareholder?
What are unfair business practices from the perspective of a shareholder? It is interesting to note that allegations of unfair business practices may be levied by a minority shareholder against the actions of another shareholder, the majority interests or even an executive or member of the board of directors. Adverse investors targeting undervalued entities often called “corporate raiders” can apply tactics against the interests of the company in order to gain control or rapidly accelerate value in order to liquidate their gains.
Minority shareholders often accuse majority interests of withholding access to corporate information or access to financials and the corporate books. Majority interests may believe the actions of a minority shareholder threaten the viability or profitability of the corporation they serve.
40+ Years of Resolving Business Disputes and Unfair Business Practices
What are unfair business practices and what can be done about these fraudulent activities? The Watkins Firm has more than 40 years of experience resolving business disputes and allegations of unfair business practices. It is often important to seek an immediate injunction to put a stop to the practices while pursuing appropriate remedies and damages. In some cases, unfair business practices can result in substantial damages including punitive damages (such as attorneys fees).
The Watkins Firm is prepared to protect your interests and take the action required to remedy the situation at hand. Ask about our unique approach to business litigation and the many similar cases we’ve managed over the past four decades.
We invite you to review our podcast Episode 25 – Unfair Business Practice Overview as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
