Avoid False or Misleading Representations – Essential Advice for Small Businesses
False or misleading representation coverage is an important issue for small businesses. In this article, we’ll discuss why it’s important to understand and avoid false or misleading representation in all your business practices.
The law of misrepresentation is generally based on the principle that one should not be allowed to make statements which are untrue or misleading when a person relies on them to make a decision. This can apply both when making representations before entering a contract and during the course of dealing with each other in the contractual relationship.
The extent of what constitutes a false or misleading representation varies from case to case, but essentially involves an unfulfilled promise or omission of information that would have affected the outcome of the buyer’s decision. Some general kinds of misrepresentation include promises about quality, quantity, price and expected results.
Misrepresentations can also come through advertising, marketing materials and even verbal discussions with potential buyers. It’s important to ensure that any claims made in these areas are true and accurate so as not to mislead anyone interested in doing business with you. Misleading representations can potentially leave a seller vulnerable to court action from customers who suffer losses because their expectations had been raised too high by inaccurate statements from a seller.
It’s also important for small businesses to be careful about claiming any affiliation with another business unless it is accurate. Claiming to have an association with another company could create confusion among customers, leaving you open for charges of infringement on intellectual property rights if this false claim were found out.
Finally, never overestimate your own abilities when speaking with prospective customers – always try to be as honest and open as possible about what you can do for them and what sort of results, they can expect to get out of working with you. Doing so will go a long way towards avoiding any disputes in the future over expectations set but not met due to incorrect information provided earlier on in the process.
False or misleading representations should be avoided at all costs, as they can lead not only to negative outcomes for customers, but also potential legal action taken against a negligent business owner who has been less than honest about his product or services offered. As such, take care when preparing advertising materials and engaging in discussions related to doing business with potential customers – always strive for accuracy!