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Protection of company's business reputation in case of constant complaints of the same person. Part 1

Nowadays defeating a business reputation is one of the most popular tasks of its legal support. Most of companies’ directors very often look at this problem form the point of view of fight against unfair competition. However, there are a lot of cases when a company’s business reputation suffers from permanent claims of the same person. Practically it looks like a citizen starts to conflict with a company for different reasons and calls on various authorities and services. We will examine a legal framework for defeating a company’s business reputation in courts.

First of all, we will deal with a definition “business reputation” and legal aspects of its using. Actually, there is only one legal act where you can find it – is the Law of Ukraine “On banks and banks’ activity”. According to it, a business reputation – is information, which was collected by the National Bank of Ukraine, on compliance of legal entity’s or individual activity with laws’ requirements, business practice and professional ethics. In spite of specificity of the Law, this definition gives explanation of a business reputation. The Decree of the plenum of the Highest Court of Ukraine “On courts’ practice in cases on defeating dignity and honor of individual and also business reputation of individual and legal entity” dated the 27
th of September 2009 no. 1 is one of the most important documents in this sphere. It says that a business reputation of a legal entity, including business association, sole traders, lawyers, notaries and other person, is rating of their business, public, professional and other activity which is conducted by them as participants of social relations. We need to admit that the Tax Code of Ukraine defines a cost of a business reputation (goodwill). This is the difference between market price and balance price of enterprise’s assets as an integral property complex which is come of using better management features, dominant position on market of goods, services, new technologies etc.

The Civil Code of Ukraine defines that a business reputation is a non-material benefit which must be protected by the laws. It is important that a legal entity is able to have the same rights and obligations which can be belong only to an individual according to the Article 91 of the Civil Code of Ukraine. It matters for defeating firm’s interests in a court. The Higher commercial court of Ukraine in its letter “On some matters of practice on solving disputes which are related to using of laws about information by commercial courts” dated the 12
th of November 2008 no. 01-8/676 regulates that the right to inviolability of a business reputation is related to personal non-material rights and can belong to a legal entity.

The Article 94 of the Civil Code of Ukraine defines the right to inviolability of a business reputation of a legal entity. The Decree of the plenum of the Highest Court of Ukraine “On courts’ practice in cases on defeating dignity and honor of individual and also business reputation of individual and legal entity” dated the 27
th of September 2009 no. 1 also defines that the law provides a business reputation with a definition of independent object of court’s defeating because it is a moral-ethics category and a personal non-material right.

You can find more details on defeating of a business reputation 
in the next article
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