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Business law is the collection of laws that govern the dealings between people and commercial matters. Business law is referred to as mercantile law or commercial law. Business law concerns two distinct areas of businesses.
One of two areas is regulation of commercial entities; the regulation is done through laws of partnership, company, bankruptcy, and agency and the second area is the regulation of the commercial transactions that comply with the laws of contract.
BUSINESS LAW HISTORY
The history of these types of laws predates several centuries. The reflection of such laws was seen in the peace guilds. The members of such convention would pledge to stand by each other for protection.
What Does Business Law Solve?
Business law helps you sort out legal disputes. Business law involves trying to prevent problems that can hurt your business.
Business law may concern any of the following:
Setting up a business is what makes the practice of Business Law possible. In the eyes of the law, each business represents its own legal entity. Starting a new business generally involves filing the paperwork that confirms that the business exists in the government’s eyes.
Business entities of numerous remain similar throughout the country. However, the exact entities that a new business is structured with vary by state. The process that begins the paperwork to establish the business can vary from state to state.
Each entity has its own pros and cons. Business lawyers help business owners weigh those pros and cons when the owners are starting a business. They help educate the business founders in the law. Learning about the ins and outs of Business Law helps the founders choose the entity that is in their best interests.
Then, Business Lawyers help business owners file the paperwork that recognizes the existence of a business.
BUSINESS LAW: EMPLOYMENT CONSIDERATIONS
What’s A Business Without Employees?
A business must need employees to get up and running. Businesses need legal advice to understand how to handle hiring and firing employees. They need to know how employee disputes and discipline can be handled. Businesses need to know what claims employees may lay in terms of pay and benefits.
In addition, mandatory payroll taxes and deductions may concern a business. Business lawyers educate their clients on how to manage employees and related rules and best practices.
More often than not, business law and immigration law cross. Businesses may want to hire employees coming from other countries. They may want to hire international employees on a full-time basis. Businesses may need temporary workers, or they may need to bring in a worker just for a short period of time for a special event.
Federal immigration laws are an important aspect to consider in terms of business law. These laws help companies get the manpower they require for success.
SALES OF CONSUMER GOODS
Buying and selling have to be done based on regulations. The exchange isn’t as easy as it sounds. There are regulations that dictate how companies can manufacture products. Then, there are regulations on how they can sell them.
All kinds of laws are legislated for employment, from working conditions in a factory to distribution requirements to price controls.
UNIFORM COMMERCIAL CODE
One of the most significant documents determining business operations is the Uniform Commercial Code. It’s a model code that is important for outlining recommendations for commercial transactions.
Uniform Commercial Code concerns topics, such as the statute of frauds, sales, credit, contracts, leases, bulk sales. and secured transactions. Business lawyers help their clients identify the laws that a business will benefit from following, and they help ensure the company’s compliance with the laws.
CONTRACT DRAFTING AND NEGOTIATIONS
Many businesses operate by preparing and negotiating contracts. A contract involves anything from a lease agreement to a purchasing agreement. Moreover, an agreement with a third-party vendor can help businesses sell a product.
A lot of contract law originates from common law. Common law depends on accepted systems for negotiations. Common laws’ principles of law and rules developed through the courts over time.
Lawyers in business comply with the elements of contract law. And, the elements could originate from both statutes and common law, but they must also go along with nuances that might impact the enforcement of a contract.
Business lawyers must cooperate with their clients, thereby skillfully negotiating and drafting contracts. The end result is to achieve the client’s best interests.
Most businesses want to make the most of the large share of the market. Growing and expanding is what their objective is. Companies who want to increase their profits and their market share, they go about it in legal ways.
Many companies rely on deceptive or unfair practices that cut out competitors or avoid competition. These companies might find themselves embroiled in the subject of allegations of anti-trust violations.
To start and run a business effectively and lawfully, business owners must abide by Business Law. Business Law has concerning elements for everything involving business. Business owners will find legal solutions for running a business, as well as hiring and firing employees.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.