Business law is also known as commercial law or corporate law, is a section of code that is involved in protecting liberties and rights, maintaining orders, resolving disputes, and establishing standards for the business concerns and their dealings with government agencies and individuals. Law means a rule of conduct imposed and enforced by the sovereign. Business laws are the body of principles recognized and applied by the state in the administration of justice.
Business law includes all the laws that govern how to start, buy, manage and close or sell any type of business. All business corporations are required to comply with a wide range of business laws. Business Law originated from the common law system of the United States of America. It is a counterpart of the term “commercial law” or “corporate law”. Business laws have evolved over centuries, and have had to adapt to changes in technology and society.
Types of Business Law
Business laws encompass all the laws that indicate how to form and run a business. There are a lot of types of business law. Here are some of the most common types of business law:
Business Formation Law
Business formation law is most important because every recognized business is a separate legal entity. Business law starts when a business is formed. There are some business formation laws that govern the types of business formed and the process by which the business is opened. A business could be a partnership, a sole proprietorship, or a limited liability company. Each of these different businesses has different legal implications and tax structures.
In today’s modern workplace, employment law is very important for all kinds of business organizations. It is essential for any company with even one employee to stay abreast of current employment laws. All business companies should require to offer health insurance or workers’ comp insurance. Once a business has started and has been legally registered, it must provide the common rights of the employees and manage the employees in the right way. Because A dissatisfied employee can take a business to court if the proper protocols regarding hiring, paying, or firing the employee are not observed.
Intellectual Property Law
Intellectual property law is important because all business organizations may need to patent unique products in order to protect their invention legally so that they may get profit from it. Every business should ensure trademarking its brand. Copyright laws will protect creative works, and it gives protection against the business is identified by a unique logo. It will help a business operates smoothly and securely in commercializing the products and also helps to increase profits.
Consumer Goods Sales Law
The Uniform Commercial Code is the law governing financial transactions in the United States. This Code deals with everything from contracts to fraud to leases to secure transactions. Business organizations should provide quality goods to the consumers and should stay productive.
Antitrust law is important because antitrust law helps to remove unfair or deceptive practices of business organizations in order to get a larger share of the market. It helps to remove unfair business practices also protect business organizations from unfair actions by other companies.
There are also laws regarding taxes and mandatory deductions that businesses are obligated to follow those laws. Businesses may have to pay several kinds of taxes like income taxes for the profits of the company, sales tax on services or products, property tax on any real estate owned by the business, self-employment taxes, employment or payroll taxes, dividend taxes on corporate shareholders, etc.
Bankruptcy law occurs when businesses are forced into a bad situation because of circumstances beyond their control. There are several kinds of options, with different requirements and filings to solve this problem. Business lawyers can help find the best solution in this case. Also, business organizations should avoid unethical or unfair business practices to remove bankruptcy.
Importance of Business Law
Business law plays a vital role in protecting business liberties and rights, maintaining orders, resolving disputes, and establishing standards for business concerns and their dealings with government agencies and individuals. Establishing a business includes a lot of legal processes, leasing, and permits business law plays the role of a foundation stone for any business concern. Business law helps to establish its operations successfully. Business law is also essential to regulate corporate financing, regulatory compliance, and commerce litigation.
Business law helps to remove conflicts and disputes of business organizations. It includes regulations about employee rights and privileges, workplace safety, overtime rules, and minimum wages law. It helps to ensure a better working environment for the organizations. Every state defines its own set of regulations and laws for business organizations, and it is also the responsibility of the business organizations to know the existing rules and regulations applicable to them.