Business law is also known as commercial law and is that branch of law that deals with the legal rights, duties, liabilities of parties involved in any kind of business transactions related to commerce, trade, sales and merchandising. It is a branch of civil law and includes public as well as private law.
Commercial law or business law deals with legal aspects such as the laws of principal and agent, carriage by sea or land, laws of indemnity and guarantee, laws of insurance (marine, fire, life, accident insurance), laws of banking, partnership and much more. Business law is a very broad term by itself and has many divisions and types of law to be studied under it. Here are a few important features of business law:
- It is the law of commerce or commercial law as it deals with all the aspects of entering into selling and purchasing agreements.
- It includes the study of the law of contract which is important in agreements or contracts that involve two or more parties buying and selling things in exchange for a consideration or purchase price.
- Business law clearly explains the rights, duties, liabilities and legal obligations of the parties involved in a contract of sales, purchase or any other kind of contract or agreement entered into in relation to any kind of business or commercial activity.
- It includes intellectual property law (patents, trademarks, copyrights, etc.) and consumer protection law.
- Business law will also apply to anyone who plans on opening or starting a business of their own.
- Business law also deals with banking law, finance law and other important civil laws.
Business Law may include any of the following:
Business law starts with setting up a business. In the eyes of the law, each business is their own legal entity. Starting a new business typically starts with filing the paperwork that makes the business formally exist in the government’s eyes.
Once a business is up and running, they might need employees. Businesses need legal advice to help them understand how to hire and fire employees. They need to know how to handle employee disputes and discipline.
Business law and immigration law often intersect. Businesses may want employees from other countries. They may want international employees on a full-time basis, they may need temporary workers, or they may need to bring in a worker just for a short period of time for a special event.
Sales of consumer goods
Buying and selling isn’t as easy as it sounds. There are regulations that govern how companies can make products and how they can sell them. From working conditions in a factory to distribution requirements to price controls, there are all kinds of laws and rules that might regulate how a company makes and sells its products.
Contract drafting and negotiations
A lot of business has to do with preparing and negotiating contracts. A contract can be anything from a lease agreement to a purchasing agreement to an agreement with a third-party vendor to sell a product.
Business attorneys help their clients identify conduct that might amount to anti-trust before the behavior has the chance to create problems for the business.
When a business invents a new product, they need to make sure they protect their ability to profit from their invention. Making sure a business gets to exclusively keep and use their own products falls under intellectual property and copyright law.
Businesses pay taxes. There are estimated taxes, employee taxes and deductions to be aware of. In addition to helping a business comply with tax requirements, a business lawyer helps their client take legal steps to minimize their tax burden.
Lawyers help businesses in both good times and bad. When businesses go through financial difficulties, they need lawyers to help them determine their options. Filing bankruptcy might be the only option or the best option for a struggling business.
Business law is not designed to make running a business difficult, its purpose is to provide clear-cut and enforceable rules and regulations to avoid issues and conflicts. It is the responsibility of both big and small business owners to comply with the law, but not everyone has a handle on what needs to be done and how to do them.
Disclaimer:- This is only generic information on Indian Laws, which may be subject to change regard being had to legal amendments from time to time and should not be relied on for any legal action or inaction. Legal Nexus will not be liable for any damages or losses, direct or indirect, suffered or incurred by any user who chooses to proceed on the basis of reliance on the information provided herein.