Business law is basically the legislation made by individual states and/or private organizations which govern the conduct of commercial trade and commerce in those states. The main function of the legal law is to govern the conduct of the commercial activity, to ensure reasonable compensation for employees, suppliers, and investors, and to enforce contractual agreements between individuals. The laws also prevent corporate fraud and abuse. The importance of business law can hardly be overstated.
Basically, business law can be divided into two bodies – civil and criminal. Civil law covers matters such as negligence, contract disputes, business disputes, intellectual property, and other such types of civil disputes. Criminal law, on the other hand, involves the processing of criminal activities like murder, theft, terrorism, drug trafficking, and organized crime. Thus, it also covers the administration of justice and the regulation of criminal matters.
The major components of business law are corporate formation, registration of corporations, registration of partnerships, licensing transactions, mergers and acquisitions, advertising claims, and commercial activities related to land and properties. The various branches of commercial law include service laws, property laws, intellectual property laws, contract laws, consumer protection laws, and anti-commerce laws. Almost all these laws have to do with the structure of businesses. For instance, there are food safety laws that prevent salted fish and dairy products from being imported into other countries. There are rules and regulations regarding the handling of horses and other livestock.
Every business entity has its own set of state-related laws related to its formation. For instance, in the US, all businesses need to register with the Secretary of State before they can become active. Similarly, most business entities need a certificate of authority from the Secretary before they can operate legally.
Business lawyers are specialized professionals who help businesses with complicated legal problems such as bankruptcy, mergers and acquisitions, commercial leases, contracts, and patented technologies. In addition, this lawyer can help businesses form corporations for the purposes of running their businesses profitably. In order to complete a transaction, a business lawyer may assist in drafting the relevant documents and organizing the necessary paperwork. This includes organizing the sale of shares of stock or assets and negotiating with creditors. He can even make sure that a company complies with all the legal requirements and pays the appropriate taxes.
Besides assisting businesses to form new businesses and negotiate with existing ones, lawyers may also help them deal with current business problems. For instance, if a business owner wants to terminate his business relationship with another business because of economic reasons, he may need to get an exit plan approved by a business law firm. The firm can assist him in finding an exit strategy that will not hurt his employees and may be advantageous to him as well. It is important to remember, though, that there are some exit strategies that may need to violate local and federal laws. So, if you’re considering a legal strategy to exit your business, you should make sure you’re not breaking any laws.
Another area where business law firms can help business people is in the area of commercial law. When you start or expand a business, you have to abide by a set of regulations related to licensing and dealing with certain businesses. As a business grows, the number of companies you deal with increases and you may need more licenses or forms to do your business dealings. Your business law lawyer can help you identify which commercial licenses you need to operate your business effectively and which you don’t. He can also guide you with regard to obtaining certain licenses and what documentation you need to prepare in order to qualify.
Finally, business law firms can help you deal with commercial disputes with other businesses or commercial entities. For instance, when you own a business and decide to open a shop on your land, you’ll have to abide by local ordinances and laws that protect your business. If you fail to follow these laws, you may be forced to remove your store. You can even be forced to pay damages to others who were injured as a result of your company’s failure to follow local ordinances and laws. You don’t want to find yourself in this situation, so it’s best to consult with a professional who knows the ins and outs of commercial laws and commercial transaction regulations.