As a social being, man comes into contact with people in different capacities. He comes into contact, for instance, with a landlord as a tenant, with government as a taxpayer and in many such instances. These contact or associations are the inevitable consequences of modern civilization. In all these associations, he is expected to observe a code of conduct or a set of rules. The objective of these rules is to make a human association possible and conductive to the welfare of the state and its people. Business law is a set of laws which governs these transactions, both business and commercial. It deals with business issues affecting both the private and public sector.
Business, in general is the spine of a functioning capitalistic society. It is hard to imagine a world in which business is done sans any sort of oversight. No contracts will exist because there would be no entity that was in force to uphold the contracts and force the people to abide by law. Corruptions and scandal would be immense since every transaction that takes place will be devoid of any aftermath. Almost all of the transactions that take place inside a country are governed by these laws. In case of a breach in a law or a contract, it would give rise to legal consequences which can be of any form ranging from damage claim to being imprisoned based on the magnitude of the breach.
Business law has a wide array of practice areas within its umbrella. There are some severe violations pertaining to business that are considered to criminal in nature and these infringements are termed as white collar crimes which would be tried in a criminal court, rather than a civil court. Laws likened to those against insider trading that affects the foundation of the economy on a massive level won’t be tried under ordinary business law.
Business law comprises within its scope such designations as principal and agent, carriage by land and sea, guarantee, fire, marine, life, merchant shipping and insurance in case of an accident. The government devices certain laws to protect the rights of general population by establishing certain laws like the Consumer Protection Act, Right to Information Act, Factories Act, so on and so forth. These laws protect the exploitation of a citizen on any scale.