Business Law

Business Law, in broad terms, relates to laws that apply to business entities, viz., partnerships, and corporations.  Business Law also means `Commercial Law`.  Business Law is part or a branch of commercial law, which covers both private law and public law.  The following is included in commercial or business law:-

Principal and agent, merchant shipping, carriage by land and sea, guarantees, insurance covering marines, fire, life and accidents, bills of exchange and partnership.

Business Law also includes laws to regulate corporate contracts, hiring practices, manufacture and sales of consumer goods, etc.

Both in the United States and in many other countries commercial or business laws are regulated by the government.  These regulatory laws and schemes control how commerce is regulated.  Some examples are –

• privacy laws,
• safety laws.
• food and drug laws.

Business Law concerns companies and business organizations.  These carry on commercial enterprises.  These include corporations, partnerships, and others which usually carry some form of economic or charitable activities.  A well known entity is a `corporation` which is also known as a `juristic person`.  It means the corporation is a `legal personality` and people who invest money in it have `limited liability` for any losses the corporation makes and is governed by `corporate law`.  The big or large companies are usually publicly listed in stock exchanges around the world.

Single persons also may incorporate themselves and limit their liability to carry on the business.  These individuals are called `sole traders`.

All these companies of different forms have to function within the law of their land where they exist.  The laws of business organizations were originally derived from the Common Law of England, but has evolved particularly in the 20^th century.  Where the Common Law is followed in many countries, the commonly addressed forms of entities are:-  Corporation,  Limited Company, Unlimited Company, Limited Liability Partnership, Limited Partnership, Not-for-Profit Organization, Partnership, Sole Proprietorship.

The Proprietory Limited Company is a statutory or a legal business entity in several countries.

Limited Liability Company (LLC), and the Limited Liability Limited Partnership (LLLP) are common in the United States.

U.S. Companies Laws:

Corporations are generally `incorporated` in the U.S. under the laws of the particular State.  These laws differ to some extent from State to State.  Because of these differences, companies register themselves in States where they have more advantages of operations.  Delaware is one example where a majority of  U.S. . companies are registered.

The categories of Business Law are several and wide ranged.  A very few examples are:

Contracts Law – Laws of Corporations and Business Organizations – Securities Law –  Intellectual Property Law – Anti-truest Law – Commercial Paper – Income-tax – Pension & Benefit – Trusts & Estates – Immigration Law – Labor Law – Employment Law – Bankruptcy.

There are so many sub-categories of law under each heading.

Questions:

• What do you understand by Business Law.
• Indicate at least five examples of Business Law.