Business law can be defined as a part of law that deals with rights, relations and also the conduct of individuals and businesses engaging in trade, sales and commerce.
It can also be simply defined as all laws that govern the formation and running of businesses. Sometimes referred to as commercial law. It consists of quite a number of different areas such as:
and many others.
Generally, business laws establish the guidelines that all business ventures are supposed to follow. A businessperson should be familiar with most business laws and often seek advice from a qualified attorney such as www.mikerossbusinesslaw.com.
Here are some scenarios of where the laws apply.
Starting a business
When starting a business, you first need to figure out the type of business to venture into. Should it be a partnership or a sole proprietorship? The type of paperwork to be filled to start the business. All this questions fall under laws governing business entities. The entity you pick will affect your payment of income taxes.
The name of the business should be new and not used by anyone else. This falls under trademarks. Trademarks, copyrights and patents are all part of the larger intellectual property law. Federal laws are the ones that govern most of the intellectual property law.
There is also consumer protection law. These are meant to guide on issues such as license for the business, or if the business needs special permits for its operations. How the business is advertised and what may be contained in the advertisement are also include in this law.
Buying a business
Instead of starting a business, one may fancy buying an already established business. If you buy a business, you may or may not own the business premises. That is an issue of real estate law.
You may find yourself being the boss of employees hired by the previous owner of the business and thus you will need to be conversant with employment law. Also the equipment used in the acquired business will need to be sorted, this will be under property law.
When hiring new employees or even ordering for supplies, it will involve contract law. Since there will be making of agreements with people. Cases with breach of contract issues are common in business as there are many different contracts agreed upon.
A savvy businessperson only enters into a contract agreement after a good understanding of the contents and an interest in keeping the contract binding.
Managing a business
Running a business involves many employment and contract laws. Many of these are regulated by government agencies. These include how to hire, what the contracts of the employees will be like, benefits to be provided, payment of insurance and taxes for the employees and how to fire an employee properly. Payment of benefits and pensions for the employees will also arise.
If you provide services but have trouble getting paid, that is a debt law issue. This will guide you on how to demand for the payment or report the matter to the relevant authority.
There may arise issues of bankruptcy if the business is not doing so well financially.