The world is growing so fast with so many different kinds of new emerging businesses. When it comes to business there comes so many transactions including customers, vendors, suppliers, transporters, accountants, several transactions are going on in the day-to-day life of a business. The most significant question and query that comes across about how to handle these all properly without leaving any spots for legal consequences. There comes the administration of business law which helps in handling the companies, entities’ business fairly. As business is a crucial part of life, it is necessary to have some sort of rules and regulations to control and operate it as well. Therefore, to maintain the discipline, specific business laws have been enforced. Laws serve the purpose of protecting the consumers as well as the businesses. Any business which doesn’t accept the laws has to face penalties and consequences. Hence, it is necessary to know and be aware of the business laws for running a business.
Business law is also known as “Commercial law” and “Mercantile law” which is anything that involves commercial matters. Business law is a specialization which deals with all legal aspects that are required for running a business organization including the laws of copyright, workplace safety regulations, contractual law, financial law, IPR and taxation, and many more. It encompasses all the laws on how to start, set up a business, and how to run it. It includes all the laws for governing activities like how to set it up, how to manage, run, close the business activities and sell the business to others.
While discussing why it is important, the main purpose of this law is to maintain order, resolving disputes, establishing generally accepted standards, to protect the rights and liberties of the business and its relation with other businesses, government authorities, and customers. Now a days due to enforcement of business law, all the countries have the same standard so any deal between buyer and seller is easy to establish. Business law itself helps the business owners to be aware of the rights and laws against the other businesses and the individuals and vice-versa. Business law helps the owners to make better decisions and also to know when one needs to seek legal help. Hence business law plays a very vital role and has a very significance for both the business owners and the consumers for protecting their rights and for getting a better service.
Today, domestic as well as international commerce has experienced a very huge expansion far more than the earlier dimensions. Due to increasing commercial transactions, the demand for legal certainty has been increased specifically for the transactions relating to across national borders. the basic subjects from the private law of international trade concerning the sale and purchase of goods and services, distribution, agency, share production contracts, and other contracts, and transactions that are accomplished beyond the national boundary.
After the enactment of business laws, there has been a drastic change in all commercial transactions. Commercial transactions include different business laws such as employment law, antitrust law, bankruptcy law, tax law, consumer protection law, labour law, negotiable instruments law, and many others laws relating to business. As the business includes different concepts it also has different effects of its laws on various commercial transactions. Business law has been beneficial for all businesses. Business law which is also known as mercantile law is concerned about the study of rights and the obligations which arise out of the business transactions between people related to business. Those individuals/mercantile persons carry on the commercial transactions. They may be any individuals, partnership firms, or joint-stock companies.
Licensing is a business arrangement where a company permits another company to manufacture its product in return for a specified payment. In return for this, the original owner of the business gets revenue in percentage from the products or services being sold under the license of the real or original owner. In this tough economic competition, it is becoming more crucial for licensing partners to maintain a healthy competitive environment.
So the business law has the utmost impact on the industrial sector. Its usefulness in different subject matters relating to various sectors of commercial law, growing every day, helps in the evolution of business law. Businesses being one of the widest platforms available for the public at large, need to be updated from time to time. As the different provisions provided in all the parts involved in business law work simultaneously with different benefits. Its effectiveness can be easily seen while administration of various business activities, and eventually it results in the betterment of the business. Hence, it provides and saves the rights of many persons in the whole business world with its vital role.
