Business law is popularly known as commercial law or mercantile law. It deals with commercial matters. More specifically, it establishes rules and guidelines for business organizations. The law provides you with the tools and information you need to start, run, develop, and ultimately wind down or sell your business.
Business law is a broad term that refers to all of the legal matters pertaining to a company. It covers contracts, commercial papers, income tax, intellectual properties, business transactions and other commercial activities.
What Is The Purpose Of Business Law?
The fundamental purpose of business law is to maintain order, resolve disputes and safeguard rights. It also establishes accepted standards for businesses. For example, there are set standards and rules to follow when it comes to business interactions with other firms, government authorities, and consumers.
Business law is important for the following reasons:
It is an all-inclusive set of standards that are accepted universally
Prior to business law, there were no special rules that safeguarded money invested in a business. Customers’ interests were not safeguarded. Business owners had complete control over their clientele, allowing them to suffer in order to make a profit.
There were no established standards to determine the company’s rights, orders, or any other liabilities. Accurate standards have emerged as business legislation has been passed. As a consequence, all corporations are compelled to adhere to all of the processes and criteria necessary in order to maintain compliance.
Business law limits the possibility of fraud
Business owners have become more aware of the regulations that govern individuals and other businesses as new legislation is introduced. Consumers have also become more aware of their rights and the options available to them in the event that they are deceived or encounter other businesses’ frauds.
Business law helps maintain the balance between seller and customer.
In the absence of business law, different regulations applied to each company’s commercial transactions, making it considerably more difficult for sellers and consumers to make a bargain. Business law has now established standards that create a balance between the seller and the customer, allowing customers to feel more secure and protected.
Plus, the introduction of worldwide business law standards has made international commercial transactions considerably easier.
Business Law ensures businesses observe ethical and lawful conduct.
The existence of business law has helped business owners make better judgments. Business owners are now more aware of the principles of business ethics. They know how to best conduct business and when they should seek legal assistance.
It is one of the most significant objectives of business law to ensure businesses observe ethical and lawful conduct. For example, businesses are not allowed to make false claims on their products and services. When a company makes false statements about its business, it hopes to convince customers to purchase its product or service. However, such tactics may lead to legal consequences. Business law mandates that all companies must be honest when describing their products and services.
It is the responsibility of every business owner to promote ethical and lawful practices. Some of these practices include honesty, fairness, justice, and accountability. Business law holds business owners accountable for their actions. They must train all employees to conduct ethical behavior, regardless of the circumstances; they must make sure that all legal requirements are fulfilled; and they must ensure that company resources are used for appropriate purposes.
What can a Lawyer do for a Business Owner?
An experienced Los Angeles Business Lawyer can do a lot for a business owner. He can help you with contracts, regulatory compliance, dealing with vendors and suppliers, would-be competitors and even the customers of your business. Not only that, he can help you with the everyday legalities of running your business.
A lawyer can also help you set up your business, incorporate it or form an LLC (Limited Liability Company). He can draft legal documents like shareholder agreements and buy-sell agreements for you to sign if you plan on bringing in shareholders or partners down the line.
He can help you set up your business bank accounts so you don’t risk having your money mixed up with personal finances. He can also tell you how to write an operating agreement that ensures the best interests of your specific company are upheld. If there are currently other owners, he can draft contracts detailing each owner’s responsibilities and obligations as well as their rights and benefits.
An attorney can also help you deal with patent, trademark or copyright issues involving your business name, logo or even the content of your company website. If you’re planning on hiring employees, he can advise you on how to withhold income taxes from paychecks, assist in drafting an employee handbook and negotiate with any labor unions that may come knocking at your door.
With the right lawyer on your side, you’ll be able to focus on running your business and increasing its profitability. Contact us now and let’s get started!