Note on Introduction to Business Law

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CONCEPT OF BUSINESS LAW

The term law, as we have already mentioned, can be classified into different types. One of the ideas of classification is the area of evolvement or operation of law. Law in, no doubt, a means by which the human conducts are regulated in a particular way. The human activities are of different kinds. Such as business activities, family related activities, banking activities, political activities, criminal activities, etc. These all activities are regulated by law and law is named by different names like Business law, Corporate laws, Banking law, Constitutional law, criminal law, family law or insurance law, etc. It is just naming the law on the basis of its function or area of regulation. Thus, business law is the law that regulates the business and commercial activities and manages all the transactions of business community.

Business law is a branch of civil law or private law which makes certain rules for business transactions. Thus, the law which deals with business activities of people and provides various provisions for commercial world is known as business law. It is also known as mercantile law or commercial law. The business law lays down various rules which must be followed by the business community, a businessman, a business firm and its managers or personnels, and a consumer while conducting the business or their activities. There is no any single statute or law-book that we can give the name business law but it is a combined name of different laws wherein significant provisions are made to regulate most of the business activities. In totality, business law includes company law, contract law, agency law, arbitration law, consumer protection act, fiscal law, banking law, insurance law, law of carriage, sale of goods industrial law, labour laws, negotiable instrument Act, environment (protection) law, industrial enterprises act, insolvency law, income tax law, monopoly control Act, etc. 

So, business law is that sort of law that is made for regulating business transactions which consists of set of rules or principles which regulates and controls transactions of business community. This law also consists of all the rules that are related to the establishment, operation and dissolution of a business. This law also helps the business in promoting the whole business community and protects and guide it as well.

 

Importance of Business Law

The importance of business law can be stated as follows:

  • It provides legitimacy, peace and security to the business community i.e. producers, suppliers, workers, and consumers.
  • It regulates the commercial transactions or operation of an industry directly or indirectly through the different rules or policies.
  • It is involved in making, shaping and enhancing the business activities.
  • It provides such a ground in which the law breakers are to be punished and law abiders are to be awarded.
  • It establishes the business ethics of a business entity and its social responsibilities.
  • It guides in the area of establishment and operation of a company and provides the provisions to carry out its internal management.
  • It protects the industrial interests and the national interests.
  • It creates the various institutions to provide incentives and facilities to the investors or the business communities.
  • It tells us what kinds of business in what manner can be carried out in a given country.
  • It creates the various organs to hear and decide disputes rose in the business community by which the rights and interests are enforced and duties or liabilities are imposed.
  • It guarantees the justice or remedies to all involving in the business dealings.

 

 

References:

Ghai, K. (n.d.). your article library. Retrieved from http://www.yourarticlelibrary.com/essay/law-essay/law-meaning-features-sources-and-types-of-law/40363/

Shrestha, R. P. (2007). Business Law. Kathmandu: M.K.Books.

Akrani, G. (2011, 09 2). Kalyan-city. Retrieved from http://kalyan-city.blogspot.com/: http://kalyan-city.blogspot.com/2011/02/what-is-cheque-definition-kinds-and.html

Bragg, S. (2011). accounting tools. Retrieved from www.accountingtools.com: http://www.accountingtools.com/questions-and-answers/what-is-a-bill-of-exchange.html

  1. The importance of business law can be stated as follows:
    • It provides legitimacy, peace and security to the business community i.e. producers, suppliers, workers, and consumers.
    • It regulates the commercial transactions or operation of an industry directly or indirectly through the different rules or policies.
    • It is involved in making, shaping and enhancing the business activities.
    • It provides such a ground in which the law breakers are to be punished and law abiders are to be awarded.
    • It establishes the business ethics of a business entity and its social responsibilities.
    • It guides in the area of establishment and operation of a company and provides the provisions to carry out its internal management.
    • It protects the industrial interests and the national interests.
    • It creates the various institutions to provide incentives and facilities to the investors or the business communities.
    • It tells us what kinds of business in what manner can be carried out in a given country.
    • It creates the various organs to hear and decide disputes rose in the business community by which the rights and interests are enforced and duties or liabilities are imposed.
    • It guarantees the justice or remedies to all involving in the business dealings.
.

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