Business law is a broad umbrella term for the laws and regulations that govern the operations of businesses. Different business laws cover many specific areas of business and provide guidance on how to operate legally in various contexts. Many related areas of law are not considered business law, as they are more specific or narrowly applicable. For example, the law of contracts deals only with agreements between private individuals or businesses, commercial law encompasses only business transactions involving buying and selling goods and services, and intellectual property law deals with patents, copyrights, and trademarks. Any type of legal transaction that takes place between private parties is considered a business deal. While interesting, it is outside the scope of this article to consider any areas that do not involve a business in some way.
In addition to the areas covered by common law and statutory law, there are also many areas covered by case law. Case law is a binding precedent set by the courts, and it follows that not every type of business has its own case law. Several examples of such areas include trade regulation and government regulation. Case law is created when an individual brings a lawsuit against another individual or business. The court hears the evidence, then settles the dispute by issuing a judgment based on its findings.
Types Of Business Law
Formation Law:
Business formation is the creation of a business entity and the completion of all its required legal documents. This can include the formation of a corporation or any other type of business. Most states in the US require businesses to register at their state’s department of corporations or with their county or city. The requirements to register are usually simple but vary by location and business type. Formation law also includes the filing and maintenance of a new business’ legal documents like articles of incorporation, bylaws, operating agreements, and stock certificates.
Employment Law:
Employment law is the body of law that deals with all aspects of the relationship between employers and employees. In the United States, employment law is largely controlled at the state level. Some states have statutes that govern workplace issues like discrimination, while other states leave it to the common law. Employment contracts between employers and employees may include non-compete agreements, non-solicitation clauses, and non-disclosure agreements.
Intellectual Property Law:
Intellectual property law is the body of law that protects ideas, literary and artistic works, and inventions. It includes copyrights, patents, trademarks, and trade secrets. Intellectual property laws to protect literary and artistic works include copyright, trademark, patent, and trade secret laws.
Taxes:
Taxes are the legal obligations that require businesses to pay money. Most often, these taxes apply to individuals and businesses on a regular basis, but at times can also apply to specific events or transactions. These taxes may be administrative, or they may be imposed by an agency of the federal, state, or local government. The most common types of federal and state business taxes are sales and use tax, income tax, and property tax. Property taxes are imposed by local governments and apply only to real property, also known as property or land. Businesses are sometimes charged an exit tax when they leave a country or state.
Contract Law and Negotiations:
Contract law deals with the legal agreements that are made between private parties and define the obligations, rights, and responsibilities of both parties. When one party does not fulfill its contractual obligations, the other party may bring a lawsuit against them. This situation is known as an action for breach of contract. A contract is a legally binding agreement between two or more parties who exchange promises or statements of fact that they will perform certain actions in exchange for either another promise or statement. These statements are formally recorded in a written contract. A contract is made between two or more people. One of the parties usually makes a promise that they will perform certain actions in exchange for another promise. The agreement is legally binding and can be enforced in court if necessary.
Antitrust Laws:
Antitrust laws are laws that are intended to stop businesses from controlling a market by monopolizing it. It is illegal for businesses to act together or merge in ways that limit competition in a given market. An example of this would be if two companies controlled the only network of gas stations in the country, cutting off all possible competition. This type of behavior is actually illegal, and these laws have been in place since the early 1900s. The Federal trade commission is in charge of enforcing antitrust laws, as well as investigating alleged violations.
Conclusion
Business law is the body of laws that govern the legal practices and structures of businesses. It encompasses many specific areas, but all these laws share a common goal, to define how businesses can legally operate. Business law is constantly evolving as new situations and issues arise. Businesses are defined as any type of economic organization, including incorporated entities. As rules are created, they are applied to specific industries in general, depending on their specificity or breadth. The rules established by business laws affect nearly every aspect of running a business and its employees.
If you have questions about the business laws in your area, refer to this link to speak to a law firm that is up-to-date on the local business laws and can help you answer questions or what the next steps would be to proceed with your business.