Business Law Defined
Sometimes, business law is also referred to as commercial law or mercantile law. Business laws govern dealing between commercial matters and people. Business laws have two distinct areas as follows:
- Regulation of commercial establishments through laws related to company, agency, partnership, and bankruptcy
- Regulation of commercial transactions via the laws of contract
These two types of business laws have their existence for many centuries. Many business laws are designed to prevent issues that can obstruct business growth and give rise to legal disputes. Business laws may include the following elements:
Business Formation
Business laws come into play as soon as a business is set up. When someone wants to start a new business, it’s mandatory to file the necessary paperwork in order to make the business legal in the eyes of the government.
Many kinds of business entities share similarities across the country. However, the particular entities that a new setup can choose from differ from state to state. The process of paperwork filing to set up a business also varies from one state to another.
Business lawyers help in the process of decision making by educating the wannabe business owners about the advantages and disadvantages of each entity before starting a new business. They actually help the business founders choose a particular entity that will serve their best interests. Once the best entity is chosen, the business lawyers help the to-be owners in paperwork filing to start the business formally.
Employment Rules & Regulations
Once a business starts functioning, it might need employees. They need legal advice to understand the process of hiring and firing employees. For the business owners, it’s important to have good knowledge about how to deal with employee discipline and disputes. Business lawyers are able to educate their clients about how much should be enough, in terms of pay and benefits, for their employees. And then, there are compulsory payroll taxes as well as deductions.
In a nutshell, business attorneys educate their clients on rules, regulations and best practices for employee management.
Contract Preparation and Negotiation
A lot of business is about drafting and negotiating contracts. Anything from a lease agreement to a purchase agreement can be classified as a contract and so is agreeing to a third-party vendor regarding product sale. Common law, which is not found in any written form, is the mother of a lot of a contract law. The principles of common law and rules have developed over time through the courts and serve as a foundation brick for many contract laws.
Lawyers practicing business law need to understand all elements of the contract from both common law and statutes. In addition, they should have a firm grip on nuances that might have a great impact on contract enforcement. They closely work with their clients to skillfully negotiate and prepare contracts that work in the clients’ favor.
Other Areas
A Warren business attorney also deals with other aspects of business laws including the followings:
- Taxes
- Bankruptcy
- Immigration Law
- Intellectual Property
- Sales of Consumer Goods
