business law assignment help

business law assignment help

Importance of Business Law

1. Introduction to Business Law

The first part of this important subject is all about the introductory basics of business law. A business of any size – whether a large corporation, a small company, a sole proprietor or a partnership – has a wide range of business activities and business decisions and is affected by the law in a variety of ways. Businesses today are facing many changes and in order to be successful, a manager must be able to adapt and manage these changes. The business environment is always changing because there are new things that come along day after day and in order for businesses to stay ahead and keep growing, this is where the subject of business comes in. Business law, also known as commercial law, is a broad area of law. It relates to the rules that apply to the conduct of businesses, professionals and workers involved in the industry as well as the issues that impact on the companies and the individuals working within that industry. It will cover a wide range of different laws and cover many different types of businesses. In today’s fast-moving and globalised business world, it is increasingly important that business managers and those working in the commercial world have a good understanding of the legal principles that underpin commercial transactions and relationships. The study of business law is about understanding the legal environment in which businesses operate and being confident in applying that knowledge in practice. As legal entities, businesses must have a set of inalienable rights and obligations under the laws of the state in which they are formed and carried on business. There are many different laws around the world, from very local laws affecting just one town, to country laws and even international laws that can be applied to any action the whole world. The study of business law and the legal environment in which businesses operate is both highly valuable and interesting. For those considering a career in business or who are already in a business, and for anyone who might be interested in understanding the legal environment in which we all live, will find the study of business law and the answers to the questions and various things that come up in our businesses and among our business people today, will not only be challenging but also rewarding. Business law is fundamental to the success of any business and this subject provides knowledge of the legal environment within which businesses must achieve their goals. The area of law is also examined in a practical and applied way. It is a systematic study which will provide an insight into the basic tenets of the law and the law making process, the changing nature of the law and the individual rights and duties which flow from the law.

2. Legal Framework for Businesses

Once a business is set up, its legal and regulatory framework will be heavily dependent on the type of business. As mentioned earlier, the first port of call will be in determining whether the business falls under the definition of a sole trader, partnership, or a limited liability company. This decision will inform what specific requirements must be adhered to in terms of business law and regulatory frameworks. Under the Companies Act 2006, companies must register within 15 days of beginning to trade, while the Company Directors Disqualification Act 1986 lists instances when a person cannot be a director of a limited company. Legal frameworks will set out the way in which businesses must be run and directed – for example, the requirement for an annual general meeting, at which the company account details are to be made available to shareholders and any individual who may wish to transfer ownership of shares can do so. Shareholders’ rights are defined in the Companies Act 2006, including the right to have a written resolution tabled for consideration, as long as all eligible members agree. Trading disclosures, such as displaying the company name and registered number clearly at a place of business to enable inspections and provide information for public records, are set out under the Business Names Act 1985 and the Companies Act 2006. Although limited companies are separate legal entities and are entirely responsible for their own finances, the concept of limited liability means that the directors or shareholders of a company cannot be personally made liable for the company’s debts. This is in stark contrast to a sole trader, where any debts incurred would be the personal responsibility of the owner of the business. However, in practice, the advantage of limited liability can be taken away when it can be proven that the company is effectively being used to disguise an ongoing trade of insolvent trading, therefore avoiding creditors, as set out under the Insolvency Act 1986.

3. Key Principles of Business Law

Although business law is often a complex and challenging field of study, it is also highly important. This is because there are a number of key principles which underpin the way in which business law is applied. A principle is a fundamental truth and is established through the study of the subject; business law principles are often used and applied in the course of developing solutions for business issues. A law may be specifically enacted to deal with a particular issue, but over time, application of the law reveals that a particular principle is applicable. This then becomes the precedent for similar cases or scenarios and so the principle is of growing importance. The student needs to be aware of the importance of principles within the different fields of business law, as well as ensuring that they have confidence in the future development of related case law. Indeed, a good argument or debate in any field of work or study will often be based on the application of a principle to the facts. There is always room for debate as to whether principles are of greater importance than a particular law as applied to a distinct set of facts, and this is where you can start to develop the skills which a solicitor requires on a day to day basis. It is widely accepted that the distinction between law and morals is clearly defined. However, there are other theories which go further into examining the relationship between morality and moral judgment and the law. For example, natural law theory, positive law theory and legal positivism are all key theories in the understanding of the interaction between law and morals. The philosophical theories which underpin the teaching of business ethics can be quite different from those traditionally advanced within business life. However, understanding the relationship between law, morals and ethics and applying these to business practice and decision making is of fundamental importance. Modern businesses invest a great deal of time, effort and resources in developing brand and reputation as key assets in the globalised and information based market economy. As such, the law in relation to both trademarks, which protect the visual identity of a business and its products and services, and passing off, which protects against false representations to the public concerning the origin or quality of a particular business, are highly important to business practice. In recognising these key principles and developing a valid rationale for the application of the law to the facts, students are able to advance their particularly crucial aspects of intellectual property law in the context of business. The second principle, and a very important one, is the growing significance of alternative forms of dispute resolution (ADR). In the United Kingdom, and indeed the world more generally, there is a collective understanding that the courts are busy places and accessing justice through litigation can be expensive and time consuming. Therefore, there has been growth in the importance of means such as mediation and arbitration in the commercial sphere. This self-contained form of dispute resolution allows the parties involved in the dispute to retain ownership and control over the process and the manner in which they seek to resolve that dispute. It avoids the necessity for a judgment to be imposed upon them by a court and is particularly relevant where there is a desire for the business relationship to continue in some form post-dispute; an imposed judgment can often tarnish relationships beyond repair.

4. Business Contracts and Agreements

In addition to the legal framework and key principles, it is obvious that business contracts and agreements are the vital part of business law. Business contracts and agreements control nearly all aspects of a company’s operations. From the creation and sales of a product to the hiring of personnel and the leasing of office space, everything is typically encompassed by agreements between different individuals or companies. A contract, in its simplest terms, is a promise enforceable by law. A contract may be defined as an agreement between two or more parties that creates legally binding obligations. The law will recognize the parties’ freedom to contract, which means that a contract will be a valid one as long as each party enters the agreement freely, without threat or influence, and is able to understand the terms and effect of the agreement. However, it is important to have a clear knowledge of the requirements of a valid business contract which is an offer, an acceptance, consideration and an intention to create legal relation. First, the contracting parties must have legal capacity to contract; that is, they must be of sound mind and of the age of majority and not subject to any legal incapacity. The law recognizes that an agreement may be a commercial contract (that is to say an agreement between persons or corporate bodies engaged in trade) or a consumer contract. Different legislation applies to consumer contracts – for example, contracts concluded by e-commerce. This is an important provision as the law recognizes that not all contracts can be specifically enforced and that there are a number of different remedies that may be appropriate in certain situations.

5. Resolving Legal Disputes in Business

Welcome to the world of business law where disputes in business are solved in no time. There are three ways to resolve disputes. The first is mediation or when a third person gets involved to help the unhappy. This third person is called a mediator. Mediation is often very successful and is a great way of maintaining and continuing the business relationship. The second is negotiation. This happens when the two parties talk between themselves and try to solve the problem. This can happen at any time during a legal or court process and sometimes means that a legal solution is no longer required. Both parties can benefit from this way of solving things because it means that they have control over the situation and can come to a solution that suits both of them. The final way of resolving disputes in business is of course taking the matter to court. This could be the County Court or the High Court. However, taking the court option to solve a problem can be very expensive in terms of time and money so it could be avoided. The way in which the legal dispute comes to court is called ‘litigation’. This can happen when legal arguments about the dispute are sent back and forth between the parties. Regrettably, many businesses have to face litigation at some point in their life. This is a common thing and there is a lot of help and support available. In business, things can often go wrong and it’s usual for disputes to happen. Every now and then the dispute becomes a legal matter and has to be considered in a court of law. It is important that both the business and the dispute are managed and dealt with in the correct way because the laws are so complex and need to be followed in a particular fashion. This means that businesses need to seek proper legal advice from specialist solicitors who can help them with their dispute.