business law essay topics

business law essay topics

The Importance of Business Law in the Modern World

1. The Role of Business Law in Society

Business law is a branch of the law that is concerned with the creation and regulation of businesses. This includes corporations, partnerships, and sole proprietorships. It is also concerned with the various ways businesses may be structured and formed, dissolving businesses, governance, property, intellectual property, and issues regarding employment. This is an important area of law with respect to the society, for it is interrelated with various aspects of a society. The behaviour of any business is formed from the micro and macroeconomic conditions of its era, and the firm makes an important contribution to society in way of resources and employment. Thus, it is important for a firm to know the legal implications of their decisions. Business law also acts as a preventive measure through providing guidance to businesses. With the precedent system and heavy reliance on case law, it is clear that law is a reflection of past and present society. Business law provides changed business behaviours due to situations in which there is an unfavorable legal result. Finally, the duty of legal advice in business law from a solicitor provides the highest quality solution to a legal problem, often yielding an out-of-court settlement.

Society is in a place where every citizen is expected to behave in a reasonable manner so as not to cause disturbance or threat to others. This expectation leads to the establishment of rules and regulations from the very early age of human existence. These rules and regulations shape the behaviour of a person and the modern society with they reside. Though there are various factors that shape the society in different ages, but it is established that law is one of the most important factors. Law is the basic framework for a society. It provides the basic guidelines for the behaviour of people in a society. Law is important for a society for it serves as a norm of conduct for citizens. It is also a very important tool in dispute resolution. In every dispute, it is the law that provides a methodology for the resolution of the dispute. In studying the role of Business Law in the modern society, it is important to have a basic understanding of what law is and what it provides to society.

2. Key Principles and Concepts of Business Law

Traditionally, contracts are an agreement entered into by two or more parties with the intention of creating a legal obligation, which may have elements of business law or private law. It can effectively be thought of as a legal promise between the two parties involved, and contracts form the foundation of most business law today. Whether it be an insurance policy that is a legal form of protection in case something goes wrong in the future or a purchase or employment agreement, it’s inevitable that at some point in time a dispute will arise over a contract, making it a common area of litigation in civil courts. The sale of goods is very often an element of a contract, and so to ensure that there are rights and obligations other than those contained in a contract, the law has implied terms and statutory rules to govern a contract between two parties. This can sometimes apply to a contract that’s been poorly written, but often it exists to add extra provisions to a standard contract. An example is the consumer protections against unfair contracts.

At the heart of any legal system is the structure, which outlines the key concepts and the relationships that exist between them. This is no different within the law that covers both criminal and civil areas of business; known as Business Law. At the very core of business law is the concept of legal personality: the idea that a corporation is a separate entity from those who own and operate it. This is a vital concept that defines the tax and insurance requirements for a company and its shareholders and directors. It also means that should the business overstep the legal line, in terms of contractual breach or advertising an unsafe product, then those responsible are held accountable. This leads to the concept of liability within business law. Defined as the legal responsibility for one’s acts or omissions, a company that has legal personality can be held liable and punished for the actions that are performed on its behalf. This is bounded by the ultimate liability, up to and including death in the case of criminal law, although it is much harder to imprison a company!

3. Legal Issues in Business Contracts

In the modern era of business globalization and increased outsourcing, many business contracts between American firms and Asian or Latin American firms are settled disputes via international arbitration because it is more neutral and less costly than jurisdiction in a foreign country’s courts. The Uniform Arbitration Act of 2000 and the Federal Arbitration Act regulate domestic arbitration and enforce foreign arbitration awards. Usually, arbitration agreements must be in the initial contract and it must be decided whether a specific dispute will be settled by arbitration.

Let us consider a hypothetical illustration: Company A contracts with Company B to produce Product X, but due to a sudden increase in the price of necessary resources, Company B instead decides to breach the contract and produce Product X for a higher price to sell to Company Y. This difference in price may not be much to Company B, but it could be a large financial loss for Company A. They may decide to sue for specific performance injunction to uphold the contract or sue for damages.

Business contracts are a very important part of doing business. Contracts define the terms and conditions of the business relationship. They state the rights and duties of the persons involved and establish guidelines for the future conduct of the business. Among the most common problems in international business are breach of contract and payment risk. Analysis of international legal issues can be a crucial step in the decision to trade overseas. Lack of knowledge in this area can lead to legal trouble and financial loss.

4. Intellectual Property Rights and Business Law

Given the intangible nature of IP, a business may have to restrict competition through employment of an ex-employee of a competitor or acquisition of a similar business. However, it is important to be aware that there is a limit to what can be done to restrict competition so as to not infringe other laws. Employment of an ex-employee to deliberately get him to spill the beans on his previous employer’s trade secrets, or to use his similar skill and experience to the detriment of the previous employer is considered to be inducement of a breach of contract or tort and the new and/or ex-employee may be sued. The same applies to acquisition of another similar business to eliminate competition where the laws on anti-competition and consumer protection may be contravened. In these situations, it may be wise to seek a legal professional who has an understanding in related IP law to advise on an appropriate course of action.

These set of laws are essentially important for every business, especially for competitive strategy such as marketing and image. Intellectual property is an intangible right that is protected through the use of a trademark, copyright, patent, industrial design, integrated circuit topography or plant breeders right. These rights allow the owner of the property to have a monopoly on the use of his/her creation for a specified period of time. Although they are intangible, there is often a very high value placed on intangible property and if violated, the owner can suffer very large economic losses. In order to register and protect these property rights, business will have to understand how IP rights can help their business, and they would in turn require legal assistance from lawyers who specialize in IP or the governmental bodies who regulate such rights like IPOS in Singapore. Any violation of these rights will result in a civil offense and the owner may sue for damages.

5. Resolving Disputes and Legal Remedies in Business

ADR is a resolution process providing the parties an alternative to a court decision. The most common ADR methods are Mediation and Arbitration. Mediation is a ‘without prejudice’ negotiation assisted by an independent person or a mediator. The mediator does not decide the dispute but assists the parties in identifying the issues and helps to generate options. If an agreement is reached, it can be put into a contract and enforced by law. This method is less costly and more time-efficient than litigation, with the most important advantage being it preserves the business relationship between the parties.

It is important to note that taking a case to court can be very expensive and, more often than not, litigation is not a cost-effective method of resolving a dispute. The legal process can take a lot of time and to prepare for a case in court, there is a large amount of upfront preparation. Also, when taking into account the type of decision that is reached from a court case, there is no clear winner. In most commercial disputes, the outcome is ambiguous and not satisfying for either party. These drawbacks have encouraged contentious lawyers to move towards Alternative Dispute Resolution (ADR).

In a world full of legal forms and contracts, disputes are an everyday part of business. Oftentimes, the cost of the dispute can exceed the benefits and the matter can cost a small fortune. It is essential to have a method to resolve disputes that is cost-effective and efficient.