Questions Business and Entrepreneurship

Explain the importance of Business Law subject for Business students.

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Emma Sumner

day dreamer and night thinker

I learned quite a lot about Business in B. Law. It was one of my favourite courses. For me it was the perspective I gained that was worth the most. For example the infamous Liebeck Vs. Mcdonalds case.

This woman was absolutely crucified by the media and the case was made out to be a get rick quick scheme. Liebeck was the victim of 3rd degree burns on her thighs and in worse places.

But I had known none of that before B. Law. I truly thought this case had been about money- not damages.

The benefit of any education is the perspective and experience you gain. For me this case was a reminder of why I chose business to begin with. The systems can be all wrong and a business owes a duty of care to the people its meant to serve.

Everyone I know over the age of 18 has had to look at a contract at some point. During my year of sales I’ve had many people sign contracts that they knew little to nothing about. But because I did I was able to build their trust through honesty and transparency. “Yes there is a cancellation fee, but you get to keep the free stuff, and that’s worth more than the cost to cancel.”

These contracts were nothing in comparison to the contracts you might see in your life. Rental Agreements, phone contracts, even a receipt is considered a contract (an acknowledgement of services exchanged).

If your even somewhat ambitious towards a career in say- middle management. You should know what you can and can’t legally do. B-Law will help you protect yourself and others.

For example in Alberta, a sub-tenant and the leaseholder have no legal protection under the Residential Tenancies Act and our only protected by the agreements made between the two.

Of all that I think the most important thing I’ve learned from B. Law is when to hire a lawyer.

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DR NAVEEN PRASADULA

MSC(I.T),MBA,PHD

Definition of Business Law

Business law encompasses all of the laws that dictate how to form and run a business. This includes all of the laws that govern how to start, buy, manage and close or sell any type of business. Business laws establish the rules that all businesses should follow. A savvy businessperson will be generally familiar with business laws and know when to seek the advice of a licensed attorney. Business law includes state and federal laws, as well as administrative regulations. Let's take a look at some of the areas included under the umbrella of business law.


Starting a Business

Much of business law addresses the different types of business organizations. There are laws regarding how to properly form and run each type. This includes laws about entities such as corporations, partnerships and limited liability companies. For example, let's say I decide to start my own pet grooming business. I need to decide what type of business I want to be. Will this be a partnership? Will it be a sole proprietorship? What papers do I need to file in order to start this business? These questions fall under the laws that govern business entities, which are state laws. The type of entity I pick will also affect how I pay my federal income taxes. These, of course, are federal laws.


Next, what will my business be called? Let's say I decide on Barks & Bubbles as a name for my dog grooming company. Now I need to know if anyone else already has that name. This is a trademark question. Patents, copyrights and trademarks are part of intellectual property law. The federal law governs most intellectual property law. Then I need to know if I'll require any special type of license for this business. Do groomers need a license? Am I allowed to have animals on my property, or do I need some sort of special permit? I'll need to check my local and state laws to find out. How will I advertise my business? Am I allowed to say that I'm the 'best in town?' This question falls under consumer protection law, which can be federal or state law. Wow. That's a lot of business law, and I'm not even open for business yet!


Buying a Business

Now let's say I decide to buy a business instead. I'm going to buy Patty's Pampered Pooches from my Aunt Patty. There are many business laws that govern how to buy a business. If I buy Patty's business, do I now own the actual store? This is a real estate law question. Do I own the pet grooming equipment in the store? This is a property law question. Both of these fall under state law. Am I now the boss of Patty's employees? This is an employment law question.


Can I start hiring my own employees and ordering supplies? This will involve contract law, since I'll be making new agreements with people regarding my business and determining which of Patty's agreements I need to uphold. Contracts are legally binding agreements made by two or more persons, enforceable by the courts. Businesses are involved in many different types of contracts, and as a result, there are many interesting cases involving breach of contract. A breach of contract is when one party doesn't hold up his or her end of the bargain. It's common for parties to dispute the terms of a business agreement or disagree on how the agreement should be performed.


For instance, consider the famous case of Locke v. Warner Bros., Inc. Sondra Locke was a longtime girlfriend of Clint Eastwood. When the two broke up, Locke sued Eastwood for support. As a part of their settlement, Eastwood negotiated a contract for Locke with Warner Bros. Locke was given a director's contract, where Warner Bros. would pay Locke for any projects she directed or produced. Locke proposed more than 30 projects, but Warner Bros. never hired her. She sued Warner Bros. for breach of contract, saying that Warner Bros. never intended to hire her in the first place. After a court ruled that Locke had enough evidence to proceed with her case, the parties settled.


This case demonstrates the importance of making good contracts. A wise businessperson will be sure to enter contracts with a good understanding of the content and a good faith interest in upholding the contract.


Managing a Business

There are many laws that concern managing a business because there are many aspects involved in managing. As you can already see, running a business will involve a lot of employment law and contract law. For my new business, I'll need to know how to hire, what my contracts should look like, what kind of benefits I have to provide, how to pay employee insurance and taxes and even how to properly fire an employee. Many of these employment and benefit laws are federal laws and regulated by government agencies. For example, the Equal Employment Opportunity Commission is a federal agency that enforces employment discrimination laws.


If you also decide to sell things as part of my pet grooming business, like dog collars or dog treats, then I'll need to be familiar with the laws on sales. For businesses that conduct sales, it's especially helpful to be familiar with the Uniform Commercial Code, or UCC. This publication governs sales and commercial paper and has been adopted in some form by almost all states.




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