Business law, also known as mercantile law or commercial law refers to a set of rules that govern the dealings regarding commercial matters, namely business organizations. It encompasses all laws that guide on how to set up a business and then how to run it. This includes all of the rules that govern on how to set up, start, manage, run, close or sell a business. Business law is established with the purpose that every legal business follows it and acts according to it as and when the situation demands. It includes contracts, laws of corporations, other business organizations, commercial papers, income tax, secured transactions, intellectual properties, and other transactions and dealings related to the business.
What is the scope of business law?
The prime purpose of business law is to maintain order, resolve disputes, establish generally accepted standards, protect rights and liberties when it comes to business and its relation to other companies, government authorities, and the customers.
A Universal set of criteria: Earlier, the customer had to suffer a lot due to the absence of a proper law that could safeguard their interests and money invested in a particular business. As there was no such law regarding maintenance of order, rights, and liabilities, etc. the business owners made their standards and made the customers suffer just because of the greed to make more money. With the establishment of business law, many rules have been established which have to be followed by businesses worldwide.
Maintenance of Equilibrium: This creates a sense of satisfaction among customers. In the absence of the law, different countries had different requirements regarding the business dealings which made it difficult for the customers as well as the seller to establish a deal. But with this law, now every country has the same standards, and a contract between buyer and seller is quickly found. This brings ease in business dealings and transactions all across the globe.
Fewer chances of fraud: Business law helps the owners themselves to get aware of the laws against other businesses and individuals. It also helps the individuals, on the other hand, to be mindful of the rights against the companies so that they can use them in case they fall prey to the frauds and misery of the business.
Presence of Ethical conduct: With the help of business law, business owners may make better decisions, and also know when to seek legal advice. Every business has to maintain ethical conduct but most businesses, in the greed to earn more profits; some of the times they do not follow such oversights. Business law makes it mandatory for all the businesses to maintain ethical conduct which in turn pleases the buyers and they form a good image of the business.
In a nutshell, business law is important and has immense scope to both in business as well as consumers for protecting their rights and get a better service.