First of all, it should be made clear as to what is business law. Business law is the law that deals with business transactions between the buyers and sellers and safeguards their rights and interests regarding these transactions. It helps to bring uniformity in varieties of dealings without any loss to either party and if any mishap takes place, then the aggrieved party has the right to sue the wrongdoer. So, business law is of immense importance in today’s world where business is in its very complex form.
So, what basically a business is?
Business refers to the act of producing or buying and selling of goods for the motive of earning a profit. Profit is an essential element due to which particular business activity is carried out. If an event is not done with the purpose of obtaining a benefit, then it will not constitute for the business. Likewise, works done in social welfare or are done once or twice only will not form for a transaction. A company must be recurrent that is, it should be repetitive.
What role ethics has to play in business?
Ethics are the beliefs about what is morally correct and what is not. It is subjective, i.e., it varies from person to person. A particular person may be more careful regarding his ethics while other person may not follow his ethics to make more money. Ethics and integrity of the sellers play an important role in business activities. Business law states that there should be ethics in the business players.
Ethics are the moral codes that govern the behavior of a person or a group of persons. Business ethics are the moral conducts that guide the ways a business should work. They are the set of moral codes that are relied upon to reach conclusions and decisions.