Business law is also called corporate law or commercial law. It is a law branch that governs how to form and run businesses by providing rules and regulations. Business law is essential in a country since it regulates business practices in issues like compensation and safeguarding shareholder’s rights and plays a huge part in business formation. A student needs to go to a law school, study law in general and later specialize in business law. Some topics taught in business law include:
Introduction to Business Law
It is the first topic you encounter; you get to learn what business law generally entails and what to expect, including:
Nature and Concept of Law
Law is a set of rules and regulations that orders the behavior and relations of most people and organizations.
The purpose of law in society includes social control, establishing moral standards, and implementing policies as a basis for dispute resolution.
Law as Tradition
Law carries a nation’s development through centuries.
Rule of Law Principle
No one is ever above the law, and democratic countries must follow it.
Law and Justice
Law is what parliament and the courts say, whereas justice is different.
Sources of Law
There are mainly two sources of law:
Statute Law
Made in the parliament. The parliament has the right to make and abolish the law if they unanimously agree and a legislative procedure is followed.
Interpretation of Statutes
Disputes may arise and need interpretation by the court according to Acts.
Common Law
The courts make it. It refers from sources like parliament, Sharia, Marxist theory or historical courts.
Delegated Legislation
Definition
The parliament may give another body power to pass regulations and by-laws.
Reasons
If the parliament does not have the expertise or time to pass the legislation, the parliament sets regulations for the body conducting.
Contract Law
Contacts are part of business law in terms of how to create, enforce and when breaking or enactment contacts.
Contract Law Definition
Contract law is an agreement between different parties that create a mutual and enforceable law that is signed. Contracts ensure cooperation and trust between parties.
Contract Lawsuit
Specific steps are taken according to the law if a contract is breached. The wronged party should receive compensation as agreed during the signing, or the court should be involved.
Contract Requirements
Statutory law requires a contract to be signed and executed in a particular format. Specific rules should be followed during the formation and execution of a contract.
Breach of a Contract
Two cases in which contracts are breached, either actual or anticipatory. Actual breaches are when a party refuses to honor their contract deal. Anticipatory breaches are intended failure to perform duties by a particular party.
Ethics
Legal ethics that lawyers should uphold and the responsibilities and rights of corporate lawyers. It also includes ethical ways to conduct a business.
Who Develops Ethical Standards for Lawyers
Ethical standards are developed by the legal profession consistent with legal and international standards.
Importance of Ethics
It ensures that the rule of law is upheld to ensure equity, fairness, and confidence in the law. It also ensures the reputation of the legal profession is upheld. It ensures accountability, where the duties of lawyers are set.
Ensure Lawyer-Client Relationship
The relationship should be strictly professional and should treat clients fairly. Matters discussed should be treated with confidentiality.
Tax Law
Encompasses matters concerning tax fraud and the tax law governing businesses and corporations.
Purpose of Taxation
To finance the government to undertake fiscal purposes. To ensure allocation of resources, ensure distribution of wealth and income.
Types of Taxes
Include direct and indirect taxes. Direct taxes are imposed on individuals based on income, net worth or consumption. Indirect taxes mean taxes on the consumption and production of goods, services and transactions. It includes value-added tax, sales tax, import duties and tax on legal transactions.
History of Taxation
Taxation has a long history starting in Greece and Rome, with taxation on consumed goods and services, taxes on imported goods or tariffs. Taxes have caused great controversy throughout history, like between American colonies and Great Britain and during the French Revolution.
Principles of Taxation
Adam Smith tried forming rules for taxation, including everyone should contribute towards supporting the government, and tax on individuals should be specific, not arbitrary, in regards to time, manner and quantity of payment. Taxes should be levied at a convenient time and manner for the contributor. Taxes should take a little portion from the pockets of the contributor.
Distribution of burden of taxation
The distribution of tax burdens assumes that people in the same position will be liable for the same tax. For tax compliance, specific requirements include clarity of tax laws to the taxpayer, stability of taxes, costs of collecting and controlling taxes should be minimal, payment of taxes should be convenient, and taxes should achieve the country’s economic goals.
Business law is a comprehensive course learnt by law students for a few years. It requires the student to be passionate. Business law is a marketable course in the law profession.