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Business law, also called commercial law, is the general name used to describe the laws governing commercial transactions. For example, if you want to establish an online shoe store today, the business law would determine how you should arrange and register your business. It will also determine how you pay your employees and how you can legally deliver your footwear to clients in other countries.

As you can see from the above illustration, business law applies to various aspects of a company. Furthermore, business law differs based on the kind of business (e.g., privately vs. public and for-profit vs. not-for-profit and so on. ) and its structure (corporation and general partnership. general partnerships) and also by the law enforcement authorities.

What Are the Different Types of Business Law?

As mentioned above, various types of business law impact different aspects of the business. For instance, when a company needs to determine how to make payments to its workers, offer employees work benefits, or create employees’ work schedules, the tasks will be covered under the distinct section of business law referred to as employment law.

Suppose the business owner was just starting and wanted to set up and register their business. In that case, it would require business law, such as state laws regarding the formation of businesses, their structures, and state tax laws.

There are different types of contract in business law, but a large part is concerned with service contracts. Contract and commercial law govern everything from business agreements and sales transactions to non-disclosure agreements for employees. Due to the many factors that contract law regulates in the business world, it is the most significant sector of law governing business.

If a business wants to join another company or is in the process of forming an agreement with a particular distributor to sell its goods or provide a service to its customers, contract law will be the governing law for everyone in these situations.

Each state could have its own law specific to the region in which it is located, so it’s recommended to talk to an attorney if there are any questions about the laws specific to your region. For example, South Dakota business law regarding litigation may differ significantly from Montana business law.

Why Does Business Formation Matter?

One of the most important decisions business owners must make when forming their company is to choose what kind of structure they would like to choose when registering their business. You can select from various business structures, including corporations or LLCs, partnerships, and non-profit corporations.

The business structure that the owner decides will have a major influence on the future of their business. This is because the way the business is structured will determine things like the amount of money it can get from investors, the number of members on the board, who is accountable for the financial obligations or debts that the business incurs, and how the company is taxed.

Certain business structures also have specific rules regarding how the company can operate. For instance, in a limited partnership, there must be more than one person acting as a general partnership to the whole partnership (i.e., the person who runs the business) and one limited partner to function as an authorized limited partnership.

What Are Common Business Law Areas?

Within the broad scope of business law, there are specialized categories that apply to businesses. A few common examples of various areas of law that can be applied to both entities and individuals are:

• Formation and dissolution of businesses;
• Selling and buying a business;
• Legal law for commercial transactions in addition to contract law;
• Laws related to securities and investing;
• Legal law on intellectual property;
• White collar and antitrust;
• Corporate law;
• Bankruptcy, which includes the bankruptcy of businesses;
• Corporate insurance;
• Employment law;
• Franchise laws;
• Cyber law;
• Gaming law;
• Sports law;
• Liquor licenses;
• False advertising;
• Entertainment law;
• International business, and
• Tax law.

In each of the categories, there are smaller categories. Furthermore, each state could have its own unique laws and statutes pertaining to certain issues in business, like communication and media. For example, Pennsylvania’s transactional business laws could have unique laws specific to that state. Because of the complexities of these laws, it’s important to speak with an experienced corporate lawyer in India to get advice on any issues or questions.

What Are Common Disputes That Involve Business Law?

There are numerous ways disputes could arise while running a company. But, business disputes are much more frequent than others. For instance, business partners might dispute over how to run a business. When business partners get involved in disputes, even something as basic as deciding on the color of the product to sell can turn into the subject of a lawsuit.

A different type of dispute occurs in the course of a business when a third-party vendor and a business are in dispute over the goods delivered or the cost of the goods. These kinds of disputes are usually controlled by contract or commercial law. That means that parties can usually use their contract to resolve a dispute, for instance, a breach of contract claim.

Companies may also conflict with their customers. Customers may assert that their goods were damaged and can refer to the business’s guarantee or warranties to request reimbursement.

This situation will typically send the customer a brand new item to address the issue. However, some customers may choose to sue a company in the courts. So, while some issues with customers can be resolved by studying a company’s return policy, others could be more complicated.

For example, when a consumer purchases a product with an implied warranty, and the company violates this warranty, then the buyer might bring a lawsuit against the business for sending them a defective product. In this scenario, the law of commercial law, as well as state laws on product liability, could be applicable.

Additionally, a company might find itself in a dispute over intellectual property (such as patents, copyrights trademarks.). One frequent issue is the theft or leaking of trade secrets. Suppose a company steals or an employee of the company divulges a trade secret (like the secret recipe or formula that belongs to the company). In that case, the business could seek damages from the party who stole it. 

Should I Consult a Business Lawyer for Questions About Business Law?

Based on the previous discussion, business law and its related disputes can be quite complex. Business law has numerous aspects, and not every business issue can be answered with a simple solution. While it isn’t required to engage an attorney in every circumstance, there are instances where it might be beneficial to talk to an experienced, nearby attorney for business to get further advice.

For instance, you could consider hiring a lawyer to assist you in the best way to structure your new venture and for guidance regarding how to protect your intellectual property rights. Also, it would be best to consider hiring an attorney when you are closing your business or being sued by a different person and have to appear before a judge.

A seasoned business lawyer can suggest any of the above scenarios. The lawyer will also be able to help you with the processes and procedures for establishing or ending a business. If your business is subject to lawsuits or you are required to bring a lawsuit, your lawyer will assist you in the procedure and represent you in court.

If you are unsure about the filing of business tax returns or selling a company, business lawyers are associated with a broad range of business contacts, including accountants and real estate agents, and, of course, other successful businesses.