Because of how many upcoming and existing businesses are in the country, US business laws evolved and became more comprehensive as time passed. Since the law has become so encompassing, even non-business owners should learn aspects of it. After all, businesses are so interconnected with human activities that business laws may apply to different parts of everyday living.
Learning business law aligns with aspiring business owners' growth because this piece of knowledge relates to almost everything. In addition, because of its breadth, business law has provisions that may connect to financial accounting and human resources. As a result, entrepreneurs familiar with this law could have more successful business activities with fewer legal risks.
Sometimes, business owners are too absorbed with their businesses' financial aspects that they forget to maintain policies and regulations required by the government. However, it is also understandable that learning the law can be confusing and time-consuming. If you need a simplified way to learn, Skill Success' online law courses only take a few hours to complete.
Business law is a substantive law that deals with public and private affairs involving the rights of people and entities engaged in business-making. It also sets the standards for commerce, merchandising, trade, and sales so that all transactions remain as fair as possible. The primary basis for business law in the United States is the Uniform Commercial Code (UCC).
An established set of business laws protects business relations and implement appropriate solutions to potential conflicts. Also, business law provides tools and mechanisms that facilitate the successful creation of rights, interests, and contracts. Business law courses often touch on intellectual property, taxation, and trust laws for a more in-depth understanding of legal systems.
Legal and policy issues may ensue during business transactions, creating an imbalance in the legal system. For that reason, business law defines the identity and powers of corporate entities. Business law delineates what said business entities can and cannot do to keep everyone accountable for their actions, including the contracting parties.
Unfair competition is one of the biggest problems that business law addresses. Corporate businesses should not take advantage of their rights and privileges to undermine others. Business law courses teach students about these scenarios as hypothetical scenarios and offer solutions in line with the provisions of the law and pronouncements of the Supreme Court.
Business owners without a legal background often understand the need for a lawyer for matters involving corporate law, federal rules, and other legal issues. What becomes problematic is that they might not know who is the right lawyer to approach. Business law has multiple types, and it is best to collaborate with lawyers whose specialty aligns with one's needs.
Here are three of the most significant types of business law:
1. Tax law. Taxation is a critical part of the government's legal system to raise money for public expenditure. Moreover, it is not a secret that businesses pay taxes regularly to avoid penalties like disenfranchisement. Thus, business people should be knowledgeable in this field.
Businesses pay several types of taxes. Depending on the circumstances, a corporate entity may need to pay taxes for income, sales, property, payroll, dividends, excise, and more. The slightest issue with taxes can cause some of the most horrific legal problems.
2. Employment law. Employment law or labor law is a segment of the legal system dealing with employees' rights, employers' responsibilities, and vice versa. Since most businesses hire employees to keep operations going, they should know the underlying protocols on hiring, firing, discrimination, and other aspects of employment.
Further, employment law sets standards for employee compensation. Business owners should be careful about salaries, benefits, and insurance policies. Local and federal laws are unforgiving to businesses that compromise the rights and interests of any worker.
3. Contract law. Contracts are integral parts of businesses. From preparing raw materials to distributing products to clients, businesses enter into written and unwritten agreements with different parties. The slightest errors in these agreements can trigger complex issues which could end up as court cases.
It is common for companies to experience a breach of contract. Having competent knowledge of contracts will help prevent this situation, or should issues arise, stakeholders may take the best courses of action to keep losses to the minimum.
Taking business law courses would reveal to you that the law serves multiple purposes. Aside from being a standard people must follow, it creates policies that protect specific parts of business making and how stakeholders might react to it.
Here is a quick breakdown of business law's most important purposes:
1. Set business standards. US business laws identify what kinds of businesses may operate within the country. The laws also set standards to keep business operations as orderly as possible and avoid possible corporate conflicts.
The standards help protect stakeholders, especially the workers. In the past, companies have taken advantage of employees and caused severe human rights violations. These standards refer to minimum wages, mandatory benefits, positive company culture, and other adjustments that keep the workspace safe.
2. Provide access for dispute resolution. Conflicts happen inside and outside companies, and business law is instrumental in resolving these issues. Business law provides tools and mechanisms to hear both sides of the story. After the assessment, appropriate disciplinary action will be meted out to responsible parties.
It is integral to have a standardized process for conflict resolution for uniformity and consistency. Having no definitive process can cause chaos among erring parties making the conflict even more complicated than what it already is.
3. Protect rights and interests of stakeholders. Business laws help ensure stakeholders work in a conducive workspace and not experience maltreatment from co-workers and higher-ups. As protection, business laws also set sanctions for erring parties. The policies and mechanisms established in the law function the same way.
Over the years, business law has become more sensitive to the social needs of people. The most notable changes involve the prohibition against discrimination based on ethnicity and gender.
4. Define business relations. Business relationships refer to the complex interconnection between several stakeholders. For example, some of the most common business relationships are between employees and employers. Basically, the tie exists when at least two entities gain the right to engage in commerce.
Business law covers the instances of making business relationships. Knowing when business relationships start and end is critical because they create rights and responsibilities that stakeholders may demand.
5. Correlate business transactions to other laws like criminal law and environmental law. Business law is not strictly confined to commerce-like activities because it extends to various social causes. The provisions of the law can relate to other branches, like criminal and environmental law, by maintaining balance as to the impact of businesses on society.
For example, business law, environmental law, and criminal law can have parallel applications when establishments cause destruction to nature and violate regulations regarding waste management. Besides the closure of the business, responsible personalities in a company may face criminal charges.
Business law takes several forms because its application spreads through a vast spectrum. Under its general umbrella are other laws that work to keep businesses in order and keep stakeholders' rights, interests, and responsibilities in harmony with others.
Here are five examples of business laws that you may encounter daily:
1. Corporate law. Corporate law sets the standards, rights, and obligations of corporate entities. This law also identifies the type of corporate entities and their respective perks. It also contains safeguards against employment abuse.
2. International law on taxation. US business laws apply to international corporate entities because of taxation purposes. Every country has its taxation systems, so businesses operating in two or more countries at the same time may need to comply with several tax dues.
3. Bankruptcy law. The infamous Chapters 7 and 13 are fragments of bankruptcy law that business owners should consider getting familiar with. It is not an ideal situation to file for bankruptcy, but it may offer unique solutions during the most challenging times.
4. Anti-trust law. Sometimes, companies use processes like mergers and acquisitions to evade legal obligations, especially with tax dues. Anti-trust laws fill in this gap in the legal system and stabilize the problems created by it.
5. Intellectual property law. Not all sellable and tradeable properties are tangible. To sell intangible assets like original creations and designs, one should register them as intellectual properties. The three most prominent types of intellectual property are copyrights, patents, and trademarks.
Studying business law is a tall order but the time and effort you will put into it is a growing investment. In addition, having high-level legal knowledge can impact your decision-making skills if you are a business owner. After the lessons, you are least likely going to trample on the rights of others and incur violations.
Business law is the set of public and private rules that govern corporations, partnerships, joint ventures, and other commercial transactions. It identifies the stakeholders in every business transaction and their respective rights. This knowledge will allow stakeholders to identify the positive and negative impacts of existing business relationships and regulations.
Further, knowledge about business law sets a business owner or manager from others because they understand the needs of corporate entities. As a result, these business owners and managers are more sensitive to the government's restrictions and protocols to maintain social order.
Fortunately, one does not have to go to law school to be familiar with business law concepts. E-learning service providers like Skill Success has compact business law courses that summarize core concepts into comprehensive videos. Then, learners can gain access to helpful knowledge in a matter of hours and revisit them whenever needed.
If you are one of the people who does not have a strong inclination toward math problems and calculations, it is understandable to ask about how much math is in studying business law. It is impossible to remove mathematics from business law. It is an integral part of the law, and there will be calculations throughout the lessons.
Mathematical equations may exist in business-related laws but do not require high-level calculation skills to understand. For example, business laws adapt math to clarify how the law may derive taxes from people or how much partners should contribute to a business transaction.
Interestingly, business law is not the only legal branch requiring some mathematical prowess. In criminal law, one may need to calculate how many years an aggravating circumstance adds to an accused possible jail service. Other than this, countless other instances require mathematical knowledge to determine legal implications.
Besides learning the intricacies of the law, learners can also find online courses on basic mathematical techniques on Skill Success. With over 3,000 courses, learners can find resources on almost anything they are interested in learning. Notably, this expansive knowledge pool keeps growing as the team adds dozens of new content every week.