Entrepreneurs wear many hats, learning a little bit of everything when starting and operating a business. It’s important to know about business law to ensure your business is abiding by the laws of the government. This helps you avoid costly lawsuits and legal battles that could affect your reputation. Here’s a basic overview of what you should know about business law.
What is Business Law?
Business law refers to the laws that govern the dealings between people and commercial businesses. As a legal code, it protects liberties and rights, maintains orders, resolves disputes, and establishes standards for business’ interactions with the government and individuals.
Every state has its own set of regulations and laws for business organizations. It is the responsibility of owners to know about business law and understand the existing rules and regulations applicable to them.
There are two separate areas to be aware of when learning about business law. The first is regulation of commercial entities through laws of partnership, company, bankruptcy, and agency. The second is regulation of the commercial transactions through the laws of contract.
The Importance of Business Law
Business law regulates business practices and helps prevent lawsuits and other damages to a company. Here are areas of the areas it covers:
Compensation Issues – Business law handles compensation issues, including salary management, nonpayment or underpayment for overtime work, denial of benefits, or rejection of employee requests for time off from work for medical issues.
Safeguard the Rights of Shareholders – An important aspect about business law is that it plays a vital role in protecting the rights of a company’s shareholders. A business law attorney will handle any conflicts related to minority shareholders, constitutional documents, resolution by arbitration, and more.
Business Formation – Establishing business includes a lot of legal processes, leasing, and permits. A business law attorney is well-versed with all the relevant regulations, and can help owners successfully operate their business from the start.
Business law also contains guidelines relating to:
-Competition and antitrust
-Employee rights, wage laws, and workplace safety
-Business ethics, substantive law, procedural law, and court system structure
-The establishment or sale of an organization
-Contracts, transactions, and agreement violations
-Business partnerships, entities, sole proprietorships, liability companies, and corporations
-Rules regarding physical property
DaMore Law: Experienced Business Attorneys
Our experienced business attorneys provide legal advice that covers every aspect of a company. Whether you’re starting or selling a business, or anything in between, we can make sure everything is above board. Contact us to schedule an appointment.