Commercial law, also called commercial law or corporate law, is the legal body of law which applies to the privileges, rights, and transactions of individuals and company engaged in commercial activity, commerce, sales, merchandising, and trading. It is frequently regarded as a branch of personal law and deals mainly with matters of public and private law. This law governs all aspects of business activities, including personal, corporate, commercial, landlord-tenant, employment, real estate, partnership, acquisitions, divestiture, disposition, lawsuits, trusts, property, debts, franchises, partnerships, and trusts. The court system is primarily vested with the responsibility of interpreting and implementing the provisions of commercial law. Civil laws are applicable in all but the most minute particulars of commercial law.
A vast area of business law is devoted to the subject matter. Practical applications of these laws protect the rights of individual entrepreneurs, corporations, government agencies, labor unions, franchisees, and associations. A firm’s legal standing can be traced back to its adherence to commercial laws, which is essentially a code of conduct governed by the state.
Business laws protect companies from breaches of contracts, fraud, privacy, abuse of personnel, worker compensation, intellectual property rights, taxes, and litigation brought against them by other businesses or government agencies. They also prevent businesses from exploiting natural resources in a way that is not intended, punishes companies that harm the environment, punishes discrimination, or denies access to goods and services that are needed by consumers. These laws are also in force to provide workers and employers with the right to organize and strike, secure better working conditions, and protect the interests of minorities. For example, national, state, county, and local governments regulate employment, establish public holidays and other observances, regulate the creation and development of parks and recreation areas, and prescribe rules for the licensing, professional licenses, and professional liability.
Business law also addresses issues such as corporate taxes, partnerships, commercial leases, intellectual property, advertising, franchise laws, workers’ compensation, sales and use of trademarks and names, acquisitions, divestitures, management and leadership, management and reorganization laws, licensing and intellectual property ownership, and acquisitions and divestiture of businesses held by other firms. Many other industries also have specialties within the field. Franchise law is a branch of business law that exclusively addresses the concerns of small business owners. It also includes franchises to other businesses like supermarkets, fast food outlets, computer manufacturers, hotels, theme parks, and movie theatres. Franchises in the hospitality industry are prevalent in the United States.
The legal system protects businesses from risks associated with business transactions and litigations. Business attorneys perform complex analysis and prepare memoranda to present cases on various legal topics. Business attorneys also make representation for clients involved in litigation involving mergers and acquisitions, employment, commercial activities, consumer protection, tax, foreclosure, commercial leases, liens, and intellectual property. They also represent clients with respect to business disputes and litigations.
The area of contract law is concerned primarily with the enforceability of contracts. Contract law encompasses all aspects of business transactions and litigations. Some of the areas of concern are patents, commercial papers, trademarks, copyrights, trade secrets, and notices. Contract attorneys are also referred to as litigation lawyers. These attorneys specialize in a number of areas of the law including: contract law, landlord-tenant litigation, arbitration, landlord-tenant litigation, and intellectual property.
Business laws also encompass environmental laws governing worker’s compensation, worker’s comp laws, state and local governments, environmental impact, and energy efficiency. Business laws also govern foreign businesses operating in the United States. These laws affect foreign investors and their rights to property and labor in the U.S., foreign corporations establishing ownership in the U.S., and nonresident investors who have investments in the U.S. Business laws affect all industries and businesses whether large or small. They provide the basis for legitimate disputes and provide guidelines for resolving disputes between businesses and other parties.
Business laws also regulate advertising, marketing, sales, franchising, investment, licensing, financial transactions, employee compensation, intellectual property, taxation, labor practices, government procurement, and inspections and licensure. It is essential for businesses to follow the laws regarding these matters because otherwise they can be severely punished. For instance, if a company does not follow regulations regarding advertising, the company may be penalized for violating ordinances or fire codes. The laws apply to all individuals and businesses, whether they are domestic or foreign based. All people involved in transactions with one another must understand the various laws and their corresponding rules and regulations.