Discuss the nature and significance of business law?
Answer:
In a very simple sense, law means a rule – a code of conduct. And any deviation from the code of conduct attracts some form of penalty.
The term “law” is used in many senses. You may speak of the law of physics, mathematics, science, or the laws of the football or health. In its widest sense, law means any rule of conduct, standard or pattern, to which actions are required to conform; if not conformed, sanctions are imposed. When we speak of the law of a State, we use the term “law” in a special and strict sense.
Business Law may be defined as that branch of law which prescribes a set of rules for the governance of certain transactions and relations between:
(i) Business persons themselves,
(ii) Business persons and their customers, dealers, suppliers, etc., and
(iii) Business persons and the state.
Answer:
In a very simple sense, law means a rule – a code of conduct. And any deviation from the code of conduct attracts some form of penalty.
The term “law” is used in many senses. You may speak of the law of physics, mathematics, science, or the laws of the football or health. In its widest sense, law means any rule of conduct, standard or pattern, to which actions are required to conform; if not conformed, sanctions are imposed. When we speak of the law of a State, we use the term “law” in a special and strict sense.
Business Law may be defined as that branch of law which prescribes a set of rules for the governance of certain transactions and relations between:
(i) Business persons themselves,
(ii) Business persons and their customers, dealers, suppliers, etc., and
(iii) Business persons and the state.
Significance of Business law:
Law and business are closely related disciplines. They complement each other.
*Law is a major factor in business decision making. Almost every aspect of business is regulated by law.
*Law is a major factor in business decision making. Almost every aspect of business is regulated by law.
* Even the installation of a business unit itself may involve observance of some legal provision or the other.
* Sometimes the law may require business to provide certain facilities to its employees, even when the contract does not provide therefore. For instance, the provisions of labour welfare laws impose a legal obligation on employers to provide certain benefits to their workers.
* Business transactions - the buying and selling, production, marketing and other functions of the business enterprise are to be conducted within a certain framework of legal environment.
* Certain conduct is illegal, and business which commits acts or omissions declared to be illegal is subject to sanctions.
* Regulation of restrictive and unfair business practices
* Promotion of conciliation, and arbitration for settlement of business disputes
* Patents, trademarks and copyrights
* Import and export regulation
* Contracts, sale of goods, guarantee, indemnity, bailment, pledge, charge, mortgage, partnerships, insurance, carriage of goods
* Prevention of food adulteration, regulation of essential commodities
* Regulation of stock exchange and financial securities
* Regulation and development of industries
* Conservation of foreign exchange and prevention of smuggling activities
* Excise, import and export duties, tax on income, wealth
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