1.What is business law?
Answer: The word ‘Law’ has been derived from the Teutonic word ‘Lag, which means ‘definite’.
On this basis Law can be defined as a definite rule of conduct and human relations. It also means a uniform rule of conduct which is applicable equally to all the people of the State. Law prescribes and regulates general conditions of human activity in the state.
In this way,Business law defines as a branch of law that “regulates relations that originate from conducting economic activities or that are in a close subject or functional relation with such activities.“
Business Law originated in the common law system, particularly the one in the United States of America. By its content, it is a counterpart of the term “commercial law”.
2.What are the sources of business law?
Answer: The sources of business law generally the English laws which in turn have their roots in the following:
i)English Mercantile Law -
The English Mercantile Law constitutes the foundation on which the super-structure of the Indian Business Law has been built.
ii)The Statute Law -
When a Bill is passed by the parliament and signed by the President, it becomes an ‘Act’ or a ‘statute’.
iii) Judicial Decisions -
Judicial decisions or case law are usually referred to as precedents and are binding on all courts having jurisdiction lower to that of the court which gave the judgement.
They are also generally followed even by those of equal jurisdiction in deciding similar points of law. Whenever an Act is silent on a point or there is ambiguity, the judge has to decide the case according to the principles of justice, equity and good conscience.
iv)Customs and Usages -
Custom or usage of a particular trade also guides the courts in deciding disputes arising out of mercantile transactions, but such a custom or usage must be widely known, certain any reasonable, and must not be opposed to any legislative enactment.
v)Natural Law-
Natural law is basically laws, which derived from nature. According to nature law, no man can be punished twice for the same crime is a guiding principle for any legislation.
3.Types of Business Law:
There are several types of business law that are recognised and followed by countries the world over. Some of these include the types of business law sections that follow -
i)Contract Law:
A contract is any document that creates a sort of legal obligation between the parties that sign it. Contracts refer to those employee contracts, sale of goods contracts, lease contracts, etc.
ii)Employment Law:
Employment law is where it is imperative for business and law to meet. These laws enforce the rules and regulations that govern employee-employer relationships. These cover when, how and for how much and how long employees should work.
iii)Labour Law:
Labour law also indicates the appropriate relationship between employee and employer, and also pay grades and the like. However, an additional element to labour laws is the relationship of the union with the employer and employee.
iv)Intellectual Property Law:
Intellectual property refers to the intangible products of the working of the human mind or intellect, which are under the sole ownership of a single entity, such as an individual or company. The validation of this ownership is provided by intellectual property law, which incorporates trademarks, patents, trade secrets, and copyrights.
v)Securities Law:
Securities refer to assets like shares in the stock market and other sources of capital growth and accumulation. Securities law prohibits businesspersons from conducting fraudulent activities taking place in the securities market. This is the business law section that penalizes securities fraud, such as insider trading. It is, thus, also called Capital Markets Law.
vi)Tax Law:
In terms of business law, taxation refers to taxes charged upon companies in the commercial sector. It is the obligation of all companies (except a few tax-exempt small-time companies) to pay their taxes on time, failure to follow through which will be a violation of corporate tax laws.