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Business law deals with the rules and regulations that are to be followed by the business entities while transacting business. These laws should ensure uniformity, fairness, and impartiality in all commercial dealings.
Business law comes into play when one enters into an agreement or contract either orally or in writing with another business. It also applies in case of any dispute arising from or in connection with an existing contract or agreement.
Business laws are subject to change like any other law. That is, they aren't permanent. Instead, they are applicable in a particular state at a given time and can be altered anytime when deemed necessary by the government.
Business laws are broadly classified into four categories depending on the subject they govern. These include:
The Company Act, 1956 is the law governing business entities that are registered under the companies act of your respective state. This act clearly defines who can start a company and how to go about it.
It also gives guidelines on various other issues like what kind of information should be mentioned in memorandum and articles, rules for directors, etc. This law also provides rules for winding up a company and penalties associated with it.
Banking laws govern the financial institutions from where one can obtain loans or take money etc. These laws define how banks must be run, what security is needed to get a loan, and other banking practices like the forex market, NRI accounts, etc.
Sales tax laws define the taxes to be paid when any type of transaction takes place in a business. They govern how much tax must be deducted from specific products and services by the seller and how it should be paid to the government.
Commercial laws are those governing commercial transactions between different parties. For example, these laws govern commercial contracts, merchant shipping rules, etc.
Corporate law extends company law which deals with all kinds of corporate disputes between two or more business entities. It also deals with issues about the enforcement of various corporate rights and privileges given by the state.
It is often seen that some conflicts arise between two business entities due to fraud, non-payment, fraudulently obtaining goods and services, etc. These disputes need to be solved following specific rules and laws laid down by the respective government.
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The law is a system of rules that are enforced through social institutions to regulate behavior. In most advanced societies, the law is a systematic body of written rules applied and upheld by the government.
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Ans: Business law is a term that refers to the laws that are specifically designed for business purposes. These include any laws that govern commerce, employment, mergers and acquisitions, contract management, etc.
These types of legal rules are important because they regulate commercial transactions between businesses and individuals acting in their capacity as either consumers or providers of goods and services.
Business law also deals with the rules put in place to protect workers, both full-time employees and independent contractors, who are engaged in business activities through specific business arrangements.
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Ans: When a business law assignment has been written well, you can usually tell because it is free from errors and plagiarism. It must also include the following components to be considered well-written:
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