Submitted By

Ansa Maria P.R

S5 DCP,Roll No: 13
Government. Women’s polytechnic
college Nedupuzha.
•WHAT IS BUSINESS LAW?
•INTRODUCTION
•MEANING
•BUSINESS LAW-DEFINITION:
•NATURE OF BUSINESS LAW
•BRANCHES
•LEGAL ISSUES IN COMMERCIAL LAW
•IMPORTANTS
•PURPOSES AND OF BUSINESS LAW
•FUNCTIONS OF BUSINESS LAW
•TYPES OF BUSINESS LAW
•SOURCES OF BUSINESS LAW
•OBJECTIVES OF BUSINESS LAW
•REQUIREMENTS OF BUSINESS LAW
•CONCLUSION
WHAT IS BUSINESS
LAW?
Business law is that portion of
the legal system which
guarantees an orderly conduct
of business affairs and the
settlement of legitimate
disputes in a just manner. It
establishes a set of rules and
prescribes conduct to order to
avoid misunderstandings and
injury in our business
relationships.
INTRODUCTION
Business comprises all profit seeking activities
and enterprises that provide goods and services necessary
to an economic system. Law refers to the principles and
regulations established by a Government ,applicable to
people and enforced by judicial decision. Business Law is
also known as Commercial law or corporate law, is the body
of law that applies to the rights, relations, and conduct of
persons and businesses engaged in commerce,
merchandising, trade, and sales.
 MEANING
Law is a system of rules that are created and
enforced through social or governmental institutions to
regulate behaviour. Commercial law or business law is the
body of law which governs business and commerce and is
often considered to be a branch of civil law and deals both
with issues of private law and public law. Commercial law
regulates corporate contracts, hiring practices, and the
manufacture and sales of consumer goods.
 BUSINESS LAW-
DEFINITION:
Business law is defined as” Business
law encompasses all of the laws that dictate how to form
and run a business. This includes all of the laws that govern
how to start, buy, manage and close or sell any type of
business. Business laws establish the rules that all
businesses should follow.”
NATURE OF BUSINESS
LAW
The nature of business law depends on the
location of the business and its area of activities. Apart
from these two conditions governance authority also affects
the nature of the law. The main areas included under the
business law are:
 Starting a business
 Taking over/ buying a business
 Managing a business
1. Starting a Business

The business laws are applicable to all types of

business organizations. There are certain rules for each
business entities including corporations, limited liability,
partnership and more. For instance, let’s assume you want
to start a business but what type of business it would be?
And what papers you need to file for it? After this what are
the certain legal rules you need to follow or how to pay the
taxes? To answer all this question you need to hire a
business lawyer. The hire lawyer can help you with
intellectual property law which includes patents,
copyrights, trademarks and other intangible assets.
2.Taking Over/ Buying a Business
Now, not everyone starts with buying a
business some goes for taking over or buying an existing
one. When it comes to buying or taking over an existing
business the company need a lawyer to deal with contracts,
employment laws, real estate laws and consequences after
the breach of contract.
3. Managing a Business
Running a business is not an easy task as there
are several aspects that are involved in managing a
business. As you already read mention a business involves
lots of contracts, joint-ventures and employment laws. The
government of the country create and enforce the federal
laws on the business.
BRANCHES
 Contract Law: Contract law seeks to regulate the formation and
enforcement of contracts. It sets out the essential elements of a valid
contract and the remedies available to parties in the case of a breach of
contract.
 Property Law: This law governs the transactions pertaining to
different types of property. Although it mainly includes sale, transfer,
lease, and rental of immovable property.
 Business Regulations: This set of law covers government rules and
regulations for business organizations, factories, trade unions, and
labour.
 Corporate Law: Corporate law deals with formation, management,
and termination of corporations. It sets out legal provisions for issues
such as election of directors, raising of capital.
 Intellectual Property Law: This is an umbrella law that provides for
patenting of inventions and copyrighting of creative work.
 Tax Law: Tax law covers government levy of direct and indirect taxes
on business transactions. Primary types of taxes include income, sales,
excise, gift, capital gain, and profit distribution taxes.
LEGAL ISSUES IN
COMMERCIAL LAW
 All commercial and business laws are associated with
different types of the legal issues. The most common
among them is the violation of contracts. In addition to
this, there are several other issues such as advertising
disputes, marketing term violation, unfair trade practices,
deficiency in service, consumer complaints, and leakage of
trade secrets.
 Sometimes, a contract between two parties may affect the
rights of someone else who is not a party to the contract.
Similarly, sometimes, a dispute may involve more than one
law. Commercial law helps in resolving such complex
issues as well.
IMPORTANTS
The prime purpose of business law is to maintain order,
resolve disputes, establish generally accepted standards, protect rights
and liberties when it comes to business and its relation to other
businesses, government authorities, and the customers.
 A Universal set of standards
 Maintenance of Equilibrium
 Less chances of frauds
 Presence of Ethical conduct
 To maintain order among businesses, brands, and companies alike
 Protect the rights of the company
PURPOSES OF BUSINESS
LAW
 Establishing standards identifies what types of behaviour
are and are not accepted in society. For example, damage to
person or property is considered a crime because it is not
tolerated by society.
 Maintaining order.
 Resolving disputes allows for the mitigation of issues that
arise between those with different wants, needs, views,
and/or values.
 Protecting liberties and rights
 FUNCTIONS OF BUSINESS
LAW
 Legal basics such as ethics, court system structure, substantive law, and
procedural law are foundational.
 Contract law includes drafting, rights assignment, work delegation,
transactions, agreements, breach of contract, and remedies for a
breach.
 Intellectual property law (IP), including trademarks and patents,
prevents others from profiting from your ideas and creations.
 Corporate law governs the formation of corporations and sale of
corporate equities.
 Tax law determines how different types of businesses are taxed.
 Employment law governs how employers interact with their employees
and the rights and responsibilities of each, minimum wage law,
workplace safety, and overtime rules.
 Business organization laws define major business entities, such as
partnerships, limited liability companies, sole proprietorships, and
corporation.
 Property law governs personal and real property.
 Negotiable instruments law includes governance of secured
transactions and bankruptcy.
 TYPES OF
BUSINESS
LAW
• Contracts
• Securities law
• Antitrust
• Commercial paper
• Pensions& benefits
• Immigration law
• Employment law
• Law of corporations and
other business law
• Intellectual property
• Secured transactions
• Income tax
• Trusts & law
• labour law
• bankruptcy
1. Contracts: A contract is a legally binding document that
recognizes and governs the rights and duties of the parties to the
agreement. A contract typically involves the exchange of goods,
service, money, or promise of any of those.
2. Securities law:
The term security is usually applied to a deposit, lien, or mortgage vo
luntarily given by a debtor to a creditor to guarantee payment of a de
bt. the body of laws governing the issuance and selling of securities.
3. Antitrust: Antitrust laws are regulations that monitor the
distribution of economic power in business, making sure that
healthy competition is allowed to flourish and economies can grow.
4. Commercial paper: Commercial paper is a commonly used
type of unsecured, short-term debt instrument issued by
corporations, typically used for the financing of payroll, accounts
payable and inventories, and meeting other short-term liabilities.
5. Pensions& benefits: Benefit pensions pay out a secure income for
life which increases each year. You might have one if you've worked for a large
employer or in the public sector. Your employer contributes to the scheme and is
responsible for ensuring there's enough money at the time you retire to pay
your pension income.

6. Immigration law: Immigration law refers to the

national statutes, regulations, and legal precedents governing immigration into
and deportation from a country.

7. Employment law: Employment law is a broad area of the law. In

general, this area governs the employer-employee relationship.

8. Law of corporations: Corporate law is the body

of law governing the rights, relations,
and conduct of persons, companies, organizations and businesses.

9. Intellectual property: Intellectual property (IP) refers to

creations of the mind, such as inventions ;literary and artistic works;
designs; and symbols, names and images used in commerce.
10. Income tax: Income tax is a type of tax that governments
impose on income generated by businesses and individuals within
their jurisdiction.
11. Secured transactions:
A secured transaction is a transaction that is founded on a security agree
ment. A security agreement is a provision in a business transaction in wh
ich the debtor, in the agreement gives to the creditor the right to own pr
operty owned or held by the debtor. This property, called collateral.
12.Trusts & law: Trusts are established to provide legal protection
for the trust or's assets, to make sure those assets are distributed
according to the wishes of the trust or, and to save time, reduce
paperwork and, in some cases, avoid or reduce inheritance or estate
taxes.
13.labourlaw: Labour law, the varied body of law applied to such
matters as employment, remuneration, conditions of work, trade
unions, and industrial relations. In its most comprehensive sense,
the term includes social security and disability insurance as well.
14.Bankruptcy: Bankruptcy is a legal proceeding involving a
person or business that is unable to repay their outstanding
debts. The bankruptcy process begins with a petition filed by
the debtor, which is most common, or on behalf of creditors, which
is less common.
 SOURCES OF BUSINESS
LAW
The important sources of business law are : (1) Legislation, (2) Custom,
(3) Case law, (4) Natural law, and (5) English law (see Fig. 1.2).
SOURCES:
 Customs: A substantial part of business law is customary, not
withstanding advances made in science and technology. This is true
both in developed and developing countries. A custom, when accepted
by courts and incorporated in judicial interpretations, becomes a law
Case law.
 Natural law : Natural law or natural justice is another source of law.
The natural justice that no man can be punished twice for the same
crime is a guiding principle for any legislation.
 English law: Our business laws are largely based on English acts
applicable in England. Our Sale of Goods Act, for instance, has been
taken directly from the English Sale of Goods Act.
 Legislations: Legislation is the common source of law. Both
Parliament and State assemblies have enacted a number of legislations
that cover various aspects of business.
 OBJECTIVES OF
BUSINESS LAW
 To explain the framework within which business activities shall be
carried out.
 To raise an issue to various legal and semi-legal authorities against the
government in case the legal rights of the business have been violated.
 Some business law are made to encourage business persons to achieve
their goals fast.
 The business law also has social objective to serve the society at large.
The anti-competition laws, pollution control laws etc...
 Business law tries to prevent the concentration of economic power to
some extent and helps in the fast settlement of claims of individuals
against business houses.
 REQUIREMENTS OF
BUSINESS LAW
Following are the requisites of effective legal rules influencing business:
1. Rules Must be Obeyed Voluntarily : The primary
objective of a legal system is to set forth guidelines for human
conduct that will cause people to behave in the way society wants
them to behave. This is the “preventive” function of law.
2. The Rules Must be Just and Reasonable :Popular
belief is that people comply with the law out of fear of prosecution,
as a force of habit, or out of a feeling that doing so is right.
3. The Rules Must be Flexible : Since the material
circumstances of community life, and with them the values and
attitudes of the community are continually changing, the system of
rules under which the community lives must be flexible and
adaptable.
4. The Rules Must be Knowable :If the community expects
its members to comply with the legal rules, they must know what the
rules are. It is obviously not necessary for every citizen to know all
the rules, though the popular dictum is: “ignorance of law is no
excuse.”
CONCLUSION
Therefore we see that laws are affecting business in
numerous ways. Laws protect the business men as
well as the customers which is essential to have a
good relation between these two parties otherwise
business firms will not run. Laws are necessary to
incorporate a business firm, to run a business firm
and to dissolve it. Business laws and analysis enables
businesses to make better decisions . better decisions
ultimately lead to a more successful organisation and
greater profits.
THANK YOU