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Importance of law in world business
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Business law or commercial is a body of law that applies to the relations, rights,
and the conduct of persons and businesses that are engaged in trade, and sales. Law has a
significant role in any business. The law serves as the control of quality. It is used as a tool
that inspects whether or not the business serves its function appropriately or not, whether
it offers good quality services or not. The rules in business law can be either by agreement,
convention, or national or international legislation, governing the dealings involving persons
in the commercial matters (Washington State Grange, 2008, 1190). The law broadly falls
into two parts which are distinct: a) the first is the regulation of commercial entities by the
laws of company, that is, partnership, agency, and bankruptcy and b) the next is the ruling of
There are a number of forms of legal business entities, which include: i) the sole
trader (entrepreneur), who alone encounters and bears the risk and the mandate of running a
business, benefiting from the profits. This forms no any association in the law and therefore
not regulated by special rules of law. ii) The other business entity is the partnership, in which
members join together, forming collectively an association in which they all participate in
managing the firm, and together sharing the profits obtained from the transactions carried
out, together bear the liability for the firm’s debts and they are sued jointly and frequently
in relation to the firm’s tortious acts (Watchtower etal., 2002, 150). All partners in the
partnership are each other’s agent and as such are in a fiduciary relationship with one another.
Corporate law in the U...
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...to implement reasonable care to
The step that follows and actually the most difficult in analyzing case problems is the
application of the rule of law that is relevant to the specific facts of the case been studied.
In our case and as our conclusion, Quality Market is liable to Lawson for a
customer’s injuries. This is because the market’s violation of its duty of care caused
Lawson’s injuries. The law is therefore significant in protecting the rights of customers and
also makes it possible to run business smoothly. Those engaging in businesses are provided
with laid platform through which they can smoothly relate with both their employees
and their customers. This prevents the violation of the law and protects the rights of all
individuals. In this regard the law therefore serves as a quality control within a company or a
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
The role of law reform has been exceedingly significant and effective in protecting the rights of consumers. The amendments and reforms made to the failure of existing laws have certainly increased the protection for consumers, improving access and awareness, however loopholes still exist that detracts from the overall effectiveness of the legal system in protecting consumers. Therefore, indicating that further reforms are required to improve the effectiveness of the legal system.
the laws in their favor. Certain E.S.A owners fit a new classification of people who
... law protects individuals’ rights and liberties from the government of states. It can also protect businesses’ property rights and the rights of their employees.
This particular statute allows for corporations and such to obtain several, but not all, constitutional rights as any person or persons. In particularly own property, sue and be sued under criminal and civil law, enter contests. Moreover, because corporations and such are considerate as “person”, business has the legal rights for its debts and damages. On the contrary, persons who are employed by a particular association are liable for their own misconduct and law-breaking while acting on behalf of a corporation. In addition, corporation has rights for its own actions, has rights such as: limited free speech and to advertise their product ("The Rights of Corporations," 2009). Likewise, businesses have the responsibility to elect a CEO, provide continuity; increase profits, social responsibilities, and manages recourses effectively (“Functions & Responsibilities of a Corporation").
It is conduct that separates the unmistakably set principles or laws that oversee business. This is simpler to distinguish than untrustworthy conduct on the grounds that it is essentially weighed against the recorded laws. The criminal code diagrams the fundamental prerequisites of conduct and any conduct outside of what is delineated in this code can be viewed as unlawful. Despite the fact that organizations can have composed rules or sets of principles it is unrealistic to foresee all conceivable dishonest conduct and since individuals have distinctive qualities, there remains space for participating in unscrupulous conduct. In recognizing unlawful and dishonest conduct, a business could pick up an awful notoriety through its untrustworthy conduct however actually talking may not be doing anything to contravene the law. Then again, a business that is occupied with unlawful conduct could be arraigned in light of the fact that it has infringed upon the
In company law, registered companies are complicated with the concepts of separate legal personality as the courts do not have a definite rule on when to lift the corporate veil. The concept of ‘Separate legal personality’ is created under the Companies Act 1862 and the significance of this concept is being recognized in the Companies Act 2006 nowadays. In order to avoid personal liability, it assures that individuals are sanctioned to incorporate companies to separate their business and personal affairs. The ‘separate legal personality’ principle was further reaffirmed in the courts through the decision of Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its
The Principle of Separate Corporate Personality The principle of separate corporate personality has been firmly established in the common law since the decision in the case of Salomon v Salomon & Co Ltd[1], whereby a corporation has a separate legal personality, rights and obligations totally distinct from those of its shareholders. Legislation and courts nevertheless sometimes "pierce the corporate veil" so as to hold the shareholders personally liable for the liabilities of the corporation. Courts may also "lift the corporate veil", in the conflict of laws in order to determine who actually controls the corporation, and thus to ascertain the corporation's true contacts, and closest and most real connection. Throughout the course of this assignment I will begin by explaining the concept of legal personality and describe the veil of incorporation. I will give examples of when the veil of incorporation can be lifted by the courts and statuary provisions such as s.24 CA 1985 and incorporate the varying views of judges as to when the veil can be lifted.
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
“…separate legal entity possessed of separate legal rights and liabilities so that the rights of one company in a group cannot be exercised by another company in that group …”
William O. Douglas said, "Common sense often makes good law." Well that is what laws essentially are, rules and regulations that make sure common sense is followed. One could even say that laws are enforced ethics. Laws serve several roles and functions in business and society, and this paper will discuss those roles and functions.
“Generally each person contributes assets and share risks. Like a partnership, joint ventures can involve any type of business transaction and the "persons" involved can be individuals, groups of individuals, companies, or corporations.”
1. Corporate Law for Ontario Business (2012). Farah Jamal Karmali 2. Business Dictionary (2010). http://www.businessdictionary.com/definition/separate-legal-entity.html
Legal factors involve the laws that a firm has to abide by, i.e consumer laws, employee laws…Understanding the varying laws and regulations in a given region of operation is critical to avoiding unnecessary legal costs.
The owner has the ability to grow or contact its operation at will with no need to consult with a boss or board of directors