BUSINESS LAW - IMPORTANCE

Business law, also known as mercantile law or commercial law refers to a set of laws
that govern the dealings regarding commercial matters, namely business
organizations. It encompasses all laws that guide on how to set up a business and
then how to run it. This includes all the laws that govern on how to set up, start,
manage, run, close or sell a business. It includes contracts, laws of corporations,
other business organizations, commercial papers, income tax, secured transactions,
intellectual properties, and other transactions and dealings related to the business.
How is Business Law important?
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: Earlier, the customer had to suffer a lot due to
the absence of a proper law that could safeguard their interests and money
invested in a particular business. As there was no such law regarding
maintenance of order, rights, and liabilities, etc., the business owners made
their own standards and made the customers suffer just because of the greed
to make more money. With the establishment of business law, many
standards have been established which have to be followed by businesses
worldwide.
 Maintenance of Equilibrium: This creates a sense of satisfaction among
customers. In the absence of the law, different countries had different laws
regarding the business dealings which made it difficult for the customers as
well as the seller to establish a deal. But now every country has the same
standards, and the deal between buyer and seller is easily established. This
brings ease in business dealings and transactions all across the globe.
 Less chances of frauds: Business law helps the owners itself to get aware of
the laws against other businesses and individuals. It also helps the
individuals, to be aware of the rights against the businesses so that they can
use them in case they fall prey to the frauds and misery of the business.
 Presence of Ethical conduct: With the help of business law, business owners
may make better decisions, and also know when to seek legal help. Every
business has to maintain an ethical conduct but most businesses, in the greed
to earn more profits; do not follow such conducts. Business law makes it
mandatory for all the businesses to maintain an ethical conduct which in turn
pleases the buyers and they form a good image of the business.
In a nutshell, business law is of immense importance to both the business as well as
consumers in protecting their rights and get a better service.
Business Law in India
Business law and commercial law are the two laws that deal with the business and
commercial transactions. It encompasses the formation of business management,
commerce and consumer transaction. The commercial law consists of debtor Law,
creditor law, sales and secured transaction. It also has the regulations and rules for
the land cargo, sea cargo, merchant shipping, marine and accident insurance.
There are various laws, which describe how the commerce should be taken care
with the compliance, privacy laws, safety laws, foods and drugs law. Negotiable
instruments and Secured transaction are the two most important areas of
commercial and business law. In secured transaction, borrower agrees on the
collateral, which is owned by the borrower will be taken by lender. If in any
business, party borrows money from the bank or from any other financial institution.
In this case, the lender needs more than just promise to repay the loan amount.
Hence, the law of collateral interests formed between borrower and lender.

Importance of Business Law Regulations in India

Business law refers to the laws which are applied to business entities such as
partnerships and corporations. These are used as reference when putting up
businesses whether big or small - from sole proprietorship to corporation. Business
laws specify how different business can be set up, how taxes apply to them,
registrations, documentations and requirements; define different terms pertaining to
business, making by-laws, and articles of organization among many others.

These also provide the authoritarian schemes on how commerce should be

conducted. Every country has its own regulations, laws and regulatory bodies or
agencies governing the manufacturing, sales, marketing and distribution of
products within the country. Laws and regulations are intentionally made for human
beings and other institutions as a guide to bring order and sanity into the society.
Because of this, it is likely that their application will impact upon the plans of firms;
their effects on a given firm are also inevitable.

An attempt would be made to confer specified regulations and laws with particular
reference to aviation and airline, environmental regulations, stock market
regulations, banking regulations, research (and development) co-operation
regulations, stock options regulations, labour regulations, intellectual property and
social security regulations industry by industry and effects on the plans of firms
where necessary.