Importance of law to Business Number Importance of law to Business Business law encompasses a complex framework of state, national and local laws regulating business formation and processes. These regulations complement each other to ensure reliability and fairness in business transactions. They also boost competition by safeguarding property rights. As such, regardless of the nature of business, the law gives direction as to the duties, responsibilities and rights of the parties involved in every transaction. As such, business law regulates contracts, intellectual property, business formations, and securities among other areas. First, contract law covers the duties and rights of contractors; business transactions; whether an agreement should be in writing; contractual terms, breach of the terms and remedies for such breaches.
I have realized that the Uniform Commercial Code (UCC) is ubiquitous in every business contract involving the sale of products. Second, business law protects intellectual property rights. Intellectual property regulations include patents, copyrights and trademarks (Vandall, 2011). I have realized that intellectual property protects the rights associated with innovative products in the same real property is governed by law.
Obtaining patent rights is a very imperative strategy for a number of technology companies because once they have innovated a property and patented it they retain exclusive rights to use them. In this way, consumers are protected from confusing trademarks whilst business innovation and fair competition is also guaranteed under the same law of contract. Third, business law through corporate codes regulates the formation and existence of corporate bodies and businesses. By virtue of these codes, companies have internal regulations in the memorandum of association (Vandall, 2011). The memorandum ensures self-regulation of the business by specifying the duties of boards, the shareholders and other primary stakeholders.
It may also specify location of the business and the nature of the actual business run. This way, the business law would ensure smooth sale of equities, which is normally done in the best interest of the shareholders. Lastly, taxation law of business obligates corporations to remit taxes and other dues owed to the government for easier regulation. Without such laws, Vandall (2011) SAID government agencies may impose unreasonable tax burdens on corporate organizations which may hamper business.
Similarly, some businesses may evade tax obligations, especially where clear guidelines are missing. In light of the importance of business law, the US Supreme court in Cipollone v. Liggett Group, Inc. , 505 U. S. 504 (1992) said public health was paramount when it directed that the Surgeon Generals cautionary statement did not disqualify any claims against tobacco companies. The landmark case sought to balance business and health interests. Conclusion Archetypal business law normally involve contract issues, in which case, parties contest the enforceability and or claims for breaches of contracts. In these cases, I have realized that the law of contract attempts to ensure that parties to an agreement are aware of the reasonable expectations of their partners and that they will be liable for legal remedy in the event that they fail to perform their side of the bargain.
With effective business law, business transactions become contractually enforceable for more reliability of the parties concerned. Reference Vandall, F.J. , (2011). A History of Civil Litigation: Political and Economic Perspectives. Oxford: Oxford University Press.