Business law is a field of law that regulates how businesses operate and interact. Business law exists to protect businesses as well as their suppliers, consumers, and creditors. And, because there are so many different aspects to running a business—including employment, contracts, property, taxes, and banking—business law also involves or interacts with many other fields of law. This means that all businesses, no matter how large or small, must take into account a very wide range of laws in order to operate within the bounds of the law.
Objectives and Roles of Business Law
Business law provides protection to organisations and individuals in a wide variety of ways, in part by regulating what businesses can and can’t do when interacting with other organisations and individuals. Overall, the objectives of business law are to ensure that businesses interact with one another, and with consumers, in a manner that’s fair and that minimises or eliminates the risk of harm to any individual or organisation.
For instance, some things that business law does include:
Regulate rights and obligations of businesses and individuals when they engage in business transactions.
Ensure that businesses treat employees fairly and provide a safe environment in which to work.
Protect the people and organisations an organisation does business with; for instance creditors and investors.
Protect consumers from harm done to them by a business’s products or services.
Ensure that businesses compete with one another fairly.
Operating a Business Under the Law
Business law regulates every aspect of running a business, from start-up to day-to-day and long term management, to growth and expansion, to financing and asset acquisition, to dispute resolution and many other facets of business management.
Business law doesn’t just exist to regulate how businesses are run, it also defines the businesses themselves. For instance, business law differentiates between several different types of businesses, including sole traders, partnerships, private companies, and corporations. Each of these types differ in a range of ways, including the structure and organisation of the business, how the business acquires financing, and who is legally responsible for its debts.