Essay About Legal Environment Of Business And Business Law

Legal Environment of Business (leb) – Business Law
Legal Environment of Business (LEB)Constitutional Provisions relating to Business and Indian Legal & Judicial Systems Study Notes by Dr. N.Y. Phadnis Session No. 1.Business Law ‘Law’ can be defined as set/body of rules & regulations which are recognized and enforced by the state/govt. Laws deal with human conduct in a civilized society and regulates/controls relationships amongst individuals and also with the state. Laws create rights/interests and corresponding obligations/duties which are recognized & enforced by authority/state/govt. Breach/violations of law attract sanctions in the form of monetary compensations and/or penalty and/or punishments. Laws are ‘justiciable’ through courts of law i.e. remedy lies in the court of law. Justice is administered through law courts as per law.‘Business’ is any commercial activity or mercantile transaction undertaken for material gains or profits. Business may deal with & involve manufacture/transportation/supply of goods and/or services for sale/re-sale/use/consumption of customers/consumers (B to B or B to C). Business, Industry, Trade & Commerce are synonyms in the eyes of law. From legal point of view these are equivalent terms.Business does not cover an activity which is solely & purely undertaken for any social, religious, charitable, humanitarian and missionary purpose. It also does not include domestic i.e. family activities and sovereign functions of the state (i.e. basic & fundamental activities relating to country’s governance by govt. authorities or Institutions)

Business Law also referred to as ‘Commercial law’ or ‘Mercantile law’ is law relating to and dealing with commercial/business transactions in trade, commerce & Industry. It is a branch of civil law dealing with contractual business relations. However it also applies to ‘commercial’ relations within social groups (relatives & friends) but does not apply to ‘social relations’. Business law creates legal/regulatory business environment and regulates, controls and governs formation & execution of business transactions. It ensures & assures ‘Certainty’ in business dealings and provides mechanism & legal remedies for breach of business commitments. A Business has to operate in the socio-economic & politico-legal environment. The legal aspects of business (LAB) form an important component of a business environment as every major area of a business has legal dimensions. Business Managers are required to take lawful business decisions & act within the boundaries of law while solving managerial issues & problems. Legal Aspects of Business (LAB) also popularly known as ‘Business Law’ is an integral & inseparable facet of commercial transactions.  Understanding the Legal Aspects of Business (LAB) plays a vital role in smooth & hassle free running of a business house. The course interfaces law with management and deals with various aspects of law having bearing on the business.