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How Commercial Law Focuses on Business Transactions

by gbaf

BUSINESS Laws. Business law, also called commercial law, is an umbrella term for the entire body of laws which govern commercial exchanges and other entities. In addition, business regulations will vary depending on the kind of entity (i.e., sole proprietorship vs. corporation, for-hire vs. owned-and-operated), its mode of operation (i.e., trade vs. shop), and its location (city/state/country). The best lawyers in the country are experts in all these areas and know how to deal with a wide range of issues.

If you are an immigrant, there are a few things you should know about business lawyers. First, if you want to open a business or do business dealings with other companies, you should find out whether your state has any business franchise laws. Depending on which set of rules your state follows, you may be required to obtain special permission before doing business.

Next, it’s important to understand that the basic services offered by many different companies change often. For instance, shoe companies must change their designs about every six months, while furniture stores can do so at any time. Because of this, business law specialists must be flexible when making recommendations to help businesses make these necessary changes. Finally, even laws which are technically “business laws” will have a wide variety of exceptions, allowing people and businesses to circumvent them for personal reasons.

One area where business law and employment law overlap is in the area of small business ownership. There are actually two separate laws, Employment Law and Family Law, which address the rights of employees and employers. Business owners must engage in a bit of self-promotion to keep both laws in mind. As the name suggests, employment law protects the legal rights of an employee while family law deals with the rights of family members. This is because when two people enter into a business relationship, they have to take into consideration their rights as family members.

Commercial laws also apply to entrepreneurs going about their business day to day. Some of the things that are addressed by commercial laws include contracting, buying, selling, franchising, renting, advertising, banking, insurance, intellectual property, and licensing. In addition, commercial laws deal with environmental laws, taxation, and land use. So the next time you have to conduct some business dealings, either personally or through a company, make sure you’re aware of the various legal requirements and fees involved.

While business law and employment law might seem similar, they are not. Employment law addresses the conditions of workers as well as the employer, while commercial law is more concerned with the various commercial transactions involved with businesses. Take for example, when you visit a shoe company on opening day, you do so as an independent contractor. The business owner expects you to do the job, which includes fetching customers, filing receipts, taking names and making purchases. If you work for a shoe company, it is likely that you will receive a hefty wage. The tax law applies to your gross income, which is derived from all your income sources, including your hourly wage.

One of the most significant differences between the two is that employment law focuses on paying wages, benefits, and taxes, while corporate law concentrates on the various transactions related to businesses like mergers and acquisitions, reviving or closing companies, offering gifts to employees, changing ownership, and setting up new corporations. Corporate law even encompasses complex international transactions like corporate acquisitions, property transactions, and tax matters. Thus, before embarking on any business transaction, you need to know the ins and outs of the various laws that concern you. If you are going to hire a professional business lawyer to help you understand the nuances of tax laws or any other pertinent law, make sure that he has substantial experience in such matters. In particular, ensure that your attorney has considerable expertise in corporate law. Corporate law encompasses a wide array of areas, so make sure that your attorney can navigate through the various areas well.

Commercial law focuses on contracts, taxes, intellectual property, business formation, acquisitions, mergers, divestitures, commercial agreements, marketing and advertising, licensing, and manufacturing. Thus, before embarking on any business transaction, you need to understand the ins and outs of how contract and tax terms work. If you are involved in any legal matter, it is advisable to hire a competent lawyer who has ample knowledge in this field.


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