To carry out a commercial activity, it is mandatory to comply with the associated law. A brief overview of the types of laws associated with a particular business activity is listed below in the form of a table: It is crucial that the management of a business organization or company complies with the existing laws of the country. Therefore, adequate and adequate knowledge of the rules and regulations established by the government is a prerequisite for improving the performance of enterprises. Failure to comply with these conditions can put the company in difficulty and harm its growth prospects. Some companies behave unfairly towards their consumers. For this reason, most countries have consumer protection laws aimed at ensuring their protection. Here are some examples; Oligopoly refers to anti-competitive practices between commercial organizations or companies when several of them agree to artificially increase prices. It violates antitrust law. Therefore, antitrust law provisions also help to control this situation. The legal environment includes various laws and regulations promulgated, amended or repealed by the government, licensing and permitting policies, foreign trade policies, government strategies to improve the business ecosystem are examples of legal frameworks. Commercial law determines how companies are incorporated, how contractual arrangements are structured, contracts are enforced, and how businesses are concluded.
It regulates lending, debt collection, consumer protection, promotion of competition and enforcement of property rights. In short, commercial law regulates all aspects of the conduct of business. These are some of the most important legal factors that can affect businesses to a great extent. Business owners need to consider these legal checkpoints when pursuing their businesses. The only law governing contracts in India is the Indian Contract Act, 1872. The Trade in Goods Act is the Sale of Goods Act 1930 and the Partnerships Act 1932 defines the Commercial Partnership Act. The corporate legal environment examines the role of law in all aspects of corporate ownership and governance. Throughout the course, students focus on legal ethics, litigation, tort, contracts, consumer law, real estate law, labor law, environmental law, and international law.
Students also examine the impact of laws, regulations, and court decisions on society as a whole. + Explain the sources of the laws that govern business and why these laws exist. + Compare and contrast judicial systems at the federal, state and local levels. + Show how important it is to follow not only the laws that govern business, but also the importance of ethics in conducting business. + Identify the elements of a contract and recognize their meaning. + Compare and contrast different types of corporate organizational structures. + Explain the importance of laws and regulations in the global business environment. It also helps determine the loss or profitability of the business. India`s economic liberalization in 1991 is the perfect example of how an appropriate legal environment helps businesses grow and prosper. Liberalization and globalization, even after some negative effects, in the 90s helped India a lot in this regard.
By adhering to good business ethics, external investors feel confident about their investments in the market. Continuing with a company is a good career choice. But setting up and running a business requires more than efficiency and management skills. Several external factors can help the company grow or eventually ruin it. One of these important factors is laws that affect businesses. The legal environment determines how a particular country`s business activities can flourish or be limited by the laws of the country. It also influences the estimate of the economic useful life of an intangible asset. India is the first country to make environmental audits mandatory in industrial facilities. The concept of auditing in India was first officially introduced in 1992. The Supreme Audit Institution (SAI) in India is headed by the Comptroller and Auditor General (CAG) of India, who conducts environmental audits in India. If a company seeks financing from different types of investors, it may be subject to legal issues such as securities law.
For example, the decision to offer promissory notes, a type of loan, to your investors, subjects the legal factor affecting the business to state and federal regulations and securities laws. The business law environment plays a very important role in determining the success of companies around the world. Government taxes, levied alongside other regulatory measures, help promote economic growth and protect consumers from exploitation and other illegal factors. As mentioned earlier, it is mandatory to know the laws of the country in order to comply with them when starting or running a business.