Importance and Nature of Business law

Importance of business law could be seen from two dimension i.e. knowledge and regulation.

• Why knowledge of business law is important.

1. As a Business Person or manager

a. Contract – Appoint a labor that that is guided by law

b. Get loan or lend loan to run the business

c. Sell or purchase the goods

2. To know what is permitted and what is restricted by the law in regard to carryout business. Like you cannot infringe other right to environment, health while carryout your business.

3. To know what are the facility provided by the law to run the business and choose the suitable vehicle for business e.g. Partnership, company or private form.

• Importance in regard to the regulation of business itself

1. Regulate the behavior of business person
2. Helps to systematize the business transaction
1. Good faith
2. Environment friendly
3. Restrict monopoly
4. provide dispute settlement mechanism

3. Provide facility to enhance trade
1. Drag or create environment to foreign investment
2. Speedy dispute settlement mechanism
3. Certain exemption like tax for prioritized company like medicine producer.

4. Protection of public health and safety
5. Enforcement of intent or promise
6. Protection of property and creating investment friendly environment.

Nature of Business law

1. Generally made by state
2. Regulate the transaction of business stakeholder
3. create investment friendly environment
4. It is also dynamic and changeable
5. Different in different place and time
6. Generally enforce by the state
7. Includes law of contract, company, Agency, arbitration etc.