A Business Law FAQ for Entrepreneurs
Business law can be challenging to understand, especially for new business owners. Here, an experienced business lawyer breaks down a few frequently asked questions about business law and its critical nature.
What is business law?
Business law, also known as commercial or mercantile law, is the body of principles, regulations, and rules that govern business and commerce. It applies to businesses’ legal rights, relations, and conduct with each other, consumers, and with local, state, and federal governments. Business law is a branch of civil law.
What are a few main types of business law?
Contract Law
Contract law encompasses the creation, enforcement, and enactment of all legal agreements or contracts. From buying and selling goods to insurance and employment agreements, companies and consumers use contract law to make transactions and other affairs happen smoothly.
Business Formations
Business formation encompasses the laws, rules, and policies that cover the legal process of creating your business structure. The type of business structure you choose greatly impacts your business’ taxes, the owners’ liability, the corporate hierarchy, and the types of documents and permits you must file.
Corporate Governance Law
Corporate governance law refers to the policies and systems by which a company is regulated and controlled. These policies include company procedures for resolving issues, the way responsibilities are distributed, standards for communication and contribution between different levels of employees, and checks and balances for eliminating fraud or abuse.
Business Litigation
Business litigation is a form of civil litigation that covers legal disputes between businesses. These legal disputes may include breaches of contract, non-compete issues, fraud disputes, and disputes between partners or shareholders.
Advertising and Marketing
Advertising and marketing law includes the state and federal laws that dictate how products and services can be advertised and marketed. These laws regulate product labeling, email and mail campaigns, product results claims, and health and environment claims. Under advertising and marketing laws, any legal claims must be truthful, evidence-based and cannot mislead the public.
Why is business law important?
It’s essential for business owners and other professionals to have a basic understanding of business law so that they can make informed decisions. These laws protect the public, define illegal or unacceptable practices, and offer a mechanism for resolving disputes.
Understanding business law will help you avoid lawsuits, set a strong foundation for your business, and navigate any disputes with consumers or other companies. Learning about business law enables you to understand your rights and obligations and run your business effectively.
Talk to the Experienced Business Attorneys at JAD Law
Business laws can vary by city, county, state, and country, so it’s essential to have a legal advocate in your corner who can help you navigate any issues that may arise. From tax issues and contracts to intellectual property disputes and franchise law, JAD Law is here to help.
Contact JAD Law today to schedule an appointment.
JAD Law serves several counties across Metro Detroit, Michigan, including Macomb, Oakland, St. Clair, and Wayne counties. JAD Law also serves counties across Northern Michigan, including Grand Traverse, Charlevoix, Benzie, Leelanau, and Antrim counties.
