Business
law is a branch of civil law that governs business and commerce
in both the private and public sectors. It provides a legal
framework within which businesses are created and organized
as well as how business is conducted. Business law covers
a wide variety of topics relating to the law of agency, corporations,
partnerships, limited partnerships, franchises, and limited
liability companies. It involves such issues as fiduciary
relationships, closely held corporations, shares and stockholders,
directors and officers, dissolution and receivership, franchise
relationships, management duties and liabilities, mergers
and acquisitions, securities, and antitrust. It may also include
Reorganization under Chapter 11 of
the Bankruptcy code.
A small business
is an enterprise generally with fewer than 100 employees.
They are usually a closely held corporation, partnership,
or sole proprietorship acting under the small business law
regulations. In terms of ownership, only a few stockholders
own or "hold" the shares of a closely held corporation.
Partnerships involve two or more persons who agree to go into
business together as co-owners. A Sole proprietorship is a
business operated by a single owner with no separate legal
entity for holding or operating the business, including the
owner's liability for the business's debts.
A business litigation
is the act or process of litigating; a suit at law; a judicial
contest against a business. To protect yourself from a business
lawsuit, shield yourself from personal and business liability
exposure, make sure you have a comprehensive general business
liability policy in place, and have well-drafted company policies
and procedures, such as an employee handbook, in place. If
your business is sued, call your lawyer, tender an insurance
claim, allow your lawyer to speak for you, investigate the
allegations, assess your potential liability exposure, formulate
a plan of defense, and strive for a settlement based on sound
business judgment. Remember, your lawyer gives legal advice
and can assist in the assessment of your potential liability,
but you, as the business owner or manager, should make the
final decision as to whether to settle or litigate any claim.
Business formation and
planning encompasses more than getting your business
going. It also involves becoming familiar with the relevant
antitrust laws, so that you don't engage in conduct that illegal
monopolizes your market or inadvertently enter into agreements
that restrain trade, and learning how to salvage a sputtering
business. Depending on your area of business, effective business
planning may also require familiarity with less familiar legal
topics, such as agriculture law and international law. Even
small businesses can utilize strategic business planning by
researching the relevant laws that pertain to the business
model, and implementing a small business planning initiative.
| |
