Written by: Harman Aujla
Business Law is the body of laws that govern businesses, and it lays down the rights and
obligations owed by parties to a contract. It is important because all businesses have
fundamental legislation to follow such as the competition and employment laws. It also
prevents you from getting sued over the intellectual property due to intellectual property,
trademarks, and copyright.
However, lawyers can be very helpful, and business owners shouldn’t feel pressured to face
this alone, but unfortunately, SMEs may not have the budget to have lawyers so they would have
to do their own research. Over 70% of small business owners were said to have been
surprised when finding out the legislation they had to obtain and follow to start and keep
their businesses running. It is very common for businesses to get sued for negligence; this
involves injuries on the business's premises and can lead to bankruptcy. Wrongful dismissal,
discrimination, defamation, and breach of contract are all examples of reasons to sue a
company. For SMEs, it is crucial to have insurance to protect your business however in a
recent study according to the insurance age article it was estimated that 50% of SMEs are
underinsured to some degree which could potentially be fatal in the event of a claim.
Knowing about the laws to protect your business is an area that is sometimes overlooked
but very important which is evident as thousands of claims are issued each year. Often even
if businesses survive lawsuits due to lawyers the public relations and brand image may be
tarnished consequently leading to reputational damage and a loss of customers and
therefore a loss of revenue. Business law is a popular degree that can be studied it entails
the study of land and professional advice which means applying rules to solve legal
problems in relation to land ownership and the distinction between real and personal
property; business employment law, the business context in which they operate and the
perspectives of the client; International business and communication provides an overview
of the means of conducting business in the global context.
Conclusively, business law is an overlooked but crucial part of succeeding in the world of
business, for SMEs it is harder due to a smaller budget but can be accessed through things
like a business law degree but for large businesses lawyers can be hired. Ultimately avoiding
lawsuits are possible through an understanding of business law, and arguably this is a better
way to function a business as it ensures that a lawsuit won't damage a business's brand
image.
Kommentare