BUS 101 BUSINESS LAW I COMPREHENSIVE NOTES AND OVERVIEW
Business Law
What is Business Law?
Business law deals with the creation of new businesses and the issues that arise as existing businesses
interact with the public, other companies, and the government. This area of the law draws on a variety of
legal disciplines, including tax law, intellectual property, real estate, sales, employment law, bankruptcy,
and others. Business law attorneys specialize in transactional work, meaning they do not represent
clients in court. In fact, business lawyers are often hired for the purpose of avoiding future litigation.
To understand the role of business law within the legal system, it helps to view businesses as entities
separate from their owners and employees. Just like individuals living together in society, business entities
are subject to legal rules designed to give every participant in the marketplace a fair opportunity to succeed.
An enforceable system of business laws also benefits the economy as a whole and provides for
more efficient transactions. For example, a supplier who sells goods on credit can be confident that the
buyer will held to the agreed payment terms. As long as the contract is drafted and executed in
accordance with the Uniform Commercial Code (UCC) adopted in that jurisdiction, the supplier
knows ahead of time it will be
able to enforce the contract against the buyer if necessary.
Business Formation and Internal Agreements
New companies must take steps to comply with the law even before opening their doors for the first
time. Business law attorneys are routinely asked to form new entities on behalf of their clients by filing
the necessary documents with the Secretary of State. Clients may also need assistance choosing the
business entity best suited for their enterprise.
Businesses can be formed as corporations, limited liability companies (LLCs), partnerships, and
other entities. Most of these business forms can be further customized to meet the needs of the
company. Examples include corporations formed as "S-corps" in order to achieve tax savings,
and partnerships formed as "limited partnerships" to allow some owners to participate as
investors only.
While the selection of the appropriate business entity will depend on numerous factors, the primary
purpose of most entities is to shield owners from individual liability. Operating a business that is not
set up to provide limited liability means that the owners are putting all of their personal assets within
reach of the business's creditors. By working with an attorney at the inception of the business, this
situation can easily
, be avoided.
Business law attorneys are also available to draft the internal agreements that will control how a new
company is managed. A common example is an LLC operating agreement. This document should be
drafted with care, as it governs how the company's owners will share profits and losses, make
important business
decisions, and transfer their ownership rights.
Navigating Complex Transactions
Some commercial transactions are within the ability of business owners to handle on their own. Others
are not, especially when a deal touches on complicated and evolving areas of the law, such as
securities regulation or internet commerce. In heavily-regulated industries in particular, companies
rely on their in-
house or hired lawyers for advice regarding the latest legal developments affecting their businesses.
Even for savvy business people, problems can develop when emotions become involved. Attorneys can
provide valuable insight into a transaction, not only because of their legal training, but also because of
the objective nature of their analysis. This allows them to spot issues overlooked by business owners
and managers who may be too emotionally invested in seeing the deal go through.
Preemptive Measures to Avoid Litigation
One way to distinguish business law as its own field of practice is to take note of when these issues
arise. Business law provides rules and guidance for companies to follow before disputes occur.
Attorneys who practice in this area are experts at structuring transactions to minimize the company's
exposure to
litigation. This sort of strategic legal maneuvering can end up saving the company huge amounts of money.
Consider the example of a services company headquartered in one state, with customers all across
the nation. The company might hire a lawyer to draft customer agreements that require customers to
follow
specific dispute procedures, such as giving the company an opportunity to remedy deficient services
before a legal claim is made, or providing that disputes must be submitted to arbitration in the
company's home state. In every industry, there are opportunities for business attorneys to save their
clients money and
provide them with a greater competitive advantage.
Hiring Legal Counsel
If you operate an existing business or plan to launch a new one, your success may depend on
obtaining the right legal advice. Attorneys are available to assist with everything from simple buy/sell
agreements to
mergers and acquisitions of publicly-traded companies. Schedule a consultation with a business law
firm today.
Business Law
What is Business Law?
Business law deals with the creation of new businesses and the issues that arise as existing businesses
interact with the public, other companies, and the government. This area of the law draws on a variety of
legal disciplines, including tax law, intellectual property, real estate, sales, employment law, bankruptcy,
and others. Business law attorneys specialize in transactional work, meaning they do not represent
clients in court. In fact, business lawyers are often hired for the purpose of avoiding future litigation.
To understand the role of business law within the legal system, it helps to view businesses as entities
separate from their owners and employees. Just like individuals living together in society, business entities
are subject to legal rules designed to give every participant in the marketplace a fair opportunity to succeed.
An enforceable system of business laws also benefits the economy as a whole and provides for
more efficient transactions. For example, a supplier who sells goods on credit can be confident that the
buyer will held to the agreed payment terms. As long as the contract is drafted and executed in
accordance with the Uniform Commercial Code (UCC) adopted in that jurisdiction, the supplier
knows ahead of time it will be
able to enforce the contract against the buyer if necessary.
Business Formation and Internal Agreements
New companies must take steps to comply with the law even before opening their doors for the first
time. Business law attorneys are routinely asked to form new entities on behalf of their clients by filing
the necessary documents with the Secretary of State. Clients may also need assistance choosing the
business entity best suited for their enterprise.
Businesses can be formed as corporations, limited liability companies (LLCs), partnerships, and
other entities. Most of these business forms can be further customized to meet the needs of the
company. Examples include corporations formed as "S-corps" in order to achieve tax savings,
and partnerships formed as "limited partnerships" to allow some owners to participate as
investors only.
While the selection of the appropriate business entity will depend on numerous factors, the primary
purpose of most entities is to shield owners from individual liability. Operating a business that is not
set up to provide limited liability means that the owners are putting all of their personal assets within
reach of the business's creditors. By working with an attorney at the inception of the business, this
situation can easily
, be avoided.
Business law attorneys are also available to draft the internal agreements that will control how a new
company is managed. A common example is an LLC operating agreement. This document should be
drafted with care, as it governs how the company's owners will share profits and losses, make
important business
decisions, and transfer their ownership rights.
Navigating Complex Transactions
Some commercial transactions are within the ability of business owners to handle on their own. Others
are not, especially when a deal touches on complicated and evolving areas of the law, such as
securities regulation or internet commerce. In heavily-regulated industries in particular, companies
rely on their in-
house or hired lawyers for advice regarding the latest legal developments affecting their businesses.
Even for savvy business people, problems can develop when emotions become involved. Attorneys can
provide valuable insight into a transaction, not only because of their legal training, but also because of
the objective nature of their analysis. This allows them to spot issues overlooked by business owners
and managers who may be too emotionally invested in seeing the deal go through.
Preemptive Measures to Avoid Litigation
One way to distinguish business law as its own field of practice is to take note of when these issues
arise. Business law provides rules and guidance for companies to follow before disputes occur.
Attorneys who practice in this area are experts at structuring transactions to minimize the company's
exposure to
litigation. This sort of strategic legal maneuvering can end up saving the company huge amounts of money.
Consider the example of a services company headquartered in one state, with customers all across
the nation. The company might hire a lawyer to draft customer agreements that require customers to
follow
specific dispute procedures, such as giving the company an opportunity to remedy deficient services
before a legal claim is made, or providing that disputes must be submitted to arbitration in the
company's home state. In every industry, there are opportunities for business attorneys to save their
clients money and
provide them with a greater competitive advantage.
Hiring Legal Counsel
If you operate an existing business or plan to launch a new one, your success may depend on
obtaining the right legal advice. Attorneys are available to assist with everything from simple buy/sell
agreements to
mergers and acquisitions of publicly-traded companies. Schedule a consultation with a business law
firm today.
