Business law as a specialisation is gaining popularity and with a degree in business law, young lawyers can also explore career options in different facets of business like legal fee auditors and transactional analysts, says DR Sukhvinder Singh Dari
Each day, new businesses are created with the aim of becoming profitable and successful. Businesses have always been intertwined with the legal regulations, and with the ever-evolving ecosystem, it becomes necessary for lawyers and solicitors to comprehend the importance of business law. Business law specifically deals with the evolution and establishment of new business ventures and any problems that may arise as the business associates with the government, other companies, and the public. It is, therefore, important to have a business-law attorney representing your business as well as to avoid any incidences of future litigation.
Individuals need to be governed by legal restrictions in a country in order to operate with some measures. Similarly, businesses need to operate under some legal guidelines. In the absence of these laws, it will become extremely challenging to manage the various activities that are initiated in the name of the business. The laws also help to lay down the certainty and stability to the stakeholders of the business, besides providing a means to resolve disputes and protect the public against any wrongdoings for ensuring better profits or assured sustenance in a highly competitive market.
It is important to enter some form of a contract while doing business. Let’s take an example of a wholesaler. A wholesaler wouldn’t ship shoes to the retailer unless there is a legal document or a force that can bind the retailer to pay for the goods. When a business enters into a contract with other businesses, it is important to know who is bound to the contract and the outcomes in case the individuals who agreed upon the contract fail to perform as legally outlined in the contract.
Businesses need a universal set of standards: A basic understanding of business law helps the business owners and other professionals to make better decisions. There are several legal rules and regulations that apply to businesses, and they need these legal guidelines to resolve disputes and grievances, provide certainty, define unacceptable behavior, and protect the employees.
Handling contracts and legal agreements: For a smooth business operation, it is important to keep all the legal documents clear of discrepancies. Studying business law can equip young legal professionals to suggest their legal team to make the appropriate changes to eliminate any terms that might seem conflicting with their business interests.
The rationale for judgment calls: Legal professionals need to tackle a wide range of legal issues as a part of day to day business operation. Possessing appropriate knowledge of business law enables the professionals to not only fully understand these legal issues, but also their consequences and implications for the business. This, in turn, proves critical in helping the professionals to make the most beneficial decisions for the business.
Outlines the legal responsibilities for the business and the consumer: In the day-to-day operations of a business, engaging with other parties like customers or vendors is crucial to any business. Companies need to know that a set of legal responsibilities obligates them. Once it becomes complex, a clearly defined set of terms and conditions should be outlined by legal professionals to ensure the businesses' ethics and disputes are resolved in the best possible way.
Help understand and manage transactions: Exchange of money taking place between businesses, customers, or banks helps businesses to make their transactions smooth. But the obligations associated with it are also necessary to be understood. Business law makes sure that the organisation is legally covered from all angles before any financial transaction takes place.
The legal team also prepares the documents to ensure that the business is protected on papers.
Business law as a specialisation is gaining popularity, and with a degree in business law, young lawyers can also explore career options in different facets of business like legal fee auditors, transactional analysts. All this translates into a plethora of options for law graduates to engage in a mix of business and law.
The writer is Director, Symbiosis Law School, Nagpur