Business law is concerned with new business creation as well as the issues arising out of the interaction of businesses with the government, other companies, and the public. As such business law deals with legal disciplines, such as bankruptcy, employment law, sales, real estate, intellectual property, and tax law (Miller, 2012). The role of business law within a legal system can be understood once the business is treated as a separate legal entity that can sue and be sued. Moreover, drafting and execution of contracts under the Uniform Commercial Code, UCC, a party to a business contract is confident that such a contract is enforceable against the other party if necessary (Miller, 2012).
Business law is concerned with the formation of businesses and internal agreements, navigation of complex transactions, preemptive measures that would make a business avoid litigation and hiring of legal counsel. It is mandatory for new businesses to comply with the law in which case an attorney would form an entity on behalf of their clients through the filing of the relevant documents with the office of the Secretary of State. With regard to complex transactions, business law comes in handy to correct any issues that business owners may have overlooked. This, further, calls for business owners to avoid any future litigation through the set rules and guidance for businesses to follow before any disputes can occur.
This paper seeks to address issues pertinent to business law and that which would affect a business if their legal dimension is not considered. These issues are; areas of law that affect business decisions, negotiable instruments, impactful law principles, and distrust of law and misconceptions.
Areas of Law that Affect Business Decisions
One of the areas of business law that affects the decisions business owners make is the employment law whereby an...