In the global business environment, the law is very important in ensuring that business activities are conducted in accordance with the constitution of various countries. The businesses of various countries are under various regulations in order to maintain efficiency in the market as well as the economic systems. The law regarding business is exercised mostly in the law courts where cases regarding business activities are heard. It is notable that individual business people as well as corporations are involved in business cases. These categories may be represented in the law courts by agents or representatives since the former are always busy.
The law regarding business activities contains various specifications regarding how businesses should be conducted in a country. Failure to abide by these laws will lead to punishment by the law authorities in the court. In many countries, the law requires that business corporations should pay a certain amount of money as taxes based on the profits earned. This calls for all companies to file their returns to the tax authorities showing the total income earned by the company for the purposes of taxation. There are certain companies that understate their profits in order to pay taxes. This leads to court action that may impose certain penalties on the company that has been accused of fraud and cheating.
The law regarding business may involve the selling of goods and services. For instance, two individuals may engage in a contract to buy or sell goods at a certain time in the future. If one of the individuals fails to meet his contractual obligations, then the law will take its course. Before the law can be certain that the accused is guilty, it will have to review the terms of the contract. The law regarding the sales of goods and services also entails the failure to pay all the sums due in a credit sales contract. The law here takes a major role to ensure that the affected person is paid, failure to which the accused person will face certain consequences.
The law of various countries may also play a great role in exercising intellectual property rights. Most companies have purchased trademarks to ensure that no other company uses its name or the source of the products of the company. If another company goes against this, then the affected company has the mandate to sue it in the law courts. More so, the law courts ensure that one company does not copy the trade secrets of another country. It is then obvious that law is very important in the protection of the intellectual property rights of corporations as well as individuals.
The formation of companies has involved a large deal of law. For instance, a new company has to undergo a lot of formalities before it can be registered by the registrar of companies. According to the law, the formation of a company involves the preparation of the articles of association as well as the memorandum of association. These aspects of law are very important since they help in ensuring that a formal criterion is used in the formation of a company. It also ensures that the governing authorities are aware what type of company has been formed. Many analysts have argued that the supreme court of the United States of America has been very favorable to business organizations. This is one of the major reasons why businesses in this country have expanded in the past one decade.
Recently, there has been the emergence of illegal business activities that have affected the revenue of various countries. Illegal businesses are one of the methods of tax evasion and avoidance. The law has however enabled the reduction of these activities to a great extent. Illegal business like drug trafficking and money laundering have been countered by severe penalties on the offenders. The businesses conducted by various individuals and firms are listed by the law of various countries. Conducting any business outside these specifications leads to court penalties.
In conclusion, it is important for individuals and firms to have adequate information regarding the various aspects of law regarding businesses. This will help prevent future problems brought about by non-compliance of law. The law courts have played a great role in ensuring that justice has been enforced among the affected parties. The enactment of severe punishments among the non-compliers of law has led to the reduction in illegal business activities. More penalties should be put in place to ensure that people honor their contractual as well as financial obligations.
