Why Business Law Is Important?
- Marvin Harvey
Businesses need these laws for the same reasons that people do: to define unacceptable behavior, to provide certainty and stability, to protect the public, and to provide a mechanism for businesses to resolve disputes.
What is the importance of business law in the Philippines?
In every country there are business and commerce laws that every business owner and entrepreneur should be aware of. In the Philippines, there are also laws and regulations that govern businesses from registration, operation, up to termination. It is important that business owners and entrepreneurs know what business laws are applicable to their type of business and activities.
These laws and rules should be followed to avoid punishments, charges and penalties from the government or authorities that are implementing and enforcing them. Some of these laws are not only created to obligate business owners to do their duties but they are also made to obligate the government to protect these business owners.
To make sure you are doing business legally and to know the decrees that give your business protection and privileges, the following is a list business laws in the Philippines that entrepreneurs should be aware of.1. Tax Reform Act of 1997 (Republic Act No.8424) – which amended the National Internal Revenue Code (NIRC) is the law that governs the national taxation in the Philippines and gives the Bureau of Internal Revenue (BIR) the power and duty to assess and collect national internal revenue taxes in the country.2.
The Local Government Code of the Philippines (Republic Act No.7160) – is the law governing local taxation in the Philippines, including the taxation on real properties.3. Labor Code of the Philippines (Presidential Decree No.442) – is the law that governs employment practices and labor relations in the Philippines.
(DOLE) 4. Intellectual Property Code of the Philippines (R.8293) – is the law that governs the registration of patents, trademarks and copyright, and the enforcement of intellectual property rights in the Philippines. (SEC) 5. The Corporation Code of the Philippines (B.68) – is the law that governs the registration and regulation of corporations in the Philippines.
- SEC) 6. Civil Law of the Philippines (R.
- No.386) – the civil code of the Philippines includes the laws on obligations and contracts.
- It also governs special contracts such as contract of agency and partnership.7.
- Social Security Act of 1997 (R.
- No.8282) – the law that mandates employers to register their business and their employees with the Social Security System (SSS).8.
National Health Insurance Act of 1995 (R. No.7875) – the act that mandates employers to register their business and their employees with the Philippine Health Insurance Corporation or PhilHealth.9. Home Development Mutual Fund Law of 2009 (R. No.9679) – the act that mandates employers to register their business and their employees with the Pag-Ibig Fund (HDMF).10.
Food and Drug Administration (FDA) Act of 2009 (R. No.9711) – the law that governs the inspection, registration, licensing and monitoring of establishments and health products.11. The Philippine Fisheries Code (R. No.8550) – the law that governs commercial fishing in the Philippines.12. The Animal Welfare Act of 1998 (R.
No.8485) – the act that governs the supervision and regulation of the establishment and operation of all facilities utilized for breeding, maintaining, keeping, treating, or training of all animals in the Philippines.13. Securities Regulation Code of the Philippines (R.
- No.8799) – the law that governs the registration and regulation of securities, pre-need plans, and securities market professionals – and the protection of shareholder interests in the Philippines, 14.
- Financing Company Act of 1998 (R.
- No.8556) – the Act that governs the registration and regulation of financial companies in the Philippines.15.
Truth in Lending Act (R. No.3765) – An Act to Require the Disclosure of Finance Charges in Connection with Extensions of Credit 16. Consumer Act of the Philippines (Republic Act No.7394) – The law that protects the interest of the consumers in the Philippines, promote their general welfare, and establish standards of conduct for business and industry.17.
Why is it important to have a legal business?
6 Reasons You Should Legalize Your Business Now When a person decides to start a business, it’s normal to focus on the practical aspects: creating a business plan, improving the manufacturing process, establishing good distribution channels, marketing, finding a suitable office, and so on.
But the legal aspects of the business are often forgotten, or set aside, until “everything else is settled”. This is a huge mistake, and one that small business owners, solopreneurs and solo practitioners must be very aware of. The consequences of not taking care of the legalities of your business can send your company to the curbside, or at least put major blocks on your way to entrepreneurial success.
However, instead of focusing on the negative repercussions of not taking care of legal matters, here are six reasons to show that registering your business is the smartest thing to do. It shows professionalism Legalizing your business shows your clients and potential investors that you’re serious about your business venture, and that you’re in it for the long haul.
- Also, all other things being equal, it’s easier for a legally established business to gain clients and grow than it is for an individual.
- It gives you access to financing sources When your business is properly established and legal documents are in place, you have the option to apply for loans or finding investors to increase your operation, giving you the opportunity to grow or expand your business.
Not being able to get the funds you need at the moment you need them can be extremely detrimental, or even fatal, to your business. It helps you protect your intellectual property Paying attention to legal and making sure your intellectual property is registered can be a determining factor in the event of a dispute.
For example, in some cases you can’t take action against someone who is using your trademark or has stolen your copyrighted material unless you have had them properly registered. And, they must be registered in the correct categories in order to succeed once you take action. It allows you to get the necessary licenses and permits Many businesses require a license that entitles them to operate.
Often, you need to have a license issued by the city or country in which you keep premises, as well as any other place where you execute your business. For certain types of businesses and professions, such as hotels, restaurants, health services, law firms, and so on, it is necessary to have a special permit or license issued by the local government, the state medical board, or bar association, etc.
- To obtain these permits and licenses, you must be registered with the secretary of state, whether as a sole proprietor, a limited liability company, a partnership, or a corporation.
- It helps you protect your finances and assets One of the most important aspects emphasized by financial and legal advisors alike is to keep your personal finances separate from your business finances.
Regardless of the size of your company, operating as a properly formed and documented business entity and having a separate business bank account helps protect your personal savings and assets in case your business ends up being unsuccessful, or in the event of litigation.
It helps you grow your company smoothly Having a business entity that is properly set up and documented, having a website that is legally compliant, having your master contracts in place and having your intellectual property registered are just a few of the steps that can help pave the way to smooth operations and smooth growth.
It allows you to easily onboard new team members and to focus on your business rather than be sidetracked by complicated, annoying and extraordinarily expensive legal issues. Most people don’t give the legal aspects of starting and growing a business their due importance—not because of negligence.
Sometimes, setting up a business is stressful and complicated enough, and the idea of having to prepare legal paperwork and forms is overwhelming. Others just don’t know how to even start the process, or where to get information. In such instances, a may be just the person you need to provide legal advice that actually helps and allows you to do what you do best, growing your business.
In any case, do yourself a favor and legalize your business. Your future self will thank you for it. : 6 Reasons You Should Legalize Your Business Now
What is the impact of business law?
Governments impose different rules and regulations on businesses and some of these rules and regulations apply to both small and big businesses. As a business owner, it is very important for you to understand business law and the regulations that affect your type of business.
- It is also important to know that the government can change the rules and regulations concerning businesses from time to time.
- Therefore, to be on the good side of the law, ensure that you are up to date with your government laws.
- If you are new in the business industry, then chances are that all this is new to you, right? As a beginner, you should visit website relating to business law and read through different business law articles or business attorneys’ intelligence.
By so doing, you will grasp the basics of business law and it would be a great start for you. Nevertheless, keep reading for some expert guidelines to having a successful legal business. In most cases, the regulations imposed by governments on businesses are classified into four main categories; employee relations, taxes, bureaucratic and international trade.
Here is how these set rules and regulations might affect your business (or businesses): • Change in business laws means changes in the way businesses operate. Taxation policy is one the government policies that affect businesses directly because taxation is based on the amount of money earned by all businesses.
For example, increase in corporation taxes which focus on the businesses profits has an effect similar to increase in costs. VAT (value added tax) is also a tax policy that will affect the bottom line,although in most governments VAT, is a cost on the consumer and not the business owner.
• Business laws affect employer to employee relationships and vice-versa. For instance, it is mandatory for employers to follow government regulations regarding the way they treat their employees and their hiring mechanism. • When it comes to international trade, business laws are imposed in regards to international trade tariffs.
Significance & Importance of Business Law
Such rules and regulations are strict on the kind of products going in and out internationally. The international trade rules and regulations also enforce guidelines on the parties that should take part in international trade. • Lastly, governments impose business rules and regulations to ensure that all businesses are run in line with codes of ethics, good health and safety of the consumers.
However, with that said, it is important to understand that business laws differ by state, locality or country. And although it is quite a challenge to know all the regulations that apply to your particular line of business, it is important that you get someone who knows better to represent you. A business lawyer is indeed the right person to direct you towards success and profits without breaking the law.
Also, businesses that is open to the public need to be approved by the government. And for your business to be approved, a license or permit is issued. Therefore, before opening up a business, ensure that you get a license and right to run the business.
What will you learn in business law?
Business Law is an intellectually challenging study of the constantly changing legal puzzles that face businesses of all sizes and types. The Program of Study in Business Law prepares law students for a variety of practice areas, including business transactions, commercial litigation, tax, nonprofit law, and more.
Students who pursue this program are encouraged to take a wide variety of courses in various areas of substantive business law as well as courses that emphasize analytical skills and methodology. Generally, business attorneys tend to be focused on either litigation or transactions. Since many law school courses prepare students for litigation practice, the Program of Study in Business Law places a special although not exclusive emphasis on transactional practice: that is, helping clients achieve their desired business goals in a way that is both legally efficient and minimizes the risks of litigation.
The program has three major areas of focus: corporate law, dealing with private ordering and the organization and management of business and nonprofit organizations; tax law, dealing with government taxation of business and transactions; and commercial law, dealing with the world of commerce among businesses and financing of business.
Foundational Business Courses Advanced Corporate Law Courses Advanced Tax Law Courses Advanced Commercial (and Related) Law Courses Business Law-Related Litigation Courses Other Advanced Business Courses Related Courses Directed Readings Award for Outstanding Achievement Core and Affiliated Faculty
For planning purposes, it is noted after the name of a course if that course is usually offered in a specific term or at least once per academic year, but please note that the timing of course offerings is always subject to change. Those courses without a notation are offered less frequently, although usually at least once every two years.
Why laws are important?
LAW – L aws are rules that bind all people living in a community. protect our general safety, and ensure our rights as citizens against abuses by other people, by organizations, and by the government itself. We have laws to help provide for our general safety. These exist at the local, state and national levels, and include things like:
Laws about food safety. At the state and local level, health departments have guidelines that restaurants follow for how to store and prepare food in a healthy manner, so that diners won’t get sick. At the national level, the Department of Agriculture and other federal agencies inspect food production plants to be sure that the food that shows up in your supermarket is safe to eat. Speed limits and traffic laws exist so that we drive in a safe manner. Licensing for doctors and nurses ensures proper training of the people who look after us, and who often have our lives in their hands.
We also have laws that protect our rights as citizens, and which include things like:
Laws that come from the Bill of Rights in the U.S. Constitution, that guarantee our basic freedoms like freedom of speech, religion, and the press. Laws that protect us from discrimination because of our race, gender, age, or because of a disability.
Why are legal laws important?
Importance of Law in the Society The law is important because it acts as a guideline as to what is accepted in society.Without it there would be conflicts between social groups and communities. It is pivotal that we follow them. The law allows for easy adoption to changes that occur in the society.
Society is a Ã¢Â€Â˜web-relationshipÃ¢Â€Â™ and social change obviously means a change in the system of social relationship where a social relationship is understood in terms of social processes and social interactions and social organisations. Thus, the term, Ã¢Â€Â˜social changeÃ¢Â€Â™ is used to indicate desirable variations in social institution, social processes and social organisation.
It includes alterations in the structure and functions of the society. Closer analysis of the role of law vis-Ãƒ -vis social change leads us to distinguish between the direct and the indirect aspects of the role of law.1. Law plays an important indirect role in regard to social change by shaping a direct impact on society.
- For example: A law setting up a compulsory educational system.2.
- On the other hand, law interacts in many cases indirectly with basic social institutions in a manner constituting a direct relationship between law and social change.
- For example, a law designed to prohibit polygamy.
- Law plays an agent of modernisation and social change.
It is also an indicator of the nature of societal complexity and its attendant problems of integration. Further, the reinforcement of our belief in the age-old panchayat system, the abolition of the abhorable practices of untouchability, child marriage, sati, dowry are typical illustrations of social change being brought about in the country trough laws.
- Law is an effective medium or agency, instrumental in bringing about social change in the country or in any region in particular.
- Therefore, we rejuvenate our belief that law has been pivotal in introducing changes in the societal structure and relationships and continues to be so.
- Law certainly has acted as a catalyst in the process of social transformation of people wherein the dilution of caste inequalities, protective measures for the weak and vulnerable sections, providing for the dignified existence of those living under unwholesome conditions etc.
are the illustrious examples in this regard. Social change involves an alteration of society; its economic structure, values and beliefs, and its economic, political and social dimensions also undergo modification. However, social change does not affect all aspects of society in the same manner.
- While much of social change is brought about by material changes such as technology, new patterns of production, etc., other conditions are also necessary.
- For example, as we have discussed it before, legal prohibition of untouchability in free India has not succeeded because of inadequate social support.
Nonetheless, when law cannot bring about change without social support, it still can create certain preconditions for social change. Moreover, after independence, the Constitution of India provided far-reaching guidelines for change. Its directive principle suggested a blueprint for a new nation.
What is business law easy definition?
Business law encompasses all of the laws that dictate how to form and run a business. This includes all of the laws that govern how to start, buy, manage and close or sell any type of business. Business laws establish the rules that all businesses should follow.
Is business law worth studying?
How will a business law degree benefit my career? – A business law degree will not only validate your experience in business but also enable you to take advantage of economic opportunities. You’ll be able to identify risks early and clear obstacles, delivering more value to your organisation.
What are the most important topics in business law?
Unfair Trade Practices and the Federal Trade Commission – The term “unfair trade practices” is broadly used and refers to any deceptive or fraudulent business practice or act that causes injury to a consumer. Some examples include, but are not limited to, false representations of a good or service including deceptive pricing, non-compliance with manufacturing standards, and false advertising.
Which law is the most important and why?
What is a Constitution? A Constitution is a body of fundamental principles according to which a State is to be governed. It sets out how all the elements of government are organised and contains rules about what power is wielded, who wields it and over whom it is wielded in the governing of a country.
- It can be seen as a kind of contract between those in power and those who are subjected to this power.
- It defines the rights and duties of citizens, and the mechanisms that keep those in power in check.
- Our Constitution is the most important – or supreme – law of the land.
- No other law may conflict with it; nor may the Government do anything that violates it.
In a constitutional democracy such as ours, the Constitution is superior to Parliament and is the yardstick by which all other laws are judged. It applies to all organs of State. The Constitutional Court is South Africa’s highest court on constitutional matters and is the body that has the final say on the interpretation of the Constitution.
- The Importance of the Preamble, Chapter 1 (Founding Provisions) and Chapter 2 (Bill of Rights) of the Constitution Most constitutions emerge out of special circumstances.
- South Africa underwent a radical transition from the oppressive apartheid regime (a system founded on parliamentary sovereignty) to a constitutional democracy committed to the creation of a society based on democratic values, social justice and fundamental human rights.
The Preamble is a brief introductory statement that sets out the guiding purpose and principles of the Constitution. Chapter 1 enshrines key constitutional principles and, because they are so important they are more difficult to change. Section 1 may only be amended by a Bill passed by the National Assembly, with a supporting vote of at least 75 per cent of its members and the National Council of Provinces, with a supporting vote of at least six provinces.
- Constitutions and constitutionalism go hand-in-hand with human rights.
- Rights are often entrenched in a special part of a constitution, called a Bill of Rights.
- Chapter 2 of the 1996 Constitution contains South Africa’s Bill of Rights.
- It is this part of the Constitution that has attracted the greatest interest – and has had the greatest impact on South Africans – in the past few years.
These provisions deal with the rights to equality, human dignity, life and privacy, among others, as well as the freedoms of religion and expression. They also touch on labour relations, children, education and the legal process. Chapter 2 may only be amended by a Bill passed by the National Assembly, with a supporting vote of at least two thirds of its members and the National Council of Provinces, with a supporting vote of at least six provinces. English: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Afrikaans: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights isiNdebele: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights isiXhosa: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights isiZulu The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Sepedi: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Sesotho: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Setswana: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Siswati: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Xitsonga: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Tshivenda: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Tshivenda: The basic provisions of the Constitution : Preabmle, Founding Provisions and Bill of Rights Text as at Friday, 17 September, 2021
What is the relationship between law and business?
Law governs and regulates virtually all aspects of the business process, from the right to engage in a business or trade, to the legal form of a business, to agreements for buying and selling merchandise or rendering services. Law regulates the quality of products sold and the advertising of products for sale.
What are the three main purposes of law?
Maintaining order. establishing standards. resolving disputes. protecting individual rights and liberties.
What is the most important law in the Philippines Why?
The Constitution (1987) is the fundamental law of the land in the Philippines. It establishes the structure, policies, roles and duties of the Philippines’ government. It contains the Bill of Rights (article III), and sets out the State’s obligations to promote and uphold social justice and human rights (article XIII).
Article II, section 2 of the Constitution provides that “generally accepted principles of international law” are “part of the law of the land.” Section 18 of the Constitution lays out the procedure how the President, as Commander-in-Chief, may call for the suspension of the write of habeas corpus of declare any part of the Philippines under martial law.
Section 23(2) gives Congress, in times of war or other national emergency, the power to authorize the President to exercise powers necessary and proper to carry out a declared national policy. The Criminal Procedure Code (2000) contains all the rules of court on civil and criminal procedures.
The rights of the accused are listed in Rule 115 of the Criminal Procedure Code. The Revised Penal Code (An Act Revising the Penal Code and other Penal Laws No.3815, December 8, 1930) (RPC) contains many of the Philippines’ crimes, including national security-related crimes, such as: treason (articles 114 to 116), piracy and mutiny on the high seas (articles 122 to 123), sedition (articles 139 to 142), illegal assemblies and associations (articles 146 to 147), and unlawful means of publication and unlawful utterances (article 154).
In the past decade, the Philippines adopted two laws that are primarily aimed to counter terrorism: the Human Security Act (2007) and the Terrorism Financing Prevention and Suppression Act (2012). The Human Security Act defines the crime of terrorism as the commission of an act defined under specific provisions in the Revised Penal Code and other special laws to sow and create widespread and extraordinary fear and panic among the populace, in order to coerce the government to give in to an unlawful demand.
- A Supreme Court challenge to the HSA, Southern Hemisphere Engagement Network, Inc., et. al.v.
- The Anti-Terrorism Council, et. al.
- Was dismissed for lack of standing.
- In its 2012 conclusion to the Philippines’ fourth periodic review, the Human Rights Committee recommended the Philippines ensure the HSA defines terrorist crimes with enough precision to allow persons to regulate their conduct.
The Terrorism Financing Prevention and Suppression Act (2012) defines the crime “financing terrorism” as possessing, providing, collecting, or using property or funds with the unlawful and willful intention that they be used, in full or in part, to carry out or facilitate the commission of any terrorist act by a terrorist organization, association or group, or by an individual terrorist (section 4).
It incorporates the definition under the Human Security Act of what constitute “terrorist acts” (section 3(j)). The Anti-Money Laundering Council (AMLC) has the authority to investigate allegations of terrorist financing (section 10). Other penal laws related to national security are the Anti-Piracy and Anti-Highway Robbery Law (1974); the Act prohibiting certain acts inimical to civil aviation, and for other purposes – Republic Act No.6235; and the Anti-Money Laundering Act (2001).
The Act Defining and Penalizing Enforced or Involuntary Disappearance – Republic Act No.10353 (2012) sets out the State’s policy on enforced disappearances (section 2) and defines enforced or involuntary disappearance (section 3(b)). It establishes the detainee’s right of access to communication (section 6) and places numerous duties, as well as criminal and civil liabilities, on private citizens and government officials in order to prevent enforced disappearances.
The Cybercrime Prevention Act (2012) lists down all the acts that constitute the offense of cybercrime (section 4). Several groups such as the National Union of Journalists of the Philippines, Philippine Press Institute, Philippine Bar Association, etc. filed petitions before the Supreme Court challenging the validity of the law, claiming that it violates provisions in the Philippine Constitution.
On 18 February 2014, the Supreme Court released a decision that declared unconstitutional the following provisions in the law:
a. Section 4(c)(3), which penalizes the posting of unsolicited commercial communications; b. Section 12, which authorizes the collection or recording of traffic data in real time; and c. Section 19, which authorizes the Department of Justice to restrict or block access to suspected Computer Data.
What is the importance of business registration in the Philippines?
Business registration in the Philippines is an essential legal document that companies must possess before operating. It is essential because it complies with the Republic Act 3883, also known as the Business Name Law.