Business law and commercial law are the two laws that deal with the business and commercial transactions. It encompasses the formation of business management, commerce and consumer transaction. The commercial law consists of debtor Law, creditor law, sales and secured transaction. It also has the regulations and rules for the land cargo, sea cargo, merchant shipping, marine and accident insurance. There are various laws, which describe how the commerce should be taken care with the compliance, privacy laws, safety laws, foods and drugs law. Negotiable instruments and Secured transaction are the two most important areas of commercial and business law. In secured transaction, borrower agrees on the collateral, which is owned by the borrower will be taken by lender. If in any business, party borrows money from the bank or from any other financial institution. In this case, the lender needs more than just promise to repay the loan amount. Hence, the law of collateral interests formed between borrower and lender.
Importance of Business Law Regulations in India
Business law refers to the laws which are applied to business entities such as partnerships and corporations. These are used as reference when putting up businesses whether big or small - from sole proprietorship to corporation. Business laws specify how different business can be set up, how taxes apply to them, registrations, documentations and requirements; define different terms pertaining to business, making by-laws, and articles of organization among many others.
These also provide the authoritarian schemes on how commerce should be conducted. Every country has its own regulations, laws and regulatory bodies or agencies governing the manufacturing, sales, marketing and distribution of products within the country. Laws and regulations are intentionally made for human beings and other institutions as a guide to bring order and sanity into the society. Because of this, it is likely that their application will impact upon the plans of firms; their effects on a given firm are also inevitable.
An attempt would be made to confer specified regulations and laws with particular reference to aviation and airline, environmental regulations, stock market regulations, banking regulations, research (and development) co-operation regulations, stock options regulations, labour regulations, intellectual property and social security regulations industry by industry and effects on the plans of firms where necessary.