Business Regulations

Business Regulations:
Unit 1.
Introduction Nature of Law, Meaning and definition of Business
Law,Scope and sources of business law.
Business Regulation
Meaning: Business An organization or economic system where goods and services

are exchanged for one another or for money.
Regulation: General: Principle or rule (with or without the coercive power of law)
employed in controlling, directing, or managing an activity, organization, or system.
1.1 Introduction to Business law.
Business law is a broad area of law. It covers many different types of laws and
many different topics. This lesson explains generally what business law is and
how it's used.
Meaning of Law:
Law refers to the principles and regulations established by a Government ,

applicable to people and enforced by judicial decision.
Definition of Law:
Austin has defined law in the following words: “ a Law is a rule of conduct
imposed and enforced by the sovereign
Salmand defined law as “the body of principles recognised and applied by the
state in the administration of justice.
Definition of Business Law:
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. A savvy businessperson will be generally familiar
with business laws and know when to seek the advice of a licensed attorney.
Business law includes state and federal laws, as well as administrative
regulations. Let's take a look at some of the areas included under the umbrella
of business law.
Objectives of business law:
1. To enable enforcement of right

2. To facilitate industrial growth
3. To achieve social justice
4. To define the rules
The main characteristics of Business Law are as follows:

1. Business Law is primarily a branch of civil law. They are similar in many
aspects like compensation, property etc.
2. Business Law basically regulates all the matters related to industry,
commerce and trade.
3. Business Law gives equal treatment to all the persons including individuals
or firms or corporate bodies involved in business. The laws are applied
without any discrimination among them.
4. The role of Business Law is to maintain peace, order, security and
uniformity in the business community and create a good environment.
5. Business Law is dynamic in nature. It keeps on adapting changes that take
place in the business world.
6. Business laws are regulatory as well as punitive. Violation of business laws
may invite severe punishment including fines and imprisonment.
The role or functions of Business Law are as follows

 Defines and creates awareness about the rights, duties and liabilities
of the business persons, institutions and the government agencies.
 Regulates industry, trade and commerce.
 Regulates the different business activities in the state.
 Protects rights and interests of business communities.
 Brings uniformity in the conduct of the businesses.
 Encourages business communities by providing facilities.
 Provides guidelines to the business firms in carrying out their
businesses.
 Provides mechanisms for settlement of disputes through judicial
and non judicial like mediation, conciliation or arbitration.
 Punishes those who violate the rules and regulations prescribed by
the laws for the proper governance of the business activities.
 Creates harmony among the different sectors of the business.
 Means for the creating a positive environment for the prosperity of
business.
Sources of Business Law

 A source means an origin or resource or cause from where law
originates. The term ‘sources of law’ has several meanings. The
general meaning of the word ‘source’ is origin. There is a difference
of opinion among the jurists about the origin of law.
 The sources of business law differ from country to country.
Especially an underdeveloped country like Nepal where the
corporate history is very short, it is difficult to determine the
sources.
Sources of business law are as follows:

a) Custom and usage
Custom or usage of a particular trade also guides the courts in
deciding disputes arising out of business transactions, but such a
custom or usage must be widely known, certain and reasonable. It
also must not be opposed by any laws. It should not also oppose any
morality and public policies. Such business is obligatory to that
particular place which makes business person accustomed.
b) Statute laws
When a bill is passed by the parliament and sealed by the King, it
becomes an 'Act' or 'Statute'. Statutory laws are the outcome of
demands of people and need of the time. They are made after
fulfilling a series of discussions by the lawmakers e.g. Contract Act
2056, Arbitration Act 2055, Company Act 2053 etc.
c) Judicial decisions or case laws
Judicial decisions are usually referred to as precedents and are
binding on all courts having jurisdiction lower to that of the court,
which gave the judgment. They are generally followed by those of
competent jurisdictions in deciding similar issues. However the
precedents must be reported cases in the record of the Supreme
Court. Judicial decisions are also called case laws.
d) Commercial agreements, treatises or conventions
This is the most important source of modern business law.
International business organizations are more active in national,
regional and international trade, like GATT, WTO, EU and SAFTA.
These bilateral and multilateral treatises and bilateral agreements
between the nations and conventions among the nations are very
sources of business laws e.g. Indo-Nepal Transit Treaty, Nepal India
Trade Treaty etc.
e) English mercantile law
England was leading country in the area of commerce and trade.
Nepal is much influenced by India which was under the rule of
England for more than hundred years. Some of the favourable laws
as introduced by the English people to India were largely adopted
by our Nepalese legal system also.

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Business Regulations:

Meaning: Business An organization or economic system where goods and services

1.1 Introduction to Business law.

Law refers to the principles and regulations established by a Government ,

1. To enable enforcement of right

The main characteristics of Business Law are as follows:

The role or functions of Business Law are as follows

Sources of Business Law

Sources of business law are as follows:

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