The generic term “business law” covers every aspect of commercial interactions today. In its broadest sense, the term can be defined as the group of laws, regulations, and practices that apply to commercial entities such as companies, corporations, and partnerships. These statutory requirements involve the entire spectrum of interactions from forming a new enterprise, negotiating contracts, arranging financing, meeting all government requirements, and any other topic or activity that impacts, directly or indirectly, the operation of a business.
In this highly specialized area, the legal practitioner has to have a broad spectrum of knowledge in order to represent the interest of his or her commercial clients adequately. It is easiest to view this type of practice from the life cycle of a business operation to understand its scope.
Starting a New Enterprise
One of the most important aspects of business law is how to set up a new corporation or company. The law of corporations, local licensure requirements, as well as dealing with contracts for the space that the company will occupy, all require various legal formalities to be met even before the doors can open for the first customers. Employment laws for employees have to meet federal and state requirements.
Financing agreements are an essential part of the stage of the business cycle. Legal practitioners will negotiate with lenders, ensure that all forms are filed properly with the Federal, State, and Local authorities, and help establish the necessary record keeping that may be required for that particular operation.
Day-to-Day Transactions
Once things are up and running, business law attorneys will be involved in many daily transactions. Handling the negotiations of contracts and representing the client in various legal actions that may involve issues of breach of contract, liability, and statutory violations are just some of the matters where lawyers in this field may be called upon.
As the company grows, concerns involving secured transactions, securities (stocks and bonds), SEC filings, and other related subjects would also become part of a commercial lawyer’s practice. As governmental regulations continue to become more complex, making certain that a commercial client is in compliance requires an even higher level of diligence from practitioners in this legal field.
Changing or Merging the Operation
One of the most dynamic areas of business law today is that of mergers and acquisitions. It is difficult not to look at the financial news without learning about the latest buy-out, merger, or hostile take-over of one company by another. At the heart of this activity are the lawyers who represent the concerned parties. In addition to involving the transfer of ownership and financial arrangements, it is often necessary to obtain government approval to complete the deal. It is no wonder that specialists in this area of the legal profession are highly sought after for their expertise.
All aspects of 21st-century commercial enterprise involve the application and practice of business law. Navigating the complex legal waters is best accomplished by the retention of a competent, experienced counselor who understands the legal complexities of running a successful operation today.