Business laws (also known as trade laws) are the laws that govern, govern, and regulate business practices. They can be classified as private law (laws or statutes that govern interactions between individuals or other private entities such as corporations) or public law (laws that govern relationships between private entities and the government). Business law applies to a wide range of business activities, from drafting business contracts (written agreements about business, labor, or other aspects of a business transaction) to industrial waste disposal.
There are different types of business law, each designed to deal with a specific aspect of business activity. In whichUSASome economic laws (p.Federal Trade CommissionAct of 1914) are designed to ensure that all businesses adhere to business practices that encourage and encourage competition. Other laws (for example, the Labor Constitution Law).Health and securityof 1970, commonly known as OSHA) require companies to maintain a safe work environment for their employees.
In themUSAMaking and enforcing economic laws is the responsibility of both state governments and the United States Congress. State business laws generally provide guidance on a number of topics, including consumer protection rights (for example, protecting consumers against business fraud), business contracts, and bank lending practices. At the federal level, the US Congress has primary responsibility for passing and enforcing laws that affect interstate commerce (ie, business transactions that occur between two or more states). Thatuniform trading rules(UCC) is a set of rules intended to create uniform standards for business practices in all 50 US states. The first state to enact the UCC was Pennsylvania in 1954; By the early 1970s, the UCC had become law in all 50 states. In cases where a state statute and a federal statute differ, the federal statute almost always takes precedence.
WhatFederal Trade Commission(FTC), a government agency established in 1914 as a provision of theFederal Trade Commission Act, also participates in ensuring that companies comply with laws and regulations related to competitive practices, consumer rights and other issues related to the promotion of fairness and honesty in business transactions.
When did it start
Laws governing business transactions date back to the earliest human civilizations. Archaeological evidence has shown that standardized codes of conduct existed in ancient Egypt and Babylon (a city-state in present-day Iraq). The Code of Hammurabi, a code written by the Babylonian king Hammurabi in the 18th century BC. The legal system, created around the year 1000 a. C., contains a series of rules relating to commercial transactions, including rules for contracts between merchants and fair wages for workers. The Bible contains numerous references to the laws governing business practices, particularly the rules governing the charging of interest on loans. For the most part, trading rules in ancient times were enforced by the merchants themselves and typically fell outside the jurisdiction of civil courts (the branch of government responsible for interpreting and enforcing laws). This practice changed inRoman empire, when economic laws were incorporated into the broader legal system.
with the destruction ofRoman empireIn the fifth century AD. C., the barbarian hordes paralyzed many of the old commercial networks of Europe and the commercial transactions fell into a state of anarchy. Over the next hundred years, more and more established trade routes began to form between cities across Europe, and merchants once again began to write codes governing trade practices. During the early Renaissance (a period of cultural renaissance in Europe that began in the 14th century and lasted until the 17th century), wealthy merchants from Italy and France enjoyed significant political power and often played a key role in the Drafting of commercial laws. Throughout the Renaissance, commercial laws in Europe were decided by commercial courts (rather than civil courts) and were made and applied according to rules established by the merchant class. This system of rules and procedures, created and overseen by merchants and outside the scope of the civil law system, came to be known asLex Mercatoria, o "attorney.“
In 17th century England, the royal court extended its powers to cases involving disputes of a commercial nature. At the end of the eighteenth century theattorneyhad been adopted in englishcommon law(Laws that arise as a result of judicial decisions and the precedents established by those decisions, rather than as a codified legal system). This business integration andcivil lawbecame the foundation of the American legal system after the United States gained independenceBritain1781.
Economic laws have been introduced throughout history to address specific issues related to business activities. Traditionally, business laws were created by the merchant class and were intended to ensure that business transactions were conducted under fair and secure conditions for the merchants involved. At the same time, special courts were established to mediate and settle disputes. In medieval Europe (ormiddle ages, from around 500 to around 1500) Traders and merchants operating in a particular region often organized into groups to secure their mutual financial interests against enemy forces, such as pirates or foreign armies. One of the best known of these organizations was theHanse, an association of market towns in northern Germany and other parts of Europe. Founded in the middle of the 13th century, theHanseit arose at a time when Germany did not have a central government; it was intended to protect the interests of German merchants in the absence of a uniform legal system. At its height, the Hanseatic League regulated business practices in much of northern Europe, from London, England, to Novgorod, Russia.
With the advent of democracy in the 18th and 19th centuries, the role of merchants in economic law-making diminished significantly as elected governments assumed responsibility for regulating business activities. As governments became more involved in passing trade laws, consumer rights became a more important factor in shaping trade laws. In the United States thefederal governmentbegan to play an active role in establishing economic regulations in the following decadescivil war. Several of these laws, particularly thoseSherman's cartel lawof 1890 and theClayton Cartel Lawof 1914, which was intended to prevent companies from engaging in monopolistic practices (business practices designed to unfairly restrict or eliminate competition in certain sectors of the economy and allow companies to maximize their profits at the expense of other companies and consumers). Other laws were intended to protect consumers from unfair or unsafe business practices. One of the first and most important consumer protection laws was the PureFood and Drug Act of 1906. This law was the first law that required food and drug manufacturers to provide consumers with complete and accurate information about the ingredients of their products. The law also gavefederal governmentthe right to inspect food production processes, particularly when it comes to meat, to ensure that food is prepared under hygienic conditions. This trend toward increased government regulation of business activities in the United States would be dominant for most of the 20th century.
In the 1970s, many politicians and business thinkers began to question the effectiveness of government regulation. On the one hand, they believed that state involvement in corporate activity stifled economic growth by holding corporations accountable for over-regulating. At the same time, these anti-regulators felt that involving the government in regulatory activity was too costly; Heavy taxes were imposed on American individuals and corporations to finance these activities, further exacerbating the financial difficulties of many companies. In the late 1970s, the US Congress began passing laws intended to deregulate (in other words, deregulate) certain industries. One of the first major acts of deregulation was the Airline Deregulation Act of 1978, which removed government involvement in determining airline activities and fares, allowing airlines to compete more freely with one another. A series of other significant acts of deregulation followed over the next two decades. This general trend toward federal deregulation paved the way for state governments to deregulate their power providers in the 1990s, which subsequently created regional competition in the power generation industry.