Run The Money
Follow Run The Money

10 Areas Of Law That Every Business Owner Should Know

  • November 19, 2021

If you're reading this, I'm earning money in some way. I was compensated with money and/or product. Thanks for helping to feed my family. I also may have a financial interest in companies named. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not an accountant, lawyer, doctor, fitness expert, or nutrition specialist. So, talk to a professional before acting on anything you read, watch, or listen to below. Get your own advice and do your own research. Email me at [email protected] with questions.

10 Areas Of Law That Every Business Owner Should Know

Law is something that not many people have a lot of insight into, which means it can be challenging to know what you need to do when it comes time for your business. This post will help give you an overview of some areas of law that are important for every business owner to know about.

Commercial Law

Commercial law is a vast area of law that deals with contracts, sales, and other business transactions. It encompasses a wide range of laws, including contract law, sales and trading regulations, consumer protection rules, and company formation rules. Ensuring you have all your commercial legal bases covered will protect both your individual interests as well as those of your business. Additionally, not understanding the commercial law of your business may mean that you are not getting as much protection as possible.

For example, suppose you're selling goods online and don't understand what consumer protections exist for e-commerce transactions. In that case, you risk having something go wrong with a transaction that will leave you on the hook financially even though it was nothing to do with your actions or inactions.

Related: Business Law For Entrepreneurs: A Guide For What You Need To Know

Employment Law

As an employer, whether you have one employee or 100 employees, it is important that you know what your legal responsibilities are. Employment law addresses the relationship between employers and their workers as well as ensures fair treatment of individuals in the workplace. There are a number of laws related to employment, including remuneration, paid annual leave, and a minimum wage. Additionally, you will need to be aware of your responsibilities regarding pensions and redundancy. It is essential for business owners to educate themselves regarding employment laws.

Privacy Laws

Privacy laws exist to ensure that the personal information you share is protected and cannot be misused by others without permission. In today's society, businesses rely on customers sharing their details with them as a means for making transactions or offering products and services. However, if those details are not kept safe, it is possible that they could be misused by others. For example, if you were to lose your laptop or mobile phone, which had all of your customer details on them, then the person who found those devices may use this information for their own purposes without ever intending to repay you for the loss. Businesses must ensure that any information they hold about their customers is kept safe and only used with permission.

Insurance Law

It is worth understanding your insurance law as a business owner, particularly if you are self-employed or own multiple properties. Insurance is something that most people take for granted until it's needed, but it can be hard to understand what your policy covers without knowing the basics. Additionally, you may need to understand the law in case you are asked about your insurance policy by a court or magistrate, whether it be for an accident that occurred at work or damage caused during renovations.

Health And Safety Law

It's important for you to know your legal responsibilities in terms of health and safety on the job, especially if you work in industries with many hazards and exposures. Health and safety legislation is one such piece of legislation that makes employers responsible for keeping their staff safe in the workplace. Non-compliance to these laws often holds extremely serious consequences for the appointed risk owner. Employers can often get convicted for culpable homicide, gross negligence, and in severe cases, murder when serious workplace accidents occur.

Tax Law

There are a number of different taxes that you need to know about as an employer, including income tax and VAT. It's important for small business owners to stay up-to-date with their legal responsibilities related to taxation, so they don't get penalized or fined for non-compliance. Tax law is complex, so it's important to get advice from an expert on the tax implications of different business decisions or activities. Additionally, it's a good idea to hire an accountant or bookkeeper that can help you stay up-to-date with your tax filings and ensure that they're accurate.

Consumer Rights Law

When you sell products or services to customers, it's vital that they know their consumer rights and how these differ from business-to-business transactions. Consumer law governs all sales made by businesses and what consumers can expect when buying goods and services. You should also be aware of the legislation on the supply of goods and services which outlines what happens if your goods are faulty among other things. Understanding consumer rights law gives you an upper hand in preventing significant unwanted events down the road. Read more on Trevinolaw.com on the dangerous consumer products of 2021 in the US

Property Law

Another area of law that is important to understand as a business owner, property law, deals with buying or selling land, commercial leases, home rental agreements, and other real estate transactions. Ensuring you're up-to-date on legal issues related to property can help protect both your business assets as well as those of your customers.

Contract Law

Every time you make a purchase, sign an agreement, or enter into any type of contract with another party, there are legal implications that come along with it. Ensuring contracts made between two businesses are legally binding is important, so they don't end up in court. If you're entering into a contract with another business, it's important to know how your rights and responsibilities under that agreement are governed by the law.

Intellectual Property Law

Intellectual property law is a complex area of the legal system and one that business owners need to be aware of as it can protect their IP rights. Intellectual property law regulates how your IP assets - such as trademarks, copyrights, and patents – are used by others for commercial purposes. Another area of IP law is unlawful competition legislation which prevents businesses from unlawfully using IP assets. Business activities such as writing cease and desist letters often form part of IP law.

In conclusion, business owners should know their legal responsibilities in terms of the law applicable to them. This knowledge can help prevent legal exposures and help ensure a smooth business operation.

>