Important Laws that Affect Businesses

Some of the many laws that impact businesses directly are business licensing regulations, employment and labor regulations, bankruptcy laws and others. These can be broadly bucketed under commercial law. In fact, these are just a few of the many laws that organizations are required to familiarize themselves and comply with. Non-compliance with the law could give rise to litigations, fines and possibly even jail time.

Commercial, contract and tax laws

Commercial law covers a whole gamut of business transactions like employee recruitment, occupational health, consumer protection, intellectual property, copyright, guarantees, carriage and sale of goods, and insurance. Commercial transactions have their legal base in contracts, so commercial laws generally begin with contract law.

Tax laws aim to yield revenue for either the provincial or federal governments. A business has to be aware of all the taxes to be paid and when they are to be paid.

There are several other miscellaneous laws that affect businesses. These include laws governing protection of individual privacy, production and transportation of dangerous goods, and protection of the environment. Additionally there are those relating to negotiable instruments, product liability, international trade, land use, as well as health and safety.

How to comply with regulations

Ensure you comply with rules and regulations by:

• Referring the websites of the Canadian Government Justice Department for a better understanding.
• Getting advice from experienced businesspeople and chambers of commerce.
• Speaking to well-versed functionaries at your local city council.
• Getting a paid legal adviser if you can afford it.

Establishing a business and the acquisition of property

A startup will first have to make a decision on the type of legal form the business will take – a sole proprietorship, a partnership or a firm that is a separate legal entity from the shareholders. Each has its own inherent risks and dissimilar tax implications. New firms must also deal with issues like licensing, zoning laws, and getting requisite permits.

Acquisition of immovable property also has its own set of legal implications and necessary verifications before any sale can be finalized.

Finally getting finance can involve entering lease agreements or signing mortgage contracts. Ignorance of the law can lead novice firms to get drawn into restrictive or unnecessary contracts and insurance agreements.

Resolving disputes

Disputes are inevitable in the business environment and as a business owner you should know how to resolve them. Litigation should be the last possible option. You can try one or more of these approaches before resorting to the legal system – conciliation, mediation, negotiation or arbitration. Each of these is governed by appropriate laws, which you should be familiar with.

In the event of litigation, you should be aware of how claims are to be substantiated legally, with special attention to be paid to issues like records in electronic formats and ‘electronic discovery’ or e-discovery.

Law and business have always been closely interconnected, with the day-to-day business of running a business dependent on a number of laws. Complying with commercial law is not a challenge once you familiarize yourself with the Acts, rules and regulations that pertain to your business.

For more information on a commercial lawyer or a franchise lawyer, contact Heydary Hamilton PC.