The description of business activities in this definition, if further elaborated, will be as follows:
- Business is an activity that is routinely carried out because it is said to be a job, a livelihood, even a profession.
- Business is an activity in trade
- Business is conducted in order to make a profit
- Business is carried out by both individuals and companies.
Healthy economic systems and business activities often depend on a sound trading / business / business system so that people need a set of rules that can definitely be enforced to ensure the occurrence of the trade / business system.
These legal rules are needed because:
- The parties to the business deal need something more than promises and good faith.
- There is a need to create legal measures that can be used if one of the parties does not carry out his obligations, does not fulfill his promise.
This is where business law comes into play
The term business law is a translation of the term “business law”. Business Law (Business Law) law relating to a business. In other words, business law is a set of legal rules (including its enforcement) which regulates the procedures for conducting trade, industrial or financial affairs or activities related to the production or exchange of goods or services by placing the money of entrepreneurs at certain risks with certain businesses. with the motive (of the entrepreneur) is to make a profit.
From the explanations above, it can be said that business law is important / needs to be known / studied by economic / business actors because every business activity / activity is always regulated by law. For this reason, business / economic actors need to know / learn about it so that their business can run smoothly so that they do not violate the law or do illegal business which causes losses to both the business actors themselves (producers) and the community (consumers). Because after all the law is made with the aim of regulating the social life of the community so that it is orderly, safe, serene and peaceful.
Business Law Functions
- As a source of useful information for business practitioners,
- To understand their rights and obligations in business practices,
- In order to realize a just, fair, healthy and dynamic character and behavior of business activities (guaranteed by legal certainty).
Scope of Business Law
Broadly speaking, the scope of business law includes the following:
- Business contracts
- Forms of business entities
- Companies go public and the capital market
- Buying and selling companies
- Investment / investment
- Bankruptcy and liquidation
- Mergers, consolidations and acquisitions
- Credit and financing
- Debt collateral
- Employment / labor
- Intellectual Property Rights,
- Prohibition of monopoly and unfair business competition
- Consumer protection
- Agency and distribution
- Business dispute resolution
- International business
- Law of transport (dart, sea, air)
- Technology Transfer – it is necessary to protect and guarantee legal certainty for technology owners and technology users, such as regarding the form and method of transferring foreign technology into the country.
- Law of industry / processing industry.
- The law of multinational company activities
- Mining Activities Law
- Banking Law
- Real estate / housing / building law
- International treaty law / international trade.
- Money Laundering Criminal Act
Source of Business Law
What is meant by sources of business law here is where we can find the source of business law. Which later the source of law will serve as the legal basis for the enactment of the law used in running the business.
The main source of business law
• The principle of the contract (agreement) itself is the main source of law, where each party is bound to submit to the contract that has been agreed upon.
• The principle of freedom of contract, whereby the parties are free to make and determine the contents of the contract they have agreed to.
In general, the sources of business law (sources of law) are:
- Civil Law
- Commercial Law
- Public Law
- Opinions of lawyers (doctrine)