Business Law Definition, Purpose, and Sources
Definition of business law
Business law can be understood as a law that regulates economic activity. These activities are in trade, services, and finance, continuously carried out to gain profit. In principle, business law is a written rule by the government intended to regulate, supervise and protect all business activities, including industrial, trade, and service activities, and all matters related to finance and other business activities. Business Law is a regulation issued by the government to regulate trade in economic activities to realize the security and prosperity of the Indonesian economy. Violation of the rule of law in this business area is subject to severe penalties.
Understanding of Business Law According to Experts
- According to Abdul Saleman
According to Abdul R. Saliman et al., Business Law or Business Law/Bestuur Rechts is the whole of legal regulations, both written and unwritten, which regulate the rights and obligations arising from
- Dr. Johannes Ibrahim, S.H., M.Hum
Business Law is a set of legal regulations that are held to settle and solve problems that occur mainly during human-to-human activity in the trading area.
- Business Law Resources
Sources of business law relating to the basis for the formation of business law. Namely as follows:
The principle of the contract is what is done by the parties so that each party fulfills the contract.
The principle of freedom of contract, according to which organizers can make and decide for themselves the contents of the agreed contract.
According to the regulations, the sources of business law are as follows:
- The Civil Code (KUHPerdata) regulates temporal relations and relations between individuals and legal entities. The Civil Code regulates buying and selling, leasing, borrowing (including credit), etc
- The Criminal Code (KUHP) regulates, among others, crimes in business, such as fraud.
- The Commercial Law Code (KUHD) specifically regulates commercial matters not regulated by civil law, such as the form of company, including CV and company.
- Other provisions of civil, criminal, and non-criminal laws, such as company laws regulated by the Company Law or laws related to participation capital, namely the Investment Law.
- Purpose of Business Law
- Business laws are made to regulate and protect businesses against various risks that may arise in the future. Below are some business law objectives that need to be known.
- Adequate and appropriate functioning of market security mechanisms.
- Protect various types of businesses, especially types of small and medium enterprises (SMEs).
- Help improve the financial system and banking systems.
- Protect employers or contractors.
Scope of Business Law
Business Law itself covers the following areas, among others:
1. Trade Contract.
2. Legal aspects of business entities.
3. Work relationship.
4. Industrial Intellectual Property Rights.
5. Prohibition of monopoly and unfair competition.
6. Consumer protection.
7. Taxes.
8. Coverage
9. Settlement of trade disputes.
10. Bankruptcy.
11. Traffic Act.
12. Banking and Securities Law.
13. International trade laws or international agreements.
The importance of Business Law
Business laws play an essential role in regulating business practices in the country. Here are a few points that show why company law is so important:
Compensation Issues: Business Law is fundamental in dealing with various organizational pricing issues.
Protection of Shareholder Rights: Business law plays an essential role in protecting the rights of company shareholders. Experienced corporate law attorneys can successfully handle state-like circumstances.
Company incorporation: Business law is the foundation of all transactions. Starting a business involves a lot of legal processes, leases, and permits. A business law attorney has experience with all relevant regulations and can help a business build its operations successfully.
