Business Entities and Commercial Law: A Comprehensive Overview - Prof. Sharma, Schemes and Mind Maps of Nationality law

Download Business Entities and Commercial Law: A Comprehensive Overview - Prof. Sharma and more Schemes and Mind Maps Nationality law in PDF only on Docsity!

“Analyzing the Role of a Business

Entity in Relation to Commercial Law”

JAHANGIRNAGAR UNIVERSITY

Department of Finance & Banking Course Code : FNB Course Title : Business Law & Practices Prepared for : Debashish Saha Assistant Professor Department of Finance & Banking Jahangirnagar university Prepared By : Rashida Zaman (ID : 1464) Quazi Fahian Muntakim (ID : 1490) A.R. Saifur Rahman (ID : 1501) Saber Abdullah Alam (ID : 1509) Amena Afnan (ID: 1563) Khadija Akter (ID: 2029) Batch : 09 Semester : 4 th Date of Submission : July 18, 2020

July 18, 2020 Debashis Saha Course Teacher Department of Finance and Banking Faculty of Business Studies Jahangirnagar University Savar, Dhaka- 1342. Dear Sir, With due respect we, the undersigned students of the Department of Finance & Banking,9th batch are submitting you the report titled “Analyzing the Role of a Business Entity in Relation to Commercial Law” under the course “Business Law & Practices(FNB-211)”.In our learning curve, researching and composing this report has enabled us to gain insight into writing a formal report with all of the little intricacies that come with it as well as this report has enabled us to gain insight of how to develop our skill in presentation.It was stimulating opportunity and a valuable experience for us. Thank you for your supportive consideration for formulating an idea. It will be kind of you if you accept our report on the previously mentioned topic. I hope you will be pleased and find this report satisfactory. Sincerely, Khadija Akter Student ID: 2029 In favour of the group

Rashida Zaman A.R. Saifur Rahman Quazi Fahian Muntakim (ID No : 1464) (ID No : 1501) (ID No: 1490)

Saber Abdullah Alam Amena Afnan Khadija Akter (ID No : 1509) (ID No :1563) (ID No: 2029)

Acknowledgement This is our pleasure to prepare and submit the report on the “Analyzing the Role of a Business Entity with Commercial Law”. We went through many websites, newspapers, journals and articles to complete our report and it is really a great opportunity for us to acquire valuable knowledge for this interesting subject. First, we would like to express our gratitude to Almighty Allah to whom we are grateful forever for giving us all the opportunities to do everything. Next, we want to express our profound gratitude to our respected course teacher, “Debashish Saha” to provide us with such a nice opportunity to prepare this kind of report. We would also like to take this opportunity to express our wholehearted gratitude to our fellow friends who offered encouragement, information, inspiration and assistance during the course of preparing this term paper. This report suffers from many shortcomings; nevertheless, we have exerted our best efforts in preparing this paper. We seek apologies for the errors that might have occurred in spite of our best effort.

Executive Summary: In simplest terms, a business entity is an organization created by an individual or individuals to conduct business, engage in a trade, or partake in similar activities. There are various types of business entities— sole proprietorship, partnership, LLC, corporation, etc.—and a business’s entity type dictates both the structure of that organization and how that company is taxed. There are numerous types of business entities; however, most business owners will choose from the six most common options: sole proprietorship, general partnership, limited partnership, LLC, C-corporation, or S-corporation. No matter which group the business falls under, all of them are subject to some established commercial laws which administers the relations and activities of those entities. Commercial law adequately administers exchange among businesses and customers. It makes a managed framework that is reasonable for the two gatherings so the exchange can be directed sensibly. The report takes a look at the, "Analysis of the Role of a Business Entity with Commercial Law". Commercial law outlines the legal responsibilities of business and consumer, helps understand and manage financial transactions and resolve conflicts and disputes. Based on the above, this report gracefully shows our view of the sorts of components of the business entity concept.

Chapter1: Introduction The business entity supposition is a bookkeeping rule that makes a legal qualification between the exchanges done by a business and the exchanges of the proprietor. It may likewise at times allude to the partition of various divisions in an organization. Every unit keeps up records of its tasks and is answerable for its exchanges. It doesn’t just apply to the more prominent substances yet besides, the littler endeavours too. A sole owner should keep his exchanges separate to the business exchanges. This supposition is additionally substantial for business with various tasks. For instance, an organization may have two businesses – an aircraft and an inn. Normally, the organization would introduce the budget summaries of these two substances independently with the goal that the genuine estimation of the organization can be determined. The most widely recognized kinds of business elements are: “Sole Proprietorship” which simply refers to a person who owns the business and is personally responsible for its debts & “Partnership” which is a formal arrangement by two or more parties to manage and operate a business and share its profits. Commercial law is a body of law that regulates the conduct of persons, merchants, and businesses who are engaged in trade, sales, and commerce. Commercial law adequately administers exchange among businesses and customers. It makes a managed framework that is reasonable for the two gatherings so the exchange can be directed sensibly.

of his law, but merely a convenient denomination of transactions which he had been trained to label" With the adoption of the Uniform Commercial Code in virtually all jurisdictions of the United States, however, "commercial law" has been used more often as a synonym for the body of law included in the Code. Now here is this development of usage more pointedly illustrated than in the recent revision of the entry for "commercial law" in the latest edition of Black's Law Dictionary. In the 1968 edition the entry read: "A phrase used to designate the whole body of substantive jurisprudence applicable to the rights, intercourse, and relations of persons engaged in commerce, trade, or mercantile pursuits. It is not a very scientific or accurate term. As foreign commerce is carried on by means of shipping, the term has come to be used occasionally as synonymous with "maritime law;" but, in strictness, the phrase "commercial law" is wider, and includes many transactions or legal questions which have nothing to do with shipping or its incidents......"

Scope of the study:

The study focuses on different types of business entities and the laws guiding the activities of those entities in the present complex corporate world. As such it makes use of corporate laws in deals between businesses and customers. The report focuses on the implications and significance of the business entity concept and the effect of commercial law on the business entities. It also outlines the importance of commercial law on managing the interrelations of business entities with other businesses, customers, government, society and other stakeholders.

Methodology :

Usually there are mainly two sources of data, the “primary source” & the “secondary source”. Primary Source : Because of some limitations, we were not able to collect data from the primary sources. So, we mainly focused on the secondary sources to collect the necessary data. Secondary Source : We have collected our necessary data from secondary sources & they are : ❖ Various business & law related books ❖ Business related articles ❖ Law based articles ❖ Newspapers

Limitations of the Report:

It is observed that almost all study has some limitations while researching. During the performance, we also faced some limitations. These are as follows: ❖ Shortfall of knowledge- As some of the fields were not covered by the academic courses and there was short time to have knowledge over those unrelated topics, sometimes there was difficulty faced in understanding some activities.

Chapter 2:

Understanding Business Entity and Commercial Law

In order to understand the role business entities play in terms of commercial law, we first need to establish what the two major players of this analysis “Business Entity” and “Commercial Law” actually entails. In terms of law, A business entity is an entity that is formed and administered in order to engage in charitable work, business activities, or any other activities allowable. Usually, a business entity is formed to sell a product or a service. There are many types of business entities defined in the legal systems of various countries. Some of these are: ● Corporations, ● Cooperatives, ● Partnerships, ● Sole proprietorships, ● Limited liability companies and any other type of legal business permissible by the laws of that country. Corporate law refers to the laws, rules, and regulations that pertain to corporations. Corporations are unique in that they’re seen as completely separate entities in the eyes of the law. The laws involved regulate the rights and obligations involved with the business activities of a corporation, including formation, ownership, operation, and management.

Although this definition might seem similar to what we refer to as “Business Law” at first that is not necessarily the case. Business law covers issues like employment, contracts, and taxes. Corporate law, on the other hand, handles big picture concerns, such as buying decisions, mergers and acquisitions, and shareholders’ rights. Commercial law is one of the most relevant legal territories when it comes to business. This region of legislation handles problems relating to commerce and communication between companies and consumers, and it also extends to fields of collective deals, corporate arrangements, cash transfers, and from there the sky's the limit. Many companies are engaging in trading with their clients without even considering the legal side of their business. But even so, getting the trade law knowledge and comprehension will help in the success of a business.

In the economic situation today most entities are well versed or employ professionals of the law to guide the arrangements so that they are in line with commercial law. However even then new landscapes ever raise new situations for Entities to Change the law that regulates them. As seen here in the cases of : European Medicines Agency v Canary Wharf Group [2019] EWHC 335 This case had significant implications as it established that Brexit did not provide sufficient grounds to create frustration’ and to allow a business to escape contractual obligations. This will inevitably provide a greater degree of certainty to the property market and ensure that Brexit will not have a major destabilising effect on existing contracts. Tillman v Egon Zehnder Ltd [2019] UKSC 32 This case was significant as it clarified the application of the severance principle in restraint of trade cases and emphasised the importance of drafting explicit contracts and restrictive covenants. Wood v Capita Insurance Services Ltd [2017] UKSC 24 The Supreme Court arrived at the view that textualism and contextualism are not “conflicting paradigms” but rather tools to interpret the language within contracts. This affirmed that a balance needed to be struck between the two as contractual interpretation is a unitary procedure, hence the decisions in Arnold v Britton and Rainy Sky SA v Kookmin Bank are not at odds. And in this way, we can see that the role of a business entity in relation to commercial law is one of a symbiotic system that, propped by the current social system, forms a sustainable though not perfect process to handle conflicts of transactional nature.

Chapter 4:

Findings and Recommendations

Findings :

Commercial law has a major driving force to a business entity. It mostly impacts positively in virtually every function of a business. In every sector of business, commercial laws are applied in order to provide proper direction and guidance.

1. Resolving conflicts and disputes There are a few stages that occur with conflicts & disputes. They are negotiations, even mediation, arbitration and also litigation. These are the stages of any conflict or also known as dispute resolution. This whole process will leave you feeling overwhelmed. Without a commercial lawyer on your side, you are not going to know how even to approach any disputes or conflicts. So it goes without saying now that a commercial lawyer is crucial for any successful dispute between a business and consumer. Also, an individual should be aware that any lawyer will do their utmost to avoid any disputes going to Court, but this is something you won’t be able to avoid without their expertise. 2. Preventing from fraudulent activities Commercial law can likewise keep a business entity from encountering any migraines with clients if they had a comprehension of commercial law and how to utilize it in your business rehearsals.

5. Helping to prosper Overall, commercial laws help business entities to prosper in the long term business. It prevents you from making unexpected decisions. Therefore, your business gets protected from unwanted circumstances.

Recommendations:

One can see that commercial laws undoubtedly have a crucial impact on the manner business is conducted nowadays. It must however be noted that commercial law alone cannot lead to productivity growth of a business entity. It depends on how the law is actually applied in business processes. Moreover, a company's ability to innovate its work processes and business routines with support of commercial law are also quite integral for doing business. Therefore, proper application of commercial law along with creativity and productivity is necessary.

Chapter 5: Conclusion