Business law

Lecture 1

Business law
Bathó Gábor
Introduction

Aim of the course

Exam material:
•Lectures, slides

Exam
The subject
1. Business law
2. Corporate law
3. Business formation – business
structures
4. Business contracts 1
5. Business contracts 2
6. Property law
7. Consumer law
8. Antitrust law
9. Insurance law
10. Intellectual property law
11. Bankruptcy law
12. Mergers and acquisitions
Content

Business law
1. Place of business law in the legal system
2. Goals of business law
3. General definitions
4. Intersection with other legal fields
What is business?

The organised efforts of

enterprises to supply
consumers with goods and
services and to earn profit in
the process.
What is business?

Comprises all profit seeking

activities and enterprises
that provide goods and
services necessary to an
economic system.
What is business?

Complex field of commerce

and industry in which goods
and services are created
and distributed in the hope
of profit within a framework
of laws and regulations.
What is law?

Law is a set of behavioural

regulations, that are made
by state organs for the
state’s interests, and that
are enforced by the state
even by means of force.
Characteristics coming from the definition of law

Charateristics of law
-Made by law-maker organs
-The procedure of law-making is
regulated
-General, effective for all legal subjects
in a society
-Relies on state enforcement
Functions of law

Normative function
- To preserve order in the society

Political function
- To express and strengthen political
relations
 Birth of law

Sources of law
•Inner source of law: the organs creating the source of law
•Outer source of law: the form of appearance of the source of law

Birth of law
•Law-making through legislature (written law)
•Application of law in the practice of law-applying organs (unwritten
law)
•customary law
•judge-made law
 Birth of law

•Hierarchy of legal sources

• Higher and lower ranked legal sources
• Lower ranked legal sources must be in harmony with higher
ranked legal sources

•System of legal sources

• Act
• Decree
•…
 Legal system
Legal system
•Sum of all legal sources in effect in a state
•The legal sources are ordered into legal branches

Public law Private law

•Constitutional law •Civil law
•Administrative law •Family law
•Financial law •Labour law
•Criminal law •Business law
 Legal system

Public law Private law

Aim: practice, maintenance, exercise of Aim: private laws of persons
public powers
•Hierarchy, subordination •Coordination
•Extra rights of superior organs •Equal rights of parties
•Consequences without the will of the •Consequences because of the will of
parties parties
•Obligation or imperative regulations •Attributive regulations
•One of the parties is the state •Parties can be any legal subjects
Business law

- commercial or mercantile law

- branch of legal system which regulates

business activities
Business law

Business law encompasses all of the laws that

dictate how to form and run a business. This includes
all of the laws that govern how to start, buy, manage
and close or sell any type of business. Business
laws establish the rules that all businesses should
follow.
Business law

Business law is that portion of the legal system

which guarantees an orderly conduct of business
affairs and the settlement of legitimate disputes in
a just manner.

Business law establishes a set of rules and prescribes

conduct that enables us to avoid misunderstandings
and injury in our business relationships.
Goal of business law

•maintaining order

•protecting rights and liberties

•establishing standards

•resolving disputes
Objecives of business law

• Define the Rules of the Game

• Enable Enforcement of Right

•Facilitate Industrial Growth

•Achieve Social Justice

•Fix Priority of Wants

 Sources of business law

• (1) Legislation

•(2) Custom

•(3) Case law

•(4) Natural law

 Problems of business law

•Gap between Principles and Practice

•Enactment and Enforcement by different Authorities

•Road Blocks to Industrial Progress

•Short and Swift Road to Justifice for Wealth

•Loopholes in the Laws

 Effective business law

•Rules Must be Obeyed Voluntarily

•The Rules Must be Just and Reasonable

•The Rules Must be Flexible

•The Rules Must be Knowable

 Intersection with other legal fields

•Constitutional law

•Criminal law

•Private law

•Civil law

•Labour law

•International public law, international private law

Thank you
for your
attention!