Understanding business laws and regulations is very important. This is because, as a small business the company is subject to the same regulations and laws as large businesses. Though, for small businesses, compliance with the Small Business Act is recommended.
Business owners are advised to ensure compliance with certain regulations from the first day. These include:
The key to success for any business is its advertisement and marketing skills. However, the keenness to succeed can become a big problem if you over do things. Therefore, there are laws governing advertising that must be complied with. These include the following best practices:
Hiring employees is not as easy as it seems. There are laws and regulations to abide by. Compliance with these must start from the recruitment and selection process. After hiring, there are regulations governing best practices for the work environment and job description. These laws have been stipulated by the federal and state government. Some examples of laws include: Child Labor Law, Employee Discrimination and Harassment Law, Appointment Termination Law and Wage and Hour Law.
There are finance laws that businesses must abide by. These include: laws about antitrust, security, investment and bankruptcy. Business involves a number of risks and these regulations make business decision making and risk management easier.
When a business invents a new product, idea or tool it has the right to protect ownership. Businesses can get copyrights to safeguard the intellectual property. Compliance with this regulation is good for ownership rights.
Online businesses also have laws to ensure compliance with to protect them against financial and legal liabilities. These laws govern taxation, copyrights and security. The laws regulate online international sales and collection of sales tax over the internet.
Business enterprises are bound by law to protect personal information of their customers. Identity theft has become a major threat in recent times. Likewise, to protect children using online services there are specific laws to comply with.
Business and industrialization has had a major impact on the environment. This has led to establishment of new laws to protect the environment. For example, there are laws about the Ecosystem, Air Pollution, Fish and Wildlife and others.
It is mandatory for any business enterprise to lookout for the wellbeing of its employees. The work environment must be free of hazard and in compliance with health regulations.
Businesses hiring foreign workers have to abide by the Immigration and Nationality Act. Depending on the country in which the business is, there may be limitations on where immigrants are allowed from.
These are the laws and regulations for business best practices. Abiding by these will mitigate risk of legal action against the enterprise.
One of the most important things needed to run an organization successfully is regulation. Codification of laws and rules ensure organizational prosperityand keeps the profit flow intact.
Set by the government or any other standard organization, regulations help everybody in their implications.
Over the years, the imposition of control has resulted in the betterment of many areas.
In economic issues, it helps keep a balance on monetary transactions within an industry. Fixed costs of production and selling approved by the government increase the total revenue for both the government and the industry.1
Monopoly doesn’t allow small investors to come up. The entire market is taken up by a single group of businessmen or by cartels. Codification on dealings in the market helps reduce monopoly to a notable extent. Bank modulation is also quite beneficial in keeping an eye on a country’s capital influences.
Moving on to the environment, rules and laws have helped make the world a cleaner place over the years, at least on the developed side. It has ensured the safety of endangered species of animals and plants giving way to a greener planet. The lack of oxygen is also being filled slowly but efficiently due to preservation of forests.
Restrictions on hunting certain animals have saved them from early extinction and fishing laws have helped conserve the rapidly disappearing sea creatures.
Collective action has also resulted into a healthier social life with people increasingly signing up on social networks and taking actions as a group towards the misanthropies in society.
Regulations have a great deal of influence on our lives be it financial or environmental, they benefit us everywhere and keep the balance of life in check. 2
For any company or organization, the implication of codification helps increase output and increase work efficiency with reduced hazards. If there are no rules to follow in an industry, fatalities can occur among workers disturbing the whole output of the company. Many mishaps can also occur without codification such as product flaws etc.
Business regulations are the same for everyone. Be it a big business, medium-sized or small, the rules are the same and applicable to all. A business is only successful when it follows laws encrusted with best practices. It’s the only way for a business to flourish and grow without being harmed by economic conditions on a harsh level.
People will know if a business even exists unless there are advertisements describing its aim and purposes. The advertisements put forward by any business should always be correct and must abide by the best practices. There should be no hint of dishonesty in its slogans or even the labels of its product. Customers scammed into buying something bad won’t return to the same maker twice.
Some small businesses try to save money in every possible way. This includes the advertisement of many products on the expenses of one. All crammed together confusing the audience as to which product is actually being advertised.
Some businesses also tend to overwork their labor force giving false advertisements in the newspapers. The people who read these ads look for an opportunity to work freely, instead of being forced into back breaking labor. Child labor, appointment, discrimination and harassment, etc. are all laws introduced by the government for stopping manhandling and securing the rights of the labor.
Business regulations regarding security of capital, investments and bankruptcy aversion have been of great help for people and institutions seeking the lowest possibilities of risk. These also involve the safeguarding of copyrights claimed on an intellectual property.
Conducting businesses online also needs to be looked over for compliance of regulations. As international sales and taxes make a huge part of the earning process, the taxes imposed on each station should be legitimate and in accordance with the international postal requirements.
The environment should also be kept in mind while manufacturing products that require the use of harmful chemicals resulting in reduced natural beauty. This also includes the laborers working in such hazardous environments that need proper safety gear for protection from harmful bacterium.
The human society is governed by specific laws and regulations to keep them out of harm’s way. Similarly, the business world also has some rules and regulations that need to be followed to create a safe financial environment. Rights of the consumers and employees are safeguarded in the event of a law suit or any other criminal charges faced by an organization or business.
In order to protect the rights of employees along with the environment, the United States government has lay down numerous business regulations. These regulations are put in place to make sure that corporations are held accountable for possessing the amount of authority they have over a society that’s completely driven by business practices.
Although all regulations forming the business framework are important, a few of these laws are more prominent as compared to the others because of their significance to each and every employee and consumer residing in the United States. These include best practices in privacy, advertising, health and safety issues, environmental protection, and protections of the rights of the labor and employment laws.
For small businesses, it is highly advisable to hire a business attorney who can save you from being subject to lawsuits and confiscation of personal assets. This could provide your business with a veil of corporate safety that would keep creditors out of sight and away from taking over your business. The attorney will explain you everything that you need to know about business regulations. Though this may not give you the title of a real corporation, it can help you maintain a distance from possible financial hazards.
While following regulations set forth by the government to maintain equilibrium in the business world, the first thing that you need to do is get a license from the secretary of state’s office. This will allow you to continue carrying out business tasks without any difficulties.
After registration, your attorney will guide you through the next step and so on. One of the best advantages of hiring an attorney is the fact that the lawyer will hang about side by side of the many modifications that take place in the area of trade licenses and commercial tax matters. The attorney will also guide you through the merits and demerits of being a single owner of a business or having a partnership with someone else i.e. some other big firm or organization etc.
An agreement that is enforceable by law is known as a contract. However, not every contract turns into an agreement due to the lack of one or more essential elements of a valid contract. When preparing a contract, business regulations must be brought into consideration.
Given below are the ‘must haves’ for every contract, for it to be enforceable in the court of law.
All the parties to the contract must intend to create a legal relationship; otherwise the agreement will not be enforceable. In general, there is no intent to create a legal relationship in domestic agreements. Nevertheless, it is presumed that business parties intend to enter into a legal relationship until mentioned otherwise.
The contract must be for a legal task. Anything announced illegal cannot be part of the contract. In addition to the task, the consideration should also be fully lawful. Partial lawful and partial illegal contracts are also not accepted in most cases.
Law has declared certain agreements void, such as agreement in restraint of trade. However, there are often certain exceptions to these rules.
There should be a valid offer and acceptance. An individual cannot make an offer to himself or herself, which is why it is important to have two or more parties to a contract.
The consent of both the parties must be free. If there is coercion or any other mean of forceful acceptance, then the contract will not be enforceable.
All the parties to the contract must have the capacity to enter into a contract. Some parties, such as minors, cannot enter into a contract, which is why any contract with such parties will not be lawful.
Ambiguity is not acceptable in a contract. It is important to use clear language that explains everything and leaves no vagueness. All the parties are also needed to agree on the same thing in the same context.
The job for which the contract is signed must be possible. For example: a contract for a new painting by a dead painter is not a valid contract because it is not possible for the dead painter to paint a new painting.
A contract is a two-way process. Both the parties have to give or take something. Consideration in simple words is the price for the contract. Law requires consideration to be lawful; otherwise the contract will not be enforceable.
All the legal formalities should be fully completed. Some contracts are required to be in black and white, such as a contract to sell immovable property. Such contracts are not lawful until they are in writing and signed by all the parties. It is important to know all the legal formalities and fulfill them properly.
It is important for every business or individual to make sure that a contract meets all the legal requirements; otherwise, it will not be enforceable and the parties will not be able to bring it to court in case a dispute arises.
Starting a business is not as easy as some people like to think. Surprisingly, some people have the idea that all they need is finance and an idea to run a business. Well, technically, it might be correct; however, starting a business is not everything.
The main thing is to start a business and run it successfully. Many businesses start off well but lose steam midway, unable to grow and be popular.
There are many ‘best practices’ in this regard that highlight what you should do and what you should not do to start and run a business successfully. To make this even easier, we have broken the whole process into some simple steps so that you can easily be a successful entrepreneur.
First of all you need to have a strong business plan. Do not jump the bandwagon and do what everyone is doing, until you can actually do it better than the rest of them. Come up with a unique idea that has potential.
Some important pointers that have to be cleared at this stage include:
- The Name of the Business
You will have to choose a name for your business that should be catchy and unique. Additionally, you must make sure you meet the law requirements and do not end up choosing a name that is illegal or already registered.
- The Type of the Business
You will have to decide the nature of your business, i.e., single proprietorship, partnership etc. All the processing will be done depending on the nature of the business, which is why it is important to be clear regarding this aspect.
- The Location of the Business
If you are planning to have a physical office for your business make sure you choose it carefully. This point should be briefly explained in your business model.
Business tycoons like Bill Gates have proven that the ability to successfully run a business is inborn; however, one still needs training and education to be able to survive in this cut-throat environment. It is important to be aware of all the ins and outs of the business world before you start your own business.
Venture capital, saving and investors are some of the ways to finance your business. If you do not have enough finance, you can take loans from financial institutions. However, it is recommended that you look for someone who may be interested in investing in your business. Moreover, you will need to have a strong business plan to be able to convince potential investors into investing in your business.
It is important that you seek help from an advocate to take care of compliance and legal issues. You may have to register your business, get a tax identification number and file documents with the authorities to be able to begin working. Certain businesses also require licenses and permits.
Now that the business has started, you must make sure to responsibly play your role that involves handling everything from hiring people to marketing the business.
Remember these simple steps and you will easily run your business. It is vital to remember that things may go wrong and it is all about fighting and having a backup plan.
The WTO is one of the largest organizations in the world that air towards improving trade relations among countries. The organization has over 150 members with new countries looking to join membership soon mainly due to the benefits the members get to enjoy.
Some of the main advantages of its trading system are given below.
The WTO encourages free trade among nations. Due to its efforts, countries that were not on good terms came close with relationships improving. It is considered a strong tool in improving countries’ relationships that help bring peace to the world.
Under the WTO’s rules and regulations all the member countries have to follow certain rules and regulations. The organization has set a framework that has to be followed in case any kind of dispute arises among countries.
The availability of a solution beforehand allows disputes to be settled in a courteous manner without things getting ugly. Ever since the WTO came into existence the number of altercation among countries over trade issues has gradually declined.
Due to the WTO’s efforts, international goods are available around the world. This gives rise to competition which means all the producers work hard by providing customers with high quality goods at affordable rates.
When rates fall, people get in a position to buy more with their limited income allowing them to enjoy more benefits hence a decreased cost of living.
Many people credit the WTO for improved living standards in many countries. Due to its efforts, big brands and known names have reached every corner of the world. In addition, high quality products from developed countries are easily sold in underdeveloped countries allowing people from such countries to enjoy the same benefits so that they do not feel deprived.
When people get to enjoy such luxuries, their standard of living ultimately improves. However, this process may take a long time.
Thanks to the WTO’s efforts, countries have quickly grown in GDP as they get in a position to produce more and sell more thus increasing their exports that have a direct result on the GDP.
This is not only beneficial for one country but for both the countries because under the WTO’s agreement all the countries deserve the same rights and should enjoy the same benefits. It emphasizes on “non-discriminatory” behavior so that all the member countries are in a position to strengthen their economy and attain higher growth rates.
Under the WRO’s policy, once a commitment to liberalize trade is made it cannot be reversed, until agreed by all the countries so that such a decision does not cause any sort of loss to any member country.
Such rules discourage unwise policies by countries and allow businesses to enjoy clarity and certainty as the risk of trade related policies fluctuating regularly is minimized. This means good discipline for government as a stable economy and government is appreciated by all the sectors.
The World Trade Organization (WTO) is an international organization that supervises international trade. Initiated on January 1st, 1995, the organization provides a framework for formalizing and negotiating trade agreements so that disputes can be easily settled and all the countries can work seamlessly.
The organization currently has 157 member states that follow its framework. It understands the need for regulations and has a set of principles that must be followed by member nations. They are explained below in detail:
The organization has ‘national treatment policy’ and ‘most favored nation’ rule that are embedded in the organization’s main set of laws on services, goods and also intellectual property. As per the rules and regulations under the most favored nation, a WTO member is required to apply the similar conditions on all kinds of trade with any other member of the organization.
I.e.: If a country gives any kind of special favor to a member country then it must give the same favor to other member countries. This means that a country cannot give any kind of trade related favor to a country on grounds such as friendship etc. because as per the WTO all the countries are equal and should be treated that way.
In the same way the national treatment policy also guards countries’ rights. As per the policy, the imported goods should enjoy the same rights or be treated in the same way as the goods produced in the country. The aim of this policy is mainly to control trade barriers such as technical and security standards that stop a country from reaching other markets and growing.
Reciprocity is mainly there to control free-riding, which is a situation in which a country or organization enjoys benefits without putting in efforts. Since free-riding may be caused by national treatment policy, the WTO has strict sets of laws to control it.
The main aim of reciprocity is to allow a country’s own corporations to grow and nurture. For a nation to bargain, it is important that its growth is larger than the growth it may enjoy from unilateral liberalization. The main function of reciprocity is to make sure that countries meet this requirement.
World Trade Organization’s members prepare tariff commitments that are spelt out in a detailed schedule. The points tell about multilateral trade negotiations so that problems regarding such trade can be easily solved.
These schedules are used to create boundaries or ceilings that every member country must adhere to. However, if a country feels the need to change its limitations, it has the right to apply for a change in the schedule. Nonetheless, the country needs to negotiate with other trading partners and reach a settlement with their consent making sure that no country has to face any kind of loss due to the change. Yet, if that does not result in satisfaction the country has the right to opt for dispute settlement.
As per rules it is obligatory for all the members of the WTO to issue their trade regulations. The main purpose of this law is to allow the organization to go through the details so that decisions are taken keeping the member countries’ situations in mind.
In certain scenarios governments have the right to put restrictions on trade. If a country feels that trade puts its environment or nation’s health (population, animals or plants) at risk then it may impose bans. However, it must still meet certain criteria and must be done with a fair view without any mala fide intentions.
With trade turning international and borders virtually disappearing, there was a dire need to have some trade regulations so that the system can be balanced and things can flow smoothly. This is why there are several organizations performing jobs that include creating trade regulations and making sure they are implemented. In simple words they provide best practices in trade.
With time, trade regulations also rose as a law field educating people about the trade regulations, their use and practice. The field tells people about the unfair practices so that they learn about competition and other trade related issues.
Currently there are several organizations playing such roles and making trade regulations. Two of the most famous and well-recognized organizations include:
- World Trade Organization (WTO)
The WTO is an organization that aims to supervise and liberalize trade among nations. Initiated on January 1st, 1995, it is the most well recognized trade regulations organization in the world with 158 member states. However, due to its decisions the organization often falls victim to criticism from different sectors. Nonetheless, its role and importance cannot be neglected.
The organization’s main objective is to give countries a framework that they follow so that they can prosper. It appreciates free trade among nations and has a set of rules and regulations in place that have to be followed by all member nations. As per the rules, all countries are to be treated equally and be given the same rights so that they can utilize their resources to move ahead in the race.
The WTO also gives its members the right to settle disputes through a proper channel in case a problem arises. With its headquarters in Geneva, Switzerland, the organization has its presence around the world and has over 600 employees working for it.
- Organization for Economic Co-Operation and Development (OECD)
The organization initiated in 1948 mainly to administer the Marshall Plan to reconstruct Europe that was suffering from the aftermaths of World War II. The organization’s head quarter is stationed in Paris, France with membership of 24 countries.
Its main objective is to help improve countries’ economic conditions through trade. The organization defines itself as a forum of countries committed to democracy and the market economy, providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies.
It creates policies to help countries achieve higher standards so that their economic conditions can improve. The organization also publishes several hundred books every year and conducts meetings regularly to discuss the changing economic scenario so that policies can be created in the light of them.
There are many benefits of having such trade regulations in place. They are advantageous for both developed and developing countries as they secure everyone’s rights believing in equality.
Due to its policies, small and developing countries like Bangladesh are able to send their goods to far off countries in Europe and America. It also ensures that competition is fairly handled with no one getting robbed of their due share.
Trade regulations also allow for a smooth flow and results in less disputes because there is a set of regulations that nations follow in case any such problem arises. Many people credit such organizations for growing peace as they help improve relationships among countries.
There are various techniques of collecting behavioral data. Many research organizations are offering services in this regard mainly due to the huge demand of such data. Many types of businesses and industries require such information for various reasons.
Highlighted below are five such businesses that require personal behavioral data.
Entertainment industry including music and movie industries need behavioral data so that they can produce dramas or movies that people like. For example: If the data indicates that people like romantic movies or the trend of action movies is in then producers can concentrate on cashing in on them and avoid other genres.
This is a strong marketing strategy that helps industry insiders predict the future as well.
Advertisers need behavioral data so that they can target people accordingly and get desired results. The main purpose of advertisement is to grab attention so that eventually sales can increase, which result in an increased profit. This cannot be done until advertisers are aware of the people’s behavior.
For example: In online advertising, CTR (click to ratio) rate is counted which helps advertisers know how many people actually click on their advertisements. By knowing such numbers they can decide from which website they will receive maximum advertisements.
Just like advertisers, publishers also keep such information very dear. This helps them serve advertisers in a better way. Publishers know what kind of advertisement visitors like or which places generate maximum impressions (the number of times a person sees an advertisement). This helps publishers create packages.
This also allows publishers to control information in a better way. For example: If they notice that users are not clicking on any specific advertisement they will realize that there is something wrong with it and they can make changes accordingly.
The technological industry also needs behavioral data. Technological advancements are generally made keeping viewer’s behavior and needs in mind. For example: Fans are believed to have been invented realizing how people needed to cool themselves in warm temperatures. By noticing this behavior, scientists and experts worked even more and came up with air conditioners that serve the same purpose but in a better way.
All other businesses also need personal data. The main reason is the fact that every business tries to maximize profit which is not possible until they are aware of customers’ behavior and needs. Production, which at times is done in advance, is also based on behavioral data to a great extent. Information gathered helps producers know what kind of items people want and in what quantity so that they can produce at the right level and do not have to face any kind of loss.
These are some of the industries that use behavioral data. It will not be wrong to state that almost every industry needs it for one reason or another because at the end of the day this is what one needs in order to cater to customers in a better way.
In this section we will discuss: