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In today’s era, businesses play a prominent role in a country to uplift its economy. Hence, it is also essential for a government to regulate and monitor these businesses as well. From this point of view, business law came into existence. It is nothing but just the involvement of a government in regulating and monitoring businesses.

Perhaps it is not universal, laws are like language it differs from country to country as per the country’s needs and wants from business. These laws help the government to take corrective actions, prevent disputes, and other regulating matters. As there were several definitions of business present in the world same-as there several definitions of business law were also given by jurists. As we see that several scams happened through these businesses every day since business law is required in every country for smooth regulation on them.

In this research, we will discuss the need for business law from both the point of view either merchants and people. Also discussed several researchers in our literature review section. We will analyze how business law works and how it regulates business operations smoothly.



It states that there were wide range of business operates in the world and how business laws operates the rules and regulation in there operations. It states that the business law are the envolvement of the government in the contract between people and merchant. It will help to resolve the disputes arises between them and also protect them form any kind of scams and frauds. Basically, it will lead to smooth working between the people and merchant. It not only deals with business external parties but it also deals with internal parties as well. It also regulates the debtor and creditors of the business as well.

It regulates employee and employer relation-

  • In case of payment given by the employer to the employee
  • Obligation of employer to indemnify his employee in case of reasonable expenses incurred by the employee in term of employment
  • Protection of employee from reasonable risk of health and safety etc by the employer
  • It creates the mutual relation between the employee and employer
  • Protect the confidential information [1]

that the area of tort law is “so broad that to determine its limits with any degree of precision would be an impossible task” but that tort law has characterized a tort as a “wrong committed against another, or against the person’s property or reputation, either intentionally or unintentionally.” The basic premise of tort law is as follows: An obligation in tort law is owed to a person (e.g., there is an obligation to provide a client with sound accounting and business advice). If that obligation is broken, the accountant is a tortfeasor (one who has committed a tort ), and the client would be entitled to sue the accountant for any injury or losses suffered. If the client wins the lawsuit, the court will hold the accountant liable and will probably order the accountant to pay damages to the client. Even though a tort and a crime may arise from the same set of facts (e.g., hitting someone involves both the tort of battery and the crime of assault; taking someone’s golf clubs is both a tort of conversion and a crime of theft), it is important to distinguish between the two.

What is Business?

According to Akrofi (2019) one definition of “business is the production, distribution, and sale of goods and services for a profit”. Critical examination of the definition shows other key words such as production and distribution as defined as follows. First, production is the creation, manufacturing of services or the changing of materials into products. One example is the conversion of gold ore into ornaments and iron ore into car parts. The movement of these products from their manufactory sites to the workplace referred to as distribution.[2]

It states the law relates with the justice. Till the social harmony is maintained between them but when any dispute occurred and any party claim injunction  for fraud or injury done to their property, then these law helps to provide justice to that party.

Digitalization of Business Law: Urgency and Orientation of the industrial revolution 4.0 and Society 5.0

It states the digitalization of business law, with the growth in technology and information it is also important to digitalize the business law as well. It will help to reduce the overlapping of the rules and regulations and also contribute to development. As we will know nothing is permanent our needs and requirement are kept changing with changes in time, hence they must be required to be updated or amended as time changes. Through digitalization, the amendment or change in any law will be far more easier and effective as well.

In the Modern era, many businesses started to deal with their business online as well hence, digitalization of laws will also be important for their effectiveness in the current era. Development or upgradation of legal science will lead to providing justice in a much more effective way.

The development of law is unavoidable, especially in the face of the times. The development of the times as part of the renewal of civilization is a common thing, especially related to humans’ creative and progressive souls. As creative beings, we always have an orientation to make changes and updates. That is related to the renewal and development of the times in various activities of human life. The development of the times in various activities of human life is no exception to the increasingly massive development of technology and information. In this case, the development of legal science must also adapt to the development of technology and information. That is because, as one of the social-societal subsystems with normative and authoritative characteristics, the law must be able to predict and even facilitate various technological and information developments to be able to provide benefits to the community.[3]

It will lead to protecting humans and other public interests from scams and frauds. By doing this we can create a healthy ecosystem for business practices all over the world. And able to tackle or handle modern disputes between merchants and people which will arise.

Application of Business Ethics and Business Law on Economic Democracy that Impacts Business Sustainability

It states that business law has a significant role in all kinds of business, trade, affairs etc. every business have there own principles and policies hence it is important to regulate them with uniform laws, and since every country has there own laws and regulation to create uniformity in their country.

Application of Business Ethics Business Ethics in a company is a significant factor; a business, or company, if they want to run it successfully, does not only consider good management or good quality of human resources but must apply good ethics in its business. (Hasoloan, 2018) Business activity cannot be separated from the community because the community is a component that runs a business. Therefore, in business activities related to the community, there is a need for regulations or norms in society. As a result of the continuity between business and society, it is the emergence of new ethics in business activities, whether it is the relationship of business ethics with the community, fellow people in business, or directly and indirectly. (Hanie, 2015) Many companies and micro, small, and medium enterprises are currently newly formed. The many business opportunities that occur make many people think and use them creatively and think of the latest innovations to create new companies or become entrepreneurs. Of course, to form a business or business entity such as a company, it must have a company establishment permit from the Ministry. (Hasoloan, 2018) With the implementation of ethics in business activities, business people or companies can quickly gain the trust of other business people or the public. Because if we carry out ethics properly, we are seen as good or capable of running a business in the future. (Saputra & Ali, 2022) Business Ethics has been widely studied by previous researchers, including: (Kholisoh & Ali,2020), (Hasoloan, 2018), (and Hanie, 2015).[4]

It states the two points of view one is the business point of view and the second is the general public point of view, the business laws protect both of them from scams. And help in smooth operations. It is essential that no one violates mutual greed during operations. And it will help to create a healthy relationship.


The major problem of business law is divided into two parts.

First, the effective implementation of the laws in the country. Sometimes, the law are looking very handsome but it seems difficult to work effectively after implementation. Hence, the law which was made must be reasonably implemented and practically possible. Making laws without the practical aspect of keeping them in mind will lead to ineffective law. Many countries sometimes copied the laws of a different country without understanding the nature of the business environment in their country. That will also initiate a dispute between merchants and people. In some countries, businesses are more dominant over people and people are not able to protect their rights and interest, in these countries business law must be able to protect the interest and rights of the people from malpractices of business.

On the other hand, in some countries, there is a requirement to make business laws in favor of merchants to initiate the business because in that country starting a business will be considered a difficult task. Hence it is important for them to smoothen the process and operations of the business because the business will one of the major contributors to the country’s economy. In the current scenario, no country can grow its economy without business and healthy business, they required effective business laws, hence business laws will indirectly contribute to the economy of the country

Second, efficient business laws must be created which able to survive in the country’s business environment and both merchants and people will able to accept them, and it will on possible if the laws are able to safeguard the interest of both of them and practically possible to comply with them. Law must be too restrictive in doing business otherwise it will downgrade the number of businesses in the country, which will drastically slow down the economic growth of the country it should not be unnecessary in favor of businesses, otherwise it will initiate scams and frauds in the country.


In our opinion, business laws have a backbone of the business because in the end businesses have to comply with them and people’s interests was also dependent on them. The true nature of business law is to smooth and healthy rules and regulations must be created so that the business will operate effectively and efficiently and the interest of the people will be safeguarded.

It is regulated every type of business whether sole proprietorship to company limited. And controls the disputes that arise between them. Judiciary was also given decision keeping in mind these laws. It helped the judiciary to resolve the dispute effectively as well. It indirectly contributes to the economy of the country. It is created while keeping in mind both the point of view of merchants and people.


 What is Business law?

How does Business law work?

Problems related to Business law?


We address this issue because business plays a significant role in our economy, hence business law is vital for regulating businesses. That is why for clarifying the several doubts about business law. We address this topic.

[1] https://www.researchgate.net/publication/349442951_ARTICLE_ON_BUSINESS_LAW_IN_AN_ECONOMIC_ERA

[2] (PDF) ARTICLE ON BUSINESS LAW IN AN ECONOMIC ERA. Available from: https://www.researchgate.net/publication/349442951_ARTICLE_ON_BUSINESS_LAW_IN_AN_ECONOMIC_ERA [accessed Jan 07 2023].

[3] (PDF) Digitalization of Business Law: Urgency and Orientation of the Industrial Revolution 4.0 and Society 5.0. Available from: https://www.researchgate.net/publication/366533210_Digitalization_of_Business_Law_Urgency_and_Orientation_of_the_Industrial_Revolution_40_and_Society_50 [accessed Jan 07 2023].

[4] (PDF) Application of Business Ethics and Business Law on Economic Democracy that Impacts Business Sustainability. Available from: https://www.researchgate.net/publication/360008708_Application_of_Business_Ethics_and_Business_Law_on_Economic_Democracy_that_Impacts_Business_Sustainability [accessed Jan 07 2023].


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July 2024