Difference Between Mercantile Law and Business Law
The difference between mercantile law and business law begins with understanding what constitutes mercantile law.3 min read updated on February 01, 2023
The difference between mercantile law and business law begins with understanding what constitutes mercantile law. Mercantile law is a collection of laws that relate to trade, industry, and commerce. This branch of law is a very important branch of civil law. It is also known as commercial law.
Components of Mercantile Law
Mercantile law is wide-ranging and includes law relating to:
- Contracts.
- Partnerships.
- Sale of goods.
- Negotiable instruments.
- Companies.
- Insolvency.
- Insurance.
- Carriage of goods.
The laws deal with the rights and obligations that come between mercantile transactions and mercantile persons. A mercantile person can be any individuals, partnerships, or joint stock companies that take part in commercial transactions. One of the main components of mercantile law is for merchants to avoid conflicts that arise when interacting with business contacts.
Indian Mercantile Law
Based on English mercantile law, the main sources of Indian mercantile law are:
- English mercantile law.
- Statute law.
- Judicial decisions.
- Customs and usage.
In Indian law, prior to enactment, the personal laws were determined by the individual parties. Previously, transactions by Muslims were governed by Mohammedan law, and transactions by Hindus were governed by Hindu law.
The Difference Between Corporate Law and Business Law
The main difference between corporate law and business law relates to the kind of issues they focus on. Corporate law has a fairly narrow and specific domain, while business law covers many different topics that affect many kinds of entities.
Corporate law specifically relates to the formation and management of corporate entities. This includes management duties, shareholder rights, and any issues that appear within the corporation. In corporations, the laws apply to the corporation itself, not the owners. For example, the directors of a corporation would decide whether or not to authorize a corporation to distribute dividends. The legal aspects covered by corporate laws include the following:
- Sale and distribution of goods.
- Acquisitions.
- Mergers.
- Company formations.
- Rights of shareholders.
Rules and regulations for corporate laws are designed by the Uniform Commercial Unit (UCU). In the United States, the Uniform Commercial Unit establishes laws that control the purchase and sale of goods, and it is used as a benchmark for the creation of additional laws that also govern trade.
Business law is more general and includes laws related to various aspects of a business entity including:
- Employment law.
- Contracts.
- Taxes.
- Commercial transactions.
Entities can include sole proprietorships, partnerships, and limited liability companies. Business law would also include all employment laws and how the laws affect different business entity types. Employment law includes:
- The process of hiring new employees.
- The process of firing employees.
- The requirements related to how employees must be treated by their employers.
State and federal governments play different roles when regulating business law. The purchase of stocks, workplace security, and workplace safety is regulated by federal governments, while the state governments provide additional laws where necessary.
LLB Business Law
An LLB is a law degree that focuses on the law that is used within the commercial industry. The LLB degree program is described as a real-life application of the law and is a good choice for those looking to work in commercial or business applications. By studying laws related to the business world, the chance for higher pay is possible.
The cost of the program will depend on how the degree program is structured. If you take courses as part of your legal education, it will be less than completing both legal and business degrees. Additionally, these degree programs have qualifications that must be met including grade point averages and other educational requirements. In general, a bachelor's degree must be completed before beginning an LLB degree program.
In some cases, an LLB in business law can be completed online. This offers flexibility for students who need to work while also studying online. It also provides more time for personal obligations. If a bachelor's degree needs to be completed, an online program is a viable option. Those who complete the LLB program usually work within the business world and don't usually practice law, despite being licensed to do so.
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