Business Law is a subject that business and commerce students study in their course. Because they are not the students of Law therefore a question may arise in the mind of a student “Why I am studying business law?” but the answer is quite reasonable that a business student has to run some business in future, either his own or he may be a manager in some business owned by other individuals. In order to start and run the business smoothly he must know about the laws relating to his business issues. Now we will put into light some points due to which a business student should know business law.
Formation of a business In order to start a business there are certain legal requirements that must be fulfilled. Even if we talk about sole proprietorship which is simplest form of business also requires some formalities in certain businesses for example if a person wants to start a business of petrol pump or CNG station then he must obtain license. This requires legal knowledge which can be obtained by studying Business Law. If a person want to form partnership with other persons then in order to form a business in legal manner and to register it, so that their firm may enjoy legal benefits knowledge of law is required.
So in order to get this knowledge he must know the law that regulates partnership i.e. Partnership Act 1932. Similarly if a person wants to form a company then he must have knowledge of Companies Ordinance 1984. It reveals that in order to start the business knowledge of law regarding this business is essential which can be obtained by studying Business Law.
Formation of a valid contract Students of MBA after completion of their education enters in the market and in order to perform various business operations they have to make several contracts. These contracts should be formed without any legal fault, so that these contracts can be enforced by law if any party to contract breaches the contract. For this purpose they should know the Contract Act 1872. which regulates the enforceability of contracts in Pakistan. This act is taught as a part of Business Law subject. Therefore it is important for a business student to study Business Law.
Sale of goods MBA students after completion of their education may involve in sale of goods. So they must know the legal terms regarding the sale of goods. In sale agreement their company may offer after sale service and warranties. So a business student must know the legal status of these terms and warranties. This knowledge can be obtained by studying the “Sale of Goods Act 1930” which is also a part of Business Law. This discussion reveals that I study Business Law so that in future I can make sales of goods according to legal terms and conditions.
Carriage of Goods In the business world transfer of goods after sale is a routine matter. A business man not only sends the goods to others but also receives raw matrials which he purchases. So he must also know the legal provisions regarding the carriage of goods in Pakistan the Act which regulates it, is Carriage of Goods Act. So that in case of any loss incurred due to the mistake of carrier, he can recover it. Because the purpose of MBA is to make the students as good businessman in future therefore it is necessary to teach them this act which is a part of Business Law course.
Fire and marine insurance In international trade in order to reduce the risk of loss during the transportation of goods marine insurance policy is purchased. And in order to avoid the fire loss fire insurance policy is purchased. But in case of any loss getting claim from insurance companies require knowledge of Law regarding fire and marine insurance which is also a part of Business Law. So I study this subject so that in future if I face such situation I can handle it according to provisions of law.
Conclusion This all discussion reveals that in order to run all business operations a good business man must know the business law. Because purpose of doing MBA is to become good business man in future and perform all business operations according to law therefore I am studying business law.