Definition of Business Law According to Experts along with 3 Examples

Business law is a term used to describe a law related to a business. This itself is done so that in running a business, there are rules that regulate it so that it remains in accordance with existing laws and is fair.

Business law itself is often a science that many people are interested in. Where this is also supported by the high interest of the Indonesian people who have aspirations of becoming an entrepreneur.

To better understand what business law is, starting from the general understanding of business law, the understanding of experts, and various examples of business law, Readers can read the information below. Hope it is useful!

Definition of Business Law

Business law itself can be interpreted as a set of legal rules that are used to regulate procedures for the implementation of commercial, industrial and financial activities and affairs that have to do with the process of production and exchange of goods and services.

Business law itself is a written law with the aim of protecting, supervising and regulating all matters relating to industrial trade activities both in the field of goods and services.

By knowing business law, a business person can know what is right and make business law a guide for behaving and behaving in accordance with the business code of ethics.

Understanding of Business Law According to Experts

There are also several experts who express their opinions regarding the definition of business law, as follows.

1. Munir Fuady

The definition of business law according to Munir Fuady is a rule of law that is used to regulate procedures for carrying out trading activities related to productive activities and having a motive to gain a profit.

2. Abdul R. Saliman

Furthermore, the definition of business law according to Abdul R. Saliman himself is a legal regulation, both written and unwritten, the regulation is used to regulate the rights and obligations of agreements and also engagement in a business practice.

3.Dr. Johannes Ibrahim SH, M. Hum

Dr. Johannes Ibrahim SH, M.Hum also expressed his opinion regarding the notion of business law, he stated that business law is a rule of law that is used to regulate and also resolve various kinds of problems between human activities that can arise, especially in the trade sector.

4. Dudung Amadung Abdullah

Dudung Amadung Abdullah defines business law as a rule that has a focus on regulating all matters related to the activities of a business.

The existing rules are made so that a business can be run as fairly as possible. In addition, business law can also be defined as a law that originates from customs, agreements or contracts, as well as statutory rules.

5. Bestuur Rechts

The definition of business law according to Bestuur Rechts itself is everything related to the rule of law and can be conveyed either in writing or not in writing.

Business law itself regulates everything related to the rights and obligations owned by business people. It includes things such as legal agreements and also agreements in running a business.

Business Law Functions

1. A source of practical information

The first function is a source of practical information. Where business law itself can be used by novice business people not only as a rule, but also a source of information to find out what must be done and what cannot be done in a business.

The existing information itself can not only be used by beginners, but also professionals who are in the field of business themselves.

2. Inform the rights and obligations of a business person

The second function is to inform the rights and obligations of a business actor, where with the existence of business law this can be used as a direction for business people to better understand the rules that exist in running a business.

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Especially for business people who are just starting out, who often don’t know what their rights are and what they have to do in running a business. Therefore, it is very important for businessmen before starting their business to first study business law.

3. Creating fair behavior and attitude

The third function is to create fair behavior and attitudes. This is because with the variety of businesses that exist and are run by business actors, the existing competition is becoming increasingly stringent.

Therefore, not a few business people use various fraudulent methods to get ahead in the market. However, there are also businesses that are run by following existing business laws in a healthy, fair and dynamic manner.

With this business law, business people are encouraged to carry out their business activities in a fair and healthy manner. Where, if they do not follow existing business laws, they will get sanctions in accordance with the rules that have been in effect.

Purpose of Business Law

  • First, guaranteeing the functioning of the security mechanism in a market.
  • Second, protecting various types of existing businesses.
  • Third, it has a positive impact on banking finance.
  • Fourth, provide protection for economic actors.
  • Fifth, creating a fair and safe business.

Principles of Business Law

  • First, the principle of benefits.
  • Second, the principles of justice and humane equity.
  • Third, the principle of balance, harmony and harmony in life.
  • Fourth, the principle of independence with a national perspective.
  • Fifth, the principle of joint effort and kinship.
  • Sixth, the principle of economic democracy.
  • Seventh, the principle of building without destroying the environment.

Business Law Resources

Business law itself is created to protect various rights owned by a consumer or society in economic and business activities in society. Business law itself is made and formulated in such a way as to prevent and reduce fraud in a business so that no party is harmed in the process.

Based on the process, there are two sources of business law, as follows.

1. Source of Material Law

The first source of business law is a source of material law which is based on a material which eventually becomes a law.

If we talk about a source of law, then the scope itself will be very broad, this is because everything that becomes material or raw material for law can be called a source of law.

According to economists, an effort made by humans in meeting their needs can also be said to be a source of material law.

Where, events that occur every day are a result of interaction between humans with one another and are also referred to as a source of material law.

2. Sources of Formal Law

The second source of business law is a formal source of law which can be seen through the way it is formed and consists of the following.

Constitution

First, the law in the material sense which is all regulations issued by the government and has a binding nature.

The law in its own formal sense is a law made by the government as the executive in collaboration with the People’s Representative Council or the DPR as the legislature.

Habit

Second, customary law which is the oldest source of law. Where, habit itself is everything that we do continuously until it is finally considered right by society.

However, any custom that exists alone can become customary law. Where, so that a habit can become a law if a creation that is repeated over a long period of time stops.

Treaty

Third, a treaty which can be interpreted as an international agreement that has a bilateral, regional, or an agreement that has a multilateral nature.

Jurisprudence

Fourth, jurisprudence which is a termination of a legal case by using a reference to the previous judge’s decision in a similar or the same case.

Doctrine

Fifth. Doctrine which is the opinion and words of experts regarding a legal case that has been recognized, both academically and scientifically.

Scope of Business Law

  • Various forms of business entities such as PT, CV, and Firma.
  • Business contract
  • The company goes public
  • Capital market
  • Buying and selling companies
  • Bankruptcy and liquidation
  • Mergers
  • Consolidation and acquisition
  • Credit and financing
  • Debt guarantee
  • Various securities
  • Employment and labor
  • Industrial intellectual property rights
  • Unfair business competition and prohibition of monopoly
  • Protection for a consumer
  • Distribution as well as agents
  • Taxation
  • Insurance
  • Settlement of business disputes
  • International business
  • Land, sea and air transportation laws
  • Protection and guarantee of legal certainty for users
  • Technology and technology owner
  • Industrial law and processing industry
  • The law on the activities of multinational companies which includes various export and import activities
  • Mining activity law
  • Banking law and securities
  • Real estate, housing, and building law
  • International treaty law and international trade
  • Criminal law related to money laundering
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General Principles in Business Law

1. The Principle of Autonomy

The first principle is the principle of autonomy where a person who is in an autonomous business field has full awareness of what is his obligation in the business world.

The person will have an awareness not only to follow the norms and moral values ​​that exist and apply, but he also does this because he is aware and knows that this is something good.

Where, everything he did before was well thought out and considered.

2. The Principle of Honesty

The second principle is the principle of honesty. A business will not last long if it is not based on the value of honesty, where this value is the main capital in gaining the trust of business partners and various parties involved both in commercial, material and moral matters.

3. Principle of Justice

The third principle is the principle of justice. Where, this principle of justice requires that everyone is treated objectively or equally based on existing rules through rational and accountable criteria.

Justice in this context can also mean that in a business there is no party that is harmed, both their rights and interests.

4. The Principle of Mutual Benefit

The fourth principle is the principle of mutual benefit. Where in a business, demands that all parties involved in it to create benefits for each other.

This principle of mutual benefit also in the business world demands that every existing business competition be able to create a situation where all parties are not harmed.

5. The Principle of Moral Integrity

The fifth principle is the principle of moral integrity which suggests that in a business activity that is being carried out to maintain the good name of himself and that of the company.

Examples of Business Law

1. Credit Sector

The first example of business law in the field of credit. Where, this one business law is one of the most common examples we find. The field of credit itself has various forms.

As one example, the form of credit offered by the Bank for business people also offers a much smaller interest rate.

2. Contract Law

The second example of business law in the world of contract law. Where, in the law of the agreement itself has many forms or types of contracts. For example, in every agreement there are legal terms of the agreement and the legal principles of the contract agreement.

3. The World of Engagement

The third example of business law in the engagement world. This itself relates to legal relations that occur between two or more parties and is based on one party filing a claim against the other parties involved.

In general, this source of engagement is based on the Civil Code, which consists of three sources, namely sources of engagement arising from an agreement, sources of engagement arising from a statute, and also engagements that are not agreements.

In addition to the three examples above, there are also various other examples of business law. Starting from insurance, intellectual property rights, anti-monopoly law bookkeeping obligations, debt guarantees, banking law, and various other examples.

The Importance of a Business Law

With the rapid development of the business world which continues to grow and expand into various other fields, whether it concerns goods or services. The existing business itself is one of the supporting pillars used to support economic development and development.

All business actors or self-employed entrepreneurs cannot be separated from business law so that all business activities carried out can run in an orderly, smooth and safe manner.

This is done so that all parties involved in it are not harmed by the business activity. One example is Law no. 8 of 1999 which is a law related to consumer protection.

In this law, there are rules that must be implemented by every business person to include a halal and expired label for each product that is made and issued to market.

With these rules and obligations, the consumer’s health will also be protected. This is because there is a guarantee of protection if the product being sold or marketed has expired. This also applies to halal labels, especially for Muslims.

So, that’s a brief explanation regarding business law, both its meaning, function, purpose, principles, sources, scope, principles, and also its importance in the business world. Based on the information above, it is very important for business people to know and make applicable business law a directive in carrying out every activity related to their business.

For Readers interested in starting his career in this business field, it is very important to first understand the various laws that govern the business activity. Learn and find information related to this through various books available at Gramedia.

Gramedia as #FriendsWithoutLimits will always try to provide the most complete books and information for you! Hope it is useful!