Businesses and the law

Business Law

Businesses and the Law

Commercial, criminal, and civil laws are important for all a new business just starting up. In fact, a business has to be very careful in regards to how it navigates around legal standards and laws that could lead to detrimental consequences if broken. As JOE Sports Store opens on campus, it faces unique legal issues, regarding both traditional civil law and additional regulations placed by the university since it is located on campus.

First and foremost, JOE Sports Store has to comply with federal and state laws regarding its operations and behaviors. The biggest concern here is how the business pays and treats its employees. Employment law is a major field of commercial law, and covers issues of advocating lawful work environments and pay structures for employees. Ultimately, this means that the company will have to pay employees at least the stated minimum wage, as determined by the state of Michigan. This also requires overtime pay for any hours over 40 in a consecutive week or over 8 hours in a single day. Employees are also guaranteed days off and vacation time as their position allows for it. Any violation of any of these practices could lead to a labor relations violation that could put the company out of business or leave it hurting for cash after being forced to pay out funds to previous employees. Moreover, the business needs an insurance plan in order to cover potential accidents at work so that it is not vulnerable to workers comp. violations that would again drain its cash flow based on having to pay out legal fees to employees hurt on the job.

One of the biggest concerns for beginning businesses are federal IRS laws regarding finances. The business has to report its income and pay all necessary taxes in order to avoid breaking any financial laws that could cause massive penalties and/or fines. Any miscalculations or purposeful deceitful accounting could result in tax violations that could cost the company dearly. These are often more complicated than traditional commercial law practices and should thus be handled by a professional CPA in order to assure all laws are being followed appropriately. Tax law is another genre that is then important for a start up business to understand in order to be successful in growth strategies. Additionally, retail businesses have commercial legal standards it must adhere to in order to be able to create a strong foundation for future success and growth. They must follow all stat tax laws regarding sales tax on retail products.