COLLEGE OF BUSINESS
The Importance of Understanding Business Law in Malaysia
Mr. William Tan
2 June 2014
Table of Content
When doing a business it is important to understand laws that apply to your business, laws depend on the country you live in, but there are many that apply almost everywhere in the world. The laws do change as well, so keeping up with changes to business laws is also very important. Business law includes the law of governing contracts, sales, commercial paper, agency and employment law, business organizations, property, and bailments. Other popular areas include insurance, wills and estate planning, and consumer and creditor protection. Business law may include issues such as starting, selling or buying a small business, managing a business, dealing with employees, or dealing with contracts, among others. It has been proven, that most companies are comfortable in doing businesses, provided they have a government license in hand, and an approval stamp for their business. It gives confidence in handling day to day business requirements to those who know the legal aspects of business. If you do not know the laws you may not be following them correctly and this can lead to problems for your business, so knowing the laws and keeping up with changes are the necessities in the business world. They protect your business from being copied, protects customers and employees. Several and different laws control the actions of all the businesses and each person involved in the business, from the manager the employee and even the owner. Some major business law categories:
Environmental Laws: The government enforces the environmental laws for the discharge of hazardous waste and the recycling laws pertaining to the business.
Tax Laws: This section deals with filing of tax returns and depends on the kind of business entity and the state the business operates in, sales tax. These include franchise tax, income tax and other state and federal tax requirements of a business. These are very important business laws you need to know before starting a business.
Employment Laws: These are laws regarding the hiring and firing of employees, their rights, compensation, safety, work place discrimination, child labor laws, overtime pay structure, disability laws and unemployment laws.
The law of Property: provides legal protection for individuals or business firms. There are several categories of property. Real property is real estate, land, and anything permanently attached to it, such as houses, buildings, and parking lots. Tangible personal property means physical items such as a store’s inventory of goods, equipment, and automobiles. Intangible personal property is that shown by documents or other written instruments, such as cheques, money orders, receipts, stocks and bonds.
Licensing Laws: In order to operate a business certain licenses are required and there are some important business laws you need to know. If a business operates without these licenses, it is illegal and the business may be dissolved or forced to close.
Contract Law: The constitutions of contracts in Malaysia are governed under the Malaysian CA 1950 (Act 136 - Revised 1974). Whereby, the word, contract itself exhibits a series of essential constituents, was named with - The element of contracts. Notably, in order to makes two party binding under an official contracts, it must satisfy at least an element of contracts which namely Offer, Acceptance of Offer, Intention to Create Legal Relations, Consideration, Certainty and Capacity.
Law of Sales: grew out of contract law, involves products sold for money or credit. For instance, a sales agreement is legally binding even if the selling price is left out...
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