Many people confuse business ethics with business or commercial law; however, this is not the case. Businesses may take action that is legal but not necessarily ethical. Commercial or business law is a body of law that relates to commerce, trade, banking, investments, marketing advertising among others. Business laws determine the minimum standards of behavior that is expected from business premise, companies, or sole proprietorships. Enforcement of these laws on the corporate scale involves the use of fines to the corporation involved; it is difficult to solely sue one person in the company unless you clearly know that the product or service rendered by a certain person caused defect or harm. Therefore, in most scenarios the corporation or company is sued as per the business and commercial law. The application of commercial has led to the development of laws that apply to business transactions, commercial activities among other activities.
Many nations operate under the civil codes that are detailed as per commercial law. Domestically the laws are applicable to the interest of consumers, while there has been harmonization of these laws to protect consumers from exploitation or effects from harmful products from foreign nations. In the European Union region, for example nations are required to sign laws that will create a uniform market in the region. The rules and regulations are geared towards harmonizing international commercial laws. There are methods in which the laws are explored via the ratification or adoption of business laws and treaties governing the process. One of the common treaties is United Nations conventions on contracts for the sale of goods. There are other ways in which the commercial laws are being reinforced to increase international trade and protect the consumer from faulty goods or services. Understanding business law is essential in avoiding lawsuits and offering quality customer services.
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