BUS 206 M1 Learning Objectives: 1. Explain the need for laws, including business law. 2. Describe the branches of the US government and their relationship to each other. 3. Describe three of the primary sources of US law. 4. Explain the clause of the US Constitution that grants the government the power to regulate business. Module One Overview · The law is everywhere! From buying a house or hiring an employee to manufacturing shoes, laws exist to maintain order, resolve disputes, establish standards, guide transactions, and protect the rights and liberties of everyone. For example, if you own a restaurant, the health inspector has authority through local ordinances to inspect your business, ensuring a safe and healthy environment for patrons. If you rent an apartment, state law governs your rights as a tenant. If your business manufactures computer parts, both federal and state environmental laws govern how you dispose of toxic materials. Without rules to follow, conducting business would be chaotic. Business law encompasses such topics as contracts, torts, the safety of products, employment practices, environmental protection, fraud, business organizations, intellectual property, real estate, agency, and computer practices in a business setting. Such laws are primarily civil laws, but criminal laws designed to combat fraud are also relevant to business. The Constitution is often called the supreme law of the land and, as such, is the foundation for all U.S. law. Authority for any governmental body to create law must be rooted in the Constitution. However, reading the actual text of the Constitution or of any law is not enough. It is necessary to know how the law has been interpreted and applied by the courts. Every responsible businessperson should be informed about the U.S. legal system and the varied sources of business law. By knowing the laws relevant to your business, you can avoid liability, operate more efficiently, save money, and protect your financial interests. Resources: US Legal System: Part 1 · Video: What is Business Law: Definition and Overview - Business law encompasses all of the laws that dictate how to form and run a business. This includes all of the laws that govern how to start, buy, manage, and close or sell any type of business. Business laws establish the rules that all businesses should follow. Much of business law addresses the different types of business organizations. There are laws regarding how to properly form and run each type. This includes laws about entities, such as corporations, partnerships, and limited liability companies. I need to decide what type of business I want to be. Will this be a partnership? Will it be a sole proprietorship? What papers do I need to file in order to start this business? These questions fall under the laws that govern business entities which are state laws. The type of entity I pick will also affect how I pay my federal income taxes. These, of course, are federal laws. Patents, copyrights, and trademarks are part of intellectual property law. The federal law