BUSINESS LAW AND COMMERCIAL ISSUES
COMMERCIAL LAW
There are a number of reoccurrng commercial law issues in today's active business world. To even organize a new business, a careful analysis should be made of the various forms which a commercial enterprise can take. For example, there are sole proprietorships, partnerships, corporations and limited liability companies.
Which entity best suits a business depends on tax and other considerations. Some of these other considerations are the nature of the business, how many owners are involved, potential liability for debts and claims, how the business is managed, participation in the business by the owners, how it is taxed, fringe benefits for employees, transferability of ownership, continuity of the life of the business and sources of capital.
Generallly, the most important considerations are potential liability, how the business or owners will be taxed, ease of transferring ownership interest and the cost of creating or structuring the business entity.
ANTITRUST Injury to competition is protected by antitrust laws. Generally, the law supports the right of businesses to freely compete by guarding against unfair pricing, anticompetitive tactics and other predatory practices.
TRADE SECRETS The law recognizes the importance of "trade secrets" to the success of business enterprises and allows for recovery for damages arising from the unlawful use or theft of proprietary information or processes. Misappropriation or unlawful disclosure of a trade secret may form the basis for a lawsuit by the wronged party.
UNLAWFUL INTERFERENCE AND BUSINESS TORTS
The law also protects against improper interference with business operations and relationships. Lack of justification and interference with contractual rights may give rise to such a cause of action. Unfair loss of a business advantage attributable to the conduct of another party similarly may form the basis for a claim for damages. If the alleged violation arises from the betrayal of a confidential relationship, such as exists in the case of partners, the breach of the corresponding duties may also justify a suit for any resulting damage. also protects against improper interference with business operations and relationships. Lack of justification and interference with contractual rights may give rise to such a cause of action. Unfair loss of a business advantage attributable to the conduct of another party similarly may form the basis for a claim for damages. If the alleged violation arises from the betrayal of a confidential relationship, such as exists in the case of partners, the breach of the corresponding duties may also justify a suit for any resulting damage.
