While corporate and business law may sound like they are the same, they are quite different.
In simple terms, business law handles sales and distribution matters of a company while corporate law, a subset of business law, oversees aspects such as formation, rights, and acquisitions. To better understand the differences and how they pertain to you, it is easier to take a closer look at the two separately.
Definition Of Terms
While business law and corporate law are different, it is quite common for law offices to practice in both areas. Both specific areas and how they are defined will vary between each firm.
While most firms can agree on the very base of a definition, it is common to interpret the specifics in ways that will help to prove their case.
Corporate Law
The main role of corporate law is to govern the laws, rules, regulations, and practices of forming and operating corporations. This also includes giving legal advice on the rights and responsibilities of businesses.
Another focus of corporate law is negotiating, drafting, and reviewing legal contracts of business during agreements. These agreements can include mergers, divestments, and acquisitions. It is also the corporate law’s responsibility to inform clients about the necessary financial information and reports to give to owners, shareholders, and employees.
Business Law
Business law, which is also called mercantile or commercial law, directly handles the transactions of matters between people and businesses.
Business law lays down the guidelines which decide how the company will manage matters such as their hiring and firing process, management, and safety protocols. These are necessary to keep the company safe from being sued.
Another aspect of business law is tax law and the financial obligations of the company. Business law is also important for customer relations such as terms and conditions, licensing, and guidelines for handling things such as refunds and guarantees.
Differences
Even with a more in-depth look at corporate and business law, it can be difficult to keep the two straight.
One straightforward way to remember the difference is to think of business law as an aspect that has to do with a company action and corporate law as an aspect that has to do with the physical company.
Regulations
A major difference between business and corporate law is how the government plays a role in them.
Corporate law has specific national laws in place for certain areas such as the purchase of stocks and bonds or employee safety. Different states are also able to either supplement or supply their laws in certain areas.
Business law, on the other hand, is observed by the Uniform Commercial Code (UCC), which puts forth laws that govern how to purchase products and services. States can make modifications to UCC laws, making it important a business lawyer who understands the specifics in your state.
For the most part, more issues are overseen through business law. This is common because it has a wider legal impact, while corporate law manages legal issues concerning the breach of laws surrounding goods and services.
Every company faces its specific corporate law and business law troubles. That is why it is important to hire an attorney who is not only vexed in the type of law you need but also in your industry to find the best solution for your issue.
Corporate Law Attorney In Coral Springs
If you have any questions about the differences between corporate law and business law or find that you are ready to hire a law firm with over 40 years of experience, call Gary I. Handin, PA today at (954)-796-9600 or toll-free at 1-877-815-4560.