Running Head: Legal Underpinnings of Business Law

Legal Underpinnings of Business Law

Melissa Hernandez
BUS 670
Professor Leah Westerman
May 23, 2016

Legal Underpinnings of Business Law

High school for me was being part of a business school where the thought of
becoming an entrepreneur never even crossed my mind. I would rather
prefer being behind the scenes person managing day to day operations
without any hiccups or headaches that some businesses come attached with.
All businesses are not created equal; there are various types of businesses.
Sole proprietorship is a business owned and operated by one person. I
consider a sole proprietor an entrepreneur. Some entrepreneur ventures are
amazing, you have people selling things you would never think of doing as a
service. Many friends keep telling me to offer administrative services. They
keep telling me I should charge a certain rate for organizing, typing etc but
when I research it I feel like everyone is doing the same thing trying to make
extra money, so what would make a potential client call me versus someone
who charges less or more.
General partnership involves two or more people join in a partnership to run
a business for profit. This form of business entity is beneficial as you have
two or more people sharing the liability and working together to run the
business. You can throw ideas off each other.
Limited Partnership, or LP, is a form of corporation which is an entity that is created by
permission of the state whose ownership is represented by shares of stocks. The board of
directors is determined by shareholders.

Legal Underpinnings of Business Law

LLCs or Limited Liability Company is often used by Doctors or Lawyers. This is a form of
business that is created by obtaining permissions from the secretary of states office.
Not every business is a walk in the park. Businesses get sued for false advertisement, because
someone fell outside their store front, and other reasons. If a company were to get sued for
breach of contract for example, this would occur when an already existing contract is in place,
that a specific party has failed to complete their end of the bargain. There are various reasons for
a breach such as a party failing to perform their end of the bargain, or not perform based on the
terms of the original agreement. Breach of contract is often categorized as material or immaterial
to determine the appropriate legal solution or remedy for the breach (Reuters 2013).
There are ways to remedy and save one of the members of the breach. Compensatory damages
allow the non-breaching party to remain status quo prior to the breach happening. Punitive
damages are the consequences the breaching party is responsible, usually in the form of money
that would sufficiently compensate the non-breaching party. Not in every case is this the very
final step of a breach of contract, lawsuit the nonbreaching party may seek an alternative
remedy which is specific performance. Specific performance is a court order to perform the
duties listed under the contract to resolve said contract. This usually occurs when the matter is
rare or unique. Damages would not suffice to place the non-breaching party in as good a
position as they would have been if the breach had not happened.
At times both parties involved are not interested in solving this amicably and will result in suing
for cancellation and restitution. Restitution would occur if the non breacher gave a benefit to the
breacher and with restitution the non breacher is put back in its original position prior to the
breach of the contract. Cancellation of the contract would void the contract in its entirety.

Legal Underpinnings of Business Law

If I had the opportunity to start my own business, I feel I would be a sole proprietor as I would
not want the responsibility of others. As a sole proprietor my taxes would be similar to my
current personal income tax. The only thing I find to be a disadvantage would be if I
unfortunately were sued, I would be putting all my assets at stake in the case of a lawsuit. I dont
think people go in to a business venture thinking theyre going to sink or get sued. I would put
my best foot forward and may my new company be as successful as I guide it to be.

Legal Underpinnings of Business Law

References

Gitman, Lawrence J. (2007) The Future of Business: The Essentials. Prentice Hall.
Reuters. (2013) Retrieved from: smallbusiness.findlaw.com/business-contracts-forms/breach-ofcontract-and-lawsuits.htm Retrieved on May 22, 2016.
Seaquist, G. (2012). Business law for managers. Published by: Bridgepoint Education, Inc.