Business Law, Legal Persons and Commercial Transactions
Business Law and Key Legal Concepts
Law: A set of rules governing human behavior in a given place and time.
Business law: A set of principles governing commercial transactions and the capacity, rights, and duties of individuals who make such acts their usual occupation.
Legal person: A fictitious person capable of assuming rights and civil obligations, and to be represented in and out of court.
Acts of trade: An act or contract of intermediation conducted with a profit motive that aims at the circulation of wealth.
Dealers (traders): Free traders who have the capacity to contract and who trade as their usual occupation.
Prepubertal: Persons under 14 years for males and under 12 years for females.
Questions and Answers
Explain the importance of law
Rights are very important in our daily lives; they govern our conduct and that of others.
What type of rule is the greeting people usually perform?
Social norms.
Explain social norms
Social norms are sets of commands or expectations imposed by a particular community or group.
Name life standards
- Religious rules
- Moral standards
- Technical standards
- Social norms
Which are the sources of commercial law?
They are the material sources and the formal sources.
What is the criterion of law enforcement?
They are: commercial law, civil law, and commercial custom.
What are the requirements for the existence of a legal person?
They are: to emerge as a distinct entity independent of its components; to be recognized by the state; and to possess rights, obligations, and its own characteristics.
Which are legal persons for-profit?
They are civil entities and traders.
Name and explain attributes of the legal person
Name: The name is stated in its statutes or in the constituent documents. In the case of companies, the corporate name is used.
Nationality: There are different criteria to determine a legal person's nationality: the country where the headquarters of its activities are located, the state authorizing its existence, or the nationality of its controlling persons.
Name elements of commercial transactions
Elements of commercial transactions include the factors of production (goods, capital, land, labor) that are organized for a particular activity to produce or exchange goods and services to satisfy a need.
Name the requirements for a merchant
- Engage in trade.
- Conduct commercial activities as their natural profession.
- Carry out acts of self-employment.
Who are the people that the law declares incapable?
- Prepubertal persons
- Insane persons
- Deaf persons
- Persons with other disabilities
Name the obligations of traders and explain two of them
Obligations of traders include (but are not limited to):
- Municipal obligations
- Sanitary requirements
- Accountants (keeping accounting records)
- Tax obligations
- Labor obligations
- Submit statement of capital in the municipality using the form provided.
- Pay the business patent (local business license).
- Pay for advertising (posters, signs, etc.).
- Health: Keep the sanitary authorization up to date for running the business.
- Respect the laws referred to in the health regulations.
Explanation — Submit capital statement
Traders must submit a statement of capital in the same municipality using the form provided. This ensures transparency about the business's financial foundation and compliance with local regulations.
Explanation — Sanitary authorization
Traders must keep sanitary authorizations up to date to ensure that the business complies with public health requirements and may lawfully operate, especially in sectors involving food, medicine, or public services.