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A Quick Overview on Laws Affecting Business

A Quick Overview on Laws Affecting Business Unless you, yourself, are fortunate enough to possess massive amounts of money, it is a given that you may require a loan of some type in order to start a business. It is nothing to be on edge about as it is a common occurrence. With that said, however, you must be aware of the specifications that will accompany your loan. A usual example would be that of college loans, which you are expected to repay following graduation. In such a case, however, you will be aware that there is a specified grace period that represents the time between graduation and your first payment. 

School loans are representative of long term loans, which possess various laws attached to it where lack of payments may drastically affect your credit or worse. Other examples include "business loans," such as that which is required if you desire to expand an existing business. Periods given for repayment of long term loans may span a decade or more in most cases. In terms of short term loans, however, you may have as little as 31 days to repay, such as is true for a state such as Ohio. Other specifications for loans include whether they are "secured" or "unsecured." 

Secured loans require that you put forth collateral at the time of the loan being acquired. In such a way, it will guarantee that the lender acquire compensation in any circumstance. Unsecured loans, however, include that of credit cards, for example. In most cases, you fill out the appropriate paperwork, and if approved, will be acquiring loans in the form of credit with nothing in return aside from eventual repayment, such as in installments or in full. In whatever situation you find yourself in, however, it is advisable that you are aware of the qualifications attached to your borrowing of money.

Agency Law

Agency law is an aspect of business law in which an "agent" is given permission by a "principal" to act on their behalf. An example of such a relationship is that of a real estate agent and the seller. The agent acts with the interest of the seller, and with the express purpose of selling their property. As long as the seller's desired task is completed they will be legally eligible for compensation. There are various types of authority that agents may exercise under agency law. 

These include: "express authority," "implied authority," "authority by ratification," "usual authority," and "apparent authority." Express authority is included as part of the aforementioned contract. Authority is spelled out in specifics in writing for the agent to follow. Implied authority, however, deduces implications not actually stated in express authority, and allows the agent to act in the interest of the task given to them. 

Authority by ratification makes use of the past as an agent may go forward with actions with past authority in mind. Usual authority concerns "customs of the trade," where consent is assumed by the principal in relation to the agent's actions as long as they maintain what is perceived as legal. Apparent authority, as concluding level of authority, entails that an agent be allowed to negotiate on behalf of a principal with a "third party" regardless of prior consent. A principal must be aware of what is deemed legal in such a relationship since their interests are at the forefront of such actions.

Employer/Employee Relationship

When assuming the interactions of employers and employees under the laws of business, it is important to determine whether and or not an employee is actually an independent contractor. This distinction is important because it will allow the hirer or employer to know the rights and responsibilities they have in connection to the individual(s) hired under the supervision of the law. For instance, hiring parties are not responsible for compensating any specific taxes for their hiring of independent contractors.
However, employers must answer for employees in the terms specified by "employer tax liability." Since employers are often held accountable for the actions of their employees or their injuries acquired on the job according to employer liability, it is an equally common occurrence for employers to attain "liability insurance." Acquisition of insurance will assist in keeping the employer from suffering major financial damage due to employee claims, especially those which they may have no control over.

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