Chapter X the law in practice Unit 33 Law Firms

Before you read

Discuss these questions.

1 Is there a system of legal assistance and legal aid in your country?

2 Is there a need for such a system? How great is that need?

3 How is it funded and when is it available?

Part 1 : Text a Running a Business

Every year there is an increase in the number of laws, lawyers, and legal cases in the courts. To a large extent, this increase is due to the economic growth in the world: more business means more transactions, more possibilities for conflict and confusion, and, consequently more legal activity to regulate business. If you set up a business, even a very small one, you will buying and selling products and services, and perhaps, employing people, buying or renting land and borrowing money. In order to engage in all of these activities you need to have some knowledge of basic legal principles such as contract, tort and land law. And you will need to know about any laws specifically relevant to your kind of business, such as statutes regulating companies.

It is important for business people, especially small business people, to know something about the law, in particular, about their country’s property legislation, since many companies have property contracts of different kinds. It is important to know what your company’s legal liabilities are. Your company may own its own factories and office buildings and may lease some of its property to paying tenants. It may itself lease property from a landlord. In both cases, the small business person should know the details of each article of the contract to avoid breaches on either side. If either party does something illegal, then there is the danger that the other party will sue for breach of contract. The party with the weaker case might then do well to agree to an out-of-court settlement to stop the case from going on for too long. If you do not and the court’s judgement goes against you, you may have to pay all the costs of the case.

Another important area of commercial law is the law on patents, which protect the company’s intellectual property. This area can be so complicated, however, that companies have to hire or train specialists to deal with it.

If you do not run your business honestly you may also need a knowledge of criminal law. Nearly every general area of the law is relevant to running a business and nearly every country has its own set of laws designed specifically to regulate business. The attempts of the European Community to create a single market by 1993 show just how difficult it can be to harmonize business laws. Throughout the world most businesses face similar problems; they must determine their organizational form; duties to clients; investors and employees; tax liabilities; and ability to minimize losses if the business fails.

Vocabulary

article of a contract n пункт / статья договора

confusion n беспорядок

costs n издержки, затраты, расходы

European Community n Европейское Сообщество

landlord n ( крупный ) землевладелец

lease to v сдавать в аренду; lease from v брать в аренду

liability n юридическая ответственность; tax liabilities задолженность по налоговым платежам

out-of-court settlement n мировая сделка

relevant to относящийся к

rent sth ( from sb ) v арендовать; снимать в наем; rent sth (to sb) сдавать в наем

run a business v руководить / управлять делом

set up ( a business) v основать (дело); открывать; учреждать

sue for v возбуждать дело о

transaction n дело; сделка; операция

tenant n 1 арендатор; 2 владелец

Reading tasks

Answer these questions.

1 Why is it necessary to know law for business people?

2 What in particular, is it important to know?

3 What were the attempts of the European Community?

4 What are the problems businesses face?