The nature of the law in doing business
Even though we compile a number of scholarly opinions on the definition of what law is, we will not be able to come up with a definition that satisfies all parties. However, at least from a number of scholarly opinions, an understanding that is mutually complementary is taken. We do not talk about whether we are satisfied or not, but provide an understanding of the legal meaning.
For this reason, from these definitions, the author will provide a definition based on the conclusions of the experts’ definitions. The goal is that students can understand fundamentally about law in order to study the next course in business law.
“Law is a set of regulations that regulate the social life of the community, which is made by the competent authority, is coercive, contains orders and prohibitions which, if violated, will receive strict sanctions”.
Based on the above definition, it can be described:
1. The set of regulations governing the social life of the people means that the law is made in writing which consists of rules governing the interests of the community and the state.
2. Created by an authorized institution is that the law is made by an institution that is truly given the mandate to make it by the people as long as it does not conflict with the interests of the community so that society is safe, peaceful, orderly and peaceful.
3. It is coercive because the law can be enforced even though the community rejects it.
4. Contains orders and prohibitions, the meaning is that the law has something that must be implemented and something must be abandoned.
5. There is a clear sanction, which means that if the law is violated, it will receive direct sanctions even though it has gone through a trial process first.
It is necessary to note that the definition above is positivism, meaning that the definition in the meaning of positive law is the law that is applicable and established by the state or on the basis of an agreement which is also recognized as law.
Literally the word business comes from the English term “Business” which means business activity. According to Richard Burton Simatupang, the word business is often interpreted as a whole business activity carried out by a person or entity regularly and continuously, namely in the form of activities to procure goods for services and facilities to be traded, exchanged or leased with the aim of making a profit. .
So that business generally means a trading, industrial, financial activity. All these activities are connected with the production and exchange of goods or services and financial matters related to these activities, therefore, a company in one of the branches of activity or a transportation or business connected with that business activity.
Or Business are all activities that involve the provision of goods and services that are needed and desired by others, for the purpose of making a profit.
In general, business activities can distinguish 3 business fields, namely:
1. Business in the sense of trading activities (Commerce), namely: all trading activities carried out by persons and entities, both domestically and abroad or between countries for the purpose of gaining profits. Example: Manufacturers (factories), dealers, agents, wholesalers, shops, etc.
2. Business, in the sense of industrial activity, is the activity of producing or producing goods whose value is more useful than their origin. Examples: forestry industry, plantation, mining, rock quarrying, building construction, bridges, food factories, clothing, crafts, machine factories, etc.
3. Business in the sense of service activities, namely: activities that provide services performed by both individuals and bodies. Example: Hospitality services, consultants, insurance, tourism, lawyers, appraisers, accountants, etc.