Page 116 - Encyclopedia of Business and Finance

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Careers in Law for Business

AREAS OF LEGAL PRACTICE other form of organization. Balance sheets list
Lawyers deal with business organizations, individuals, assets (things that are owned), liabilities (debts),
international business, labor relations, educational law, and net worth (assets minus liabilities). Income
poverty law, legal research and writing, and other areas. statements show net income for a period of time
(income minus expenses). Business firms, partic-
Legal Practice With Domestic Business Organizations. ularly those with stockholders, must prepare hon-
In the United States, attorneys engage directly with busi- est and conservative financial statements. Very
ness organizations in many fields in which they practice. stringent laws have been passed dealing with
accounting practices.
Publicly held corporations: Many areas of law involve
publicly held corporations (stock available for Negotiations: Attorneys orchestrate a variety of nego-
tiations, including those involving injury claims,
purchase by any investor). For example, control
criminal charges, family disputes, and commer-
and management have legal ramifications, as do
capital procurement and maintenance. Attorneys cial disputes.
are called upon to settle a wide range of disputes, Business organizations: Business organizations
such as those developing between stockholder become involved with the law of employment,
and corporation. agency, partnership, limited partnership, and
Antitrust legislation: Antitrust laws prohibit price fix- other types of unincorporated associations.
ing, which could result when businesses gain Regulated industries: Price, supply, and services are a
monopoly power in their field. Major legislation part of Regulation C control in various indus-
in this realm includes the Sherman Act of the tries, such as transportation agencies and public
1890s, the Clayton Act of 1914, and the Cellar- utilities. Regulatory policy can involve interac-
Kefauver Act of 1950. The Robinson-Patman Act tion among legislatures, administrative agencies,
prohibits manufacturers from discriminating and the courts. Advanced legal work may be
against small retailers in favor of large chains. required for business planning and counseling
These acts are enforced by the Federal Trade
concerning corporate and tax issues. Clients often
Commission and the Antitrust Division of the
need representation before regulatory bodies and
Department of Justice.
at administrative hearings.
Unfair trade practices: These laws involve various
Contracts: Attorneys become involved in the creation
types of business competition, especially with ref- of promissory liability, the interpretation of
erence to trademarks, price maintenance, and
words and conduct as well as the nature of obli-
price discrimination.
gations assumed by entering into contracts. They
Patents: Patents are issued by the Patent and Trade- also solve problems relating to breach of contract,
mark Office of the U.S. government. They grant unfairness as a reason for avoiding contractual
inventors exclusive rights to make, sell, and use liability, and the rights of those not a party to the
inventions in the United States for a given period contract.
of time. Patents often require an attorney’s coun-
sel. The Uniform Commercial Code: Articles 3, 4, and 5
concern negotiable instruments, bank collection
Copyrights: Copyrights provide protection for origi- systems, and letters of credit. Article 9 deals with
nal works of literary, dramatic, musical, or artistic secured transactions; Article 7 deals with docu-
expression. The Copyright Office of the Library ments of title.
of Congress administers these laws.
Creditors’ and debtors’ rights: Attorneys deal with con-
Trademarks: Trademarks are used to distinguish one sumer credit regulation, including attachments,
business firm’s products from another. Their sym- garnishments, assignments for the benefit of
bols may be a word or words, name, design, pic-
creditors, judgments, and bankruptcy.
ture, or sound. Trademark rights have an
indefinite life. A company may register its trade- Insurance law: This branch as law deals with prop-
mark with the U.S. Patent and Trademark Office erty, life, and liability insurance; fire and automo-
in Arlington, Virginia, or with the trademark bile insurance forms; and the regulation of
office in its state. insurance companies’ policies and practices.
Accounting: Accounting statements provide financial Remedies: Remedies of quasi-contract, constructive
details concerning the operation of a business or trust, equitable lien, and reformation must be

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 93