What is business law?

Business law is the area of law that centers on the way a company interacts with the public, other companies and the government, according to HG.org. The general premise of business law is to establish fair standards of conduct in the marketplace for business organizations.

In the realm of business law, companies are treated as separate entities from the people who own them and work at them, according to HG.org. This means violations of business law typically apply to the organization. The formal structure of a new business is one element of business law. Companies may establish as a limited liability company or corporation, for instance.