The Legal Business Environment

Abstract

Commercial law determines how businesses are created, the ways contractual arrangements are structured, the enforcement of contracts, and how businesses close down. It governs lending, debt collection, the protection of consumers, the promotion of competition, as well as the assertion of property rights. In short, commercial law regulates all aspects of business activity. Countries and regions where the legal system functions effectively have an advantage in encouraging both local and foreign investment over those where the law is outdated, opaque, slow, and costly. At present, many of the commercial laws and associated processes of the Pacific island countries are outdated, placing their businesses at a severe competitive disadvantage.