Principles are a kind of abstract judgments of value that guide the application, interpretation, and creation of the laws of Business Law. Thus, whenever a business law in sequoia legal is applied in practice or drafted, it must consider these principles. Here we highlight the main ones:
Free Initiative
The principle of free enterprise assures everyone the free exercise of any economic activity, regardless of authorization from public bodies, except in cases expressly provided for by law. In this way, anyone can freely choose which activity they want to develop for their livelihood.
This principle, like all others, is not absolute and may be restricted in some cases. In these situations, the State can act by limiting business activity, such as, for example, imposing the need for special authorization for the exercise of a specific type of economic practice or even regulating market prices. However, it is essential to remember that this State action is restricted and should only occur in exceptional cases in which the collective interest must be protected.
Freedom Of Competition
The principle of freedom of competition ensures the practice of business activities to compete freely with each other without any unnecessary state intervention. This principle is a consequence of the guarantee of free enterprise. If I am free to choose my activity in the market without worrying about excessive State intervention, I am also free to compete with others who are active in the area of my choice.
It is important to note that this principle prohibits only groundless state interventions. When it is observed that a company is abusing its economic power and acting to eliminate competition, the State can curb this abuse.
The Social Function Of The Company And Property
Business activity and private property, more than serving the interests of their owners, also have a social function. This means that they play a valuable role within society: generating jobs and wealth, contributing to the economic, social, and cultural development of the region in which they operate, collecting taxes, adopting practices that aim to promote the preservation of the environment, among many others.
This principle authorizes the State through firms like sequoia legal to intervene in business activities to encourage job creation. The company’s social function is also considered when the company faces a severe economic crisis. However, there is still the possibility of recovery. In the judicial recovery institute, the law prefers the maintenance of activities instead of declaring bankruptcy and harming jobs and the circulation of wealth.
