Business law in Georgia includes provisions for the stipulation of arbitration in contracts as a way of avoiding litigation.
The Many Aspects of Business Law in Georgia
Business law, is a term without precise technical definition, and includes a vast array of constitutional, legal, and administrative regulations of commercial activity in all forms and also a wide variety of both federal and state laws
Corporate Law in Georgia
Along with the consolidation and specialization of substantive business law principles, Georgia law has codified the variety of permissible forms in which business can be conducted. Sole proprietorships and general partnerships were popular in the nineteenth and early twentieth centuries, but later gave way to the general business corporation by the middle of the twentieth century. The attractiveness of the corporation as a form for doing business has been cemented in the state of Georgia by its decision to adopt the nationally acclaimed Model Business Corporation Code. Corporations thus now coexist on the books in Georgia with the limited partnership, a form that allows limited personal liability for passive investors in a business, and something the older general partnership didn't do.
The professional corporation has been a form of business that has been available in the state Georgia since 1970. It is designed around for-profit activity and offers the flexibility of the general partnership along with some benefits of the corporate form. Limited Liability Companies (LLCs), first showed up in Georgia law around the year 1993. They permit participants to govern themselves in a manner similar to a partnership and at the same time be subject to only limited liability for both active partners and passive investors.
Arbitration in the State of Georgia
While business interests and commercial interests in Georgia have affected business laws in the state, they have also impacted the procedural means for the resolution of business disputes. Georgia has allowed for the resolution of business disputes through arbitration since the end of the eighteenth century.
A general arbitration code for was in place in Georgia by 1978, but didn't apply beyond the scope of construction disputes until a decade later in 1988 At that time the state offered a general arbitration code set up to promote the efficient, resolution of domestic and international business disputes without having to resort to onerous litigation. These arbitration laws have proven to be particularly popular with businesses. In the state of Georgia, as they allow for an efficient means of dispute resolution to be stipulated in contracts between business entities.
