Commercial Law in Spain: Regulations and Practices
Commercial Law in Spain
Trade law regulates economic activity. The subject of commercial law is the typical activity of enterprises: the enterprise, the entrepreneur, the legal form of business, accounting, advertising, and the protection of the business. The Commercial Code is the main legislative framework for commercial operations in Spain. Primarily, the Commercial Code and special laws and rules apply, followed by general rules of common law or the civil code if trade does not cover all commercial law. However, most of the commercial arrangements are in special laws, as companies and their activities are evolving rapidly and changing. These special laws are numerous, including bankruptcy law and bankruptcy.
Obligations and Rights of the Company
One of the objectives of the company is profit, and therefore it has the freedom to act to obtain them. However, this does not preclude the employer from having a social responsibility. Consequently, there are a number of rules to which they must adapt their performance, including accounting standards, advertising, competition, property, and consumer industrial and commercial registration.
Accounting Standards
The employer must keep proper accounts, allowing a chronological tracking of all operations, as well as the development of periodic reports and inventories. Without prejudice to the established laws and legal provisions, a book of inventory and annual accounts, along with a daily ledger, must be carried directly by the accounting of employers or duly authorized persons. Commercial companies must also carry a book or record books, which contain at least:
- The resolutions passed at general meetings and other special bodies of the society
- A summary of the issues discussed
- The interventions for which evidence has been requested
- The result of votes
Competition and Advertising
In order to ensure competition in the markets and to ensure fairness, antitrust laws have been created. The antitrust competition law punishes conduct that would prevent, restrict, or distort competition in the domestic market. Some of these behaviors are pricing outside the law of supply and demand, or the sharing of markets or sources of supply in order to dominate the sector. The law prohibits:
- Misleading advertising
- Unfair advertising
- Subliminal advertising
Industrial Property and Consumer Protection
The state has set standards that protect industrial property in order to protect the creators of new inventions and techniques that can be applied to industrial processes, as well as the producer, manufacturer, or merchant with the creation of spatial signs. These signs distinguish the product from others and protect them from exploitation by others. There are two types of industrial property:
- Inventions: which include patents, utility models (minor inventions), and industrial designs and artwork
- Marks and Signs
The law permits the industrial use, for some time and exclusively, of previously patented inventions and innovations. This right belongs to the inventor, who can sell or donate it. All patents are published in the land registry. The consumer is also protected by law for consumer protection and users. The law recognizes the right of consumers and users to be compensated for damages shown in the consumption of products or the use of property and establishes administrative penalties for companies that break the rules of consumption.
Commercial Register
The business register is a state agency, under the Ministry of Justice, which has the purpose of advertising the legal situation of registered employers. This register aims to register companies at the time of their constitution, legalize business books, and register attorneys appointed by the companies.