Reputation And Commercial Law

Reputation is the rarest resources in today’s China. The high level of reputationplays a significant role in several aspects, for instance, mobilizing and allocatingother social resources, increasing social incomes and realizing benign operation ofsociety. However, under the influence of inevitable moral hazard and informationasymmetry, various credit imperfections occurred frequently, including food security,academic misconduct, doctor-patient contradiction and etc, especially thecommercial field. Due to the reputation issues, thousands of billions of dollars waswiping out each year. Our country names the market economy with law and believesthat the legal construction is the real meaning of market economy. Whereas,legislation style of our country is mainly consist of specific regulations withoutcommercial code or the general principal of commercial law so far. Under thedeveloping of e-economy, a variety of commercial relationships occurred to requirethe legal construction of commercial field, and so do the burgeoning commercialrights. Therefore, this paper selected business reputation and laws as research topicand business reputation as basic research category. This paper starts with figuring outthe concept and types of business reputation through the case study, following thehistorical context from traditional economy to e-economy, and discusses about theperformance, affection and disadvantages of business reputation and laws in familycorporations and e-commerce. Getting some useful experiences in legislation onbusiness reputation and then giving some inspiration to the construction of creditsystem and the credit legal system, so does the legal protection of goodwill right.Due to the dispersive lawmaking mode, it is necessary to clarify and combine thecurrent legislation on commercial issues in order to establish a “heteronomy order”with fully respect to the autonomy of commerce. During the year2013, our countryrevised several commercial laws and regulations including Corporation Law. Thispaper delivers the research into two aspects, entity and procedure, using text analysisto study the typical legal regulations in pursuing and protecting business reputation, and then gives basis to the legal protection of burgeoning business reputation and thenew goodwill rights.No matter traditional economy, market economy or e-economy, businessreputation and law are always the two inter-dependence control measures. They aremutual benefit and co-existence, not replace each other. With the development ofe-economy, the forms of business reputation are various, requiring legislation to giveprotection to the diversity of reliance interest. Therefore, maintaining the welloperation of competitive market. Thus, on the one hand, it requires the judicialconfirmation of goodwill right, including the subjects of the right and obligors. Onthe other hand, it is urgent to accelerate legislation，better juristic system，updatelegislative idea. Additionally, we have to integrate current laws and regulations oncommercial issues to support the coming independent Commercial Code.