Introduction
In the world today, each and every business entity is faced a number of challenges arising from the processes of buying, selling, employing and investing. In addition to these activities, the businesses that are involved in international trade and electronic trade require the enforcement of business laws to facilitate legal transactions (Chris 10). In order to safeguard businesses from liabilities that may arise from normal working activities, it is essential for governments and international bodies to come up with a set of laws that govern business within the globe. These laws will regulate the manner in which firms conduct their businesses.
Impacts of Law on Business Environment
The major impact of law on the business environment is the establishment of an orderly manner of conducting business transactions. For example, in order for a business transaction case to be accepted in a court of law, certain elements are required. The law of contract outlines the elements that are essential in contract. These elements include offer, acceptance, contractual capacity, consideration and legality of an activity. If any of these elements are missing, then the agreement will not be legal. The law of contract has established a sense of order in the business environment. Businessmen have to receive an offer first. If the offer is legal and it is offered by a person with contractual capacity, then it is accepted and consideration is given for the transaction. The law of negotiable instruments, the law of tort and the other relevant laws in the business world ensure that businessmen conduct transaction in an orderly manner. Labor laws, for instance, are used when hiring employees (Kerstin 649). These laws outline the order used in hiring and firing of employees. Moreover, it provides guidelines on remuneration of employees and the minimum wages. These guidelines ensure that the processes of hiring, firing, and remuneration are conducted in an orderly manner (Earl 89).
Another impact of the law in the business environment is provision of a sense of security while conducting a business transaction (Chris 10). After the incorporation of business law into the constitution, businesses conduct their transactions with confidence. This is because there is a sense of security due to the fact that they are guaranteed of their protection by the law. A good example in this case is the international deals that occur between countries and financial entities. The World Bank and financial entities lend money to most countries of the world. The money that is lent out to these countries is a loan that requires the guarantee that they will pay it back. The contract documents are written and kept as evidence to be provided in the court of law in case a country fails or denies the transaction. Without the presence of such a law to govern these types of transactions, there will be no business deals between the financial entities and countries. This is because none of them would have the confidence to trust the other when there is no rule that protest either of them.
Another example of the law providing security to a business is in the law of tort. A business in entitled to its image. Anyone trying to tarnish the image of the business without legal grounds to do so will face the consequences of the law. Tarnishing the image of a business is considered as an act of tort by the law. In this light of events, it is possible to consider the law as a source of security. If the law were not there, then business image could easily be tarnished by competitors.
Conclusion
Therefore, the law enhances business activities by providing security. Moreover, the law ensures that rights are not violated in the course of conducting business activities. This ensures that businesses are run in an effective and efficient manner by protecting and respecting the rights and privileges of all the parties that have interest on the firm.
Works Cited
Chris, Gale. “The Business of Business Law.” Managerial Law 49.2 (2007): 10-12. Print.
Earl, James. “Knowledge Management Strategies: Toward Taxonomy.” Journal of Management Information Systems 18.1 (2001): 33-215. Print.
Kerstin, Pull. “The Comparative Attractiveness of International Business Location: The Role of Labor Laws.” Management Decision 40.7 (2002): 647-654. Print.
Martha, Williams and Gaylord, Harry. “New Database Products: Business and Law.” Journal of Online Database & CD-ROM Review 23.6 (1999): 333-341. Print.