As a rule, business students learn such subjects as finance, accounting and marketing. However, studying law is rather crucial to working with all of the aforementioned courses. Moreover, it may help the students avoid legal issues in the future or decrease their likelihood. This knowledge will give them the opportunity to successfully deal with their business objectives without fearing that legal liability issues are ignored. The following essay will review the connection between business disciplines and the study of law.
It would be quite reckless to assume that people who deal with business do not need to learn about the connection between law and business. Government policies have the strongest impact on small business owners. There are two options for having a better understanding of the relations between law and business (Chron, 2022). The first is having a lawyer who would educate the student (especially after graduation) on the matter. The second is teaching oneself on at least some laws and basic information. This may seem impractical at first, but it actually can be rather useful.
The first connection is the one between accounting and law. Unfortunately, the people working within that field have gained notoriety. This is caused by some of their colleagues being charged with severe offenses. For example. Enron scandal has resulted in the passing of the Sarbanes-Oxley act (Lau & Johnson, 2019). This measure has enforced harsher regulations and rules on accounting and auditing facilities. The US Securities and Exchange Commission is aimed at defending investors and guaranteeing a just market. Moreover, it imposes auditing and accounting policies, which may later help investors make suitable choices on the basis of verified data. Thus, this organization has a diverse set of goals and responsibilities that strongly affect the accounting profession.
Finance is yet another discipline that is affected by law. Surprisingly, the Security Exchange Commission is in control of many people working within that field. In this case, the organization helps investors obtain confirmed data which could assist them in making proper investment choices and decisions. Moreover, it bans trading between insiders and reviews cases of various kinds of security fraud (Lau & Johnson, 2019). This happens to be another case in which the SEC has a powerful impact on business disciplines.
There are some documents that defend consumers during the process of financial transactions. One of them is the Truth in Lending Act, which expects lenders to give accurate information about the costs related to credit offers. Federal banking agencies promote and enact TILA and other similar projects (Lau & Johnson, 2019). Regulation Z is a law that regulates lenders’ explanation of the cost of borrowing to consumers and is another statute controlled by aforementioned agencies. Thus, the relation between finance and law is more specific.
The third discipline affected by law is marketing. The employees related to that field are required to be aware of tort, consumer protection and intellectual property laws. Libel is a rather serious offense, which is why advertisers need to avoid the defamation of a person, company or product. Besides, the people working in marketing are prohibited to partake in dishonest advertising practices (Lau & Johnson, 2019). Finally, they should be aware of one’s intellectual property to not be accused of copyright or trademark infringement.
In conclusion, it is best for business students to study law and how it affects business disciplines. There are two ways one can learn about it: having a lawyer, especially after graduation; or studying the information by oneself. Law has a strong impact on such subjects as marketing, finance and accounting. The SEC is known for influencing the latter two by defending the people in the field and reviewing cases of fraud. Finally, marketers are required to avoid libel and copyright infringement. Thus, one can see the impact law has on the three disciplines.
References
Chron. (n.d.). Government laws that affect businesses. Small Business – Chron.com. Web.
Lau, T., & Johnson, L. (2019, May). The Legal and Ethical Environment of Business. FlatWorld | Bringing Textbook Prices Back Down to Earth. Web.