In businesses, laws are required to deal with changes in business structures, ethical expectations of the business, change of business environment and operations and change of other internal and external factors (Meiners, Ringleb & Edwards, 2012). According to Neubauer & Meinhold (2010), most legal systems are made up of major components which include federalism (state, national, or local), multiple sources of law (statutes, constitutions or administrative regulations), judicial decisions (case law), public and private law (international, administrative, criminal, tort, constitutional, contract, property or inheritance laws), Civil law and criminal law (felony, divorce, misdemeanor or property), substantive and procedural law (rights, rules of court or due process of law), remedies (judgment, injunction or monetary damages), and doctrines of access (sue, jurisdiction, class action, political question or justifiability). In most cases, components of legal systems are overlapping and interrelated. A legal system also summarizes the way judges and lawyers think about the law and how they use and apply it (Neubauer & Meinhold, 2010).
In addition to legal systems, alternative non-judicial dispute resolution methods may be used to resolve disputes. These methods include arbitration, reconciliation, negotiation and compromise (Council of Europe Parliamentary Assembly, 2004). Arbitration is a binding, non-judicial and private way of settling disputes between two or more parties. While arbitration is based on a clear agreement between the two parties involved, the reconciliation process involves a third party to resolve differences. A mediator, in this case, is required to resolve existing disputes amicably. Negotiation is also an alternative method of resolving disputes which initiates a discussion process between opposing parties. Compromise on the other hand is a process that involves protagonists ending a pending or actual dispute through reciprocal concessions and proceedings (Council of Europe Parliamentary Assembly, 2004).
Construction industry managers must deal with issues pertaining to property, contracts and environmental laws. Lawyers are therefore required to help managers prepare and file for licenses, contracts and apply for approval before any construction can take place. Lawyers also present the interests of managers representing their firms during the drafting of new regulations and administrative adjudications (Staff of Research Education Foundation, 1997). When disputes and other legal cases arise within construction firms, public legal systems are the most effective means of settling disputes.
There are different forms of legal businesses. Partnership for instance is a voluntary association of two or more people who agree to combine their resources and talents to carry out a business. This form of business is dissolved by a partner’s admission, withdrawal or death of a partner and therefore has a limited life. Partnership businesses enjoy the ease of formation and dissolution, opportunities of pooling more resources and freedom of action between the partners. Partnership businesses, on the other hand, have a limited life of the partnership, mutual agency, unlimited liability and difficulties in raising a large amount of money. In relation to a partnership, a corporation is a business with a separate legal entity and investors have an opportunity to receive shares of stock in the firm. Owners also have no legal and financial liability beyond their personal investments. On the other hand, ownership of corporations is separated from running such entities (Boone & Kurtz, 2011). Nevertheless, corporations like ABM industries are more preferred forms of legal businesses since they present more business growth opportunities and chances of increasing shareholders’ wealth.
Resources
Boone, L. & Kurtz, D. (2011). Contemporary Business. USA: John Wiley & Sons.
Council of Europe Parliamentary Assembly (2004). Working Papers Ordinary Session First Part documents: 26-30 January 2004. Europe: Council of Europe Publishing.
Meiners, R., Ringleb, A. & Edwards, F. (2012). The Legal Environment of Business. USA: South-Western Cengage Learning.
Neubauer, D. & Meinhold, S. (2010). Judicial Process: Law, Courts, and Politics in the United States. USA: Wadsworth Cengage Learning.
Staff of Research Education Association (1997). Careers for the Year 2000 and Beyond. USA: Research & Education Association.