What is the basic legal environment of business?


4 Answers

Iris Phillips Profile
Iris Phillips answered
The basic legal environment of business is governed by state, country and international laws. This includes laws on what can or can not be produced or sold, consumer and employee protection laws, tax and other financial laws, as well a many rules and regulations with regards to business ethics, when and how to seek legal advice in case of disputes, etc.

  • Laws on Production or Sales
The production or sale of certain goods is prohibited, or at least severely restricted in many countries. This includes, among others, selling of dangerous drugs, guns and explosives, for instance. Aerosol cans containing CFCs, which are harmful to the environment, or more specifically, the ozone layer, are banned and no longer produced.

  • Consumer Protection
Most countries have laws ensuring customers are being treated fairly by businesses. This includes the act regulating weights and measurements, ensuring that goods sold actually are the weight or size they are sold at, and the Trade Description Act, making misleading descriptions of products illegal.

Other laws include the Consumer Credit Act, ensuring consumers are aware of loan durations, interest rates etc when taking out a loan, as well as receiving copies of credit agreements, and the Sale of Goods Act, making it illegal to sell faulty or damaged goods. The return of goods and refunds, etc, are also governed by laws.

  • Employee Protection
Laws to protect employees include laws against unfair discrimination based on race, color, religion, sex, or age; laws against unfair dismissal and sexual or other harassment; health and safety laws and laws regulating minimum wages. Many countries make written contracts between employer and employees mandatory.

  • Tax and Financial Laws
These laws vary between countries, but generally regulate accountancy practices, interest rates on loans, taxes etc. Businesses are expected to provide sufficient documentation of income and expenditure, for instance.
Amanda Wells Profile
Amanda Wells answered
The legal environment of business is the law as it affects business. It usually refers to the laws of a particular country, for example, what are the legal constraints on business, the requirements and duties for a company? There are also books and courses about the international legal environment, especially the laws that affect multinational companies.
Luis Mier Profile
Luis Mier answered

Hi There,

I totally agree with Iris.

Ramona  Vandusen Profile
Ramona Vandusen answered

lawful Environment of
Business seeks to increase understanding of the most imperative legal issues
affecting business. The course aims to provide undergraduate international
business students with the rudiments of the methods of legal thinking. In
addition, it teaches the basic principles of the legal framework in which
international business takes place. Specific emphasis will be given to the
business laws of the American and European Union where appropriate.

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