Law 421: Role Of Law In Business And Society
Law in Business and Society
LAW/421
January 28th, 2013
C.J. Hughes
The role of law in business and society plays a critical role and has both moral and ethical implications. Businesses laws help regulate business and social behavior in the marketplace and provide an ethical compass for businesses and consumer to follow. This is accomplished by providing the laws on a federal and state level to govern our actions and provide guidelines for conflict resolution.
There are federal laws, state laws, international commerce laws, interstate commerce laws and intrastate commerce laws along with host of statutes and ordinances. They are all designed to govern the actions of business at provide a level playing field. These laws also provide …show more content…
the consumer with recourse against businesses for violations of these laws through use of the courts, mediation and alternative dispute resolutions. Our Constitution was written so it provides the laws of the land are supreme and in most cases when federal and state law collides, federal law carries the day.
This was evident in the case study of Cipollone vs. Liggett Group, Inc, et el., where the Supreme Court ruled against the plaintiff “holding that claims relying on state law were preempted by federal law.” Another instance of federal law overruling state law can be found in enforcing the Whistleblower Act. If a company were to fire employees for reporting safety violations or Securities and Exchange violations unless their operation were wholly intrastate and had zero impact on interstate commerce they would likely be bound by federal law.
In discussing the function and roles of laws in my present job, there are two different businesses that come into play. I am a district sales manager for a very large international entity by the name of Saint Gobain and the owner of a small restaurant business in Green Valley, Arizona. Each function brings different laws into play. As a small business owner the business is subject to local ordinances, such as zoning, signage and sales tax. The business must also be in compliance with local health, fire codes and comply with federal and state taxation laws. Equally important is a strong knowledge of state and federal labor laws. Labor law and dealing with employee is an almost daily issue for the small business …show more content…
owner.
A good example of labor law is knowing when and how to discipline and ultimately legally terminate an employee. Any time an employee is terminated with or without cause or even with voluntary quits, the employer must be prepared to document the occurrence typically to protest and unemployment insurance claim. The process in Arizona requires the employer to file a protest within ten days after receiving the official notice. A failure to return the form in the proscribed amount of time will result in the employee receiving unemployment insurance benefits and potentially impacting the company’s unemployment insurance rating with the state.
If the employer’s account is charged a notice is sent from the state allowing the employer one final chance to protest.
The state also holds mediation calls to with the employer and the former employee to settle any disputes. Rarely does an unemployment insurance case go beyond arbitration.
My position as a district sales manager for Saint Gobain requires an altogether different knowledge base especially in dealing with competitors and being acutely aware of potential price fixing as related to antitrust laws. Saint Gobain has very strict policy regarding interactions with our competitors. Saint Gobain was fined several years ago for “illegal market sharing and exchange of commercially sensitive information.” The company was fined 896 million euros and the rationale behind the large fine was due to them being a “repeat offender.”
This illustrates the importance of knowing the laws that are applicable to your business and job. The company has since put together required mandatory annual training on antitrust law. The training takes the employee through over a dozen different scenarios and must pass a test with a score of eighty percent or better. This is a focused area of compliance for Saint
Gobain.
The company is especially concerned at business gatherings, whether they are trade shows or technical meetings. It is prohibited to discuss any pricing with a competitor under any circumstances. Although this may appear to be an extreme reaction to the European Union fine, in today’s electronic world, caution should rule the day. The company discourages any interactions between competitors to limit their exposure. They want conversations limited to basic social greetings and for the employee to move on to something else.
The laws concerning commerce are there to protect the business, the business owner and the consumer. In the absence of laws regulating commerce, it would be free for all and, disruptive to society. There would be no recourse for the consumer or the business owner for any product malfunctions, poor quality of product, non-payment for goods and general wrong doing. The laws exist for the benefit of all and even if they seem arduous and complex, they exist for a reason that is usually based on precedence.
References
Melvin, S. P. (2011). The Legal Environment of Business: A Managerial Approach: Theory to Practice. New York, NY: McGraw-Hill.
Newman, M., & Chassany, A. (November 12th, 2008). Saint-Gobain, Asahi Get Record Fine in
EU Cartel Case.
Retrieved from //http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azyZD.v2yaqk
LAW/421
January 28th, 2013
C.J. Hughes
The role of law in business and society plays a critical role and has both moral and ethical implications. Businesses laws help regulate business and social behavior in the marketplace and provide an ethical compass for businesses and consumer to follow. This is accomplished by providing the laws on a federal and state level to govern our actions and provide guidelines for conflict resolution.
There are federal laws, state laws, international commerce laws, interstate commerce laws and intrastate commerce laws along with host of statutes and ordinances. They are all designed to govern the actions of business at provide a level playing field. These laws also provide …show more content…
the consumer with recourse against businesses for violations of these laws through use of the courts, mediation and alternative dispute resolutions. Our Constitution was written so it provides the laws of the land are supreme and in most cases when federal and state law collides, federal law carries the day.
This was evident in the case study of Cipollone vs. Liggett Group, Inc, et el., where the Supreme Court ruled against the plaintiff “holding that claims relying on state law were preempted by federal law.” Another instance of federal law overruling state law can be found in enforcing the Whistleblower Act. If a company were to fire employees for reporting safety violations or Securities and Exchange violations unless their operation were wholly intrastate and had zero impact on interstate commerce they would likely be bound by federal law.
In discussing the function and roles of laws in my present job, there are two different businesses that come into play. I am a district sales manager for a very large international entity by the name of Saint Gobain and the owner of a small restaurant business in Green Valley, Arizona. Each function brings different laws into play. As a small business owner the business is subject to local ordinances, such as zoning, signage and sales tax. The business must also be in compliance with local health, fire codes and comply with federal and state taxation laws. Equally important is a strong knowledge of state and federal labor laws. Labor law and dealing with employee is an almost daily issue for the small business …show more content…
owner.
A good example of labor law is knowing when and how to discipline and ultimately legally terminate an employee. Any time an employee is terminated with or without cause or even with voluntary quits, the employer must be prepared to document the occurrence typically to protest and unemployment insurance claim. The process in Arizona requires the employer to file a protest within ten days after receiving the official notice. A failure to return the form in the proscribed amount of time will result in the employee receiving unemployment insurance benefits and potentially impacting the company’s unemployment insurance rating with the state.
If the employer’s account is charged a notice is sent from the state allowing the employer one final chance to protest.
The state also holds mediation calls to with the employer and the former employee to settle any disputes. Rarely does an unemployment insurance case go beyond arbitration.
My position as a district sales manager for Saint Gobain requires an altogether different knowledge base especially in dealing with competitors and being acutely aware of potential price fixing as related to antitrust laws. Saint Gobain has very strict policy regarding interactions with our competitors. Saint Gobain was fined several years ago for “illegal market sharing and exchange of commercially sensitive information.” The company was fined 896 million euros and the rationale behind the large fine was due to them being a “repeat offender.”
This illustrates the importance of knowing the laws that are applicable to your business and job. The company has since put together required mandatory annual training on antitrust law. The training takes the employee through over a dozen different scenarios and must pass a test with a score of eighty percent or better. This is a focused area of compliance for Saint
Gobain.
The company is especially concerned at business gatherings, whether they are trade shows or technical meetings. It is prohibited to discuss any pricing with a competitor under any circumstances. Although this may appear to be an extreme reaction to the European Union fine, in today’s electronic world, caution should rule the day. The company discourages any interactions between competitors to limit their exposure. They want conversations limited to basic social greetings and for the employee to move on to something else.
The laws concerning commerce are there to protect the business, the business owner and the consumer. In the absence of laws regulating commerce, it would be free for all and, disruptive to society. There would be no recourse for the consumer or the business owner for any product malfunctions, poor quality of product, non-payment for goods and general wrong doing. The laws exist for the benefit of all and even if they seem arduous and complex, they exist for a reason that is usually based on precedence.
References
Melvin, S. P. (2011). The Legal Environment of Business: A Managerial Approach: Theory to Practice. New York, NY: McGraw-Hill.
Newman, M., & Chassany, A. (November 12th, 2008). Saint-Gobain, Asahi Get Record Fine in
EU Cartel Case.
Retrieved from //http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azyZD.v2yaqk