Business Law Textbook
BUSI 2601: BUSINESS LAW
CHAPTER 1: THE ROLE OF LAW
How Do We Define Law?
1. Law is needed to protect persons and property; it prohibits conduct that society believes to be harmful to others.
The law punishes a wrongdoer who is found guilty of such conduct, and usually also give the vistim a right to obtain compensation from the wrongdoer.
It prescribes simple but vital rules that allow us to get on with our everyday lives.
2. Law gives government the powers to act for the benefit of society in general (taxes = policing, fire fighting, education, and health care).
Rule of law: Established legal principles that treat all persons equally and that government itself obeys.
3. Law provides a framework that gives us broader freedom of choice; in particular, it enable us to make legally binding agreements enforceable in the courts. (bargain, plan, sign contract = certainty).
The Significance of Law for the Business Environment
Deciding on foreign investment Legal certainty: To have a good environment for business, a country must provide an adequate legal infrastructure that clearly defines rights and properly enforces them.
International business: Foreign trade and foreign investment = legal relationships.
LAW AND CONSCIENCE
Why is Law Generally Accepted and Obeyed?
In our daily lives, it is essential that we feel we can rely on our normal ways of getting things done and that arrangements with others should be reasonably predictable and orderly. The legal system appears to be generally just so that the majority is willing to assume that any particular law will produce fair results. If the law is unjust, not its application, it can be amended.
People generally agree that there are times when an individual is justified in breaking the law, although they would add that, generally speaking, the law should be obeyed.
NATURAL LAW
Stream 1: Based on religious belief, establishing a set of moral and ethical values, prescribing rules of
CHAPTER 1: THE ROLE OF LAW
How Do We Define Law?
1. Law is needed to protect persons and property; it prohibits conduct that society believes to be harmful to others.
The law punishes a wrongdoer who is found guilty of such conduct, and usually also give the vistim a right to obtain compensation from the wrongdoer.
It prescribes simple but vital rules that allow us to get on with our everyday lives.
2. Law gives government the powers to act for the benefit of society in general (taxes = policing, fire fighting, education, and health care).
Rule of law: Established legal principles that treat all persons equally and that government itself obeys.
3. Law provides a framework that gives us broader freedom of choice; in particular, it enable us to make legally binding agreements enforceable in the courts. (bargain, plan, sign contract = certainty).
The Significance of Law for the Business Environment
Deciding on foreign investment Legal certainty: To have a good environment for business, a country must provide an adequate legal infrastructure that clearly defines rights and properly enforces them.
International business: Foreign trade and foreign investment = legal relationships.
LAW AND CONSCIENCE
Why is Law Generally Accepted and Obeyed?
In our daily lives, it is essential that we feel we can rely on our normal ways of getting things done and that arrangements with others should be reasonably predictable and orderly. The legal system appears to be generally just so that the majority is willing to assume that any particular law will produce fair results. If the law is unjust, not its application, it can be amended.
People generally agree that there are times when an individual is justified in breaking the law, although they would add that, generally speaking, the law should be obeyed.
NATURAL LAW
Stream 1: Based on religious belief, establishing a set of moral and ethical values, prescribing rules of