Introduction to Business Law and Ethics
It’s proved that behind the success of country business world play important role. Successful business has its own features. There are a lot of forces which impact on business for the resistance against those forces there are law and regulations. To follow those laws is necessary for all businessman, these laws protect business and help to be successful. Business affected by ethics. Ethics impact on business from different ways. At different epochs of the world, people, especially the elites of the world, were blind to ethics and morality which were obviously unethical to the succeeding epoch.
Business law determines the minimum standards of behavior expected of companies and sole proprietorships. Business ethics go beyond simple legality. They describe the way a business should behave – how a business does what it is legally obligated to do. Ethics are not as much a specific code of conduct as they are values to be upheld and practiced. Business law, or commercial law, is the body of law that relates to trade and commerce, banking and investments, contracts, marketing and advertising, incorporation and corporate structure, and finance and collections.
Business law in the United States is delineated by the Uniform Commercial Code (UCC), which sets the standards and rules for commercial activity. Every state has adopted at least part of the UCC. State and federal governments supplement the UCC with other regulations that reflect the individual situations that affect their territories. Business law determines the minimum standards of behavior expected of companies and sole proprietorships. Enforcement of these laws on a corporate scale generally consists of fines charged to the corporation. Individual accountability for corporate crime has to be proven to have taken place by the responsible party. For example, a company may have sold a product it knew was defective, choosing to sell it anyway.
Unless you can prove in a court of law through evidence that the president of the company in particular knew about the defect and ordered the product to be sold, you can sue the company, but you cannot press criminal charges against the corporation. Since a corporation cannot do jail time, all there is left to use to penalize the corporation are fines or court judgments. Business ethics go beyond simple legality. They describe the way a business should behave – how a business does what it is legally obligated to do.
Ethics are not as much a specific code of conduct as they are values to be upheld and practiced. They are the spirit of the law, as opposed to the letter of the law. This is designed to create an environment of personal accountability within the business, where there is none under the law. Business ethics also shape the perspective that the public uses to view a business. Values like honesty, integrity, confidentiality, respect – those are values that are a part of business ethics. While the law may not require you to tell the complete truth in a business situation, such as when a manufacturer uses “puffery” to describe an object, being honest about the product will gain a business a reputation for being ethical. People want to do work with or make purchases from businesses they believe to be ethical. This course examines the ethic’s impact on business. It enables us to understand how different value system, laws and epoch effect on business. The object of this course is to enhance the value of business law and Ethics. The aim is to spark and discussion between business law and Ethics from different angles. The main purpose of this course is to understand the success of business under the rule and regulations. By the end of this course, you will have a clear understanding of the legal environment in which businesses operate.
At the end of this course, you will be able to understand the following:
- Nature and Sources of Law
- Litigation vs. Alternative Dispute Resolution
- Property Law
- Intellectual Property
- Employment Law
- Criminal Law and Business
- Business Organizations
- Business Regulation
- And many more
SECTION 1: PRINCIPLES OF LAW
Introduction to Law
Law is essential to any society in that it provides the rules by which people and businesses interact. Law affects almost every function and area of business. The authors of one business law text go so far as to say that “the difference between winning and losing in the business world often depends upon the ability to make good choices from a legal perspective.”