Legal environment of business

Legal environment of business

Introduction

The purpose behind this paper is to assess the legal environment of business and look into some labor and employment laws that directly affect a company doing business domestically and internationally.

Discussion

For any business to operate it has to deal with the legal environment, which are ways in which the government can maintain a control over the business activities and also protect the employees right as well and ensuring their wellbeing. For any business to be successful it is necessary to identify and completely understand the legal aspect of doing business in order to protect the company and be able to perform according to the legal aspects defined by the government. However doing business doing business domestically is far more easier then doing business internationally since businesses have to deal with a number of laws and regulations that have a direct impact on the business.

Domestic Laws governing businesses

Following are the major domestic laws a business has to keep within their mind while performing business and while expanding.

Laws on production

There are many products that are prohibited from being manufactured or are liable to serious actions a business can be directly affected if unaware of this law.

Consumer protection Law

There are many laws that ensure the rights of consumers are being met and the business is making fair deals with the customers in terms of weights, quantity and quality.

Advertising & Marketing Law

Business success relies heavily on marketing and advertising and making sure that the product reaches the masses in order to increase sales, though the government places certain legal obligation in a company that restricts a company's advertising, according to the law every claim made during an advertisement needs to be truthful and not misleading (SBA, 2001).

These were just an overview of some of the primary laws that influence a business, our focus for this paper will be on employment and labor laws. The employment and labor laws are enforced in order to ensure that an employee is not subject to any discrimination, poor working conditions or harassment and to make sure the wages and business hours are in accordance with the laws specified. Domestically every state has their own governing laws that regulate businesses performance.

United States Labor Legislations

There are three core aspects of the United States labor legislation which have a direct impact on a business domestically and internationally, abiding by these laws can protect a business from international lawsuits. They are: The Wagner Act 1935, Taft Hartley Act 1947 and the Labor management reporting and disclosure act. There has been a debacle to modernize the labor laws and allows businesses to perform their business with a little more leniency and freedom (Mark, 2007).

The Wagner Act

The Wagner Act is one of the primary laws adopted for the purpose of encouraging the formation of labor unions. There have constantly been many conflicts between he employees and the employers specifically in terms of bargaining power. This act has been focusing on allowing companies create labor union for the purpose ...