LEGAL ENVIRONMENT

Legal Environment of Business

Legal Environment of Business

Introduction

The business environment primarily includes economic development, measured by indices such as the Gross Domestic Product (GDP), purchasing power parity (PPP), capital, social indicators and economic indicators. In turn, economic development is driven by innovation which requires the acquisition of necessary skills and intellectual property protection, the political system, geography and education.

Legal System

The legal system of a country is the laws or rules that dictate behavior, along with the mechanisms with which these laws and complaints are heard. The laws set standards of business practices, define the way of doing business, and set the rights and obligations of participants.

Like the economic system of a country, the legal system depends on the prevailing political system, because the government of the country defines the legal framework for operating companies, and general regulatory laws (Pound, 2007).

There are three main or traditional legal systems in the world: common law, civil law and the theocratic right.

The common law evolved in England, based on traditions, precedents and customs. The tradition is that a country's legal history, the precedents are presented cases before the courts and customs are the ways in which laws apply in particular situations. This system has a unique flexibility and that judges have the authority to interpret the law according to the particular circumstances of each case (Schwartz, 2004).

Civil law is based on a detailed set of laws organized into codes, therefore, has less flexibility than the customary law because judges rely more on detailed legal codes in the interpretation of traditions, i.e., judges only apply the law.

The theocratic right law is based on religious doctrine; many Muslim countries have legal systems that combine Islamic law and a customary or civil.

The legal system brings together the structures and modes of proceedings relating to the enforcement of law and the resultant services. The legal system thus comprises the judicial apparatus, but also the device non-jurisdictional.

The U.S. business court system does not separate judicial and administrative courts. It opposed to the judicial systems of the fifty U.S. states, which have their own systems of appeal (appellate courts and supreme courts) and is responsible for business crimes.

Alternatives to litigation

The reminder of the law: This is to raise awareness to the offender that he committed an illegal act and make known the risks he will incur in case of recurrence.  Assignment to condition: This is a reminder of the law and a proposal for compensation for damage that may result in no further action of the complaint

Criminal composition: for certain offenses, the prosecutor may offer the author to execute one or more obligations, such as the payment of a fine so-called "composition", the return of driver's license or to hunt, to the divestiture benefit of the State of proceeds of crime or the object used to commit it (Pound, 2007). 

Mediation in criminal cases: It is proposed to deal with crimes related to family disputes, neighborhood or work. Mediation although inside the criminal field and under the authority of the prosecutor appealed ...