Law of Business: An Overview
The legal environment of business, (sometimes referred to as the business law environment), is exactly as it sounds. It’s the study of legal and regulatory environments of businesses, of course of which companies, their ability to operate, grow and avoid risks are all dependent on. Businesses are impacted by a myriad of local, national and international laws and regulations affecting how they operate and why they operate the way they do. It seems almost impossible to imagine that there’s any way for businesses to operate in the legal environment without it limiting what they’re able to do and influencing them in their choices. That’s the case even if the business is to help the homeless or provide fresh food for deprived families.
If you’re an entrepreneur you’ll know how important the law is ‘to getting things done’ safely, (including when you have to pursue or defend a legal case), and when you start out you always need to be on your guard to avoid scams or avoid being scammed out of any money you’ve earned. When your company gets bigger and starts moving into new regions, states or countries, the interplay between what is legal where and how it can be regulated can become much more complex, and even harder to understand. That means that for entrepreneurs and businesses of any size, awareness of the legal environment of business is essential.
For business law students , it’s grossly important to understand the legal environment of business for so many reasons – especially when business law is part of your degree. The legal environment of business defines what business can do legally, what it can get away with and allows students to answer how, when and why for doing business that way.
When studying the operating environment of business in any case study, it’s necessary to create a comprehensive understanding of the issue ‘ensuring that the interaction of the organization or the industry in question with the legal system is thoroughly understood.’ Giving a good and accurate reason for operating any business this way is only possible with a thorough understanding of the legal environment of business. Understanding the role of law also includes the writing of an argument for why the law is justified in regulating the ways it does.
The business student should also be aware that the legal environment of business isn’t neutral, merely there to ensure fairness in business practices. The legal environment of business is inherently biased by nature. For instance, the property law of a state is usually favoured towards owners of land. The power of governments dominates over individuals within that region near solely serves those already in office (elected leaders have an obvious vested interest in assisting one business over another) and property taxes serve those with land and property whilst making it harder for those without land to compete in the market. It’s always important to consider how such biases affect business and, of course, business law.
Basic Business Legal Principles
Contracts: At its most basic level, a contract is a legally binding agreement between two or more parties. Contracts can come in written or oral (verbal) forms, but are always related to the provision of goods or services from one party to the other. Although most business contracts contain multitudes of specific details and terms, the fundamental purpose of a contract is to clearly arrange the provision of goods or services from one party (the promiser) to another (the promisee) in exchange for some other consideration. Example: Tom wants to paint Maria’s house and, in exchange, Maria offers to pay him $300 for the job. Tom and Maria enter into a legally binding agreement (whether written or verbal) in which Tom agrees to perform the service of painting Maria’s house for $300.
Torts: A tort is a civil wrong committed against an individual or entity. There are many different types of torts, including negligence and fraud. The key element to a tort is that it is a civil action, as opposed to a criminal act that could be prosecuted by the state. Example: In exchange for $300, Tom agreed to paint Maria’s house. Tom failed to complete the job and, as a result, Maria had to hire a different painter. Maria has a right to file a tort claim against Tom for failing to uphold his end of the contract. Indicating that he was "really" giving Maria a special deal, Tom painted the house his "special" color, a pinkish hue. Unfortunately, the residents and city officials do not like the new color and threaten to fine Maria for painting her house without obtaining a permit from the city first. Maria now has a right to bring a tort claim against Tom for fraud and misrepresentation.
Property Law: Property law—also known as real property law—generally deals with the ownership and use of land. A variety of legal issues fall under the umbrella of property law, including easements, mortgages and foreclosures, zoning and land use, and many others. Example: Tom’s foreclosure on Maria’s home was recently completed and the bank is now trying to sell the house. The bank contacts Maria in the hopes that she is interested in selling the house she was forced to leave; however, Maria will not consider the purchase or sale until the bank agrees to refund Tom’s money. The bank refuses to refund Tom’s money at this time. Maria believes that the bank is not allowed to sell the home until its dealings with Tom are settled. The bank disagrees with Maria and argues that its dealings with Tom and Maria are unrelated and that it can sell the house. This dispute over the property, which includes the ownership status of the home, must be settled in the courts.
How the Textbook is Organized
A standard textbook on "The Legal Environment of Business" would typically follow a book structure that some have adapted into a syllabi for courses in business law. The first section of a textbook like this normally covers the sources and methods of the law. The primary focus would be at the federal, state, and local levels. It would discuss vital functions, such as whether they have the power to do something, what their budgets are, how they spend their money, and how they can be abolished.
The first few chapters will usually move to topics surrounding ethics and social responsibility. We then typically move through various topics of law such as court systems, judicial processes, jurisdiction, and privilege and immunity.
Some books move through contract law immediately after the first few chapters. Others put these in their own sections. With contract law, we would typically have sections on the formation of contracts, contract defenses, and contract enforcement. Many typical books also have sections on topics like torts, agency, employment and labor law, sales and product liability, real property, bankruptcy, and international law.
The case studies provide wonderful illustration of the subject matter and how they relate to each other. Generally speaking, primary sources of law in the form of statutes are introduced providing students a basic background on the subject matter. Most provide a list of key terms and concepts, chapter summaries, and end-of-the-chapter questions.
Use of Case Studies to Teach Law of Business
Business law is a complex and ever-evolving field that is constantly influenced by both economic and political factors. In order to capably advise and guide clients, it is essential for business lawyers to be thoroughly familiar with both the principles of business law and how they are applied in the real world. This is where case studies come into play. By analyzing real-world examples of how the law has been applied, business lawyers not only gain a better understanding of how the law works in practice but also gain invaluable insight into how well various laws and regulations support business and the economy. Depending on the focus of a business law program, case studies may explore any number of subjects, including commercial law, business formation, corporate disputes, mergers and acquisitions, employment law, consumer law, or not-for-profit law. In all cases, students learn that the application of even the most clear-cut legal principles can be unanticipated and subject to interpretation by the courts. Professor Sara Sun Beale, who has written extensively on both the use of case studies in college-level business law and the state of business law education in general, noting that while exposure to case study experience was once considered optional, exposure to more sophisticated types of case studies are now deemed necessary by many institutions and law students. It should come as little surprise that a solid grasp of the basic principles of business law – and how these principles are applied in the real world – is crucial to success as a business lawyer. In the course of conducting interviews with business law professors and legal experts around the country, however, it was noted that, based on recent research, the gap between lawyers’ assessment of students’ capabilities and students’ own self-assessment of their skills is decreasing. Overall self-assessment scores of law students studying business law were found to be lower than the self-assessments of other specialties; however, law students’ self-assessments were closer to the assessments of business law professors than were the self-assessments of law students in other fields of law. Veteran lawyers also report that the gap between their own expectations of new attorneys and the abilities of those new attorneys is less stark than before, and that students are notably better at applying legal principles than are more experienced legal practitioners.
Selecting a Law of Business Textbook
While there are many factors to consider when selecting the right business law textbook for yourself or your students, perhaps the most important components are: who author the book is, what their expertise is, the comprehensiveness of the content, and how current the content is. The book should ideally be authored by someone both academically knowledgeable but who also has experience in the field of business. It should be obvious that the author has direct exposure to the nuts and bolts of business law. You also want to make sure your text covers all aspects of business law. Almost everyone understands that a business law textbook will include contracts, corporate law and agency law . However, have you thought about including labor laws and employment laws? Or at least introducing these subjects. Plus bankruptcy is an important issue for businesses, and the textbook should at least touch on federal bankruptcy law issues. Finally, one of the most critical factors in selecting a business law textbook is currency. Nothing is more frustrating to a college professor if he or she assigns a book that is not current. What something costs today is important, but providence in anticipating what consumers may be thinking years down the road is invaluable. A good business law text should be invested in being the leading resource in communicating how the business world operates and what the law is up to today.
Additional Textbooks Related to Law of Business
The advent of the internet has revolutionized the way students of business law can engage and familiarize themselves with the material. Open lecture websites like iTunes U offer video and audio content from some of the world’s most prestigious universities and various media outlets, allowing for a unique classroom experience outside of the typical lecture hall. Sources like Yale and the BBC have put up a wealth of material that covers unique business law topics not commonly covered in textbooks. This is mainly due to the fact that these online lectures are being made available for free; the colleges that contribute to the website largely view it as an outreach program.
Websites like Academic Earth and Coursera also provide videos of past guest lecturers from institutions like Harvard and Stanford. While these are not organized by courses as they are on iTunes U, students can browse by school, topic, or even instructor. While doing a general search for business law is not guaranteed to give students relevant information, these websites are informative and provide a student with a glimpse into what is expected of them in a classroom setting.
In addition to searching lectures on the web, students can search databases for legal documents from various sources. While sites such as Findlaw focus primarily on attorney listings and directory services, they also do provide links to recent case law, including industry-specific articles. While students can rely on these databases, they should not be seen as a substitute for textbooks, which are rigorously selected and vetted, whereas some articles may be written by non-attorneys or non-academic staff.
Finally, making connections with peers can help when you are struggling with a particular subject. To get started, try the school-sponsored organizations, such as mock trial teams, legal dispute resolution teams, and volunteer clinics. Social media can also be a good route to go down, as many schools have dedicated groups for law students, such as University of Notre Dame School of Law, or student organizations, such as Pitt Law Review. Additionally, Leagle, a legal research website, offers a forum for many of the people who contribute articles to the database, allowing students to get in touch with people who will be a valuable resource throughout their career, so long as they remain respectful.
Future of Law of Business
As we look to the future, the landscape of business law education is anticipated to evolve further, and at an even more rapid pace. The proliferation of digital technologies is at the forefront of this change, with the use of digital textbooks and interactive learning platforms becoming increasingly common in higher education. Digital textbooks not only offer a wealth of up-to-date information but can also be regularly updated to reflect changing laws and legal practices. Interactive learning platforms, on the other hand, have the potential to revolutionize how business law is taught and learned. These platforms provide students with access to interactive exercises, simulations, and quizzes that foster active learning, encourage critical thinking, and increase classroom engagement.
The rise of artificial intelligence (AI) represents another significant trend in business law education. Already used by law firms to perform routine legal research and contract drafting, AI technology stands to impact the legal field as a whole and may soon be integrated into the education system. For instance , customized study materials or assessments could be developed using AI algorithms that analyze learning data and identify students’ strengths and weaknesses. This would allow for a more personalized and effective approach to legal education, equipping students with the resources they need to succeed academically.
At the same time, the increasing use of digital technologies poses challenges for business law educators. For example, these advancements can influence students’ reading habits, which can ultimately affect their ability to effectively digest dense legal material. Instructors may need to adjust their teaching strategies to account for this. Similarly, digital learning tools and AI may present additional risks in terms of the security of student data and academic integrity. As education stakeholders consider the use of these technologies, issues such as data ownership, security, and privacy will need to be considered.
Overall, it is clear that the future of business law education is full of uncertainty. But those involved in the process of instruction need to be ready and able to adapt to it in order to effectively prepare their students.