BUL 3310- Midterm Exam Guide - Comprehensive Notes for the exam ( 20 pages long!)
6 Oct 2017
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Law is an important dimension in conducting business. Law and business intersect in two ways: Provide mechanism by which government regulates business behavior. Business used to function with little economic or social control. Now, economic and social policy is given force through law. I. e. , competitors gathering to price products rather than letting market price products itself. Commercial enterprise has operated outside of a formal legal system and created its own law. Law merchant: various rules of commerce and trade used by business people to deal with one another from middle ages and enforced by merchant guilds. Functioned as international law of trade/commerce in europe. Used by merchants by invoking power of merchant courts located along trade routes to settle disputes. Knowledge of law allows one to identify legal risks and e ectively reduce or eliminate liability. External: deciding whether to form a partnership or corporation based on asset claim risk. Business leaders can use the law to their strategic advantage.
