Knowledge of Law as a Business Asset
Law in the Business Environment
Business Law: A set of established rules governing commercial relationships, including the
enforcement of rights.
Defines general rules of commerce
Protects business ideas and more tangible forms of property
Provides mechanisms that permit businesspeople to select their desired degree of
participation and exposure to risk in business ventures
Seeks to ensure that losses are born by those who are responsible for them
Facilitates planning by ensuring compliance with commitments
Rules and Principles
Law: The set of rules and principles guiding conduct in society
Protecting Person and Their Property
Protects in two ways
1. It sets rules with penalties
2. It seeks to make those who break the law accountable for their misconduct
Breach of Contract: Failure to comply with a contractual promise.
Defamation: Public utterance of a false statement that harms another person.
Contract Law: Rules that make agreements binding and therefore facilitate planning
and the enforcement of expectations.
Litigation: The process involved when one person sues another.
Providing Mechanisms for Dispute Resolution
Important Questions to ask:
Are legal proceedings absolutely necessary, at least right now?
Is there a way to resolve the problem from a larger, relationship-preserving
perspective, rather than from a strictly legal viewpoint?
In the event that a formalized settlement agreement is not reached, the legal system
offers Mediation and Arbitration to avoid litigation.