Role of Law

Role of Law

Role of law

The role of law in business or business law is to follow regulations that affect businesses, families and individuals in their related roles. Without law in business, businesses or those related to doing business with would not be held accountable during any business transactions. “Businesses operate in an increasingly global environment where the laws of different governments and judicial systems might conflict. Thus, business students must include in their academic preparation a basic knowledge of the legal system and how business law impacts commerce in their own country and abroad (i.e., the impact of globalization). They must also understand that state, territory, province, or federal law must sometimes work in conjunction with international law. Each component of the business law standards therefore includes performance expectations related to the laws of different countries. The standards also challenge students to distinguish unethical from illegal behavior and to understand the rising importance of social responsibility as an important aspect of corporations and organizations as global citizens.” (National Business Education Association, n.d.). Business law affects how businesses interact with customers as well. Each party of a transaction is required to follow business law, with dictates contracts and rules to be followed during the transaction.

In my line of work, business law affects me a lot. I am part of a union that works at one of the four oil refineries in the bay area. Every couple of years our union sits down with the oil companies and discusses our labor contracts with them and each side tries to gain a little bit more profit on the contract. For the most part, the contract stays the same, with small incremental changes every couple of years to appease one party, but both sides must abide by business law or they will be forced to concede many points. “Business law deals with the creation of new businesses and...