Business And Legal Environment

Running head: BUSINESS LAW 1

Business and Legal Environment

Name

Institution

BUSINESS LAW 2

Business and Legal Environment

In every society, there are set of beliefs, norms, taboos, policies, and laws aimed at

moderating daily activities of the people. Businesses exist and operate in a societal context

characterized by statutes and regulatory provisions (Miller & Jentz, 2011). The laws are

instituted primarily to serve the public and because businesses serve the people; it is prudent for

anyone interested in business whether small or multinational to keep note and interest of laws

defining the status its respective operations. Entrepreneurs and businesspeople are bound to find

themselves subject to a myriad of government regulations and laws (Mayor et al., 2012). Basic

knowledge of the provisions is ultimately beneficial in order to have a successful business.

Every businessperson and entrepreneur must be unequivocally conscious that laws and

government regulation stemming from local government to international markets will facts all

their business activities (Miller & Jentz, 2011). The rules affect employment (hiring, firing, and

redundancy) decisions, business financing, contract and merging initiations, workplace safety,

and marketing just to name few. Several laws may affect single business activity and transaction.

Violation of the rules and regulation result in legal liabilities that are often detrimental to

business; it is better to play safe rather than risking out of ignorance. Besides the legal

obligations, in the business world today an increasing pressure has been accorded to businesses

to undertake ethical decisions as well as take into account the consequences of their choices for

their workforce and stakeholders. It is no matter of profit maximization but adherence to the

laws, ethics, and regulations for sustainable social, political, ecological and economic well-being.

Different definitions have been accorded to business laws; typically laws are enforceable

policies and rules that govern the relationships between the parties involved in a business

transaction. Some of the statutes are unwritten principles set the traditional and contemporary

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law codes while others are written, established legislative and judicial bodies (Miller & Jentz,

2011). In the United States business and legal environment, the sources of the laws are classified

under primary and secondary sources. Primary sources infer to laws established by legislative

and judicial bodies in a specific issue; they include the provision in the U.S. Constitution,

statutory provisions, and laws enacted by legislative bodies of different states and the Congress,

administrative agencies regulations, and the case decisions or court rulings. The latter source

infers to the publication that either interprets or summarizes the laws; they are often used as

guidance by courts in applying and interpreting the primary sources of law.

Legal Framework

Some of the legal frameworks vital to the business environment include the

constitutional, administrative, criminal, tort, common, contract, antitrust, employment, and

international laws as well as court rulings (Mayor et al., 2012). Administrative laws developed

by government agencies, employment laws due to changing needs of labors forces, international

laws due to globalization and case laws due to the complexity of lawsuits are some of the most

laws that emanate considerable legal controversies and challenges in the business world today.

Miller and Jentz (2011, p. 42) point outs that due to the eruption of massive ethical

scandals in the 2000s throughout corporate America, business ethics became a crucial

component in the business environment. The business ethics considerations refer to the

consensus on the constituents of wrong and right behaviors in a business setting. Due to the

complexities and dynamism of business activities, decision makers often face ethical dilemmas

that complicate further the compliance to laws (Miller & Jentz, 2011). There are set moral

minimums that depict the acceptable minimum standards regarding a specific business ethical

behavior. Business owners have to ensure their decisions and actions are ethical. Ethical

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obligation lead to the promotion of corporate social and environmental responsibility noting that

it’s a moral obligation for corporations to sustainably develop the communities and environments

within their areas of operations (Miller & Jentz, 2011).

Administrative Law

As indicated earlier, the administrative laws encompass the regulations, rules, decisions,

and policies developed and enacted by administrative agencies regarding a particular issue

(Mayer et al., 2012). The regulatory bodies are local, state, or federal. Local governmental

agencies as well as the international organizations that are initiated to perform specific functions.

The rules, guidance, and policies they establish affect the aspects of the business as per the

mandates of the provisions. Some of the agencies in the USA include Federal Administration

Authority (FAA), Interstate Commerce Commission (ICC), Federal Trade Commission (FTC),

Federal Communication Commission (FCC), Securities and Exchange Commission (SEC),

Equal Employment Opportunity Commission (EOC), Environmental Protection Agency and

Congress among others. Congress is an administrative agency for its mandate creation and

implementation of the law, which it cannot manage; thus, the other organizations are formed to

help it in development and implementation of the rules (Mayor et al., 2012).

Employment Issues

Employment relationships are one of the critical components in United States business

arena today. The labor force and human resource are termed as business assets hence many laws

have been established in an effort of promoting cordial relationships between the employer and

employee (Miller & Jentz, 2011). The dynamics of employment relationships are covered under

employment law, which has a long history of development. In 1990s many of the rules pertaining

employment relations were governed by the common law. There are some employment issues.

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Some of the issues include employment-at-will doctrine originating from the common

that allows either part in employment relations to terminate the contract at any time for any

reason unless the decision violates the terms of the employment contract with the exception on

discriminatory and retaliatory backgrounds among other contraction to the law (Miller & Jentz,

2011). Termination of an employee on the grounds of whistleblowing and wrongful discharge

attracts legal liabilities. Issues concerning wages and working hours are central in employment

law; they are governed by the Fair Standards Act that describes the minimum wage, overtime,

and working hour standards as prohibitions on issues such as child labor. Redundancy and

layoffs are inevitable options business may face due to economic depression such as that of

2008-9. It results to increased rates of unemployment; hence, the government in 1988 established

the Work Adjustment and Retraining Notification (WARN) Act that notes that employees must

be served with sixty-day notice prior implementation of a mass layoff. Other laws pertain family

and medical related leaves governed under Family and Medical Leave Act (FMLA); workplace

health and safety issues managed by the Occupational Safety and Health Act (OSHA); and salary

security issues governed by the Federal Insurance Act (FICA) among others.

Employee privacy rights are a controversial business ice today following technological

advancement. Under the tort and constitutional law, and Electronic Communication Privacy Act

(ECPA); employers are expected to protect the privacy of employees. Employment of

immigrants is also a controversial issue in that an approximate 12 million illegal immigrants

reside in the USA. The Immigration Reform and Control Act (IRCA) is one the employment

laws denoting employment relations of the immigrants. Employment discrimination in the U.S.

has raised significant reforms in employment law stemming from the activists of the 1960s civil

rights. Employment discrimination based on race, sex, national, color, religion, and origin among

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other discriminatory actions are prohibited with provisions detailed in the 1964 Civil Rights Act

(Title VII) (Miller & Jentz, 2011). The EEOC was formed in accordance to Title VII to enforce

equal employment opportunity. Other laws such as disability acts also were established to inhibit

disability-based segregation in the workplace.

Employment-at-will and Affirmative Action

The employment-at-will doctrine allows employment relations to be terminated provided

the decision is not contrary to the term of employment and does not violate the law such as

whistleblowing protection (Miller & Jentz, 2011). Affirmative action was developed regarding

work based on race advocating for an equal employment opportunity and pay regardless of race.

The cases of affirmative action can be dismissed if proven by the court the organization complies

with the minimum set neutral-race affirmative action (Moskowitz, Furfaro, & Sallins, 2012).

Employment at will doctrine shortcoming is far more than its merits. Termination of

employees should be strictly based on the terms and conditions indicated in the appointment

letters (Moskowitz, Furfaro, & Sallins, 2012). Its basis is insignificant in cases where an express

of contract and it is monstrous as employers can use it to coerce employees into activities may

violate the law. For instance in a case Jennings v. Minco Technol. Labs, where the plaintiff filed

a suit following termination of her job because she failed to comply with urine testing condition

stated in the employment letter. Despite the condition violating the employee’s privacy from her

point, the court ruled in favor of defendant saying the employer has a right to dismiss her.

In Grutter v. Bollinger, the Supreme Court noted that American businesses must ensure

they embrace inclusivity of diversity of culture, ideas, people, and viewpoints in their activities

due to globalization. The same argues were discussed in the Sweatt v. Painter case. The case

promoted Affirmative Action, however, Fitzpatrick for the doctrine to be efficient it must go

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beyond the race preferences of blacks and Hispanics other full incorporate other races. It is vital

in the promotion of equity and equal employment (Barnes, Chemerinsky & Onwachi-Willig,

2015).

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References

Barnes, M. L., Chemerinsky, E., & Onwachi-Willig, A. (2015). Judging opportunity lost:

Assessing the viability of race-based affirmative action after Fisher v. The University of

Texas. UCLA L. Rev, 62, 271.

Fitzpatrick, B. (2014). Is the Future of Affirmative Action Race-Neutral? A Nation of Widening

Opponun1lies, 144-164.

Grutter v. Bollinger, (2003).

Jennings v. Minco Technol. Labs (1989).

Mayor, D., Warner, D. M., Siedel, G. J., Lieberman, J. K., & Martina, A. R. (2012). The Legal

Environment and Foundations of Business Law. Creative Commons.

Miller, R. L., & Jentz, G. A. (2011). Business Law Today Text and Summarized Cases: E-

commerce, Legal, Ethical, and Global Environment (9 Ed.). Mason, USA: Cengage

Learning.

Moskowitz, S., Furfaro, J. P., & Sallins, R. M. (2012). Affirmative Action in Employment. New

York Law Journal, 248(110).

Sweatt v. Painter (1950).

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