The Role And Function Of Law In Universal Business

Running head: THE ROLE AND FUNCTION OF LAW IN UNIVERSAL BUSINESS

The Role and Function of Law in Universal Business

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THE ROLE AND FUNCTION OF LAW IN UNIVERSAL BUSINESS 2

Governments implement many laws that guide the operations of businesses. In an event

when the state laws changes, business owners also have to change their activities to meet the new

expectations. Government laws range from consumer rights protection and labor law practices.

These rules guide the overall operations of any business. The core aim of this paper is to analyze

the precise function and role of government laws in international trade, a case study of General

Motors Corporation.

The federal laws implemented in the United States affects the operations of General

Motors Corporation. According to Mushtaq at al. (2012), the United States government applied a

state law that imposes fifty percent tax rate on all the imported automobiles in the state. The bill

aims at reducing the sales of imported products. As a result, the law makes the Company to

violate the foreign commerce law by unduly burdening international commerce. Secondly, the

government places a ten percent tax rate on the sales of automobiles made in the state to reduce

environmental pollution and protect the great lakes. These laws affect the operations of the

company since it has to base its actions under these clauses to operate legally failure to which

may lead to negative implications for the company due to fines.

Business managers who are familiar with some of the laws implemented by the

government on businesses understand the high costs linked to these rules. According to Martin

(2004), one of the leading challenges of traditional litigation is the probability of winning or

losing. With the introduction of these lawsuits, there is no confidence that a business must win.

Secondly, business owners also are at the risk of getting little money than they expect. In fact,

they could even get returns that are little as compared to what they spend on litigation. The

charges incurred due to attorney’s fees plus other costs of litigation makes the process

considerably costly. Additionally, some of the regulatory notices found on the internet could

THE ROLE AND FUNCTION OF LAW IN UNIVERSAL BUSINESS 3

attract new potential litigants who feel that the business has made them suffer due to the breach

of business laws hence exposing the company at more risks. Also, during litigation, the privilege

that accorded companies becomes little upon discovery. Apart from lawful-motivated

communication, some internal investigations expose the weak points of many businesses which

gives their competitors an added advantage against them. Finally, a lot of investigations damages

the brand name of the company. Even if the process of filing these suits begins quietly and away

from the eyes of the public, at some point the privacy is compromised, and the suits become

known due to whistleblowers exposing confidential information.

Business managers should implement a thorough approach to eliminate these litigations.

According to Bohme et al. (2005), the managers should strive to keep up with the current laws

implemented by the government. Since employees have the responsibility of adhering to

government rules, staying informed of any new requirements reduces the risk of exposures to the

negative implications of business litigation. Secondly, the business owner should train their

managers on how to avoid employment litigation landmines. All businesses should invest in

human resource training is the best way to spend the human resource budget. All the manager

should receive education on all the aspects of employment laws, the policies of the company as

well as practices considered appropriate for a business human resource department. Finally, the

business should comply with the set discrimination laws. The government prohibits employers

from discriminating their employees regarding their race religion among other characteristics.

Most states have discrimination laws that the businesses are supposed to follow. Hence,

managers should be aware of these requirements to

A major international business dispute occurred between Apple and Samsung. According

to Cusumano (2013), in the year 2001 Apple accused Samsung of imitating their advertisement

THE ROLE AND FUNCTION OF LAW IN UNIVERSAL BUSINESS 4

approach ‘look and feel.' The company charged Samsung of not refunding them for using their

wireless broadcast technology. These two companies have recurrently blamed each other for

imitations. These companies have hoped to avoid legal battles and work together to move

beyond these disputes.

There are different forms of dispute litigation in businesses. For traditional litigation

methods, parties choose to use techniques like arbitrary where a judge is involved in solving

these disputes in the court while on alternative dispute resolution, the parties involved in a

dispute decided to settle their disputes outside the courtroom. The best approach to resolve the

conflict between Apple and Samsung just like it was agreed by the two companies is alternative

dispute resolution. The procedure does not involve a lot of costs and processes since the parties

agree upon themselves to solve the dispute in a way that favors both of them. Mediation between

the affected parties serves as the best approach to settle any dispute. It is more likely for the

involved parties to find a solution quickly if they are directly involved in the negotiation process

than in traditional methods. The approach saved Apple and Samsung from wasting a lot of time

and energy in the courtroom.

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References

Bohme, S. R., Zorabedian, J., & Egilman, D. S. (2005). Maximizing profit and endangering

health: corporate strategies to avoid litigation and regulation. International Journal of

Occupational and Environmental Health, 11(4), 338-348.

Cusumano, M. A. (2013). The apple-samsung lawsuits. Communications of the ACM, 56(1), 28-

31.

Martin, S. L. (2004). The Litigation Financing Industry: The Wild West of Finance Should Be

Tamed Not Outlawed. Fordham J. Corp. & Fin. L., 10, 55.

Mushtaq, N. U. S., & Sarwar, J. (2012). A look into the future of the global automobile industry

with an emphasis on emerging fuel technologies.

Pratt, B., & Hyder, A. A. (2015). Applying a global justice lens to health systems research ethics:

an initial exploration. Kennedy Institute of Ethics Journal, 25(1), 35-66.

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