Why Should I Care about the Law?
Why do businesspeople need to know anything about the law? Some people think of lawyers in business as a necessary evil. There is some truth to the “necessary” part: if everyone were scrupulously honest and had photographic memories regarding all statements uttered that could constitute promises, perhaps lawyers wouldn’t be needed. But, alas, we are mere mortals with failing memories and sometimes failing ethics.
A Systems View of the Roles of the Lawyer and the Manager
One view of the respective roles of the lawyer and the manager in a business is this: The lawyer should guide the manager in analyzing risk—this is in the lawyer’s training, and it’s the lawyer’s responsibility to accurately convey the nature of legal risks to the client—however, it is up to the manager to make the final business call.
Generally speaking, lawyers are inherently conservative when it comes to risk. Managers can’t abdicate responsibility for making the business call. This is one of the main reasons for managers to have legal literacy. You need to know when you need legal advice, and then what to do with it. Sometimes, basic legal knowledge is necessary on the front lines of dealing with customers and coworkers.
Knowing something about the law can assist you in prevention. Legal analysis skills help you to avert lawsuits and other unpleasantness so that you can stay focused on running your business. However, there will be instances in which you have to bring a legal-related matter to closure. Perhaps you’ve taken over from an executive who has left the department or company and left behind a problem that requires a legal solution. Or, you did something that triggered a legal response from a customer or vendor. If you know the relevant legal rules for your area of business, you’ll know when it’s appropriate to involve legal counsel.
Let’s begin with a basic overview of the two types of law.
Differences between Civil and Criminal Law
American society highly values ingenuity and entrepreneurship, but there are legal limits on the conduct of commerce. Some of these limits are statutory, which means that a law-making body has enacted a specific law to regulate a specific activity (e.g., the Sherman Act statute regulating antitrust). Some of these legal limits are found in the common law (e.g., tort law imposing liability on an infinite variety of behaviors). Most of the legal limits on business fall into the category of civil law.
One big difference between civil and criminal law is in the potential penalties. Civil law liability carries penalties that are monetary—so-called damages. The culpable party pays damages in an amount the court believes will make the wronged party whole. This contrasts with criminal law, where the possible penalties are limits on personal freedom (such as incarceration or death), although monetary penalties are also possible (such as a fine payable to the government or restitution to the victim).
Special Exception: The Government Contractor
There is one major exception to the rule that business contracts do not involve criminal penalties for breach: this is in government contracting. Because so many students at UMUC have employment that involves contracts with the US government in some manner, this is often a point of confusion.
Government contracting is a special circumstance where the contracts involve civil law, yet breach of contract potentially involves criminal penalties. The criminal penalties can include jail time for serious violations. Those of you who work in this area probably have attended or will attend a professional development seminar about contract “compliance” in which you learn the particulars of your contractual obligations.
Trend Developments in Business Law
The past 20 years have seen a rise in the criminalization of business law. While it’s still true that no one goes to prison for breaking the terms of a contract (notable exception: government contracting), there has been a marked increase in the number of business-related activities that carry possible criminal penalties.
Business activities that are punishable by criminal penalties (in addition to fines and damages) are known as white-collar crimes. Many of you are familiar with famous cases involving business people—Martha Stewart (ImClone), Kenneth Lay (Enron), Dennis Kozlowski (Tyco), and, of course, Bernie Madoff. Those businesspeople got themselves into the criminal justice system by committing fraud, lying to federal authorities, or otherwise invoking specific laws to deter commercial crimes such as insider trading of stock. The possible penalties for white-collar crime do include imprisonment as well as fines and damages.
When you see a businessperson in handcuffs doing the “perp walk,” ask yourself, “What law has allegedly been broken?” Typically, there will be a law (statute) or a regulation (e.g., Securities and Exchange Commission [SEC] rule) that allegedly has been transgressed.
In the association, there is no much isolation of ethnic gathering in light of the fact that there are a few ethnic gatherings of individuals who cooperate, for example, Indians, Chinese, Malays, and others. For instance, Marriott Hotel and HSL in Singapore have put open doors for individuals ethnics to cooperates. With a specific end goal to augment the capability of groups in term of overseeing work environment assorted variety, the organizations' trusts a comprehensive and amicable working environment. They have confidence in choosing the correct individuals and building up representatives' abilities to work in differing condition, for example, mindfulness, flexibility, and collaboration. For instance, individuals connect with various profile so absorb them in an association. Another occasion is yearly laborers supper, the organization blends them up so they don't situate with same nationalities. They can blend, get up to speed, and have a ton of fun. (Administration of Singapore, 2014) Ethnicity is an apparatus of personality arrangement and creative energy to include in limit development, strife and prejudice. Consequently, there happens prejudice in Singapore. For example, Singapore Malays are envisioned to be unequipped for or uninterested in entrepreneurial undertakings. Interestingly, Singapore Chinese are appeared to be common business visionaries to look for benefit at each open door paying little respect to their ethnicity. Another case, in Chinese culture, disregards contrasts in sub-ethnic gatherings, social class, spots of inception et cetera. (Kopnina, 2004, p.249) Hence, Singapore government is bolstered the work advertise, which contains individuals who are isolated by ethnic, age, sex or sex, and others. Indeed, the isolation in term of ethnic in a general public happens so as to regard individuals' inclinations. For instance, most Indians are inhabiting Little India and one of their true shops is Mustafa. Be that as it may, it enables different ethnics to shop there too. Generalization is a profoundly potential impacting for segregation. Along these lines, demonizing sentiments, myths, and others dominate the great characteristics, attributes, and capacities of more established laborers with the goal that they have a tendency to get hindrance in a working environment. In any case, the administration set certain standards with the goal that numerous organizations have supported more seasoned laborers' eagerness and capacities in an association. For example, in McDonalds, the vast majority of the morning shifts are more established individuals since they will be more steady and willing to wake up to work toward the beginning of the day contrasted and the center or youngsters. Henceforth, more seasoned individuals have chance to work toward the beginning of the day and others toward the evening and night. Then again, the isolation can demonstrate a few regards to the senior individuals. For instance, individuals who work for long time in the organization will be pay higher than junior level. In the event of Singapore government, it has given a seat to more seasoned individuals in convenience. For example, it gives exceptional seats to more seasoned individuals, cripple, pregnant, and individuals with youngster in the mass fast travel (MRT), transport, and other open transportations. Moreover, the legislature has done certain approaches in Singapore, for example, government has lessened bosses' wage costs by bringing down the Central Provident Fund (CPF) commitment for more seasoned specialists, has urged businesses to make a preparation lessons for laborers over 40 years of age with sponsored who win under $1,500 a month, and furthermore has urged to retraining the develop laborers through video-based preparing projects and courses which gave by National Productivity Board (NPB). (Debrah, 1996, p.819) Generalization happens when people are not judged by their own particular special attributes or legitimacy yet on summed up trademark in light of gathering they have a place with. Individuals for the most part generalization because of disadvantageous of ladies for determination, advancement choices, and position. Subsequently, there happen undetectable obstructions that avoid ladies in achieving the higher classes of administration. (Pichler, et at, 2008, p.466) Notwithstanding, the essayist trust that the fruitful organization is the point at which it needs to regard each different paying little mind to their sex or sex and different variations, rather consider on what preferences it will increase because of contrasts. For instance, Mr. Antony Page as a General Manager at Marriott inn in Singapore puts stock in decent variety benefits. 60% of administration groups are driven by ladies. This leads the organization to be fruitful and increment individuals consciousness of its great image names. Another case, Tet Wai Holdings Pte Ltd in Singapore, Maxine R. Roughages as a President in that organization said that Women must be prepared for the innovative unrest for they are not abandoned and bring advantage for organizations and their own selves and additionally men. (The Singapore Business and Professional Women's Association, 1982) In addition, isolation in term of sex or sexual orientation because of lady budgetary strength, as sufficient human services and satisfactory Central Provident Fund (CPF) reserve funds. Generally, ladies have around 40 for each penny lesser reserve funds in their CPF accounts than men. (Small and Hill, 2013) Though Convention to Elimination of All Forms of Discrimination Against Women (CEDAW), which Singapore acquiesced to in 1995, it still on the advance to pulverize the sex or sex separation since a few associations have not disposed of the segregation completely.>GET ANSWER