3. Business Legal Environment ?g
The Business Legal Environment plays a very important
role in determining the success of any businesses aroundrole in determining the success of any businesses around
In the Legal Environment of a Business we are looking In the Legal Environment of a Business, we are looking
the key areas, particularly where changes in law and how
legal aspects affect businesses All these legal factors arelegal aspects affect businesses.All these legal factors are
contained in the legal environment of a business.
4. Legal Factors AffectingLegal Factors Affecting
1. Organizational Law
2 Securities Law2. Securities Law
3. Contract Law
4 Consumer Protection Laws4. Consumer Protection Laws
5. Employees Protection Laws
6 La s re ardin Health and Safet at Workplaces6. Laws regarding Health and Safety at Workplaces
7. Security against HaphazardTermination of
8. Immigration Laws
9 Government Procurement Laws9. Government Procurement Laws
5. Organizational Lawg
The organizational law is the first type of business law
A b i h i i d l l i i bj Any business that is organized as a legal entity is subject
to the state law that governs its operation and conduct.
F E lFor Example
Corporations, Limited Partnerships, Partnerships and
Limited Liability Companies all of which have different
legal status and issues.
6. Securities Law
If a business is seeking to obtain financing through
different types of investors it may be subject to legaldifferent types of investors, it may be subject to legal
issues such as security law. For instance, a decision to
offer promissory notes a type of loan to your investorsoffer promissory notes, a type of loan to your investors,
will subject the legal factor affecting business to state and
federal regulations and security laws.g y
8. If the intention is to enter an agreement with another
person or entity then contract law is binding This alsoperson or entity, then contract law is binding.This also
has a special area that is involved directly with factors
affecting business for example Government Contractsaffecting business, for example, Government Contracts,
which is also known as Government Procurement Laws.
9. Consumer Protection Laws
Some businesses act unfairly towards their consumers.
For this reason most countries have consumerFor this reason, most countries have consumer
protection laws that are aimed at ensuring that
consumers are protectedconsumers are protected.
Here are examples;
A Weight and Measures ActA. Weight and Measures Act
B. Trade Description Act
C. Consumer Credit Act
D. Sale Of Goods Act
10. Employees Protection Lawsp y
Different Governments have passed laws to protect the
interest of employees These laws protect them againstinterest of employees.These laws protect them against
unfair discrimination at work and when applying for jobs.
It ensures that no one is discriminated against on theIt ensures that no one is discriminated against on the
basis of such things as race, religion, sex, age, or colour.
12. Employees receive protection from dangerous machines.
A h k l l h ld b i l hi d At the workplace, employees should be given clothing and
equipment that meet the highest safety standards.
E l h ld h bl h i Employees should have a reasonable temperature at their
Th h h h d d h k l d The highest hygienic standards at the workplace and
washing facilities should be met for the sake of
Employees to have enough breaking periods while
14. It is illegal now for businesses to dismiss the employeesg p y
for joining trade unions or for expecting a baby unless
you choose to ignore the new legal factors in business
which will have repercussions on your business. Before
dismissal of any worker, there has to be warning with
h i h b dproper reasons, otherwise, the case may be treated as an
15. Immigration Laws
Immigrants provide a ready source of relatively
affordable labour that keeps the cost of business low and
felevating profits. More labour leads to more output
thereby leading to consumers buying more products.All
th l l f t ff ti b i t ib t tlthese legal factors affecting businesses contribute greatly
to the gross domestic product of the Country.
16. Government Procurement LawsGove e t ocu e e t aws
Government procurement or public procurement is
the procurement of goods services and construction onthe procurement of goods, services and construction on
behalf of a public authority, such as a government agency.
Laws usually require the procuring authority to issueLaws usually require the procuring authority to issue
public tenders if the value of the procurement exceeds a