Business laws are the rules of behavior set forth by the government to help benefit society as a whole. One of the reasons many people believe studying the law is difficult is because of the vast amount of “factions” that constitute the legal system which are all operating simultaneously. For instance, there are State and Federal Laws, Statutory Laws, Administrative Laws, Local Laws, and so on and so forth.
In a business arena, leaders who have knowledge of business laws are likely to function more successfully. The reason is because their life and the law, whether they like it or not, are intermingled. Therefore, having a basic understanding of the laws, their application, and their influences, will serve executives well, both in business as well as in their personal lives.
In the meantime, large organizations have their own legal departments or access to large law firms, whereas small businesses typically operate with minimal awareness of the law and have nominal access to legal counsel. This makes having knowledge in law or better still, a legal background, even more valuable in the marketplace.
In her book, Business Law for Managers, Gwen Seaquist (2012) postulates that any business will benefit greatly by hiring employees at all levels who have at least a basic understanding of the law. Seaquest contends that company staff members like these who come armed with a solid grasp of essential legal principles, can recognize potential legal problems and refer them to legal counsel before they turn into costly matters which can threaten the health of a business (Seaquist, 2012). Employees in a position to identify legal issues, often referred to as preventative law, are in a better position to save the firm money as well as prevent the hassle of a lawsuit, and stop conflicts from progressing into litigation. Plus, it helps maintain a lawful and ethical work arena.
Well that’s it for today. We are taking a short time off for Spring Break and will return after the break with new posts. Thanks for stopping by! Until then … keep working on your leadership skills!
At his best, man is the noblest of all animals; separated from law and justice, he is the worst.
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Seaquist, G. (2012). Business law for managers. San Diego: Bridgepoint Educations, Inc.