Essay Assignment| 1

ESSAY ASSIGNMENT

Why do we need laws in doing business?

Full name : Đinh Trang Linh

Student ID : HS153055
Class : IB1603 - LOG
Lecture : Vũ Tuấn Minh
Course : LAW102
 Essay Assignment| 2

Table of Contents

Contents
I. Introduction 3
II. The importance of law in business 3
2.1 Laws protect individuals who influence the business and are affected by the
business...........................................................................................................................3
2.2 The law establishes business equality......................................................................4
2.3. The law will reduce the burden of businesses on the environment..........................4
2.4. The law promotes a stable business environment....................................................4
III. Conclusion 4
V. Reference 5
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I. Introduction

Laws are essential to the business sector because they lay the groundwork for
organizations to function in a controlled and well-organized environment. Laws guarantee
that corporations are held responsible for their acts and function as a check on corporate
activity. Without it, businesses may engage in unethical or unlawful acts that jeopardize a
variety of interests, including those of consumers, employees, investors, the environment,
and the whole economy. In this essay, I will explain why laws are essential in the world of
business and what they aim to achieve.

II. The importance of law in business

2.1. Laws protect individuals who influence the business and are affected by the
business

To begin with, one of the main reasons for having laws in doing business is to
protect individuals who influence the business and are affected by the business. The first
one can be mentioned is the consumer. Businesses are expected to deliver goods and
services that are trustworthy, reliable, and of high quality to customers. Consumers are
safeguarded by laws against unfair or damaging company practices. By establishing
minimum requirements for goods and services, demanding the disclosure of information,
and defining remedies for customers who have been wronged by enterprises, business
laws aid in ensuring that these standards are met. For instance, firms are required by
consumer protection regulations to give accurate product information, fix or replace
defective goods, and secure customers' private information. These rules contribute to the
development of a market that is both just and equitable for both consumers and
enterprises. In addition, laws protecting employees who daily work with business
organizations. Businesses are developed by humans, thus it is critical that their rights are
upheld and safeguarded. Because we have a rule of law system, employers know the
rules of the game regarding their relationship to employees, and employees know the
rules with respect to their obligations to employers [1]. Laws are essential in preventing
unjust treatment and exploitation of workers. Labor laws, for instance, establish minimum
pay, working hours, and other terms of employment to protect workers from being
exploited or mistreated by their employers. Additionally, these rules guarantee that
workers are paid fairly for their labor and are shielded from discrimination on the basis of
things like color, gender, and age. Laws contribute to the creation of a safe and stable
business environment, which promotes investment and economic progress, by defending
the rights of employees. Another important reason for having laws in doing business is to
protect investors. Investments are essential for fostering economic development and
prosperity, thus it's critical to have regulations in place to safeguard investors' rights. For
instance, securities rules mandate that businesses disclose any investment-related risks
as well as accurate and timely information about their financial performance. This
information aids in the prevention of fraud and market manipulation by enabling investors
to make well-informed choices about whether to invest in a certain business.
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2.2. The law establishes business equality

In additions, the legislation ensures that all enterprises are treated equally. They
ensure that all companies operate under the same rules and are subject to the same
regulations. This assists in preventing bigger, more influential businesses from unfairly
benefiting from their size and influence at the expense of smaller competitors. Antitrust
laws, for instance, are created to prevent monopolies and promote market competition.
Companies are prohibited from engaging in price fixing, monopolistic activities, and other
anti-competitive behavior under anti-trust legislation, for instance. This assists in
preventing companies from abusing their authority to dominate the market and hinder
competition, which would increase prices and limit consumer choice. By promoting fair
competition, laws help to foster innovation and growth in the business world and create a
more dynamic and prosperous economy.

2.3. The law will reduce the burden of businesses on the environment

Then, laws are in place to assist lessen the damage that businesses may have on
the environment. Governments all across the globe have put in place a variety of rules
and legislation designed to lessen the damaging effects of industry on the environment.
Among other things, these rules may include requirements to lower greenhouse gas
emissions, increase energy efficiency, cut waste, safeguard species and their habitats,
and control the use of dangerous chemicals. The objective is to guarantee sustainable
business practices and protect the environment for future generations. Businesses who
disregard these rules may be subject to sanctions, fines, or even legal action. For
instance, environmental protection regulations mandate that businesses take action to
control trash, cut back on carbon emissions, and preserve natural resources. These
regulations aid in ensuring that companies run sustainably, protecting the environment for
future generations.

2.4. The law promotes a stable business environment

Furthermore, laws help to promote stability, growth and predictability in the

business world. When businesses operate in an uncertain and unpredictable
environment, they find it challenging to think ahead and make wise choices. Businesses
can rely on laws to offer a framework of rules and regulations. For example, contract laws
provide a legal framework for agreements between parties, which helps to reduce the risk
of disputes and ensures that obligations are honored. This contributes to the development
of a stable business climate where firms can concentrate on expanding rather than being
concerned about legal issues and uncertainties.

III. Conclusion
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In conclusion. By creating a framework of rules and regulations, the law helps

protect the interests of stakeholders: consumers, employees, investors, promote ethical
behavior, and resolve disputes. They helping to promote fair competition, establish a level
playing field for businesses. When there is a law, the issue of environmental protection is
no longer threatened by businesses. And they are essential for the smooth functioning of
a business and for promoting economic growth and prosperity. Without laws, businesses
would struggle to operate, and society would suffer as a result. Ultimately, the goal of
business laws is to create a marketplace that is safe, fair, and beneficial for all
participants, and to promote economic growth and development in a responsible and
sustainable manner.

V. Reference

[1].https://2012books.lardbucket.org/books/business-and-the-legal-and-ethical-
environment/s04-04-importance-of-rule-of-law-to-b.html (Terence Lau, n.d.)