Professional Documents
Culture Documents
Learning Journal Unit 1
Learning Journal Unit 1
Learning Journal Unit 1
BUS 3305-AY2023-T4.
Q1. How does an effective system of law provide a better environment in which businesses
“An effective legal system provides a stable and predictable legal framework that can aid in the
success of businesses by providing clarity and consistency in the laws and regulations that
regulate commercial activity.” (Lau & Johnson, 2012). Here are some ways that a competent
Protection of property rights: Companies need to feel confident that their property rights are
safeguarded and will be upheld in the event that someone tries to violate them. Businesses can
benefit from a successful legal system by having clear guidelines and processes for enforcing
contracts and safeguarding intellectual property rights, such as patents and trademarks.
Resolution of disputes: Disputes are an unavoidable aspect of doing business, and a strong legal
system may give enterprises a fair and effective framework for doing so. This can assist
companies in avoiding expensive and time-consuming litigation and guarantee that conflicts are
framework. Businesses can benefit from a sound legal system by having access to clear
guidelines that are applied equally and consistently.” (Lau & Johnson, 2012).
Contract enforcement: Contracts are the backbone of business, and a strong legal system may
assist firms in upholding their legal obligations by offering a framework for the creation and
enforcement of contracts. Businesses can do this to prevent disputes and guarantee that their
By ensuring that the laws are unambiguous, uniform, and predictable, an efficient legal system
Q2. How does this compare to situations in which there is little effective law governing
business relations?
Businesses may encounter a number of difficulties that can make it difficult to conduct
successful operations in circumstances where there is little effective law governing commercial
relations. The following are some potential problems that might develop in such circumstances:
Uncertainty makes it challenging for businesses to plan ahead or make long-term investments
since they may not be aware of the laws or how they will be applied.
Lack of protection: Businesses may be at risk of theft, fraud, or other types of exploitation if
Corruption: In the absence of strong rules, corruption may spread more widely, making it
unpredictable way, making it challenging for enterprises to comply with them or to plan ahead.”
Disputes: Without effective laws for resolving disputes, businesses may have little recourse when
conflicts arise, which can lead to lengthy and costly legal battles or even violence.
In conclusion, an effective system of law provides businesses with a stable and predictable legal
framework that can help them operate successfully by providing protection of property rights,
fair and efficient dispute resolution, a clear regulatory environment, contract enforcement, and
legal certainty.
“Businesses may have a variety of difficulties that may limit their capacity to conduct successful
operations under circumstances where there is little effective law governing business relations.
These obstacles include ambiguity, a lack of protection, corruption, arbitrary enforcement, and
trouble adjudicating conflicts. Contrarily, a strong legal framework may offer businesses the
security, predictability, and protection they require to run successfully.” (Lau & Johnson, 2012).
References
https://2012books.lardbucket.org/books/business-and-the-legal-and-ethical-environment/s04-04-
importance-of-rule-of-law-to-b.html