Definition
General Introduction to Legal
Environment of Business
Professor Dr Towhidul Islam
PhD in Intellectual Property Law (Macq,
Sydney) LLM in Int'l Human Rights Law
(UEL, London) LLM, LLB (Hons) (Dhaka)
✉ towhid@du.ac.bd
Definition (Contd.)
• The legal environment of business is the law as it
affects business.
• It usually refers to the laws of a particular country
relating to business.
• For example,
 what are the legal constraints on business,
 what are the requirements and duties for a company
etc.?
Definition (Contd.)
• So, the basic legal environment of business is governed
by country (state) and international laws.
• Such law includes –
 laws on what can or can not be produced or sold,
 consumer and employee protection laws,
 tax and other financial laws, as well a many rules and
regulations with regards to business ethics,
 laws on when and how to seek legal advice in case of
disputes, etc.
• Legal environment of business consists of three
words, namely,
 Legal = of law
 Environment = setting/atmosphere
 Business = operation of company/trade
• So, legal environment of business means the set of
rules or regulations that surround the operation of a
company/trade.
Definition (Contd.)
• In addition, there is also international legal
environment of business.
• This means especially the laws that affect
operation of business beyond the country.
• International trade law or law of international
business transactions comes into operation
here.
Purpose of the Study
• By the end of the semester, students will have a good grasp
of many basic legal principles as regards business.
• Students will have gone beyond just memorizing or
recognizing some facts and theories.
• Indeed, this course will enable students to better understand
current events in law and the business world.
• This will also provide a solid framework for any subsequent
courses students may take in law or business.
1
 Purpose of the Study (Contd.) Purpose of the Study (Contd.)
• To be able to recognize and apply basic principles • To recognize fundamental issues of
of law to various problems which businesses, international and comparative law.
entrepreneurs, and operations professionals may • To know the essential concepts of intellectual
face.
property
• To consider ethical and philosophical constructs
in the legal and business environment.
• To recognize the formation, dissolution, and
contractual of agency relationships.
• To distinguish between legal systems in
Bangladesh and elsewhere in the world.

Purpose of the Study (Contd.) Purpose of the Study (Contd.)

• To know the main issues/principles associated
• To distinguish the roles of shareholders,
with employment claims or related issues.
directors, and officers.
• To identify the major forms of business
• To understand legal and ethical considerations
organization and the advantages and
in corporate governance.
disadvantages of each.
• To be able to identify, analyse and evaluate the
• To know the process for forming corporations
elements of a contract.
and some essential corporate law concepts.

Purpose of the Study (Contd.) Purpose of the Study (Contd.)

• To know what to look for involving contract • To explain how courts function.
issues, such as what binds/discharges parties to
• To explain how law suits proceed; prepare a
a contract.
plan to bring or respond to a lawsuit.
• To recognize some basic constitutional
• To understand fundamental elements of
doctrines, especially due process and free
criminal law, including defences.
speech issues.
• To identify basic, practical concepts of law in
• To evaluate the roles and activities of lawyers
risk management and proactive business
and judges.
planning.