India has six major laws to protect the environment as a whole and protect its components. These include the Environmental Protection Act 1986; Forest Conservation Act 1980; the Wildlife Protection Act, 1972; Water (Pollution Prevention and Control) Act 1974; Air Pollution Prevention and Control Act, 1981 and Indian Forests Act, 1927. Taxation is one of the most important government actions that determine the success of a business. The following article was written by Ishani Samajpati, who follows B.A. LL.B. (Hons) at Kolkata University. This article provides a comprehensive overview of the legal environment, as well as the classifications and impact of the legal environment on the business and how the legal environment can affect any business. The legal environment of a business indicates a dual objective set by the government that helps the business to thrive, which benefits citizens either through job creation or through a service. In negative connotations, the legal environment, especially in socialist or mixed economies, can limit or hinder business growth.
India follows a common law system, also known as the precedent law system, i.e. a legal system based on previously recorded precedents. India has a plethora of laws governing the business ecosystem. The different laws that make up a company`s legal environment are discussed below: environmental protection laws prioritize environmental protection and company organizations must adapt to regulations. It is important for entrepreneurs, managers and other professionals to have a basic understanding of business law in order to make better decisions. Just as there are laws that apply to people, there are a variety of laws that apply to businesses. Businesses need these laws for the same reasons people do: to define unacceptable behaviour, to create security and stability, to protect the public, and to provide businesses with a dispute resolution mechanism. Environmental protection laws are formulated to protect environmental degradation from illegal human activities. Environmental regulations have a direct or indirect impact on businesses. On the other hand, it also ensures that the environment is not affected by the company. The legal environment determines how a particular country`s business activities can flourish or be limited by the laws of the country. It also influences the estimate of the economic useful life of an intangible asset.
Strict environmental laws can force business organizations to change their business operations and activities or move to another location with less stringent environmental regulations. However, there is a double effect of these environmental laws in companies, as companies could be swept away by less stringent laws. By adhering to good business ethics, external investors feel confident about their investments in the market. Consumer protection laws include a variety of laws and organizations created to protect consumer rights and ensure fair business practices, competition, and accurate information about products in the marketplace. It is the right of consumers to be protected against all unfair means and corporate falsifications. Every company, large or small, is required to comply with its respective legal requirements. Here are some key features of business law that can help you better understand it. It is also important for business owners, managers and supervisors to understand what the company`s rights are vis-à-vis other businesses and individuals. For example, if you have an employee who isn`t doing their job, you should know your options. If you manufacture and sell tires, you need to know who will be held responsible if someone is injured by a rash.
When you enter into a contract with another company, you need to know who is bound by the contract and what happens if these people cannot fulfill what they have legally agreed. The answers to all these situations and many others are provided by business law. The course is not intended to make anyone an expert in any area of business law, but to make managers, owners and executives aware of the many legal issues that arise in the day-to-day operations of a business. Being aware of these potential issues can help you make the judgments and decisions that business people make on a daily basis. A basic understanding of business law can help you identify potential legal issues as they arise, make better decisions, and know when to seek legal help. The only law governing contracts in India is the Indian Contract Act, 1872. The Trade in Goods Act is the Sale of Goods Act 1930 and the Partnerships Act 1932 defines the Commercial Partnership Act. Monopoly practice occurs when a particular business organization dominates a particular industry by excluding all other potential competitors. Here are the ways in which a business organization can establish a monopoly in a particular industry: To carry out a commercial activity, it is mandatory to comply with the associated law.
A brief overview of the types of laws associated with a particular business activity is listed below in the form of a graph: Compliance with a particular country`s existing environmental laws requires a business organization to take the following actions: Business law plays an important role in regulating business practices in a country. Here are some points that prove why business law is so relevant: The administrative wing of government is also an integral part of the legal environment, as it enacts laws, rules and regulations. Throughout a company`s existence, it can do most of the things a person can do, and we need laws to control those activities. A company can buy and sell real estate, sue and be sued, sign contracts, hire and fire employees, and even commit crimes. The term «legal environment» of a company refers to the strategies adopted by a government to support, manage or limit the country`s business ecosystem. Ignorance or deliberate non-compliance with laws can lead to legal consequences for entrepreneurs. This course allows students to explore careers in business while gaining skills applicable to any professional environment. Through a series of hands-on activities, students prepare legal documents, create a compliance plan, and discuss consumer protection issues.
Regular engagement in active learning allows students to continually hone the skills needed to prepare them for work. In addition, students assess the qualifications required for specific careers so that they can identify opportunities that interest them. Some companies may need to establish an environmental management system to: The legal environment for business examines the role of legislation and government policy on all aspects of business and management. It is important that the management of a commercial organization or company complies with the laws in force in the country. Therefore, adequate and adequate knowledge of the rules and regulations established by the government is a prerequisite for improving the performance of enterprises. Failure to comply with these conditions can put the company in difficulty and harm its growth prospects. An appropriate legal environment for a business helps a business ecosystem thrive. Alternatively, a strict legal environment can also hinder business activities. Studying the legal environment of a company helps to properly develop the business.