chapter 1 another book - Chapter 1 The Modern Environment...

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Chapter 1 The Modern Environment of Business 1-1 CHAPTER 1 THE MODERN ENVIRONMENT OF BUSINESS Managers face an increasingly complex world. Law is a part of the environment and it grows ever more complex as it impacts on parts of business that saw little regulatory interference in years past. No matter what part of business one works in, common law and statutory law plays a rule. Managers cannot be ignorant of law any more than they can pretend that accounting or personnel management do not matter. LAW AND THE KEY FUNCTIONS OF THE LEGAL SYSTEM— Many definitions can be given to law because it is a general concept. It is a set of binding rules that govern conduct prescribed by a controlling authority. It includes formal rules, which include what we usually refer to as law, and informal rules that come from a society’s culture and ethics. Enhancing Social Stability by Influencing Behavior— Law and the legal system define acceptable human behavior and provide a means for controlling unacceptable behavior. To encourage or discourage behavior the legal system needs some measure of “force”—the ability to threaten and impose sanctions including fines and imprisonment. What is the “public interest” varies a lot across countries. Smoking dope in Amsterdam is legal; it may result in execution in other countries. Conflict Resolution— The law and the legal system provide a formal mechanism and structure for the resolution of disputes--the court system. Private and public disputes may be resolved within this formal structure of the legal system, which provides substantive and procedural rules for conflict resolution. Social Maintenance— The law and the legal system must work to preserve society’s values, customs, and traditions. The legal culture, and its acceptance by society members, are important in explaining the extent to which laws are enforced, obeyed, avoided, or abused. Social Change— The law and the legal system must provide a means through which the governing authority can bring about important changes in acceptable behavior. Racial discrimination used to be an accepted part of the law and culture; that has changed significantly in the last 40 years.
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1-2 Part 1: Elements of Law and the Judicial Process International Perspective: Chad: A Third World Country Looks to Create a Legal System Chad is a poor, huge country in northern Africa independent from France since 1960. It has been politically unstable and attracts very little funds for economic development. It lacks an effective legal system; its formal laws mean little; the citizens have no trust in the courts. The national laws often conflict with the values of various ethnic groups. Companies do not want to invest in the country because there is no legal security. To attract investors and serve a stabilizing internal role, a respected set of laws and courts must be developed. SOURCES OF LAW IN THE UNITED STATES
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chapter 1 another book - Chapter 1 The Modern Environment...

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