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The Legal Principles and Their Contribution to Business

Identification and application of the legal principles are significant for businesspersons. Practical, realistic, case-study approach will contribute to future prosperity and reduction of conflicts. To know the legal environment of business is very useful in terms of understanding both rights and obligations. Constitutional concepts and clauses along with activities of administrative agencies are very important for business activity.

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Under the Constitution the national government possesses the authority to undertake actions to perform its enumerated powers. All other powers are given to state governments. They regulate affairs within their borders and have police powers. “Fire and building codes, anti-discrimination laws, parking regulations, zoning restrictions, licensing requirements, and thousands of other state statures covering virtually every aspect of life have been enacted pursuant to states’ police powers” (Cross and Miller 106).

Privileges and immunity clause obviates one state imposing ungrounded restrictions on citizens of another state. Conveying property, seeking employment, or addressing the court system exemplifies prevention of discrimination in every state. The full faith and credit clause guarantee that wills, contracts etc. will be respected by other states. “…any judicial decision with respect to such property rights will be honored and enforced in all states” (Cross and Miller 107). These clauses concern very mobile citizenry of the USA.

The commerce clause delegates the power of regulating commerce and movement of goods to the federal government. It concerns both commerce within and commerce among the states. The supremacy clause establishes the supremacy of the federal law over the state law. The taxing and spending powers belong to the Congress. The Constitution declares the uniformity of excises, imposts and taxes throughout the whole state.

Freedom of speech is restricted only when the speech harms the good reputation or incites others. Commercial speech or advertising is not as extensively protected as noncommercial speech. A lot of issues concerning electronic leaflets and junk mail arise in this sphere.

Society faces many social, economic, and technological issues, which cannot be given a detailed description by laws. “Therefore administrative agencies have been created by legislative acts known as enabling acts, whereby the government – federal, state, or local – delegates some of its authority to the agency” (Emerson 32). Agencies administer the law in a particular branch. They provide expertise and sound resolutions in particular cases, monitor violations and perform the functions of the judicial system more quickly. The functions of the agencies include “advising, reviewing, supervising, rule making, investigating, prosecuting, adjudicating” (Emerson 33).

Federal Reserve Board, Federal Trade Commission, Securities and Exchange Commission are examples of federal independent agencies. They should have open public meetings and agendas. State administrative agencies take precedence over conflicting local regulations and statutes, and are at the same time inferior to regulations of the federal administrative agencies. Numerous executive agencies are “subject to authority of the president, who has the power to appoint and remove officers of federal agencies” (Cross and Miller 7).

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Thus, we see that legal environment of business is rather complicated. The Constitution and administrative agencies occupy a leading position in legitimate regulation. Division of powers among the federal and state branches of the government influence business activity in its legal sphere. Knowing the major area of responsibility of each branch will help organize and protect the business. De factor rights and responsibilities of every businessperson imply progress or decline of business activity. Thus, collaboration and consulting legislative authorities is extremely important.

Works Cited

Emerson, Robert W. Business Law. New York: Barron’s Educational Series, 2003.

Cross, Frank B., Miller, Roger LeRoy. The Legal Environment of Business: Text and Cases : Ethical, Regulatory, Global, and E-Commerce issues. Mason, OH: South-Western Cengage Learning, 2009.

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