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    Jurisdictions, Jurisprudence, International Trade and Laws

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    Need guidance in the legal environment of business in reference to:

    - public laws
    - private laws
    - international trade
    - international law
    - legal environment of business
    - act-of-state doctrine
    - litigation
    - United Nations
    - World Trade Organization

    Specifically need assistance with (1) explaining the several types of jurisdiction, (2) explaining jurisprudence in the legal environment of business and (3) explaining the importance of international trade and laws.

    © BrainMass Inc. brainmass.com December 24, 2021, 8:50 pm ad1c9bdddf

    SOLUTION This solution is FREE courtesy of BrainMass!

    Legal Environment of Business

    A business is governed a set of legal rule and regulations that are mandatory for the organizations to follow in any case. To ensure the compliance of business activities, organizations follow the set rule in regard the business activities and strategies. It forms an external environment that is considered as a crucial factor in the success or failure of a business organization (Cross & Miller, 2008). There are different legal theories and concepts that are used by the legal bodies to supervise the business related activities of organizations. Organizations before taking any step at international level assess the legal framework of a particular country and after take decisions to enter in that country for business plans.

    Types of Jurisdictions

    There are different types of laws that govern the different bodies in an organized form. These laws are developed for regulating the activities and to keep a vigilant watch over the actions of people. These are as follow:

    Private Law: These covers law of obligations and law of contracts. It is a form of association between the organizations and individuals. Most of the time, it is enforced through the state court system. It operates to provide value to the society. These laws are applicable and developed for the corporations and specific individuals (Cross & Miller, 2008). It enforces the duties and laws for the individuals. These are mainly segmented into two parts. These are as follow:

    Tort Law: This law handles the injury that is performed with or without intention to the property or persons. Tort is the violation of duty. Tort case covers different aspects that may be covered under the tort law violation. It covers trespassing on the land of another person, battery on a person, damage to the property, assault, nuisance creation, medical malpractice etc (Meiners, Ringleb & Edwards, 2008). Person commit such kinds of cases are held liable for the breach of tort law. It is also applicable to the criminal acts against a society or an individual person.

    Contract Law: These types of laws are developed between the private individuals for a contract or agreement. These cover a compensation for failing to meet the requirements of the developed agreements among the private individuals. Contract laws handle with the sale of real estate, merchandize, professional service, sale of clothing, provision of work, labor etc. It protects the rights of individuals involved in an agreement (Cross & Miller, 2008). It panelize the individuals who breach the contract or agreement in the form of fines or imprisonment

    Public Law: Public laws are developed to govern the relationship between the private individuals and governmental bodies. Government and governmental agencies enact the laws to protect the society from crimes (Cross & Miller, 2008). Its main objective is to deal with the societal issues at federal as well as state level to ensure a safe environment for the society. It also covers a law that adopts actions to panelize the offenders. It is as follows:

    Criminal Law: According to the criminal law, persons who commit a conduct that is injurious for the public is titled as a crime. The government and governmental agencies punish the offenders for their criminal activities (Cross & Miller, 2008). The actions used by the regulations of criminal law protect the society from crime and at the same time deter the other people to commit a crime.

    Jurisprudence in the Legal Environment of Business

    Legal philosophy of business environment is based on the branch of rule, regulations and doctrines. All the key aspects have their own implications for the legal business environment.

    Act of state doctrine: According to this doctrine, it is established that a particular country is sovereign within its own boundaries. The domestic actions of the nations are not entitled to be questioned in the court of other countries. It is a principle that is adhered by the federal courts of United States (O'Brien, 2001). Business organizations of the countries are also protected under the rules of this doctrine. It also forms a great part for legal environment of a business that supports the organizations to conduct their business in a safer atmosphere.

    Litigation: It is a conduct of a lawsuit that deals with the proceeding of a case in the courts. The process of litigation begins when the plaintiff files a complaint with the court. A copy of complaint is also given to the defendant. After it, the defendant is asked to give their answer to the court. There are different options available in the litigation process like settlement, arbitration and mediation. The two parties can adopt any of the alternatives during a litigation process to resolve their issues. Case duration is determined by the parties according to the rules of court. Preparation is also set to identify the information for the case. Motions and trail are another two stages of a litigation process (Walker, 2005). After trial, if any of the party is dissatisfied with the decision of court, they can appeal to the higher courts for further proceedings. In this way, a litigation process is followed in a legal business environment by the two parties. It supports the business organizations to resolve their disputes on specific issues.

    United Nations: It is an international organization that decides rules and regulations for attaining coordination between the international society, international law, social progress, economic growth, world peace and human rights (United Nations). It is aimed to ensure a peaceful environment at international level. It was established in 1945 and cover different subsidiary organizations that assist it accomplish the set objectives at international base. Its members are entitled to follow the legal environment of a country where they operate their activities. It mainly covers six members that are General Assembly, Economic and Social council, Security Council, Secretariat, International court of justice and United Nation Trusteeship council. All these bodies perform their functions for the effective operations of a legal environment of business also.

    World Trade Organizations: It is another legal body that works for the legal environment of business. It was founded in 1995. WTO is a global international body that handles the rules and regulations of trade between the different countries. The main objective of this organization is assists the producers of goods and services, suppliers and importers and exporters to perform their business activities in a regulated environment (Stoll & Schorkopf, 2006). It is developed to direct and supervise the international trade related activities at global level. It is aimed to liberalize the trade or business activities in a legal environment.

    It covers different rules and regulations that are signed by different countries for regulating the international business or commerce. It covers different contract that limits the governmental agencies of each nation to sustain their trade related policies and rules within their agreed boundaries. It is aimed to ensure a free possible flow of commerce at international base. The rationale behind this legal philosophy is to ensure the economic and social development at global level (Stoll & Schorkopf, 2006). In legal terms, WTO is a set or branch of rules that supervise the business activities. It also assist the different nations to set their international trade related disputes or conflicts. Apart from this, it also assists the government to attain the social as well as environmental objectives through the use of set policies.

    Importance of International Trade and Laws

    International trade and laws plays a fundamental role in the legal environment of business. These have their own implications for the legal business environment that assist the organizations to perform their business practices without any barrier. These are as follow:

    International Trade: It is an exchange of different goods and services across the national boundaries. It denotes an important part of gross domestic products. It has social, political and economical benefits that reflect its worldwide importance. It acts as a fundamental source of business at international level (Nelson, 2000). It plays an important role in the continuous growth of nations. It supports the globalization that is essential for the developing nations to transform into a developed nation. International trade supports the legal business environment.

    It assists the business organizations to take the advantage of economic development of other countries by using their production facilities. Business organizations take the comparative advantage from international trade that reflects its significance for the business related activities. It facilitates the import and export of cost effective goods from one country to another country that contribute in the economic development of the particular nations (Meiners, Ringleb & Edwards, 2008). Only with the help of international trade, it is possible for the nations to import the key products like coffee, diamonds, wheat, coal, steel etc. from those nations that are rich in natural resources.

    It also helps the poor countries to fulfill their requirements with the import of necessary goods and services. It support to the sustainable development of economic and social development by improving the competency of business organizations. To take the advantage of lower production cost and intensive labor, organizations perform the international trade at wide level (Nelson, 2000).

    International Laws: International law also plays a crucial role in the development of legal environment of business. It regulated the relations between the different states. With a broad level of legal rules and regulations, it governs the activities of business organizations that assist in the economic and social development. It supports the globalization, if it is followed by the organization effectively. Its main objective is to protect the welfare of human beings (International Law, January 22, 2010). It promotes the peaceful resolution of state disputes that assist the business organizations to carry out their operations effectively.

    It also protects the human rights that motivate the business organizations to ensure their compliance with the international rules. It also protects the humanitarian rights during the wars and conflicts that are also favorable for the legal business environment. It regulates the international trade among the states that ensure a sustainable development of legal business environment. It prohibits the business organizations to conduct any unfavorable activity. It supports the globalization that is beneficial for the business organizations.

    It supports the telecommunication facility across the boarders that further assist in the promotion of international trade a global level. It regulates the legal business environment by implementing the rules and norms on the business activities taking place across the nations. It also poses penalty over those organizations that violates the international regulations for the sake of their profit. It ensures the protection of human rights by governing the business actions of organizations. It keeps a vigilant watch over the strategic used by the international firms.

    It ensures the development of a regulatory environment for the business organization. International law plays a great role in the business decision development (O'Brien, 2001). Business decisions are formulated according to the legal norms set by international laws that reflect its importance for the business. Business actions taken by the organizations are also based on the priorities set by the international laws. It governs the use of natural resources for the social and economic development.


    Cross, F.B & Miller, R.L. (2008). The Legal Environment of Business: Text and Cases -- Ethical, Regulatory, Global, and E-Commerce Issues (7th ed). Canada: Cengage Learning.
    International Law (January 22, 2010). Retrieved May 24, 2010, from http://www.eda.admin.ch/eda/en/home/topics/intla.html
    Meiners, R.E., Ringleb, A.H & Edwards, F.L. (2008). The Legal Environment of Business (10th ed). USA: Cengage Learning.
    Nelson, .C.A. (2000). Import/export: how to get started in international trade (3rd ed). USA: McGraw-Hill Professional.
    O'Brien, J. (2001). International law. London: Routledge Cavendish.
    Stoll, P & Schorkopf, F. (2006). WTO: world economic order, world trade law. Netherlands:
    Martinus Nijhoff Publishers.
    United Nations. Retrieved May 24, 2010, from http://www.un.org/en/index.shtml
    Walker, J. (2005). The civil litigation process: cases and materials (6th ed). Canada: Emond Montgomery Publication.

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