Chapter-1: Overview:

 Meaning Legal Environment:

The legal environment of business refers to the code of conduct that defines the legal
boundaries for business activity. To understand these boundaries, it is essential to first have
a basic understanding of the law and how it affects businesses and business practices. The
nature of business spans over a number of legal realms, all of which are continuously
influenced by the needs and demands of the business community, consumers, and the
government.

 What is the legal environment of business?

The Legal Environment of Business introduces us to the role of legal agendas in managerial
decisions. It helps managers in the operation of their business and allows them to know the
limits and boundaries of there being in the name of their respective firms.
It makes their decisions apt to the legal system. These regulations assist the business
enterprise to be under the scope of Law and government's regulations. Companies, firms,
managers, owners, and their share or debenture holders endeavour the operation to help
and protect the rights.
They also get bind into several legal tenures that cope up to legal liability and legal
consequences from their decisions and actions. One might think that the business
environment consists of just the legal system and its processes. Nut the fact of the matter is
that these also cover up several sources of law of our society.
It requires comparison and an in-depth study of various aspects related to the legal rules of
business. The legal terms that relate to it are tort law, contract law, and criminal Law and
government regulatory mechanisms.
At last, the legal environment helps to make the business decisions that are ethical and are
in hand with the welfare of society. To put in simple terms, everything that is related to the
welfare of any registered parties which can be among, owner, the business itself, equity
shareholders, creditors, debtors, debenture holders or any third-party that is bound in a legal
contract with the company itself, come under the term of the legal environment.
 The Demand for Legislation:
Legislation is a set of laws put in place by the government to protect businesses,
employees and consumers. Businesses must operate within these laws to ensure the fair
and safe treatment of any party involved with a business. If businesses do not comply with
legislation, legal action such as fines, restrictions and imprisonment can be actioned.
Different types of legislation that businesses must follow include employment laws,
consumer laws, and intellectual property laws.

 Employment law involves keeping the employees safe and ensuring that employers are
fair.
 Consumer law involves protecting consumers and anyone purchasing products and
services.
 Intellectual property laws involve protecting ideas, creations, designs, names and logos.
The Demand for Consumer Protection:

Treating customers fairly and honestly is good for your reputation, helping attract new
customers and build customer loyalty. It also helps you comply with legal requirements,
particularly if you sell to individual consumers rather than business customers.
The Consumer Protection from Unfair Trading Regulations came into force in 2008,
replacing detailed rules on trade descriptions and misleading prices with a broader
prohibition of unfair trading when you market and sell to consumers.

 Law Influencing Marketing Decision:

Businesses use online marketing to boost public visibility of their products and services. When
looking for a way to boost sales and bring in customers, you need to focus on strategies that are
appropriate to your industry and target market. Many businesses focus on marketing strategies that
can be quickly developed and implemented to promote either a new product/service or an existing
one. However, businesses must be wary when utilizing these strategies, as there are laws that affect
the course of marketing. In fact, many states have implemented rules and regulations specifically
regarding marketing that businesses must abide by.

Companies need professional marketers in their corner to address all their advertising and
promotional needs while tracking legal and regulatory changes. An experienced marketing
professional will understand the industry and target market trends.