Question

In: Operations Management

Find a current news article focusing on one of the topics covered in the class. Critically...

Find a current news article focusing on one of the topics covered in the class. Critically think about the effects of the legal issue on

businesses and society by answering the following questions: (Label each part of your response with the appropriate number 1, 2, 3 etc - this will allow me to see that you answered each part and you won't leave anything out of your response)

1. What is the title of the article and full citation?

2. How would you describe the legal issue in your own every day jargon? Part of studying law will be learning new concepts and vocabulary.

3. Why is the legal issue important for companies/businesses?

4. Why is the legal issue important for the people who make up these companies? (Think about staff, employees, customers, clients, managers, executive - examine the micro issues)

5. Why is the legal issue important for the economy? (Examine the macro issues)

The total of all your questions above should be about 600-800 words. Some sections may have more and others have less.

Solutions

Expert Solution

Answer 1:

Understanding Legal Issues for Business and wide spectrum of society and economy

Answer 2:

Legal issues is usually consists of examining for libellous or false statements before the copy goes to print. This is an especially important step to ensure that publishers don’t commit libel by printing inaccurate or falsified facts or statements about people or events.

Answer 3:

If business is going to succeed one need to ensure that it is legally sound. This means that you need to get legal advice from a registered law firm or solicitor.

So the questions is why legal issues are important to businesses?

Though getting legal advice is an additional cost to your business but it can save you a lot more money in the long run. It is much easier to sort legal issues out at the beginning of your business instead of later when they can be more problematic and more costly. If you and your business are fully aware of relevant laws and regulations then it gives a sounder foundation to your venture. It shows that your business is built to last and has the ability to anticipate and react to change.

Answer 4:

There are a multitude of legal issues to think about when it comes to starting and running your business. Setting up a new business is often viewed as a legal minefield. Business groups are constantly pressing the government to reduce the burden of ‘red tape’ that afflicts entrepreneurs, suggesting that many are put off starting their own firms by the numerous legal hurdles that they must overcome.

In reality, while there are important legal obligations that every new small business owner must fulfil, they are far from insurmountable. As long as you’re aware of your responsibilities and you take sufficient precautions to ensure that you are always on the right side of the law, you have nothing to worry about, especially in terms of legal issues related to people who are making up the company.

Business owners should ensure following areas which has a legal concern before stating or during the run of the business.

1.       Disgruntled Employees

As a business owner, this will be one of the most common legal headaches. In America, employees have far more rights than other countries, in the form of unions and reasons for "wrongful termination". If you terminate a non-performing employee, make sure he or she signs documents carefully drafted by an attorney upon termination to make the terms of dismissal crystal clear. Letting an employee go without any final termination forms leaves the door wide open for legal actions.

2.       Discrimination/Harassment Cases

The legal ramifications of alleged discrimination - sexual, ethnic, age or otherwise, can cause your company serious problems. Make sure your human resources and legal departments are well equipped to handle these issues should they arise. During the hiring process, make sure you are prepared with all the applicants' resumes should allegations of discrimination arise, to prove that you hire the most qualified individuals, regardless of gender, ethnicity or age.

Hold regular meetings to oversee co-worker relations and insure that discrimination on a smaller scale is not occurring between office cliques, or influencing the decisions of middle and lower managers.

Harassment - sexual, racist or otherwise - can be a serious problem in an integrated workplace with workers from various ethnic and religious backgrounds and social classes. Regular meetings and interviews with staff will allow your managers to police these transgressions, which should be eliminated quickly through the swift termination of offenders.

Victims of harassment and discrimination tend to attract lots of media attention, which can hurt your company's public image as well as drain your legal budget. Be proactive and stomp out these problems before they start.

3.       Immigration Audits

You should make sure that all your company's employees can legally work in the United States. Do top down sweeps off your company's staff, using background checks, to identify illegal immigrants with falsified documents. The U.S. government has been known to conduct extensive surprise immigration audits that can cripple a company if it is found to be using illegal labor.

4.       Dissatisfied Customers

Customers who are dissatisfied can file class action lawsuits against your company, in which they gather in large consumer groups and attack your company over faulty products, services or promises. With enough dissatisfied customers, class action lawsuits can do more damage than any individual or corporation and irreparably tarnish your brand's image.

Again, be proactive and keep a finger to the pulse of your customers through tech support, online message boards and e-mails. Promptly issue recalls for flawed products and be prompt to address customer issues.

5.       Employment

•Legally, when you employ staff you must meet certain employer obligations.

•You must select the right person for your business in line with the job description and selection criteria you have specified. Read how to recruit and interview staff.

•You should make offers of employment in writing, including conditions of awards, agreements and the employment contract.

•All employees should attend induction training to become familiar with the workplace and any work health and safety issues. A carefully developed induction training process can protect your business from risks including health, safety and environmental (HSE) issues, discrimination and unfair dismissal claims. Read about keeping your workplace safe and your legal obligations when training staff.

•Before dismissing a staff member you must ensure you've followed due process and are not breaching the Anti-Discrimination Act 1991.


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