Question

Law is always evolving. It slowly changes over time in response to its environment. In business, new types of products, services and practices drive the development of law as it is forced to adapt to situations we can’t even think about today. A great example is the “gig” economy created by companies such as Uber and Lyft and their “do it yourself” ride service. What new developments do you think will present the need to rethink and re-evaluate how business law concepts apply today or in the future?

Answer 1

Yes, it is totally agreed that business in the current generation has changed drastically and it is no more traditional. All the business has undergone a major change in the industry and the way the companies operate have changed. Not many of the traditional business law’s does not really apply and there are many new developments which proves that business model has changed. Below are the few points which proves to that business operate model has changed.

1. The technological development is one of the most important factor which contributed to the change in business model. Due to rapidly growing technology most of the business companies are doing digital business rather than having physical shops. Most of the business are running online in the current generation.

2. Working in remote locations. Company from USA can operate in India remotely. They need not have people from USA here. They can setup business here and hire people for work. Most of the companies are doing the same job in today’s generation

3. Rationalising and simplification of existing policy and guidelines to make the policy governance more effective and efficient needs change in the business law as well.

4. Since the taste, preference, and expectation of the consumer has been increasing day by day and to meet the consumer needs, companies have been operating in such a way that they meet the needs as expected. In doing this the companies may lose the ethical behaviour. Hence this also requires a need for a change in business law.

5. Due to the local market regulatory needs, even the business law needs to be tweaked accordingly

6. Tight competition between many companies and to gain competitive advantage companies are working really hard and also there have been many instances where the companies are cheating the customer. Hence a new law needs to be brought in to make sure that customers are not cheated.

7. Since there have been new types of crimes in business, law needs to cover all possible ways of crimes people can commit. Taking advantage of technology there had been many crimes came across. New laws should be created to cover that and guilty should be punished.