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The Foundation Of Business Law to a Startup Company

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Law is a system of rules formed by the government or judges of the country to control human activity and protect their fundamental rights. Therefor, it must be followed otherwise there is a punishment. Law has many branches including: religious law, public law, and private law. private law involves with business activities, ownership rights, and labor law which are related to the topic of the video that has been observed. This essay will discuss the foundation of business law to a startup company, illegal behaviours towards employees, and lastly, the existence of business ethics which must be followed. Based on the video that has been watched, it has been cleared that business law comprised of two sets of law which includes Uniform commercial code law “UCC” which it is about the sale of goods and commercial paper to consumers in the U.S & the other law is Common law which was a part related to Legal Environment course.

There must be a contractual agreement between the company and its relationship with other companies, entities, or employees. Also, a startup company must protect their own creativity and creations by following the rules of intellectual property, which includes copyright, trademark, and patent. Furthermore, any company must follow the law of employment and have certain rights and laws in place to ensure their employees’ safety and fair treatment when working in the company. For example, In Saudi and American employment law, they both dictate companies to provide privacy in the workplace for employees and not share any personal information to others. Also, the company must keep its environment safe and supportive to prevent injuries or accidents from happening to employees that could lead to even a huge lawsuit.

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Being an entrepreneur or a manager leads to being forced into following certain laws or protocols in order to avoid legal problems regarding your employees. issues form based on discrimination and unlawful conducts such as harassment. According to chapter 3 in the course, regulation is a form of social policy done by the government used to overrule individuals’ activities to prevent discrimination based on race, age or disability. So, by following the guidelines of professionalism and letting the HR department be elevated , eventually the company will have a work environment that is free of any kind of illegal behaviours.

Lawsuits can also happen if you did not recognize or familiarize with some regulations about an employee’s time off work, as there are specific rules regarding the worker’s break off of your company that must be followed . For instance , as mentioned in the videos , the American employment law dictates , any employee can take up to 12 weeks of non-paid vacation if they’ve been working at their company at least 12 months, have worked at least 1,250 hours in the past 12 months, and their company employs more than 50 people within a 75 mile radius.

Workplace is filled with interactions between employees, but those interactions are not always ethical. Therefor, any manager or a supervisor, must be able to tell if there is an ethical dilemma to be faced, which in that case choices must be made by clarifying the company’s ethical policies and mentioning it when having a conversation with the employees, repeating and referring to it as possible. Business law and business ethics are two things that can come across each other and form an illegal situation, so it is best to make sure that the manger is well-versed in both.

Overall, every company must stick to the laws and protocols to prevent any law suits and complications, and to have a comfortable pleasant working environment which leads to a successful company. The videos that has been watched were related to the course by explaining how a company should start regarding law basis. It also expanded the information that has been mentioned in the chapters over a wider range, and they are considered a great support to what we studied in the course.


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