Any business, whether it is a multi-generational organization or an exciting startup, needs to know the rules and regulations — not just locally, but also at the state, federal and international levels. A business has responsibilities not only to its customers but also to its vendors, its employees and its local community. Interacting with all of these entities can be endlessly complicated, and the rules change all the time. Taking a business law course in an online MBA program will allow you to keep abreast of all the critical legal issues pursuant to your industry.
The Value of Contracts
All business relies on contracts. You have contracts with the companies that provide your utilities, your supplies and the goods that you sell. In turn, you provide services or goods to customers, and there are contracts implicit in each of those transactions. In many cases, these contracts are simple point-of-sale transactions that do not require anything more than money changing hands and an implicit declaration that you will stand behind the good (or service) that you sell.
Some contracts, on the other hand, require a complex series of deliverables, requirements for conduct and steps for recourse in the case of failure on the part of one party or the other. These contracts delineate all these steps in language that both parties can understand, which they can use to enforce the contract (should that be necessary). A poorly constructed contract is detrimental to a business’s ability to operate, and a well-defined contract can be beneficial to all parties.
A business owner needs to understand contracts in order to protect their interests in the marketplace. A business law course in an online MBA program can help business professionals become adept at the complicated nuances of written contracts and to better understand what to look for in contracts or other agreements.
The Ethics of Business
Good business is not just a matter of living by the letter of your contracts with other businesses. It is also a matter of subscribing to ethical standards and practices that foster the intangible relationships between businesses and communities. A business law course focusing on the sociological aspects of the law offers key skills to MBA degree candidates, enabling them to understand the legal principles that govern their local communities. Continual, rigorous legal analysis will provide a consistent benchmark for a business to operate ethically.
Laws provide a clear and consistent framework for operating both as individuals and as institutions and businesses. A well-ordered society is one that has a clearly defined set of laws and regulations, and naturally, the more socially complicated a society is, the more complicated and nuanced its laws will be. A business law course offers students an intensive background in the history of the law, as well as a survey of various legal precedents, important cases pertaining to the operation of businesses, and valuable guidelines for ethical business practices.
Smart Business Starts With Education
An informed business owner is someone who has more than a lengthy business plan and a sign over the front door of their shop. This person is informed about the social and ethical ramifications of the laws that govern their business. Knowing what is legal and what is not is more than simple business smarts; it is a part of the savvy acumen that separates a poorly run business from one that thrives, both financially and culturally.
A business law course offers you up-to-date information about the legal environment of your business, as well as the social and ethical ramifications of your actions. Taking this course as a part of an online MBA program will allow you to learn these important skills while still running your business.
Learn more about the USI online MBA program.
Sources:
Business Law Basics: Chapter 3: Purposes and Functions of Law
