You have now seen how any business will be exposed to several special business issues and situations which the must handle properly to be successful. In “Why It Matters”, we previewed these special issues and the special areas of the laws dealing with them. A common problem or situation from each each that almost any business could face was suggested.
Here is a review of the laws you learned to help you respond successfully to each situation posed:
- International Law: Sued by a foreign customer in their country?
- Not if your sale contract had a “choice of law” provision requiring any litigation to be in the the United States.
- Land Use Laws: Need city approval for a larger parking lot?
- Yes, but you might qualify for a variance upon application to the city.
- Agency Laws: Has your “agent” bound you an unprofitable contract?
- Yes if he was acting under actual or apparent authority from you.
- Environmental Laws: Can the EPA restrict your purchases of electricity?
- Maybe, the EPA does have broad constitutional powers delegated from Congress to protect the environment
- Bankruptcy Laws: If a customer is threatening bankruptcy do you have options?
- You might be successful in negotiating an assignment of the secured goods back to you as the creditor.
- Landlord / Tenant Laws: Can your landlord transfer his interest to a new landlord?
- In most cases YES, unless the lease contract expressly prohibited him from doing so.
- Lender Financing Laws: Can I take back the merchandise sold for non payment?
- Yes you can use “self help” peacefully to take possession and title to the goods.
Each of these common situations could potentially damage or even destroy a business…your business! Remember the questions posed at the end of the “Why It Matters” section? The answers to all of those questions really do matter. These special laws make a huge difference in who wins and who loses. That’s what life and business is all about isn’t it?
Aren’t you glad you have learned a little about these laws to help you make successful business decisions?