Consumer law — consumer law alternatively known as consumer protection is designed to protect consumers from fraudulent companies or practices, and preserve their rights in the marketplace. For example, consumer law results in large companies having to dedicate a fair amount of their resources into putting out detailed information about their products and policies. On the other hand, consumer law in itself makes a business for some private watchdog companies.
Minimum wage laws can limit the various different employment possibilities a company can offer, child labour laws can affect the way tight-knit home businesses in third world countries operate, and dismissal laws can make firing employees for whatever reason, perhaps unproductivity that bit harder.
CEOpedia Management online. Namespaces Page Discussion. More More Languages. Page actions Read View source History. Legal factors affecting business See also STEEPLE analysis Ethical factors affecting business Industry environment Political factors affecting business Economic factors affecting business STEEP analysis International marketing research Regulatory data Economic factor Legal factors affecting business include all regulatory and law determinants that can negatively or positively affect results of market actions and decisions of management of company functioning in particular country.
Legal factors connected to tax and customs regulations country tax code may be different in every country served by business , tax restrictions for particular types of business, export and import restrictions, tax relief for some types of products or businesses promoting development, taxes and customs imposed on consumed goods may influence demand , individual income tax, corporate income tax, overall tax and fiscal policy excise duties ,.
New people are seated in the presidential chairs, prime minister, parliament or secretaries places. Political factors are so important because they affect a company in the whole sense, from their approach to do business, operations, short term and long term objectives and even their grand strategy. That is one of the reasons European Countries voted for a common market with supranational rules, making easier and safer to invest foreign countries inside EU territory.
With the creation of the European Union, capital factor movements inside the EU are done as a free market economy, where the supply and demand dictate what the market should have, and as a free economy, the governments only set some rules and act as an observer, at least that is what theory states. In practice, companies are aware that there is governmental pressure, especially when foreign companies try to enter the domestic market and takeover big local companies.
That is the case for the German titan E. ON Company information, In February , E. ON made a step into the Spanish market, the fastest market in expansion for the 13th consecutive year Cahill, Paulsson, by making a tender offer to Endesa, the largest Spanish energy firm Endesa Company information, , trying to take advantage of the momentum originated by the general acceptance for a hostile bid made five months before by GasNatural, the Catalan gas firm GasNatural Company information, Newspaper reported that the prime minister, jose Luis Rodriguez Zapatero, was opposed to the E.
ON offer. The Economist , But the reaction to E. Stockholders and general public where amazed at the price per share E. ON offered was so much greater than GasNatural bid, and was all in cash.
Nevertheless the Spanish Government wanted to block that offer using administrative resources conditioning and almost forbidding it by a special right they have through the ownership of 2. It is clear E. ON to acquire Endesa. Moreover, the European Antitrust Commission cleared E.
ON-Endesa merger stating the takeover would not significantly impede effective competition Euroactive web, But E.
0コメント