Legal Environment of Business

Our society has not left business to its own devices- rather business operates within the constraints of law. Legal restrain would ensure the best allocation of resources. Law is that portion of the established habit and thought of mankind which has gained distinct and formal recognition in the shape of uniform rules backed by the authority and power of the government. The Legal Environment of Business has as its basic purpose the equalization of market opportunities:

1. Business conduct restrained
2. Consumer protection