If we want to understand the term “Why ethics is connected with commercial law?” then we need to learn the law and commercial law and ethics first.
Now, we are going to see it.
Law: Law is the combination of a body of action is prescribed by controlling authority and having binding legal force. It must be obeyed by the citizens of the country. However, it is the body of principles recognized by the state or country for justice. As far as laws functions-
- It is operated for keeping peace in the country
- Besides, It helps to maintain the status quo
- However, it is useful for preserving the individual’s rights
- It protects minorities against majorities
- After all, it promotes social justice for all
- Moreover, it provides for an orderly social change
Commercial law: Each country has its own laws regarding industry, trade, and commerce. This law is mainly for the mercantile community. So, it regulates the transactions of this community. There is a term that is a commercial suit. It occurs between merchants, traders, brokers, and bankers relating to the mercantile transactions. There are so many scopes for commercial law regarding-
- Contract
- Partnership
- Negotiable instruments
- Sale of goods
- Companies
However, commercial law has some legal and ethical issues. Commercial law is applicable in terms of breaking down the ethics of these issues. These are –
- Competition
The companies should go for a fair competition. Sometimes, we face artificial crises. Some dishonest businessmen create these situations. Besides, this is not a fair competition. However, it is against of commercial law.
- Fair trade practices
Everybody should to honest in own place. Then it is possible to maintain a fair trade practice.
- Environmental protection
All companies need to concern about environmental protection. Because it is an important factor for all. Within this environment, they are operating their own business.
- Product safety
Consumers are much more concern about product safety. So, if any company produces adulterated foods, the consumers have an option to switch the competitor’s goods. So, ultimately, it is bad for them.
- Truth in advertising
Some marketers are misleading about their marketing. This is actually not right or not matches with the real world.
- Packaging and labeling
Some marketing managers are misleading their packaging and labeling. It is like that – packet contains 25% extra. But actually, they only make packet bigger than before. It is not actually meant at all.
- Pricing
It is the most influential issues in law. Because only pricing can help to generate money. No other things will not help to do it. That’s why some marketers set a high price. Within these, they claim a 25 % discount for all. But what is the reality? You rarely understand it.
Ethics: Ethics is the study of the differences between right and wrong. It uses in three contexts.
- everyday life,
- organizational behavior, and
- society (how it is operated and governed).
So, we understand the ethics and issues of commercial law. When these issues go beyond the law, it becomes unethical but in terms of the law, it is legal. As a result, we clearly understand it – “why ethics is connected with commercial law?”