The Business Guide to Legal Literacy
Essay Preview: The Business Guide to Legal Literacy
Report this essay
NameTutorInstitutionCourseDateIntroductionThis research paper will look at Johnson & Johnson Company Limited, a major pharmaceutical manufacturing company. Johnson & Johnson commands significant transactions in the pharmaceutical industry and also deals with consumable products and hence the best example to elaborate why it is importance for each and every manager in a big industry to understand the law. Olatunji, (2010) asserts that it is almost impossible for a manager to run a business without having the slightest idea of the legal issues that arise in business. Johnson & Johnson Company Limited has been on the news and the dailies especially due to issues of the quality of the products they were releasing in the market.Product LiabilityJohnson & Johnson is a large pharmaceutical company that which has recently been slumped with lawsuits for selling drugs which have side effect without actually indicating that on their labels. Geiger (2005) asserts that before any product is released to the market, it should give sufficient information to the consumers on its contents, its use and a list of side effects if any. A manager who has no knowledge of this legal implication may be faced with serious legal suits after that.
ContractThe basic law of contract is key in business as the manager have to enter into legally binding agreements with different entities, Mueller (2014). Each operation from the hiring of stuff, making purchases, making sales involves various interactions between the company and another party. To safeguard the sanctity of these agreements, companies should always prepare legal contractual agreements to safeguard their business transactions. Johnson & Johnson Company Limited while facing various suits, only those parties they had entered in to contract with can sue under the doctrine of privity of contract. In conclusion, it is, therefore, is imperative that as a basic requirement the managers in an organization and who are the day to day decision makers should have a fine grasp of the basic business law, its application and impact on each every transaction.ReferencesBaron, D. P. (2011). Business and its Environment (p. 2). Upper Saddle River, NJ: Prentice Hall.Geiger, D. R., & Rosen, M. D. (2005). Rationalizing Product Liability for Prescription Drugs: Implied Preemption, Federal Common Law, and Other Paths to Uniform Pharmaceutical Safety Standards. DePaul L. Rev., 45, 395.Mueller, A. (2014). Contract Remedies: Business Fact and Legal Fantasy. Wis. L. Rev., 833.