He also targeted what he sees as unnecessary burdens imposed on the economy by law. The law is enacted by legislative bodies – laws enacted by legislative branches of government (such as the US Congress, on which it served for nearly three decades). Notably, as a survivor of two liability lawsuits, McGovern became a supporter of offense reform, a movement to stem the rising tide of personal injury lawsuits in the U.S. — a movement to stem the rising tide of personal injury lawsuits in the U.S. The Americans, he charged, „pursue each other in the blink of an eye, [and] pursue for no reason . harm both the economy and the decency of our society. The company suffers because companies own most insurance policies that target liability litigation. With each deal, premiums go up, and many companies, especially smaller ones, McGovern argues, „simply can`t pass those costs on to their customers and stay competitive or profitable. If I were back in the U.S. Senate or the White House,” he concludes, „I would ask a lot of questions before voting for an additional burden on the thousands of struggling businesses across the country.” Universities in different countries have made this book a reference for students to deepen their knowledge of law and economics. Every student must have this book. And it turned out that the professionals also read it. In McGovern`s case, a chase actually involved a slip and fall (and an allegedly serious injury) in the hotel parking lot.

In the other incident, a guest got into an argument when he exited the hotel bar and sued the Stratford for lack of security. A security guard was actually on duty, but McGovern says few small businesses can provide the kind of protection needed to prevent fights outside a bar. Both lawsuits were dismissed, but, as McGovern points out, „not without a top-notch legal defense that wasn`t cheap.” In a very fundamental – and very important – sense, McGovern`s reference to legal barriers to day-to-day business activities is welcome. In the United States, as in all complex societies, we have entrusted the government with the responsibility to adopt and enforce legal rules and principles. With this, we have approved the formation of a legal systeminstitutions and processes that enforce laws – the institutions and processes that actually apply our rules and principles. Mark E. Roszkowski, Business Law: Principles, Cases and Policies, p. 5.

Auflage (Upper Saddle River, NJ: Prentice Hall, 2002), 4. This system works like any other because its key elements are stable and interact reliably. In other words, when applied consistently, the law is not always as flexible as it should be when it comes to doing what it is supposed to do, which is to preserve peace and stability so that members of society can continue their various social and economic activities. Second, the complex question arises as to whether this express guarantee amounted to an assurance that the ladder could be used for a task such as the roof. Apparently, your uncle thought that was the case, but it will be up to your lawyer to argue and the court will have to decide. In other words, everything will depend on the flexibility and fairness of the legal system. McGovern`s eyes, it seems, had opened after forty months as a small business owner, and as a result, he focused on two problematic areas for the small business owner trying to survive in the very complex legal environment of the United States. The first area is administrative law, which deals with laws and regulations relating to the activities of administrative authorities – a law that refers to the rules established by one of the many agencies and departments created to administer federal or municipal law. McGovern is pleased to affirm his commitment to such laudable social goals as workplace safety and a clean environment, but he is also confident that we can pursue those goals „while reducing the incredible red tape, complicated tax forms, tiny regulations, and seemingly endless reporting requirements that plague American businesses.” Meet as a team and discuss these two related topics: „How much should a pack of cigarettes cost?” and „Should companies ban smoking in the workplace?” Write a „position paper” explaining your group`s opinion. If the group cannot agree on the issues, add a „minority report” – the opinion of a minority of the group. This brings us to a crucial question among policy theorists, economists, policymakers, business owners, and consumers—almost every member of society who has to keep up with social and economic activities: Why does government intervene in market transactions? Or, perhaps more precisely, why do most of us expect and accept government intervention in our economic activities? The OSHAct has created three management agencies, created by a legal act, to carry out specific tasks. The primary agency created by OSHAct is the federal administrative agency of the Occupational Health and Safety Administration (OSHA), which has the authority to set occupational safety and health standards and ensure that employers take appropriate action to meet them.

OSHA was one of several agencies created during the so-called legal revolution of 1960-1980, in which the government protected rights to discrimination based on race, sex, age and national origin, as well as workplace rights, consumer rights, and environmental rights. In the case of George McGovern and his Stratford Inn, we saw what kind of legal entanglements could deter even a seasoned legislator from pursuing a modest dream of business ownership. How about you? How easily would you be discouraged? Put yourself in the following scenario that could happen to anyone: When your attorney has filled out his statement of warranties and the means to violate them, you feel compelled to ask one last question: Why is Ladders `N` Things, an entire chain of retail businesses, liable for breach of warranty committed by a department manager at a local outlet? Your lawyer replies that this is an agency legal relationship, in which one party acts on behalf of and under the control of another, which he defines for you as a legal relationship between two parties, in which one party acts on behalf and under the control of another. In a principal-agent relationship such as the one shown in Figure 16.5 „Mandate relationship”, the agent acts on behalf of the initiator.