Question.3403 - the student should consider the following questions for reflection: How does an effective system of law provide a better environment in which businesses can operate successfully? How does this compare to situations in which there is little effective law governing business relations?
Answer Below:
Learning Journal 1 Upadhi IzeagiUoPeople University BUS 3305-01 Business Law and Ethics September, 12th, 2024 Learning Journal 1 It is important to sustain an effective system of law that provides a stability, with predictable, and fair environment in which businesses can operate successfully - which will ensure a sense of certainty and predictability, with clear standardized laws, wherein business rights and obligations are laid out, enabling the businesses to make informed decisions and plan well for the ever fluctuating customer demands to allocate the resources (Mayer-Schonberger, 2010). For instance, recently, in June 2024, the Supreme Court Ruled on AI copyrights, which can be said to be a landmark case that AI-generated work can be registered as copyright, setting new precedents for intellectual property law and opening the creative markets to a newer era (Cole, 2023). Although it seems like the decision was a significant jump into a new beginning, it draws in several implications for businesses that rely on AI to generate content. Considering this scenario, a well-structured contract law framework will ensure that businesses can rely on the enforceability of their agreements. Secondly, the protection of rights establishes unfair practices from harm, like the intellectual property laws that safeguard businesses from their inventions and innovations being invaded, while antitrust laws tend to prevent monopiles or price-fixing to establish a level playing field for businesses(Mayer-Schonberger, 2010). For instance, considering the proposed tax reforms case from July 2024 - wherein the U.S. Congress tends to propose varied tax reforms in terms of alerting the corporate tax rates, reducing the deductions and providing incentives; these reforms can significantly impact the corporate market and its investment decisions which in turn will influence profitability rate (Milton et al., 2024). Thirdly, a effective legal system will aid in dispute resolution with possible mechanisms for resolving disputes fairly, like how attribution tribunals tend to offer businesses a neutral forum to settle disagreements sustaining a healthier business relationships and also, provide a consistent enforcement of laws which will in turn deter violations of law and set a tone for equitable business ground (Mayer-Schonberger, 2010). For instance, considering AI bias and discrimination lawsuits, like Alter v. Open AI - involved three separate cases wherein three different author groups were consolidated going against OpenAI and Mircosoft; Plaintiff alleged that these two companies were liable for copyright infringement, where their works were utilized to train AI models, from this case, several ethical implication of AI and the need regulations to ensure fairness and transparency, but this is only the star (Milton et al., 2024).?Another example would be - Andersen v. Stability AI - wherein visual artists filed this putative class action, stating that it was a direct copyright infringement, DMCA violations and false endorsement based on AI's Stable Diffusion and Dream Studio, Midjourney Inc.s eponymous generative AI tool and DeviantArts DreamUp (Milton et al., 2024). Lastly, on ethical front, it will establish a sense of trust within the operational market for stakeholders to work with ease, in the long run it will reel in more investors for better economic growth. However, it is also important to consider the negative consequences of ineffective laws that govern businesses: it will set a harsh and uncertain business environment to conduct businesses regarding rights and obligations being suppressed with increased risk, unfair practices like corruption, investors opting out, exploitation of business by stakeholders, lack of legal framework that resolves disputes, and poor trust among the stakeholders hindering the overall economic growth (Allen et al., 2021). References Allen, W. T., Kraakman, R., & Khanna, V. S. (2021).?Commentaries and cases on the law of business organization. Aspen Publishing. Cole, D. (2023, December 31). Roberts warns of AI dehumanizing the law in year-end report but avoids trump legal disputes, Supreme Court Ethics Reform | CNN politics. CNN. https://edition.cnn.com/2023/12/31/politics/john-roberts-year-end-report-supreme-court-ai/index.html C. Milton, D., A. Enright, H., & (Jamie) Kim, J. (2024, June 28). Case tracker: Artificial intelligence, copyrights and class actions. BakerHostetler. https://www.bakerlaw.com/services/artificial-intelligence-ai/case-tracker-artificial-intelligence-copyrights-and-class-actions/ Mayer-Schonberger, V. (2010). The law as stimulus: The role of law in fostering innovative entrepreneurship.?ISJLP,?6, 153.More Articles From Business Management
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