Warming up
In what ways will the law have an involvement in the different departments of an
international company? (e.g. the Human Resources department will be concerned
with contracts of employment).
What about the Sales department? Of Finance?
Sales department:
Contract law, consumer protection law and commercial law
Finance department:
Tax law and Investment
What kinds of legal claims might be made against a company by employees,
suppliers or competitors? And what claims might the company make against them?
Claim against a company by:
- Employees: salary disputes, discrimination, bullying, unfair dismissal
- Suppliers: breach of contract
- Competitors: infringement of copyright, infringement of patent, infringement of
trademark, slander or libel, unfair competition
Claim made by the company against:
- Employees: theft/robbery, misconduct, breach of confidentiality
- Suppliers: breach of contract
- Competitions: unfair competition
Questions
1. Which four general areas of running a business are typically affected by the law?
People, products, premises and profit.
2. Which people are described as being affected by the law (inside and outside the
company)?
Employees, management, shareholders and customers.
3. What kind of responsibilities does a manufacturing company have toward
consumers?
The products have to be safe and reliable.
4. Why is intellectual property law important?
A company must carefully protect its intellectual rights. It wants to avoid
infringement of patents (trademarks and copyrights)
5. What can companies do to reduce the amount of tax they have to pay?
Legal tax avoidance (not tax evasion, that’s a criminal offence)
1
,Legal terminology
Employment law = the law related to hiring and firing
Consumer protection law = the law that protects the buying public
Medicines law = the law regulating the manufacture and sale of pharmaceuticals
Tax law = the law relating to a share of profits
Health and safety law = the law concerning the well-being of employees
Vocabulary
Ontslag Dismissal
Aandeelhouders Shareholders
Correcte administratie/documenten Proper records
Wangedrag Misconduct
Het statuut van het bedrijf Legal status
Schadevergoeding (compensatie) Damages
Aanzienlijk Substantial
Procesvoering To take your (civil) case to Litigation
court (going to court)
Inbreuk (op patenten, handelsmerken and Infringement (of patents, trademarks
auteursrecht) and copyright)
Bezit van grond en gebouwen Premises
Belastingsontwijking Tax avoidance
Belastingsontduiking Tax evasion
Gelijke kansen Equal opportunities
Tuchtprocedure Disciplinary procedure
Consulentenbescherming Consumer protection
Onroerend goed Real estate
Misdrijf Criminal offence
Codes = rules of conduct or correct business practice which don’t have the force of law
Under licence from = with permission of another company (to sell or to produce goods,
with permission of the company that has the patent, in return for part of the sales revenue)
Contracts of employment = agreements between employers and employees
Recruited = employed, hired
Discrimination = unfairly choosing one person in favour of another
Dismissal = being fired
Shareholders = the people who own a company
Legal status = the legal standing of a company
2
, A product liability claim = a legal challenge resulting from a product that causes harm
Damages = compensation ordered by a court to be paid to someone who has
suffered loss or injury
Legislation = written laws
Breach of contract = when a contract is broken
Infringement of patents = copying someone’s registered invention
Premises = a word describing a building and the land it stands on
Real estate = property (offices, houses, etc.)
Tax evasion = not to pay tax, but in an illegal manner, it’s a criminal offence (tax
avoidance is legal)
Exercises pages 3 – 6
3
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