Question
When businesspersons (entrepreneurs, CEO's, managers, etc.) receive legal advice regarding a future course of action (this could be anything--how to properly dispose of hazardous waste,
When businesspersons (entrepreneurs, CEO's, managers, etc.) receive legal advice regarding a future course of action (this could be anything--how to properly dispose of hazardous waste, potential labor violations responding to an effort to form a union at the workplace, whether the company can work together with or take over another company, etc., etc.), once the lawyer tells the company about the various laws that limit some elements of the company's proposed plan, do you believe the typical reaction of the businessperson is of the form:
(a) if that's the law and that's what the law requires we (the company) must and will comply with these laws even if the company, by doing so, must sacrifice profits; OR:
(b) do business owners and company officers/directors view the applicable law more as an important part of their calculation as to how to proceed--some laws are more serious than others, the risk of being caught for violating the laws varies, and the penalties for violating the laws vary as well; so that, after finding out from the lawyer that certain laws might restrict the company's options, these businesspersons are more likely to then ask the lawyer how likely it is that the company might be caught for violating these laws and what the likely penalty the company and individuals within the company might have to pay if they are caught violating these laws, especially when the reward (typically an increase in company profits, bonuses for high managers, etc.) for violating the law is large?
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