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How can court decisions affect business in legal environment?

Answer and explanation

Correct answer: They can interpret rules and decide rights

The governing concept is the legal environment of business, which includes laws, regulations and judicial decisions. Courts interpret the meaning of statutes, settle disputes and determine the rights and duties of businesses, consumers, employees and other parties. A judgment may therefore clarify how a contract, licence, consumer rule or commercial obligation must be applied. Option A is correct because it directly describes these legal functions. Options B, C and D are unrelated: courts do not control weather, design product taste or alter an employee’s age. Businesses must study relevant judgments because they can affect compliance, risk and future decisions.

Related tags

Business-EnvironmentLegal-EnvironmentJudicial-DecisionsClass-12Legal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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