Business Law: Now More Than Ever

This article contributes to the literature supporting the importance of legal knowledge in business and business education by making three underappreciated points about the rule of law as an integral element of business education. First, students need legal knowledge not only because it is necessary for surviving in a competitive business environment but also to address troubling evidence that managers trained with an MBA underappreciate its value. Firms must require that every manager possess skills in legal knowledge and legal astuteness in order to minimize the risks of litigation or government sanction. Second, the fact that legal knowledge creates value for organizations is not a mere supposition but is supported by empirically driven research studying firm performance. Finally it explores more broadly the value of a well-regulated environment to markets and society.