Importance Of Deception In Business Deception

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DECEPTION IN BUSINESS AFFAIRS: HOW FAR IT IS TOLERATED? Therefore, it is clear that from the analysis of the above paragraphs that law is evidently in conflict with both non-consequentialist moral theories and with those consequentialist theories that endorse a rule against deception. The laws tolerate deception as normal in many instances and see it as customary part of many economic interactions. They use assumptions of economic theories to justify such status. First assumption is that there is no negative outcome is associated with lying per se. Uri Gneezy, (2005: 384) argues this assumption is very useful in many economic models . He says to consider contract theory, where it is assumed that without an explicit contract, neither side…show more content…
It is the only actual facilitator of transactions. Deception is required to encourage efficient exchange by facilitating division of surplus gains from trade. Suppose a potential buyer and seller, are discussing a simple exchange of cash for goods. The buyer in fact values the goods more than the seller, so the contemplated exchange is efficient. To fix a price, however, the parties must agree on how to divide the mutual benefit resulting from the trade. If they cannot allocate this surplus satisfactorily, no transaction will occur. The various behavioural science studies suggest that although the co-operation if possible in all these transactions, it may not work always , for example, when one of the party is in the control of affairs, or anonymity of the decision maker is maintained or even when any of the parties has a sense of earned or at least justified entitlement to the goods or cash they bring to the bargain. To remove these impasses, one of the suitable ways is deception. Suppose, for example, that a seller falsely maintains that others are interested in his goods, or that he must demand a certain price in order to remain in business. As a result, the buyer may form a false belief that the seller's offer represents a division of surplus that is favourable to him, the buyer; and this belief may lead him to buy. Similarly, a buyer may falsely assert that he cannot and…show more content…
Nevertheless, the Modern Deception laws are more encompassing in nature. The progress in telecommunication sciences, evolutions of big data and larger scales intercontinental and intra-regional finance flows, formations of global supply chains and global value chains, single-minded global pursuit of economic progress had all boosted the trade and the allied activities. This situation in turn promotes structural changes in the socio-economic and political spheres of every nation and polities round the globe, which are more conducive to uncontrolled markets and commerce. But then, the international legal systems had started recognising the increase in commercial activities leaves chances for more probability for commercial frauds and as much as they advocate for free trade and ease of business, they also advocate stricter and deterrent punishments for fraudsters prying on the economy. The examples can be seen in the revival of punishment forms of criminal forfeiture of assets, public censure, stoppage of business, increased and multiplied terms of imprisonment, disqualification as to applying for new business licenses etc. in many international and national statutes round the globe

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