Investigate the legal aspects of the Blue Nile Inc

Instruction Details

This week your main posting should investigate the legal aspects of the Blue Nile Inc., case. In your posting you should demonstrate applied working knowledge of business law. DO NOT CONFUSE LAW WITH ETHICS; FOCUS ON LAW. Therefore, please follow the structure listed below:


In the first paragraph, in one or two sentences, please define business law, and then state its relevance and applicability to the Blue Nile, Inc.


In the second paragraph, identify and describe the purpose of the existing laws relevant the diamond industry, both at national and international levels, and explain what mechanisms Blue Nile Inc., should use to enforce these laws. (This may involve additional research on your part, outside the information provided by case.)


In the third paragraph investigate and describe legal aspects and laws related to general management, as applicable to the Blue Nile, Inc. These should include problems (with potential legal impact), which you identified during the audit (e.g., IT, HR). Explain how you will ensure that the company abides by such laws.


In the fourth paragraph, you should simply conclude why and how you will make managerial changes relevant to business law.

Answer Guide


Business law refers to the body of legal rules and regulations that govern various aspects of business operations and transactions. It encompasses a wide range of legal principles, such as contract law, intellectual property law, employment law, and more. Understanding and adhering to business law is essential for companies to operate within legal boundaries and avoid potential legal liabilities. In the case of Blue Nile, Inc., a company operating in the diamond industry, business law plays a crucial role in ensuring compliance with regulations and addressing legal challenges specific to the industry.


In the diamond industry, both national and international laws play a significant role in regulating various aspects of the business. At the national level, laws related to consumer protection, product labeling, and advertising are important for Blue Nile, Inc. For instance, the company should adhere to regulations that require accurate and transparent disclosure of diamond characteristics to customers. Additionally, international laws such as the Kimberley Process Certification Scheme regulate the sourcing and trading of rough diamonds to prevent the trade of conflict diamonds. Blue Nile, Inc. must ensure that its diamond sourcing practices align with the Kimberley Process to avoid legal and ethical issues.

To enforce these laws, Blue Nile, Inc. should establish robust supply chain management systems that trace the origin of diamonds and verify their compliance with legal and ethical standards. Regular audits and third-party verifications can help ensure that the company’s diamonds meet regulatory requirements. In case of violations, the company should have mechanisms to rectify the issues and demonstrate its commitment to legal compliance.


Blue Nile, Inc. needs to consider legal aspects related to general management, especially in areas with potential legal impact. In terms of Information Technology (IT), the company must prioritize data privacy and cybersecurity. Compliance with data protection laws, such as the General Data Protection Regulation (GDPR) for international customers, is crucial. Blue Nile, Inc. should implement robust IT security measures, conduct regular audits of data handling practices, and ensure that customer data is adequately protected.

Regarding Human Resources (HR), the company must adhere to employment laws related to discrimination, harassment, and fair employment practices. Blue Nile, Inc. should have policies in place to prevent workplace discrimination and harassment, and provide appropriate training to employees and managers.


To navigate the legal landscape effectively, Blue Nile, Inc. needs to proactively address legal aspects relevant to its operations. This includes compliance with industry-specific regulations, national and international laws, and implementing internal mechanisms to ensure adherence. By prioritizing legal compliance in areas like diamond sourcing, consumer protection, IT security, and HR practices, the company can minimize legal risks and maintain a positive reputation. Adapting its management practices to incorporate legal considerations will not only foster ethical operations but also establish a strong foundation for sustainable growth within the legal boundaries of the business environment.

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