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Legal Feasibility

5 minutes 5 Questions

Legal feasibility examines whether the proposed project conflicts with legal requirements, including zoning laws, data protection act, logistic constraints, or any conceivable regulatory obligation. A project may not be legally feasible if it involves any unlawful activities, violates human rights or may harm the environment. Understanding this criterion is important since it can result in project failure due to legal implications.

A Complete Guide on Legal Feasibility

What is Legal Feasibility?
Legal Feasibility is an assessment of the legal and regulatory aspects related to a project or decision. This involves a detailed study of the existing laws, regulations, and policies related to the concept of the project and determining if the idea is legally viable.

Why is it important?
It is crucial to assess the legal feasibility of a project to ensure it doesn't violate any laws or regulations and to avoid any legal conflicts in the future. This step helps mitigate risks associated with legal implications that can negatively impact a project's time, cost, and reputation.

How does it work?
Legal Feasibility works by carefully analyzing the project scope and its associated activities. After that, these operations and processes are matched against the legal framework of the jurisdiction where the project will take place. Any potential conflicts with the law are highlighted and alternatives or adjustments are suggested.

Exam Tips: Answering Questions on Legal Feasibility
1. Remember the aim of legal feasibility: To determine whether a project or decision aligns with the existing legal framework.
2. Understand the steps involved: Identify the project scope, align it with the jurisdiction's legal framework, and observe any conflicts.
3. Use examples: Practical case studies or examples can help illustrate your understanding of legal feasibility.
4. Explain the implications: Discuss the potential impact if a project goes ahead without assessing legal feasibility.

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CAPM - Project Feasibility Study Example Questions

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Question 1

Your project scope has been revised and now includes the destroyal of a protected heritage site. How do you deal with this?

Correct Answer: Develop a plan to amend the project scope to avoid damage to the protected site.

In the context of project management, protecting the interests of all stakeholders and complying with legal and ethical standards is key. The best way to handle this situation would be to 'Develop a plan to amend the project scope to avoid damage to the protected site.' Amending the project scope allows the project to proceed without violating any protective regulations or risking legal consequences. The other answers suggest either violating the law ('Proceed as planned and face the potential legal consequences.'), challenging the validity of the protection which may not be feasible and might cause reputation damage ('Attempt to legally challenge the site's protective status.'), or disregarding the importance of heritage which may also harm the project's reputation and stakeholder relations ('Convince stakeholder heritage site is not as important as project.'). All these alternatives could lead to ethical issues, legal penalties, and damage to the project's and organization's reputation.

Question 2

Your project involves developing a new pharmaceutical product. During the legal feasibility study, you discover that a key component of the drug is patented by another company. What is the most appropriate action?

Correct Answer: Negotiate a licensing agreement with the patent holder

The most appropriate action in this scenario is to negotiate a licensing agreement with the patent holder. This approach is the most ethical and legally sound option, as it respects intellectual property rights while allowing the project to move forward.

Negotiating a licensing agreement:
1. Respects the patent holder's rights
2. Avoids potential legal disputes
3. Allows the project to proceed legally
4. Can be a cost-effective solution in the long run

The other options are less appropriate for the following reasons:

Proceeding with development and challenging the patent in court is risky, potentially costly, and could lead to legal consequences. It may also damage the company's reputation.

Modifying the drug formula to use a different, unpatented component might be feasible, but it could:
1. Delay the project significantly
2. Require additional research and development costs
3. Potentially alter the drug's effectiveness or safety profile

Seeking a partnership with the patent-holding company for joint development is a good alternative, but it may not always be feasible or desirable for both parties. It could also complicate project management and decision-making processes.

In conclusion, negotiating a licensing agreement is the most appropriate action as it balances legal compliance, ethical considerations, and project progress.

Question 3

Your project requires a technology that is undergoing international legal revisions and may affect its usage. What should be the most appropriate course of action?

Correct Answer: Develop a risk mitigation plan by considering alternatives and closely monitor the legal situation.

The most appropriate course of action when a project requires a technology that is undergoing international legal revisions, would be to 'Develop a risk mitigation plan by considering alternatives and closely monitor the legal situation.' Risk management is crucial in project management and ignoring potential legal risks could have severe consequences. Therefore, the choice to 'Ignore the situation and proceed as the technology is critical' is not valid. Cancelling the project immediately because future legal issues could occur (i.e. 'Cancel the project immediately to avoid future legal issues.') is not an efficient way to handle this situation either since it does not take into account the potential to manage and mitigate those potential issues. Additionally, speeding up the project to complete it prior to legal issues being resolved (i.e. 'Try to speed up the project to finish before the legal issues are resolved.') can lead to potential quality and legal risks. Therefore, formulating a risk response strategy and keeping tabs on legal regulation changes is the best course of action.

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