Managers play an important role within any company. Not only must they understand the company's business, but they must also possess legal astuteness. According to Bagley, legal astuteness is a manager's ability to communicate effectively with legal advisors and work together to solve complex problems. For example, legally astute managers can (1) negotiate contracts as complements to trust building and other relational governance techniques to define and strengthen relationships and reduce transaction costs, (2) protect and increase the realizable value of assets of the enterprise, (3) create options through contracts and other legal instruments, and (4) convert regulatory constraints into opportunities. Legal astuteness has four components: a set of value-laden attitudes about the importance of law to the success of the business, a proactive approach to legal issues and regulation, the ability to exercise informed judgment in managing the legal aspects of the business and knowledge of the law and appropriate use of legal tools (Bagley, 2013, p.11). With each component, the social media marketer who uses social media, such as Facebook, for consumer transactions mitigates the risk of doing business through cyberspace. Having a value-laden attitude is essential when doing business in cyberspace. Managers must consider the success of the company. Laws and regulations are guidelines to help managers determine risks and opportunities when conducting business through cyberspace, ensuring that the activity is legal. Managers act proactively by seeking legal advice about the company that complies with laws and regulations. Using managerial judgment is also critical when managing the legal side of a company... half of the document... An overview." (nd) Agency relationships: an overview. Retrieved from http://www.shsu. edu/~klett/agency%20et%20al.htmBagley, Costanza (2013). “Law, value creation and risk management”. : Cengage Learning, 2013. “Dodd-Frank Wall Street Reform 327 over the past year.” (January 23, 2013). Retrieved from http://www.federalregister.gov/articles/2013/01/23/2013. -01255/social-media-consumer-compliance-risk-management-guidance.“Federal Register Tutorial.” (n.d.). National Archives and Records Administration, Retrieved from http://www.archives .gov/federal-registro/tutorial/online-html.html“United States Federal Government.” (February 5, 2014). USA.gov: Official Web Portal of the United States Government, retrieved from http://usa.gov /Agencies/federal.shtml.