Roles and Functions of Law in Business and Society
Introduction
William O. Douglas said, "Common sense often makes good law." Well that is what laws essentially are, rules and regulations that make sure common sense is followed. One could even say that laws are enforced ethics. Laws serve several roles and functions in business and society, and this paper will discuss those roles and functions.
What is law?
According to Reference.com (2007), law is defined as: "rules of conduct of any organized society, however simple or small, that are enforced by threat of punishment if they are violated. Modern law has a wide sweep and regulates many branches of conduct." Essentially law is the rules and regulations that aid in governing conduct, handling disputes, and dealing with criminal actions.
Roles of Law
The law serves many roles in business and society. Where this is most apparent is in its three classifications:
1. Criminal and Civil Law – Criminal law is the law through which public commitment of crimes are prosecuted by governing bodies, whereas civil law is the law through which private parties may bring lawsuits against one another for real or imagined wrongdoings. E.g. criminal law would deal with the prosecution of a crime such as one person hitting another with their car, and civil law would deal with the lawsuit, as the person hit would sue the driver of the car for monetary compensation.
2. Substantive and Procedural Law – Substantive laws are the social rights and duties of people, and procedural law are guidelines through which government bodies or courts deal with breaches in substantive law. E.g. substantive law would state that hitting someone with a car and driving off is a crime, while procedural law would define how the courts could try and sentence in the case.
3. Public and Private Law – Public law is the framework of guidelines defining the relationship between the government and individuals, and private law is the guidelines through which individuals or groups interact with one another. E.g. public law has subdivisions that include constitutional, administrative, and criminal law, whereas private law would cover such areas as contracts and properties.
These three classifications of law affect both business and society, through not only the guidelines defining what is and is not a crime, but also through protection for both. The examples above talked about a car hitting an individual. If it were taken one step further and the car belonged to a business, there are laws in place safeguarding the culpability of the business from the incident since though it is a company car, the company itself was not driving it.
Laws are objects that dictate how people act every single day, but laws are not just made easily with a flick of a wand, there is a specific and tough process to go through if a bill wants to become a law, which
“ Criminal law is the body of law that relates to crime.” (Wikipedia, 2014) This law encompasses several different aspects of our government and the ways used to regulate them. Maintaining the peace and order of the public is one aspect. Law enforcement officers also try to keep good conduct of the public. Anyone who places the safety of the public in jeopardy, is in violation of this law. Punishment is used in a variety of ways to discipline any person who breaks these laws. There are four main sources used in today’s criminal law:
In every society around the world, the law is affecting everyone since it shapes the behavior and sense of right and wrong for every citizen in society. Laws are meant to control a society’s behavior by outlining the accepted forms of conduct. The law is designed as a neutral aspect existent to solve society’s problems, a system specially designed to provide people with peace and order. The legal system runs more efficiently when people understand the laws they are intended to follow along with their legal rights and responsibilities.
... law protects individuals’ rights and liberties from the government of states. It can also protect businesses’ property rights and the rights of their employees.
Throughout modern civilization, the American republic is widely known for its dependency upon the realm of business. Equally as vital, looms the ever-present hand of the American law system. “All beings have their laws: the Deity…man his laws” (Montesquieu,1), this statement serves true in founding that law is consistently a necessary portion in society because all society desires law. As a consequence of the continual presence of law, careers aimed to interpret the crevices of laws, and to defend them, are synonymously as necessary in society. Absolutely, the gain of America’s economy is a direct reflection of the lawyers who protect them. Lawyers are a necessity to the nation; serving their purpose as defenders of the law. The system of corporate law is undoubtedly the cornerstone of corporate finance, and as citizens begin to thrive more immensely in a capitalistic nation, legal representation will be the trailblazer to the continuation of the American system of corporations. As I embark upon the journey of excellence into the world of corporate law, I endeavor to change the way business is defended, upheld, and represented.
Over the years, different jurisdictions had built their specific system of rules of conduct to govern behaviour. These legal systems, influenced by historical and cultural roots, can be distinguished in two families, the Civil law and the Common law legal systems. The distinctions lies in the process in which each decision is make by the judge and on the legal sources that shapes the law. Indeed, by contrast to the Common law system, which is largely based on Precedents, meaning the decisions that have already been made by judges in similar cases, the Civil law system is based on legislator’s decisions and legal codes with which judges have to justify their judgment . Consequently, instead of referencing to concepts and rules
Business law is that body of law that governs business and commerce, such as regulating corporate contracts, hiring practices, and the manufacture and sale of consumer goods. (www.bitpipe.com/tlist/Business-Law.html)
Law is a social construct, which is a result of various external social influences like culture, history, politics, economy and power. It describes the society that it exists in as it is the ideologies and values of a society that are embodied as rules and principles of law. Law constructs a framework for the society, according to the goals, interests and understandings of the people of that society i.e. It reflects the ideals, ideas and ideologies of a distinct legal culture.
One way of looking at criminal law is that it is dealing with something of public awareness. For instance, the public has awareness. in seeing that people are protected from being robbed or assaulted. These are legal problems that fall into the criminal law. Criminal law involves punishing and rehabilitating offenders, and.
Why is the concept of the rule of law an important aspect within society to have an integral understanding of? The rule of law is a facet of our society that affects and serves our lives on a daily basis because rules and laws dictate the underlying basis of our social interactions. One basic understanding of the idea of the rule of law is that society should be ruled by law, and not by men. At perhaps the most rudimentary level, the rule of law has been used to explain a type of governance that is founded upon universal and neutral rules. Endicott argues that communities can never adequately achieve the rule of law because “it requires, among other things, that government officials conform to the law. But they may not do so, and presumably there is no large community in which they always do so” (Endicott, 1999, p.1). Consequently, an area of rule of law is explored by Aristotle’s critique of Plato’s philosopher-rulers theory and his defence and understanding of the rule of law.
Every nation has their own set of legal strategies they use to guide them in making important decisions. Each nation has its traditions and policies they follow. Through the world, there are two main types of legal systems that are used; most nations follow either common or civil law. Both the common law system and the civil law system share similarities in having courts, judges, and comparing cases to laws. While both systems share similarities, they also contain many differences, making them two very divergent legal systems.
Criminal law has several purposes depending on how people view it. A few of the functions of criminal law are to divide criminals from society, rehabilitate the criminal and punish the offenders. However, the two main functions of criminal law are to create an understanding of right and wrong to the society and punishing those who break the law.
Both law and morality serve to regulate behaviour in society. Morality is defined as a set of key values, attitudes and beliefs giving a standard in which we ‘should’ behave. Law, however, is defined as regulating behaviour which is enforced among society for everyone to abide by. It is said that both, however, are normative which means they both indicate how we should behave and therefore can both be classed as a guideline in which society acts, meaning neither is more effective or important than the other. Law and morals have clear differences in how and why they are made. Law, for example, comes from Parliament and Judges and will be made in a formal, legal institution which result in formal consequences when broken. Whereas morals are formed under the influence of family, friends, media or religion and they become personal matters of individual consciences. They result in no formal consequence but may result in a social disapproval which is shown also to occur when breaking the law.
The Rule of Law means that the state should govern its citizens, in a way which works with the rules that have been agreed on. The Rule of Law is simply a fundamental principle of our constitution. Britain and other Western democracies are different in that Britain has an unwritten constitution, meaning that our constitution is not found in a certain document but that we actually have a constitution from the rules about who governs it, and about the powers they entail and how that power can be passed or even transferred. The Constitution includes; Acts of Parliament, Judicial decisions and Conventions.There are three main principles around the Rule of Law being the separation of powers, the supremacy of Parliament and the Rule of Law. The
Law is one of the most important elements that transform humans from mere beasts into intelligent and special beings. Law tells us what is right and wrong and how we, humans, should act to achieve a peaceful society while enjoying individual freedoms. The key to a successful nation is a firm, strong, and fair code of high laws that provides equal and just freedom to all citizens of the country. A strong government is as important as a firm code of law as a government is a backbone of a country and of the laws. A government is a system that executes and determines its laws. As much as fair laws are important, a capable government that will not go corrupt and provide fair services holds a vital role in building and maintaining a strong country.