Roles and Functions of Law

In: Business and Management

Role and functions of law
February 11,2013

Role and functions of law
The role and function of law in business and society is extremely important to maintain structure and build boundaries. Laws set guidelines for behavior and ethical principles that standardize social conduct. The absence of guidelines and standards would ultimately lead to the downfall of the business world. Society would be unable to function properly and this would eventually terminate all forms of legal, structured business activity.
“The term law has been defined in a variety of ways throughout recorded history. A generally accepted generic definition of the law is a body of rules of action or conduct prescribed
by controlling authority, and having legal binding force.”(Melvin, p. 4, 2011) This happens to be one of the most commonly recognized definitions.” Principally law delivers a structural method of solving disagreements concerning individuals that tend to not follow the guidelines and protocols that are set within the government.
Due to the fact that the build of American law is so diverse, business law is divided into three categories; Criminal verses Civil Law, Substantive verses Procedural law, Public verses Private law. Criminal verses Civil laws are pertaining to the criminal or civil class of law. Criminal law is for the safety of society. The purpose of criminal law is to protect individuals and businesses from criminal activity, such as robbery, larceny or embezzlement. If a person breaks the law usually violators could possibly be subject to fines and/or incarceration. “Civil laws are designed to compensate parties (including businesses) for losses as a result of another’s conduct.” (Melvin, p. 18, 2011).
“Substantive law provide individuals with rights and create certain duties” (Melvin, p. 18, 2011) whereas procedural law gives structure for pursuing...

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