Role and Functions of Law

Amador Ferrer

BUS 421 Contemporary Business Law

February 22, 2012
Harold Coleman Jr.

Role and Functions of Law

Law plays a significant role in the successful operation of business and society. Laws regulate social behavior, which leads to a society that runs efficiently. Laws also supply ethical standards and expectations, while providing rules of conduct, measures to enforce those rules, and a means for settling disputes. Other functions of law include: facilitating planning and the realization of reasonable expectations, peacekeeping, promoting economic growth through free competition, checking government power and promoting personal freedom, promoting social justice, and protecting the environment. It is important to note that without laws to govern the actions of people and businesses, society would not be able to function effectively, and business would likely fall down.

Law establishes moral balance in society. The goal of law is to set up a framework in which tremendous value can be created but in a way such that human rights are preserved and the basic tenets and morals of society can be preserved, they’re protected (Bagley, Clarkson, Power, 2010). Law sets the rules of the game and kind of defines how, from a public policy point of view, how we in society think business should run or should act or what limits should be set upon business. This, in turn, leads to opportunities for fair and safe business and interpersonal relationships and transactions.

Another described the law as one of the lubricants that keeps the system of interacting businesses going smoothly because it is almost a symbol of this trust and confidence because people do not have to stop. The system does not have to seize every time a transaction occurs.

Law