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The Role of Law in Business

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The Role of Law in Business

The rule of law establishes rules that people and businesses must follow to avoid being punished. The rule of law not only allows people to understand what is expected of them personally, but also sets out rules for businesses so that they know what is expected of them in their dealings and transactions (Lau & Johnson, 2016). It also restrains government and others from infringing on property rights. Should disputes arise, the rule of law provides a peaceful and predictable means by which those disputes can be resolved (Lau & Johnson, 2016). The rule of law is designed to provide guidance and direction in every area of business. It provides a means to bring a complaint against another party to a neutral decision maker so that a decision can be made regarding the dispute (Lau & Johnson, 2016). A complaint can be filed in the proper court to commence litigation or an alternative dispute resolution (ADR) can be used to avoid litigation. When a proceeding is instituted, whether through litigation or ADR, it is expected that there will be some sort of a resolution. This expectation is reasonable only because there is a rule of law.
In 2013 Andrew Cohen wrote about the alarming impact of the funding sequester on the nation's Federal court system. Cohen explained that citizens everywhere would see vital legal rights denied or delayed by the forced budget cuts. The cuts imposed by the sequestering had a negative impact on Federal employees, government programs, and litigation programs run by the Federal government. Cohen commented that “Beyond a reasonable doubt, the sequester is having a profound and pernicious effect on the government's ability to observe its constitutional commands and to provide justice to its citizens.” Attorney General Eric Holder stated:
As we speak, these cuts are already having a

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