Role and Functions of Law in Business Essay

Role and Functions of Law in Business and Society

The relevance of law and order in both business and society cannot be overstated. In this text, I address both the functions as well as the role of law in business and society. In so doing, I will also state the primary role played by law in my present job industry.

In basic terms, law permeates almost every facet of our daily lives. To properly highlight the role law plays in business and society, there is a need to first define the term law. It is important to note from the onset that law as a term does not have an assigned definition. In that regard, scholars and legal experts have over time attempted to define law by floating various definitions of the same. One of those who have attempted to define law is William Blackstone. According to Mann and Roberts (2012), Blackstone defines law "as a rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong." This is the definition of law I adopt in this text.

Both the federal and state governments regularly enact laws in an attempt to regulate not only individuals but also businesses. According to Melvin (2011), unlike states, the regulatory powers of the federal government are largely limited. It is important to note that regarding the regulation of commercial activities, Melvin (2011) is of the opinion that the powers congress possesses when it comes to the passage of laws are rather broad.This is more so the case for "laws where the activity being regulated affects interstate commerce in any way" (Melvin, 2011).

To begin with, one of the most important functions of law (at a general level) in the opinion of Mann and Roberts (2012) remains the maintenance of "stability in the social, political, and economic system while simultaneously permitting change." In seeking to maintain stability, law creates a just society in which order can prevail. With the relevant laws in place, citizens can easily identify with that which is regarded acceptable behavior. Failure to respect the laws of the land could result in a state of anarchy.

Yet another critical function of the law identified by Mann and Roberts (2012) is the protection of "private ownership of property." To further facilitate property ownership as well as exchange, the authors point out that the law plays a critical role in the formulation of binding contracts. It is important to note that legally binding contracts facilitate the conduct of business by formalizing agreements reached between two or more entities.

Further, according to Mann and Roberts (2012), law also comes in handy in the "preservation of the state." In the authors' opinion, this is achieved by way of ensuring that political action triggers or brings about changes in….....