Roles And Functions Of Law In Business And Society

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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.

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