The word law is defined as a system of principles and regulations of ethics and rules in order to keep people and also things in line, a set of rules of conduct. There are many functions of law in business and in society. Without the functions of laws many companies, etc. could and would not survive. Law is very valuable within businesses. Businesses have to have law because it is used as a protective shield for the companies. Without laws, companies could have lawsuits placed on them. So laws are put into place to help avoid as many lawsuits as possible. A majority of companies have a set of lawyers to take care of their legal issues. Arbitration has become a key for companies to use to try and keep lawsuits from happening usually regarding employees.
This law helps things to be done without going to court and keeping lawsuits down. In order to keep the liabilities down legally with the sale of a company’s services or goods, they use their legal advisories when making such decisions. If there are changes to be made within an agreements, etc., then the legal team can take care of this and is in the position of letting a company know when changes have been made with the legal documents or contracts to ensure that they are meeting the current laws. The role of law in business is to make sure that the company is being run in an ethical way.
Business laws are put together ensure that things are done in a fair way. Another role of business law would be to keep inventions, trademarks, etc. from being stolen. So a company has to have the contract law in place for these types of things were they cannot be stolen. The function of law in society would be to maintain the control of the public. The function of law in society is to make sure that things are going smoothly within the public. This law is also to have disputes resolved and keeps orderly change in place.
The role of the law in society is to make the decision whether something is right or if it is wrong in the view of the public. Without law for society, it would be terrible. There have to be rules and regulations. People would most like go wild and crazy. If we did not have laws, people would tend to run red lights, walk across the streets when they should not, steal or kill and get away with it. We definitely have to have rules and this is why there are laws placed on society.
An example of law in business would be at a place that I once worked. We had the rules and regulations but it was such a small company that sometimes things were not done under the business law. We had about 15 employees at the time and in order to make up for the lack of insurance carried at the company, they would give each employee a check for $200.00 a month without taxes being taken out. The company could not afford to pay for medical, dental and life insurance at the time. Well, at the end of the year the employee was faced with having an extra $2400.00 without taxes taken out of this money on their W2. Really this was not lawful under business laws. All monies should have had taxes taken out the same time the money was issued.
Those who made top dollar really did not have to worry about the IRS but those who did not make top dollar would have to worry about this. If they would have done this the correct way, which would be to take the taxes out when writing the check, there would not have been a problem. I am not exactly sure how they showed these dollar amounts, but believe me it was showed the way they gave it out. However, they got away with it and eventually about 2 years later the company began to make enough money and they purchased insurance for the employees.
I do know there were other little unlawful things that went on but when audit time came, there was a big cleanup and placing different items in different places were they should not have gone. I guess a lot of companies do unlawful things but the best way and most of all the ethical way of doing things would be to do them correctly. You really do not know when and if you will be caught.
dictionary.reference.com/browse/law, retrieved 1/23/12.
www.ehow.com/about_6376700_function-law-business_.html, retrieved 1/23/12.
en.wikipedia.org/wiki/Law_enforcement_and_society, retrieved 1/23/12.