The Role of Law in Business

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The Role of Law in Business I. Introduction For the most part, economic activities are a complicated process and involve a variety of factors and parties. Nowadays, with the development of the economy and society, such activities sometimes tend to be even more complex. To maintain the normal operation of business and to effectively deal with disputes resulting from such activities, law becomes increasingly indispensible and important in these regards. For the convenience of better understanding, this paper tries to make an analysis about the role that law plays in business activities. Accordingly, this paper is structured into three major parts: the introduction part will briefly touch upon relevant background information regarding this issue. The body part will put emphasis on the analysis of the roles and functions law plays in business activities. The conclusion part will summarize the key points of this paper. II. Roles and Functions of Law in Business Activities Before elaborating on the role that law plays in business activities, it first needs to have some knowledge of the concept “law” itself. As it is, there is not a universally accepted way to define the terminology “law”. Nevertheless, among all the varied definitions, one of the popular ones holds that law, with the guarantee of the power and authority of the governing bodies, is a set of binding rules and guidelines that are enforced to govern behavior and handle disputes, the failure or refusal to observe which will result in relevant penalties. Clarifying its concept, the role of law in business can then be explored based on this. Generally speaking, the roles of law in business are presented in three major aspects as follows. (1) Law is conducive to realize reasonable expectations and promotes consistency. As we know, law not only sets out rules and guidelines to tell people what to do or
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