Functions of Law

Functions of Law

Having an overall understanding of the legal environment is essential for management in all businesses, and beneficial for all people in society. Management must be able to write contracts that benefit the company, as well as know the legalities of employment law. Individuals must know how the law works to know the rights they have in the society. To gain this knowledge the roles and functions of law in business and society must be understood and defined.

Law has many meanings and can be interpreted in many ways. The first meaning in the dictionary for law is the principles and regulations established in a community by some authority and applicable to its people, whether in the form of legislation or of custom and policies recognized and enforced by judicial decision (dictionary.com, 2006). There are three common classifications of law; criminal and civil law; substantive and procedural law, and public and private law (Barnes, Bowers, Mallor, Langvardt, 2003). A case may fall within all three of these classifications.

The framework for all laws in the United States is the United States Constitution. The function of the Constitution is to establish Congress and to provide Congress with the power to make laws (Barnes, Bowers, Mallor, Langvardt, 2003). The US Constitution also provides a president who is to enforce the laws of Congress, and creates the system of courts to interpret the laws. The relationship between the federal government and the states is structured by the U.S. Constitution. All laws must fit within the control of the Constitution or they are deemed unconstitutional and have no force (Barnes, Bowers, Mallor, Langvardt, 2003).

There are different levels of power that the U.S. Constitution provides. The legislative branch is where the lawmaking power resides. When legislature enacts laws they are called statutes and the laws are referred to as statutory law (Barnes, Bowers, Mallor, Langvardt, 2003). Statuary law can be at the federal or state level. The majority of laws that govern our society today are statuary laws and the laws must be in compliance with the U.S. Constitution or they are not accepted upon judicial review (Barnes, Bowers, Mallor, Langvardt, 2003).

Administrative agencies are created by Congress and state legislature to regulate business and social activities (Barnes, Bowers, Mallor, Langvardt, 2003). Administrative agencies have influence and power over businesses and have increased due to the growing social and economic problems that were created by industrialization. The agencies are created by a statute that states the power of the agency, however these statutes are vaguely worded giving full power to the administrative agency to deal with the given problem (Barnes, Bowers, Mallor, Langvardt, 2003).

The law made and applied by judges is common law (Barnes, Bowers, Mallor, Langvardt, 2003). Common law is a collection of cases that have been decided in past proceedings and are not governed by statutes. Decisions from prior cases are used as precedents in deciding future cases. Common law only exists at the state level however both federal and state are concerned in directing it. As cases are decided they are coded and become part of common law. Business and social disputes are resolved by courts where no statuary law exists therefore the courts use common law to make decisions. In common law cases once a precedent has been distinguished the specific rule does not control the