Role & Functions of Law - Research Paper Example

The famed writer of Civil Law, Sanchez Roman defined law as a rule of conduct, just, obligatory, laid down by a legitimate power for common observance and benefit. (Nolledo 1978, p. 1) Another requisite is the existence of a sanction or punishment in case of non-observance of the rule of conduct. The sanction may be in the form of either or some of the following: fine, imprisonment, forfeiture of rights and properties, payment of interest or surcharges, liability for damages, expulsion or deportation, and exile.

Nolledo (1978) presented following characteristics of business law, to wit: (1) it is universal because it exists in every civilized society; (2) it is progressive because as time passes, business law accumulates new ideas and keeps abreast with modern trends; (3) it is equitable because business transactions involve exchange of values and considerations; (4) it is customary because its rules are followed from time to time or are invoked in every day transactions; and finally (5) it is uniform because within a country, a business act or contract is governed by the same rules. (p. 8) In an article written by Bushman (2007), she recognized the importance of law in the successful operation and existence of business and society.

Accordingly, she stipulated that “laws regulate social behavior, which leads to a society that runs efficiently. Laws also supply ethical standards and expectations, while providing rules of conduct, measures to enforce those rules, and a means for settling disputes. According to Gillies (2004), “the formal view of law is that it functions to regulate human behavior in obedience to an infinity of different policies. In particular, it aims to regulate relations between persons for in a crowded society, people have to co-exist and occasionally their interests collide”. (p. 4) Other functions of law include: peacekeeping; checking government power and promoting personal freedom; facilitating planning and the