Law plays a significant role in the operation of business in society. Laws provide rules of conduct and ethical standards that regulate social behavior. Without these rules and standards, society would not be able to efficiently run and the business world would virtually end (Bushman, 2007). What is Law
Law has been defined in many ways. A body of rules of action or conduct prescribed by a controlling authority, and having legal binding force (Melvin, p. 4, 2011) is one of the most generally accepted definitions. Essentially law provides a way of resolving disputes and dealing with individual who break the rules and regulations set forth from our government. Role of Law in Business
Since the body of American law is so diverse, business law is broken down into three categories: •Criminal and Civil Law – These laws are of criminal or civil nature. Criminal law is for the protection of society of an individual breaking the law. Most violators are subject to fines and possibly imprisonment. Civil laws are designed for individuals to be compensated for losses as a result of another’s actions. •Substantive and Procedural law – Substantive law provides individuals with social rights and duties while procedural law gives structure for pursuing substantive rights. •Public and Private Law – Public law is the defining framework between an individual and the government. Private law is where individual contract with each other where no specific statues or regulations are involved. These categories of law are very important to business and society by having guidelines setup for individuals to abide by. These laws were also setup for the protection of society (Melvin, p. 18, 2011). Law in the World of Accounting
When starting a business, an individual must attain legal counsel to get the correct paperwork in order for your company to operate correctly and to avoid potential legal liabilities in the future....