The Role of Law in Business

Topics: United States Congress, Supreme Court of the United States, United States Pages: 3 (955 words) Published: October 5, 2014

The Role of Law in Business
LAW/421
09/29/2014


The Role of Law in Business

What is Law? It is a set of rules and standards created to regulate members of a community or country imposed by penalty if broken. Law is set and determined by different parties, such as legislation creates statutes, judges set precedent, and contracts called Contract law bind individuals. Business law is "encompassing all of the laws that dictate how to form and run a business," (Dugger, n.d.). In this essay, I will discuss the functions of law in a business as well as provide information how it relates to my current employment. Functions of Law in Business

Law regulates businesses and, without it, there would be no successful business as there would be no regulation to deter from corrupt handling or unfair practices. There are laws that control interstate, intrastate, e-business and, international business. They control manufacturing, distribution, shipping and employment. Patents, trademarks, and copyrights are all protected by the law. Companies can be held accountable for failing to produce a quality product under product liability law. That law protects consumers for product defects that cause injury and that liability lies with all sellers of the product who are in the distribution chain. There is no federal product liability law as they are based on state laws and brought forth based on negligence, strict liability, or breach of warranty, (“What is Product Liability,” n.d.). There are many government agencies that regulate laws within a business, and they are called administrative agencies. When the laws are set is it up to administrative agencies to “impose regulations, make policy, and enforce the law in their designated area of jurisdiction,” (Melvin, 2011). Some examples are the Federal Trade Commission, U.S. Consumer Product Safety Commission, U.S. Patent and Trademark Office, the U.S., and the International Trade Commission, and the Equal...

References: Dugger, A. (n.d.). What is Business Law? - Definition and Overview. Retrieved from http://education-portal.com/academy/lesson/what-is-business-law-definition-overview.html#lesson
Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.
Plumer, B. (2012, June 28). Supreme Court puts new limits on Commerce Clause. But will it matter?. Washington Post, ().
What is product liability?. (n.d.). Retrieved from http://injury.findlaw.com/product-liability/what- is-product-liability.html
Wikipedia. (n.d.). Retrieved from http://en.wikipedia.org/wiki/McCarran%E2%80%93Ferguson_Act
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • business law Essay
  • Essay on Business Law
  • Role of Functions Law Paper
  • Business Law Essay
  • Business Law Essay
  • Essay on Business Law
  • Business Law Essay
  • Business law midterm review Essay

Become a StudyMode Member

Sign Up - It's Free