The Role and Function of Law in Business

The Role and Function of Law in Business

Eliseo M. Ortiz

LAW 531

September 14, 2016

Dr. Keith Merriweather

The Role and Function of Law in Business

Our earliest form of the U.S. Judicial system comes from the 18th century, when the U.S. colonies started to settle down, and at that time they incorporated the English way of law. This law was known as the Anglo-Saxon of law; this law later became the common law of Jurisprudence. The judges decided cases on common law, and expressed their opinions, these cases became precedent for the future. A business doing business in the U.S. or any other place in the world must comply with the law, and must act responsible to society. Business law are considered to be ethical standards, but at times many businesses find a loop in the system. The Judicial system maintains or keeps the businesses from violating rules and regulation against society. This can affect the businesses bottom line and when a business decides to go against the law it will affect their pocket.

Judicial reviews, is reviewed by a judge of a higher court of decisions made from a lower court. The concept of a judicial review is to give a person or a business the right to appeal any decisions that they are not happy with. The courts have jurisdiction to review any decisions using the ancient form of common law. All though appeals are not the same as judicial review because a judicial review has to do in which the manner of the decision was made.

Conducting business through the court system can take a toll on anyone especially on a business. This concept can be very expensive to the business and can also halt the business operations at times. In order to avoid the court system businesses and private people are using an Alternate Method of Resolution (ADR), this is where any dispute can be resolved outside the court house. There are a few different types of ADR, such as Arbitration, Mediation, and Negotiation.

• Arbitration is the most common ADR used today, it uses a person that is neutral to listen to all arguments and facts of the case. This person is called the Arbitrator just like a referee in a sports venue. The form of arbitration is not a trial so parties can be more relax in this type of venue, there are also two types of arbitration binding and non-binding. A binding arbitration means that both parties involved in the dispute waived the trial and are binding to the outcome decision of the arbitrator. A nonbinding arbitration is the right of either party involve in the dispute to request a trial if not satisfied with the decision from the arbitrator.
• Mediation uses a third party person to helps parties involve in a dispute to settle any disagreements. A mediator is what we call the third party in this ADR method does not make any decisions, they help with communication and help the parties in the dispute reach an agreement on their own. The mediator is there to show the parties the pros and cons of their disagreement, and once the parties involve reaches an agreement, a settlement agreement is drafted.
• Negotiation is where the parties involved in a disagreement will negotiate any resolution until they can reach an agreement. Unlike the other ADR’s the negotiation they do not use any third party person, normally either party involve in any dispute can negotiate solution to one and other. Attorney’s representing each party can also negotiate on behalf of their client. Once a settlement is reached just like mediation a settlement agreement is drafted.

These Alternate Dispute Resolution can benefit a business greatly, a business can save money and will not miss any time in their operation, but can still use any of these ADR’s to resolve a dispute without going to trial. The business can use these on their behalf to achieve an outcome that is fair to all parties involve.

In today’s market and technology where businesses can expand globally it was important to establish a law that could protect nations and consumers that do business with businesses from other countries. International law defines the legal responsibility of all nations conducting business outside of their country. Every country is responsible to enact their international law many businesses are concern with this law because no court can enforce these laws. The U.S. in order to protect affairs from other countries the U.S. Constitution established foreign commerce clause. This clause gives congress the power to look at any irregularities over foreign nations. A treaty is another clause from the U.S. Constitution that enables the President to have the power through the advice of senate to deal with any foreign issues.