All forms of commerce and social interactions are regulated and overseen by a form of law in various categories. The basic function and role of the law in business and society is to ensure that there is peace, personal freedom and social justice within a given society and social context. The law achieves these through the setting up of guidelines and regulations for various economic relationship and transactions and also by punishing those who do not adhere to these rules and regulations. In the American society, there are several types of laws. The overriding law is the federal law which transcends all the different States of America. There are also individual State Laws which deal with business and social issues that are unique and specific to a given State and do not significantly affect other States. This paper outlines some of the basic functions and roles of law in business and society in general.
The different laws affecting and influencing business and society can be classified into various relevant categories. These include constitutional or federal laws, statutes, treaties, ordinances and executive orders among others. Each of these categories covers a specific jurisdiction and has differing level of influence in both business and society. For instance, the federal laws mainly deal with interstate aspects of commerce and business. This means that the business activities that take place across and affect several states are covered under the federal laws. These may include the regulation of inter-state transport services and modes including road, rail and air transport. These interstate laws are drafted and regulated by the Congress under the Commerce Clause in the United States constitution which outlines the powers of the Congress to regulate business activities that have a substantial economic effect on interstate and commercial exchanges.
One example in which the law has significantly influenced a business activity that in which I was involved in the past is during a job interview whereby I was part of the interviewing panel. In this panel, one of the candidates who was applying for an accountancy job was disabled and on a wheelchair. His job was not going to be in any way hindered by his disability. However, his presence in the office was going to entail significant changes that the management was unprepared for. The candidate was greatly qualified compared to other candidates who had applied for the same position. However, the company had to hire the candidate because, according to the Americans with Disabilities Act, one cannot be disqualified from employment if the disability did not hinder their productivity in whatever business role they were playing.
Apart from this personal experience, there have also been cases and incidences within the judicial system whereby the influence of law on business activities has been significantly felt. One example of this is the Cipollone v. Ligget Group case of 1992 in which Cipollone filed a suit against Ligget Group, blaming the company for his mother’s death because they had engaged in a course of conduct including false advertising. However, the plaintiff had based his claim upon the state laws which required advertisement to give specific details about the dangers associated with the product. The lawsuit was however lost because the federal law preempted these local state laws as it had a provision that specifically dealt with cigarette products, the products in question. According to the Cigarette Labeling and Advertising Act of 1965, the specific information that the plaintiff complained was missing was not required by the law (Mallor et al., 2005). This example indicates how a legal requirement would have ended up costing a business organization thousands of dollars in case the lawsuit was successful.
Lastly, the roles and functions of the law in business and society can be broadly classified in several utilitarian functions. For instance, the law ensures certainty and consistency in the society. When one knows what the rules are, it becomes easier for people to make investment plans and business contract decisions because they are assured that the terms are going to be adhered to. In the matters of consistency, the law ensures that all participants in a commercial activity are on the same page and those who may be tempted to stray are righted back into place. This results in a sense of security and protection for the majority who would still adhere to the set conditions of commerce. Since the law ensures fairness, entrepreneurship is encouraged as people’s rights are protected (Bagley & Dauchy, 2003). The law also keeps the government in check by ensuring that those in power do not unreasonably and suddenly change the rules of the game to favor them.
In conclusion, the ultimate role and function of the law in business and commerce is to ensure fair play and promote a moral balance that cannot be entrusted to individual people who may be corrupted by selfish concerns (Nesteruk, 1996). By ensuring that human rights are preserved and protected while at the same time setting limits regarding how business within the society should be run without unnecessarily harming or unfairly discriminating against some people, the law manages to ensure that commerce rises up to its full capacity in society. Law and ethics are therefore the spine and the heart of any given society. It is easier to control an individual person, but it takes the law to ensure individuals in the masses do not deviate from the common values of the society.
Law and Legal Issues
A legally enforceable agreement between two or more parties is referred to as a contract. Although verbal agreements are also permitted in contracts, written forms are more common (O’Shields, 2017). In most cases, a contract is created when an offer is made and accepted by another party. An offer, acceptance, and consideration are necessary for a contract to be considered legally binding. An offer is a commitment to do something or not to do something. An offer must be clear in order to be accepted. A written or verbal offer may be made. Usually, an offer is made to a third party by the offeror to the offeree. After that, the offeree must accept it. An acceptance is a declaration of intent to abide by the conditions of an agreement offer (White, 2022). Unambiguity is a requirement for a legitimate acceptance. Both verbal and written acceptances are acceptable. An acceptance must adhere to the specifications of the offer.. If the acceptance deviates from the offer, it is considered a counteroffer. A counteroffer voids the original offer.
Consideration is what each party to a contract gets out of the agreement. It can be anything of value, such as money, goods, services, or a promise to do or refrain from doing something. Each party must consider a contract for the contract to be legally binding. Once an offer is made and accepted, and each party has given consideration, a contract is formed. Contracts may be unilateral or bilateral in nature. In a bilateral contract, each side makes a commitment to carry out a specific action. A unilateral contract is a deal where one party pledges to take action in return for the other side doing similar action.
When discussing formation flying, the first thing to consider is what might jeopardize formation. The elements of formation flying are: Maintaining a safe distance from other aircraft, keeping the aircraft in formation, monitoring air traffic, and communicating with other aircraft in the formation. The formation may be jeopardized if these elements are not met (da Silva et al., 2021). For example, if two aircraft are not maintaining a safe distance from each other, then they may collide. Or, if an aircraft is not keeping up with the rest of the formation, then the formation may break up. It is important to note that formation flying is not just about flying in formation. It is also about communication and cooperation between the pilots. To maintain a formation, the pilots need to be able to communicate with each other and coordinate their actions. Formation flying requires a lot of practice and coordination. The best way to learn is by flying with an experienced pilot.
A contract is formed when an agreement is reached between two or more persons to do something, not to do something, or to tolerate something. They indicate their agreement by doing something recognized by the law as signifying that agreement. According to the Contracts (Rights of Third Parties Act of 1999, a contract cannot be made unless a number of requirements are satisfied). These requirements include that the parties must make an offer and accept it, that they must intend to establish a legal relationship, that there must be a consideration, and that they must both be of legal age. A contract is formed when two or more parties come to an agreement that is enforceable by law. The contract law recognizes three distinct stages for forming a contract: offer, acceptance, and consideration. These stages are often referred to as the ‘Three certainties’
Offer: An offer is a definite declaration of the intention to engage into a legally binding agreement on certain conditions, with the understanding that it will become effective once accepted by the intended recipient. It is a declaration of intent to engage into a binding contract on specific conditions, intended to be accepted by the recipient and capable of acceptance, and made with the intent that it will take effect immediately. Acceptance: A formal, unequivocal indication of agreement to the terms of an offer. Consideration is what is given in exchange for a commitment and can take the form of a proprietary interest, another benefit, or a disadvantage. That’s the cost of keeping the commitment. Consideration must have some financial worth and can either benefit the promisor or hurt the promisee. For example, if a promises to pay B £100 in return for a horse, the consideration is the horse and the £100. This is an example of executory consideration, as it is a consideration for a future act. Consideration can also be for a past act; for example, if A had already paid B £100 and B promised to pay £100 in the future. This is referred to as executed consideration.
Express, implied, unilateral, and bilateral contracts are the four primary categories of agreements. A contract is considered express if the parties explicitly state the terms in it (Abdussalam,2021). Implied contracts are agreements that the parties have made based only on their actions. A unilateral agreement is one where one party makes an offer, and the other party accepts the offer by executing the request. A bilateral agreement is one in which both parties pledge to uphold their agreements. Capacity: A party’s capacity to a contract refers to their capability to comprehend the terms and ramifications of the agreement and to bind themselves to it. A contract’s parties must be of sound mind and enter into the agreement. The capacity of a party may be affected by factors such as age, mental ability, and intoxication (Jores et al., 2019). Illegal agreements: An illegal agreement is prohibited by law. Illegal agreements are void and unenforceable. The parties to an illegal agreement cannot enforce the agreement against each other.
In conclusion, a contract is an arrangement involving two or more parties that is backed by the law. An offer, acceptance, and consideration are necessary for a contract to be enforceable. A commitment to perform something is called an offer, and acceptance occurs when one side accepts the offer. Taking into account what each party gets out of the contract and is usually something of value. Capacity is another element that is necessary for a contract to be valid. This means that both parties must be of sound mind and able to understand the contract. The contract is voidable if a party is not of sound mind. Another element that is necessary for a contract to be valid is legality. This means that the contract cannot be for something illegal. If a contract is for something illegal, it is void and unenforceable.
