Law and its Purposes - Quick Notes

Purpose of Law

• Defines rights and responsibilities within a community.
• In a democracy, rules for business behavior are created and enforced by authorized authorities.
• Laws are enforceable in the community's courts.

Society of Laws and Authority

• Exhibit 1-1 highlights that law supports a "society of laws".
• Respect for law stems from its authority as a system that makes and enforces rules.

Absence of Law and Preference

• Without law, behavior would rely on goodwill and dependability.
• Most people prefer the law to relying on personal goodwill or arbitrary norms.