Essay on Roles of Law in Business

597 Words Jan 25th, 2014 3 Pages
The United States securities laws and corporate governance system requires that a board of directors supervise the management of each public corporation.
The Securities Exchange Act of 1934 created the US Securities and Exchange Commission (SEC). The primary mission of the US Securities and Exchange Commission is to protect investors and maintain the integrity of securities markets. The SEC oversees corporate disclosure of information to the investing public. Public companies in the United States with more than $10 million in assets and whose securities are held by more than 500 owners are required to file annual and quarterly statements (Forms 10K and 10Q) with the SEC. These forms are supposed to disclose information about such public
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It has evolved from basic morality and society cannot exist properly without it. Law most often is aligned with customs and that which society has deemed to be right or wrong (Emerson, 2009). In business, companies would have a free- for- all without it. The result would be that no business would actually be achieved.

Law in Business
Laws govern every aspect of business. They keep businesses running smoothly and keep them from hurting each other and the consumers. 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 to product safety laws concerning product liability. Product liability is the responsibility of people, sellers and manufacturers concerning death, damages or injuries due to defective products (Wild, 2010). Another type of business law is an antitrust law that keeps companies from market sharing, price fixing, and monopolizing an industry. There are many government agencies that control business law. Some examples are the Federal Trade Commission, U.S. Consumer Product Safety Commission, U.S. Patent and Trademark Office and the U.S., and the International Trade Commission.

Law in Society
Laws touches every aspect of social behavior across all walks of life. It begins at birth to determine a person’s

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