Roles and Functions of Law

Role and Functions of Law in Business

Rebecca Isfan

University of Phoenix

Instructor Alfred Fenzel

August 21, 2013 

Abstract

The content below shall be defining the functions and role of law in business and society, as well as discussing the role of law in my present place of work.

Role and Functions of Law in Business

“Congress exercises its commerce powers in various forms. However, the direct and broad power to regulate all persons and products related to the flow of interstate commerce is the fundamental source of its authority” (Melvin, 2011, p. 23). Just as a country needs to have laws to function smoothly, efficiently, and safely, so do businesses. If a business owner or working for a business owner, there is the logic of knowing that there are certain laws that need following. Laws need to be in place to ensure that businesses follow a certain code of ethics; to ensure a business’ patrons, and that employees are treated fairly.

To sharpen in on a business’ patrons: in Cipollone v. Liggett Group, Inc., Cipollone sued Ligget on behalf of his mother’s alleged wrongful death because he claimed Liggett was using false advertisement and was not warning its tobacco users of probable health complications of smoking. Ligget argued that “that the claims related to the manufacturer’s advertising and promotional activities were preempted by two federal laws: (1) the Federal Cigarette Labeling and Advertising Act of 1965, and (2) the Public Health Cigarette Smoking Act of 1969” (Melvin, 2011, p. 33). The court’s result was in agreeing with Ligget and Cipollone lost the suet. Cipollone had argued that Ligget was breaking New Jersey advertising laws, but the two laws that Ligget countered with laws that had been passed federally, so they predominated the state laws of New Jersey because “Even for commercial activity that is purely intrastate (takes place within one state’s borders), Congress has the power to regulate the activity so long as it has a...