In 350 B.C., Aristotle said, the rule of law is better than the rule of any individual. See Aristotle, Politics, Book 3-Chapter 16. In our legal system, the law is a system of rules and regulations, enforced by government, primarily through the judicial and executive branches.
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Use the Internet to conduct research on the role of law in business. Based on your research, answer the following questions:
- To what extent can our legal system ensure order and stability in society and particularly, in the business world?
- Give a recent example from your research concerning any alleged failure of the legal system that led to instability in business and society.
- How would you explain the importance of stability and predictability in our legal system in the context of the recent problems in the financial services industry (e.g. “sub-prime mortgages”, Bernie Madoff)?
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