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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.
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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