Functions and Roles of Law in Business and Society xxxxxxx LAW/421

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Functions and roles of law in business and society
The governance of business through state and federal laws is a very complex system. Many laws, statutes, and regulations are in place to protect the consumer and the business. These laws stem from city ordinances in local municipalities to Congress’s broad commerce powers that have the final say. Each of these laws and regulations have specific roles and are designed to function in certain ways.
Roles
The regulation of interstate commerce is governed by Congress’s Commerce Clause. This clause is designed to give the unrivaled power to Congress to have the supreme rule over interstate commerce. “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. 32).
Functions
In the case of Cipollone v. Liggett Group, Inc., where Cipollone is pursuing suit against Ligget for restitution in the death of his mother due to violations of New Jersey consumer laws. However, Congress utilized the Supremacy Clause and ruled against Cipollone because federal law contradicted the consumer protection put in place by New Jersey. This is a great example of the function of Congress’s broad power to step in when necessary, provided there is legal ground for their action. If this case did not involve any area where Congress’s commerce law could be brought in then Cipollone may have won the suit. Congress’s commerce law is in place to be the supreme law in business commerce. “Despite some limits placed by the U.S. Supreme Court in the relatively recent past, Congress still exercises very broad powers to pass laws where the activity being regulated affects interstate commerce in any way” (Melvin, 2011, p. 32). In society, the commerce powers of Congress act to keep good order and balance to business in society. In history, there have been many other instances where the broad power of Congress’s commerce laws were used. In 1964 the Civil Rights Act was created and Congress used its commerce power to ban discrimination in places of public accommodation such as restaurants and hotels. In the case of Heart of Atlanta Motel v. U.S., the US Supreme Court ruled that the 1964 Civil Rights Act was a valid application of the commerce law (Melvin, p. 34-35, 2011).
Functions and roles in current job
There are many examples of the functions and roles of business law in my current job. At Carmax, we deal with interstate and intrastate commerce every day. The shipment of vehicles all over our 136 stores is a constant part of our business. This is strictly governed by federal regulations, from how many hours a driver can drive nonstop to how much weight a driver can carry, and everything in between. We also deal with North Carolina state inspections, and this alone is a bear in itself. There is strict governance of state inspection through the North Carolina Department of Transportation. The slightest misstep or inconsistency in information and the NCDOT (North Carolina Department of Transportation) starts issuing huge fines and revoking either individual’s inspection license’s or even the stations license.
Many of our regulations come from the state, but there is a great influence of federal regulation as well. Whether it be safety regulations from OSHA or the Fair Labor Standards Act, federal regulations are quite prominent.
Conclusion
With all of the local, state and federal regulations on business, it is important for businesses to have a devoted legal team whether they be outsourced or part of the company. The legal team should analyze the company’s decisions, outcomes, and the intent to better avoid legal complications. With the broad power of Congress’s commerce law one cannot be too careful. These laws and regulations are in place to protect the interests of the company, its employees, and the consumer. Without this governance the world of business would be a free for all.

References
Melvin, Sean. P. (2011). The legal environment of business: A managerial approach: Theory to practice. Retrieved from The University of Phoenix eBook Collection database.