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CHAPTER 16---THE LEGAL AND REGULATORY ENVIRONMENT OF BUSINESS………….50 things! 16.1 LAW AND THE LEGAL SYSTEM
1. How does law differ from the legal system? * The legal system evolves to respond to changes in social norms and commercial activities. . Legal system is remarkably fair. The legal system establishes the rules of the game, adopting and enforcing them in a reasonably predictable manner. One U.S. law that creates unique challenges for American firms operating overseas is the Foreign Corrupt. Practices Act, which prohibits the distribution of bribes and other favors in the conduct of business.
2. Should laws be flexible? * Rules and Regulations provide a framework to any system. I believe that Laws should never be bounded by situations they should be equal for everyone under any circumstances. Flexibility would only make the system vulnerable.
3. Are our laws fair? * There are, of course, abuses and mistakes by judges and juries, and procedural mishaps occasionally tip the scales of justice in the wrong direction. Sometimes—as in George McGovern’s case—innocent parties are forced to bear the cost of defending themselves in court. On the whole, however, the U.S. legal system is remarkably fair.
4. Do people consider laws fair? * I think most of the people consider that a United States law is not fair.
5. In the United States legal decisions are based on the rule of law. What is the rule of law? * Predictability and Fairness. How do we know what’s legally “fair” and what isn’t? Granted, depending on who’s enforcing the rules of the game, just about anything can be “fair” and just about anything can be “foul.” Legal tradition in the United States, however, rests on the principle of the rule of law—the principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are

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