Chapter 1 Introduction to Law August 29th 2014 1 4 Importance of Rule of Law to Business Learning Objectives Determine why the rule of law is important to business Identify several areas of law that are especially relevant to business and the importance of the rule of law to those areas Identify how the rule of law limits government Identify how the rule of law protects people form harmful business practices Importance of Rule of Law Establishes rules that people and businesses must follow to avoid being penalized Provides a peaceful and predictable means by which disputes can be resolved Provides guidance and direction in every area of business Provides a sophisticated system of federalism in the United States Governs contracts between people and between merchants Provides protection for property Protects people from illegitimate practices of businesses Protects businesses from governmental abuse Merits of Rule of Law Employers know the rules of the game regarding their relationships to employees Employees knows the rules with respect to their obligations to employers Businesses can rely on it to govern their debtor and creditor relationship
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