Getting to Know Different Kinds of Law Systems

Published September 16, 2015 by Mayrbear's Lair


Today’s post is focused on the variety of business laws that exist. We begin by explaining this topic in simple terms – business laws are created to outline the rules of behavior that a governing body imposes on citizens to benefit society. In other words, business laws are a representation of the governing body’s subjective interpretations of rules on how to manage a society, by the implementing a combination of tradition, logic, and precedent.


In her book, Business Law for Managers, Gwen Seaquist explains that the Federal Government has specific limitations in its ability to legislate so it delegates power for certain issues to each individual state. In other words, there is no “individual” law like certain countries which have established a legal system based on civil law or codified statutes alone. Civil Law Systems like those that exist in Europe and South America, appear more efficient, because they provide little room for judicial interpretation and attorney intervention. In these kinds of systems, trial by jury is not optional, therefore, judges are required to apply the law in swift predictable verdicts because these laws take a long time to evolve or change. Common Law Jurisdictions, however, like those established in the United States and Great Britain, allow much more room for litigation (Seaquist 2012). Therefore, company leaders interested in achieving their goals with successful outcomes, ensure their managers are educated in business laws so they are better prepared for any potential threats they may face.


Many agree, however, that one of the reasons comprehending the law is so challenging, is due to the fact that the legal systems constitute a great number of “factions” all of which function simultaneously, because of federal, state, administrative,  local, and the many other numbers of laws that exist. For example, take into consideration that each of the 50 states consists of a legislative body that has the ability to pass their own statutes! This means that each individual state has its own court system which rules on cases that can result in judicial law. To complicate matters even further, is the fact that functioning at the same time, is Congress – the federal legislative body that determines federal statutes, in the federal courts, which result in federal laws. This explains why studying the law can be so complicated, but an essential element for business leaders that intend to manage successful companies.

Well … that wraps up today’s post. On Friday we will conclude up our discussion on Business Law and take a closer look at Administrative Laws. Until then … stay organized!


All, too, will bear in mind this sacred principle, that though the will of the majority is in all cases to prevail, that will to be rightful must be reasonable; that the minority possess their equal rights, which equal law must protect, and to violate would be oppression. – Thomas Jefferson


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For more information on Media Magic, our digital publications, or to purchase any of our accelerated learning Business Life titles, please visit:

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Seaquist, G. (2012). Business law for managers. San Diego, CA: Bridgepoint Education, Inc.

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