Law is a disciplinary mechanism that brings about the order in society and businesses. It plays a significant role in ensuring that people coexist peacefully. Law is apparently practiced in three ways.
1. Civil and criminal law In civil law, the private entities may sue one another if they have wronged one another whereas in criminal law governing authorities prosecute the public for crimes committed.
2. Procedural versus Substantive Law In the procedural law, clear guidelines are followed in executing crimes by governing entities while in the substantive law norms, rights and duties of society are the essential elements determining the communitys wellbeing.
3. Public and Private Law private law asserts the mechanisms through which individuals mutually coexist with one another while public law pinpoints the structures through which the government and its people interact (Marvin, 1972).
Law enforces order in businesses, prevents crimes hence maintains a mutual existence amongst different parties involved.
Federal Court and States Court Structures
Unlike the federal courts that were mainly formed through the Supreme Court and the lower federal courts, state courts owe much of its existence to the particular states. Secondly, in the selection of judges, the two courts differ significantly. In the federal court, judges are appointed by the president and then confirmed by the Congress while in the states court this is not the case as judges are either elected or appointed. Jurisdiction of crimes is also handled separately in the two courts. A federal case is handled at the federal court while that the state court state cases.
Types of ADR and their Role in Business
There are mainly two types of ADR. These include mediation and arbitration. However, other types of ADR exist such as Med-Arb and Mini-trial. In mediation, a third party called a mediator comes in and helps in solving disputes between two parties (Claire et al., 2005). In this case, a peaceful reconciliation is carried out, and the mediator is not allowed to force the reconciliation process (Boulle, 1996). On the other hand, arbitration involves the use of a neutral third party. In this case, the arbitrator will listen to sentiments from each side and then he/she will make a decision (Robert, 2004). Med Arb uses both mediation and arbitration in solving problems while in mini-trial parties will have a test trial for their cases and then reach an agreement or settlement for their cases. In most cases, businesses get involved in risky ventures and therefore with proper strategies of settling disputes losses can be reduced.
ADR VS Litigation
ADR involves a series of various methods of solving disputes in the society and it does not necessary has to deal with courts. For instance, if a crime is committed alternative approaches of dispute settlement are initiated. These methods include mediation, arbitration, and Med-Arb (Fertherson, 2000). States do this to help in clearing court dockets and sometimes due to economic reasons. Litigation or a traditional court system is a lawsuit where a judge or magistrate listens to cases in a court of law. Fines and penalties might be induced to the wrong doers. It is a very expensive way of solving disputes, unlike ADR.
Boulle, L. (2005). Mediation: Principles, process, practice. Chatswood, N.S.W: LexisNexis Butterworths.
Fetherston, A. B. (2000). From Conflict Resolution to Transformative Peacebuilding: Reflections from Croatia.
Ott, M. C. (1972). Mediation as a method of conflict resolution: Two cases. International Organization, 26(04), 595-618.
Merkin, R. (2004). Arbitration law. London [u.a.: LLP.
"Roles and Functions of Law in Business and Society." 123HelpMe.com. 03 Mar 2017
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