Law is a system of rules and regulations enforced by a government that regulates the actions of people to maintain social order. Law shapes politics, economics, history and society in many ways. It is a complex and ever changing subject.
It is the law that defines people’s rights and duties toward tangible and intangible property, such as homes, cars, books, bank accounts and stocks. It also regulates the exchange of money and services. This is called commercial and contract law. Banking laws set minimum standards for the amount of capital banks must hold and provide guidance on how to manage risk and invest in stocks and bonds. Environmental, health and safety laws provide enforceable guidelines for the production and use of natural resources such as air, water, minerals and energy. It is the law that dictates how people must behave in a particular setting, whether it be driving, working or playing sports.
One important aspect of law is that it is coercive. This is an idea developed by Roscoe Pound, who thought that law was mostly used as a means of social control. This definition of law has three main parts:
The first element of this law definition is that it must protect against anarchy or the Hobbesian war of all against all. The second element is that the rule of law must allow people to plan their affairs with reasonable confidence about the legal consequences of their actions. Finally, the third element is that the rule of law must guarantee against at least some types of official arbitrariness.