Imagine a world filled with all the same people but no rules for them to follow. What kind of picture does that present in one’s mind? Laws, rules, and regulations are set forth in society to create a sense of order and fairness amongst the populations. One might think that a world filled with millions of people which have no laws to abide by, may create the environment for complete mayhem. People would be allowed to steal from another with no repercussion, children could be raped and beaten freely, and elderly would be subject to financial abuse with no one led accountable for that violation.
Not only would normal society be allowed to make personal attacks on others freely and openly, business would be allowed to cheat, steal, and rob from society as well. In the world of business the functions of law are very important. “Modern law in the United States regulating businesses and individuals is generally a combination of constitutional law, statutory law, common law, and administrative (regulatory) law at the federal, state, and local levels” (Melvin, 2011, p. 8).
The areas of law that can be seen within a business have to do with entrants, property, environment, employment, tax, antitrust, securities, intellectual property, and so on. Since the depths of law can be so deep within a business, especially the larger corporations, it is important to seek the role of counsel. There are two formats that business owners and management may work with in regards to counsel. There are the in-house counsel which are generally held at the executive management level, while the majority of business rely on attorneys that are employed by various law firms (Melvin, p. , 2011). However, no matter the size of the business, whether it employs 5 or 500, the laws remain the same. Therefore, it is important that all business owners have some legal expertise and some sort of counsel to guide them along. In all businesses, it is expected there will be revenue generated, which will result in taxes that the business will owe for the revenue earned. It is important that the owner understands the importance of tax laws and how taxes are to be paid. Most businesses have employees that must be paid, and with that, the employer must pay axes on income as well.
Law can protect a company’s intellectual property. Intellectual property can consist of things like a company’s logo and the company’s inventions. Employees are protected by safety rules and the employers are required to give ten employee a sate place to work. As a loan processor In ten Real Estate and Mortgage industry, there are many rules to be followed. AREAS laws have been strictly enforced over the last few years since the housing market crisis. AREAS stands for Real Estate Settlement Procedures Act. This law was initially put into effect onto 1974, but in 2011 was revamped.
This law was put into place to protect the consumer and to provide more useful and helpful information regarding the costs of a mortgage loan at the time of settlement (“AREAS – Real Estate Settlement Procedures Act”, 2013). With this law in effect and closely monitored, loan originators and loan processors must make sure that the Good Faith Estimate is accurate and has less than a 10% tolerance. This meaner that if the cost of an appraisal was quoted at $300, but the appraisal actually ended up costing $450 dollars, the broker r loan originator would be responsible for covering that difference.
Before this law was as closely monitored as it is now, many loan originators would do a “bait-and- switch”. The representative would show the client he or she would only have to come in with $3,000, yet when it was time for closing the actual funds needed could be thousands higher. Many of these people already had entire homes packed and 30 day notices given to landlords, and felt pressured into producing the necessary additional funds. In conclusion, implementing laws across the United States is monumental to keep order and fairness among the people.
Without rules and regulations to abide by, people would be allowed to act freely on his or her own accord. Not all people act out of the goodness of his or her heart, so it is important that laws are made and followed by the people.