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CH 5] Business 101 5-3

In any case, legal history is interesting, and is extremely valuable because it shows
the background of and reasons for many rules of law; therefore, to know a rule without
knowing the reasons for the law is only half understanding.
To understand its history, one could begin by asking, “What is law?” Law has been
defined in many ways: by Cicero as "nothing else but right reason, calling us imperiously
to our duty, and prohibiting every violation of it;" by St. Thomas Aquinas as "a regulation
in accord with reason, issued by a lawful superior for the common good;" by the
California Civil Code in Section 22 as "a solemn expression of the will of the supreme
power of the State." Perhaps the best and most workable definition of the law is that it is a
body of rules regulating man in his relationships with other men and their society as a
whole. The United States has a federal constitution, because as a nation it is a federation
of states that the framers created, giving us a Republic, and not a democracy, with a
republican form of government; and each individual state has a constitution as a
foundation for law and governance. Law
A law becomes a standard set by government and society in the form of either Standards set by
legislation or custom to govern the behavior of its members. Arising from state and federal government and society in
the form of either legislation
constitutions that originally established the forms of government, our laws have a direct or custom.
impact on how business firms conduct their activities.

The American form of Government
At the conclusion of the Constitutional Convention, Benjamin Franklin was asked by a
woman, “Sir, what have you [given us]?” His immediate reply was “A Republic Ma’am, if
you can keep it.” However, many Americans believe that our governmental system is a
Democracy and not a Republic. All you need do is listen to the media, politicians, and
many of your teachers. The difference in these two is essential in understanding
Americanism and our American form of government. Not to discuss politics, it is helpful to
address the confusion that has been spread about the political spectrum.
Many have been led to believe that the political spectrum places groups such as 5
communists, and Marxists on the far left; fascists, National Socialists and dictators on the
far right; and political moderates or centrists in the middle. These divisions are
fundamentally wrong. A more accurate political spectrum will show government having
zero power on the far right to 100% power on the far left. At the extreme right there is no A demagogue would like a
government whereas the extreme left features total government with such titles as people half educated;
Communism, Socialism, Nazism, Fascism, Princes, Potentates, dictators, Kings, or any enough to read what he
form of total government. Those that claim Fascist and Nazis are right wing NEVER define says, but not enough to
their terms which deliberately spreads confusion. know whether it is true or
not.
Toward the middle of the spectrum can be found government limited to its proper role
of protecting the rights of the people. That is where the Constitution of the United States —The Common School
Almanac (New York:
resides. Those that advocate this form of government are really Constitutional moderates. American Common School
So, let us analyze the basic forms of government, they are: Monarchy or dictatorship, Society, 1839), P.1 Maxim 11

A Continuum of Government

LAW OF RULES
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