Discussion Assignment Unit 1

University of The People

BUS 3305- Business Law and Ethics
Instructor: Prof. Tammy Cowette
April 9, 2023

Introduction to the Law

In chapter 1, we understand what law is, which according to Lau and Johnson is “a set of rules
that are enforced by a government authority.” (Lau & Johnson 2011). 
 Is it more important for you to follow the letter of the law or to follow the spirit of
the law?
According to Merriam-Webster dictionary, the letter of the law refers to “exactly what the law
says,” (Merriam-Webster, n.d.). It is the exact wording and interpretation of legal statutes and
regulations, while the spirit of the law refers to “the aim or purpose of a law when it was
written,” (Merriam-Webster, n.d.). It is the underlying principles and values that those laws are
meant to promote.
Both the letter and spirit of the law are important, and the answer to whether one is more
important than the other can depend on the context and situation. In some cases, following the
letter of the law may be more appropriate, such as when there is a clear and unambiguous rule
that must be followed to avoid legal repercussions. In other cases, following the spirit of the law
may be more important, such as when the law is vague or ambiguous and requires interpretation
based on underlying principles.
 In what circumstance would you believe the opposite to be true?
In some circumstances, following the letter of the law could lead to unintended or unjust
outcomes. For example, there may be situations where a law was enacted with good intentions,
but its application in a particular case may result in an unfair or unreasonable outcome that is not
in line with the spirit of the law. In such cases, it may be more appropriate to follow the spirit of
the law rather than the letter of the law.
 How does the rule of law affect business?
The rule of law is a fundamental concept in many legal systems and refers to the principle that all
individuals and entities are subject to the law, including government officials and businesses. The
rule of law ensures that laws are applied consistently and fairly, without favoritism or bias
towards any individual or group.
This implicates businesses in terns of legal compliance, protection of property rights, contract
enforcements, investments and economic growth. It provides a predictable legal framework that
allows businesses to operate fairly and efficiently, protects their property rights and provides a
mechanism for enforcing contracts, and contributes to economic growth and stability.
 What would business be like in a land without any rule of law system? Be specific.
In a land without any rule of law system, business would likely be chaotic, unpredictable, and
potentially dangerous. Without legal protections or a framework for resolving disputes,
businesses would be vulnerable to a range of risks and uncertainties. The lack of legal
protections, contract enforcement, and predictable legal environment would create significant
risks and uncertainties, while the prevalence of corruption and violence would make it difficult to
establish trust or build relationships with customers, suppliers, or partners.

References
Merriam-Webster. (n.d.). The letter of the law. In Merriam-Webster.com dictionary. Retrieved
April 9, 2023, from https://www.merriam-webster.com/dictionary/the%20letter%20of%20the
%20law
Merriam-Webster. (n.d.). The spirit of the law. In Merriam-Webster.com dictionary. Retrieved
April 9, 2023, from https://www.merriam-webster.com/dictionary/the%20spirit%20of%20the
%20law
Lau, T. & Johnson, L. (2011). The legal and ethical environment of business (Vol. 1). Chapter 1.
https://my.uopeople.edu/pluginfile.php/1685496/mod_page/content/6/
LegalEthicalEnvironmentBusinessChapter01.pdf