Assignment 4

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Assignment 4
The article covered in this paper is “Law, the rule of law, and property: a foundation for the private market and business study” by Lee Reed. It covers the need of a clear and defined legal system that is respected by all individuals. The author calls for the respect of the rule of law and the legal system that asserts the right to property and honor of contracts (Reed, 442). These are viewed as the basic foundations to give investors the confidence to invest in an environment. The law stands to assure investors of the safety of their investment and hence they can be free and confident to invest in any field.
The topics covered are law as an organizing force in modern society and as a foundation for business. It identifies property as a set of resources and protects them so that they can be transferable in the market, which must require ownership and legal entities to the property. The owner must also risk the property so as to improve and enhancing them and get the benefits forthwith (Reed, 445). This promotes wealth creation which is then secured through contract law. Contracts must also be protected so as to encourage persons to participate in them; this in turn promotes a functioning economy.
The presence of working legal systems also promotes easy acquiring of secured borrowing that increases capital in the economy. The efficiency and effectiveness of any economy generally depends on how the legal system guarantees the investors of their money and property (Reed, 467). The author views the utilitarianism theory to the social systems in the mod...