Law is the system of rules that a particular country or community recognizes as regulating the actions of its members. It shapes politics, economics, history and society in a wide variety of ways. The four main functions of law are establishing standards, maintaining order, resolving disputes and protecting liberties and rights. Different legal systems serve these purposes differently, and some fail to fulfill them altogether.
For example, an authoritarian government might keep the peace and maintain the status quo, but it may also oppress minorities or political opponents. The laws of a nation reflect the values and priorities of that society, which are reflected in its culture and history.
Contract law regulates agreements between people for the exchange of goods, services or money, and covers everything from buying a bus ticket to trading options on a stock market. Property law defines the rights and duties people have toward tangible objects, including their homes and land (real estate) and personal possessions such as cars or furniture (personal property). Criminal law outlines punishments for crimes committed against a person or his or her property, whereas administrative law outlines the way in which the government governs itself.
In most nations, the legal system is created by the politicians in power at any given time. It may be possible for those in power to manipulate the system, but most states have mechanisms to prevent these abuses, such as checks and balances on the power of government, and the ability to change the government through a democratic process.
The law itself is not infallible, and there are several types of law that attempt to correct mistakes or inaccuracies. For example, administrative law sets out how to review decisions made by the government (or an agency of the government) that are not legally binding. Criminal law sets out the punishments for crime, and is the most common type of law.
Having access to law is important for people of all backgrounds and social classes. It is essential to a democracy, and allows citizens to hold their government accountable for its actions. It is also the foundation of a free economy, providing stability and security for business and investment.