The United States Legal System and Business


Companies must make decisions every day, from product creation to marketing to growth management plans, but most are based on solid business acumen and not on legal obligations. According to Shapira (2018), “law enforcement actions, such as litigation or regulatory investigations, extract information on the behavior of influential players in business or government” (p. 153). However, if an enterprise violates a law, it must be held responsible. These responsibilities usually come in the form of judicial proceedings. The reality of firms is whether an action is filed by a supplier, a customer, a member of staff, an action-holder or other stakeholder, or the proceedings. Being familiar with judicial system as future business professionals will build the foundation for grasp of the legal process.

National and local courts should respect both the national and the laws of each state. In the first place, federal laws should be upheld in the State courts if federal law is in dispute. Second, claims under federal legislation often can be brought to justice in State courts when there is no specific requirement from the Constitution or the Congress that only federal courts may hear such claims. Thirdly, under the full credit and faith provision, the final judgments of courts in other states must be respected by each State Court. In these cases, state courts will review the cases of conflicts of law in their State and will occasionally opt to use the laws of another State to rule on the issue.

Just as federal law is a matter of State courts, so frequently state law and what takes place at state courts are the subject of federal justice. When a lawsuit contains claims utilizing both state and federal law, federal courts evaluate state-law claims. Claims due to federal law must allow the Federal Court, including any identified state problems, jurisdiction over the entire case. Also, in cases where state law presents a substantial question of federal law, the Supreme Court may hear appeals from an international supreme court.

State Court System

The great majority of civil proceedings are lodged in State courts in the United States. All state courts share two features of civil proceedings: trials and appeals. The original jurisdiction of a court performing a trial function — the competence to establish the facts of the case and apply the law to them. In a court hearing, the appeals of the Court is said to have jurisdiction over an appeal—it should accept the facts as established by the court of the trial, limited its examination to the theory of the law applicable to the lower court.

In the general tribunals or courts of general jurisdiction, all other civil and criminal proceedings are held. These are named after a number of names: superior, circuit, area, or common court of appeals. These are courts for a remedy for occurrences such as car injuries and accidents or contractual violations. The State tribunals are also charged with murder, rape, robbery, and other violent offenses. In these courts of universal competence, the fact-finder is not a judge, as is the case in the lesser courts.


Companies must decide on growth management strategies every day, from product development to marketing, but most of them are based on a solid business atmosphere rather than on regulatory requirements. If, however, a company breaches a law, it must be called to account. These tasks generally take the shape of legal procedures. The reality of companies is whether an action or procedures are brought by a supplier, a customer, an employee, a shareholder, or another player. The cornerstone for understanding the legal process will be the familiarity of prosecutors as future business professionals.

The national and local courts should follow national and national laws as well as individual state laws. Firstly, if federal law is in question, federal law should be upheld in State courts. Secondly, claims under federal law can often be filed by the State Court if the Constitution or Congress has no express requirement that exclusively federal courts hear such claims. Finally, the final rulings of the courts of other States should be acknowledged by each State Court within the full provision of trust and faith. In these instances, the State courts shall evaluate the disputes of law in their country and sometimes decide to apply other State laws in order to judge on the matter.


Shapira, R. (2018). Law as Source: How the Legal System Facilitates Investigative Journalism. Yale L. & Pol’y Rev., 37, 153.

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LawBirdie. 2023. "The United States Legal System and Business." October 19, 2023.

1. LawBirdie. "The United States Legal System and Business." October 19, 2023.


LawBirdie. "The United States Legal System and Business." October 19, 2023.