Running head: ROLE AND FUNCTIONS OF LAW PAPER 1

Role and functions of Law Paper

LAW 421

ROLE AND FUNCTIONS OF LAW PAPER 2

Role and functions of Law Paper

The role of law in business and society according to Melvin (2011) “is a generally accepted

generic definition of the law is a body of rules of action or conduct prescribed by controlling

authority, and having legal binding force.” The function of the law in business and society

according to Melvin (2011), “the Constitution” has two primary functions: (1) to prescribe the

basic structure and powers of a particular government body and (2) to protect certain rights of

individuals and businesses from government encroachment.” In order for U.S. Bank to conduct

business inside and outside of the United States of America the bank must first adhere to all

banking regulations and guidelines. It was these regulations and guideless I needed to be trained

in before I could conduct any business on the behalf of U S. Bank.

When I first started out at U. S. Bank National Association, I was employed as a Banker

or Relationship Representative. In the field of banker role I was in charge of opening accounts,

opening and closing loans, handling teller transactions, sales, cross-selling bank products and

services, and resolving customer service issues. Since leaving the banker role for a teller position

I only do some of my pervious assigned work. The different functions and role of the law dictate

how I performed my tasks as a banker opposed to the performance tasks as a teller. The

discussion is on the functions and role of law that are a part of U.S. Bank National Association.

Bank Regulations

According to Banking Law - Guide to Bank and Bank Regulation Law (1995 - 2013),

“Banking Law is regulated by both state and federal statutory law. Bank accounts may be

established by national and state chartered banks and savings associations. All are regulated by

ROLE AND FUNCTIONS OF LAW PAPER 3

the law under which they were established.” To create clearness in the banking industry between

banks and whomever they conduct business or employ. Banking regulations were established by

the government these regulation maintain particular guiding principles the banks must adhere to.

Documentation

The law requires any bank to have a Tax Identification number in order to legally

operate. Banks need to have proper documentation such as article of incorporation, state

registration, or charter documentation indicating an owner, member, or elected officer. Banks

must also buy a certain amount of insurance from the federal government known as the Federal

Deposit Insurance Corporation (FDIC), the bank must also provide and display documentation of

insurance to the public. The FDIC is an independent organization and is separated form the

United States government. The FDIC protects consumers from losing funds in their checking,

savings, money market accounts, and certificates of deposit (CDs). Banks usually cover up to

two hundred and fifty thousand dollars per owner, which means if there are two or more owners

on one account each person is covered up to two hundred and fifty thousand dollars. The

customer must be given the FDIC information at the opening of the account or upon request. In

the banker position opening accounts or loans for customers personnel have to make sure

customers are provided with disclosures and fee information about any and all products and

services U. S. Bank has to offer.

ROLE AND FUNCTIONS OF LAW PAPER 4

Compliance and Banking Laws

Bank laws are put in place so that all employees understand not only U.S. Banks

procedures and Policies but the Banking regulations. New hires as well as regular employees are

to attend training, meetings and complete yearly compliance. Branches within US Bank are

subject to yearly audits, this is done to make sure the branch is in compliance with the current

banking regulations. Auditor reviews the particular branches records on the teller and platform

side of the branch, and personnel are questioned about banking procedures and policies. If the

branch does not pass the audit in a certain amount of time, the branch could be subjected to

negative media image, fees or closure.

Conclusion

Just as the law was established to uphold and protect social order by handling

disagreements in a fair and orderly manner. The government has also established banking laws to

make sure the banking industry does not take advantage of the consumer, and the consumer does

not take advantage of the banks. Bank disclosures are provided to the public so they have and

understanding of the banks products, services and fees. So that each employee can answer the

public’s question as well as properly follow procedures and banking regulation. Each employee

is trained according to his or her job title in proper procedures and the consequences of following

improper procedures.

ROLE AND FUNCTIONS OF LAW PAPER 5

Reference

Banking Law - Guide to Bank and Bank Regulation Law. (1995 - 2013). Retrieved from

http://www.hg.org/banking.html

Melvin, S. P. (2011). The Legal Environment of Business: A Managerial Approach:

Theory to Practice. Retrieved from The University of Phoenix ebook Collection database.

Careers at U.S. Bank. (2013). Retrieved from https://www.usbank.com/careers/index.html