Question

What particularly important role do courts play in a market economy?

Answer 1

Market economy is a system in which forces of demand and supply determines the prices on the economy. There is free competition among the sellers in a market economic system.

Role of court is a market system is to ensure discipline in the market, because manu sellers are competing with each other, it is the duty of the court to implement laws that will keep level of competition in the limit and make sure that there is no violence among the competitors while competiny with each other.

Another role of the court is to ensure that customers are not exploited by the business firms. Court lay down laws and rules that will govern the interests of the consumers and given them right to stand against any mis-conduct by the business.