There are several major types of legal systems that businesses may encounter:
1. Common Law: Originating in England, this system relies heavily on case law and judicial precedents. It is prevalent in countries like the United States, Canada, and Australia. 2. Civil Law: Based on Roman law, civil law systems are codified and rely on written statutes. Countries like France, Germany, and Japan follow this system. 3. Religious Law: Some countries base their legal systems on religious texts, such as Islamic law (Sharia). This type of system can significantly influence business practices, particularly in areas like finance and contracts. 4. Customary Law: In some regions, local customs and traditions play a significant role in shaping the legal framework. This is often seen in various African and Indigenous communities.