The legal system and its structure Essay Example | Topics and Well Written Essays - 1500 words

The legal system and its structure - Essay Example The market for legal and judicial services revolves around the function of these courts. Legal and judicial assistance is required by individuals as well as businesses to resolve issues in their daily lives. The legal services industry in the UK includes solicitor firms’, barrister chambers, representative groups, regulators as well as businesses outside of the legal profession that provide consultancy services to individual and corporate clients. The legal service market in the UK generated revenues over  £14.3 billion in 2005 and continues to show potential for growth (Business and Consumer Services). But growth does not necessarily mean in terms of revenues for the industry to grow, it must improve upon its existing infrastructure and provide people with better opportunities and results. These markets are inefficient because of numerous reasons, the most important one’s are as follows.Reasons for inefficient marketsThe most important reason for inefficiency of the market is the high levels of profitability by mid-tier firms. Since firm’s charge a lot more than they should and without proper competition from other law firms the market suffers from imperfect competition. Another factor that accounts for inefficiency is the lack of review of business models for individual law firms, law firms that were established a long time ago still rely on the same business models as they did half a century ago. Another reason that contributes to inefficiency is the traditional approach of large law firms.