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# Bye-Laws

## Definition

Local regulations established by municipal authorities to govern economic activities, trade practices, and social conduct within a specific urban jurisdiction. In medieval free burghs, bye-laws represented the autonomous regulatory power of towns to manage their internal economic affairs, including market regulations, trade standards, and commercial practices.

## Source Chapter

Book III, Chapter 3

## Context

Smith describes how the granting of bye-law making authority to towns was a crucial element in their economic development. This power allowed urban communities to establish their own commercial regulations, resolve disputes internally, and create economic conditions favorable to trade and manufacturing, independent of feudal or royal interference.

## Economic Domain

Regulation

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