Reformers had to face many difficult tasks during the period of economic transformation. One of the most demanding has been change of the legal system. The initial situation of the Czechoslovak legal system was absolutely unsuitable for market economy and thus had to be altered. In the article we describe the most important changes of the system. Next we concentrate on the critics from the economists point of view and then on specific areas law enforcement, attempt to measure quality of the legal system and to one concrete field bankruptcy procedures.