When Chivalry and Sorcery was first published, one of the innovations Ed and Wilf brought in was a viable society, in this case the Feudal Society of medieval Western Europe. They did this because the place of the characters compared to others is important. The stereotypical bunch of smash and grab artists that parties tend to be cannot function in the real world as they are.
An equivalent in our history might be the medieval mercenary companies that roamed between contracts, raping and plundering and generally being outlaws. An outlaw, though romanticised by Hollywood, is not a good thing, it means that the law affords you no protection, anyone can kill you without fear of retribution by the authorities.
If the players aspire to having their characters achieve power and influence, to become Lords and Ladies, to achieve rank, then without a society to place themselves in, then what is the point, and if you wish to place yourself in the food chain without taking the risks and paying the price as well as the rewards.
It also adds another layer to the game, playing politics, exerting influence, engaging in diplomacy and who knows, perhaps even marshalling your troops in war.
So, unless you are running a dog-eat-dog Mad Max style Libertarian wank fantasy, laws and hierachies that are found in real life, should be adapted to your game, and it will be better for it, providing an extra level of possible interaction.