Liberty - the power of choosing, thinking, and acting for oneself; freedom from control or restriction
Are we able to live in a world where "liberty" rules over "law"? No. With liberty reigning supreme, we would essentially be living under anarchy. Murderers, rapists, kidnappers, and gang-bangers would all be allowed to roam the streets, because there would be nothing to define what is right, and what is wrong.
Look at just the last 10 years. The DC snipers...The London bus bombings...9/11. The people that committed, and planned, these events would all live unpunished. By having a system of laws, we can punish these criminals, and work towards preventing future crimes.
Laws help shape us from the moment we're born, and guide us through our lives until we die. As we grow and learn to understand the laws, we learn right from wrong, what to do, and what not to do. Without them, we wouldn't be the way we are, and would lack what makes us human.