Merchant of Venice

Act 4 Scene 1

how does the law work against Shylock?

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Shylock is on the verge of cutting into Antonio when Portia suddenly reminds him that the bond stipulates a pound of flesh only, and makes no allowances for blood. She urges Shylock to continue collecting his pound of flesh, but reminds him that if a drop of blood is spilled, then he will be guilty of conspiring against the life of a Venetian citizen and all his lands and goods will be confiscated by the state.

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http://www.sparknotes.com/shakespeare/merchant/section8.rhtml