1) A system is defined as a collection of elements that interact and exchange energy and matter. Systems can be open, closed, or isolated depending on whether they exchange energy, matter, or both. 2) The first law of thermodynamics states that energy cannot be created or destroyed, only transformed from one form to another. All systems transform energy to do work and function. 3) The second law of thermodynamics describes how entropy increases as energy is dissipated and becomes unavailable to do work. Living systems must continuously acquire and transform energy to maintain order and fight entropy.