Business Law

1. Business Law
Chapter 1
Introduction
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2. Business Law
 Business comprises all profit seeking
activities and enterprises that provide goods
and services necessary to an economic
system.
 Law refers to the principles and regulations
established by a Government , applicable to
people and enforced by judicial decision.
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3. What is Law?
 Law is a system of rules that govern a society
with the intention of maintaining social
order, upholding justice and preventing harm
to individuals and property
 Law systems are often based on ethical or
religious principles and are enforced by the
police and criminal justice systems such as
the courts
 In developed countries such as US, UK, Europ
etc. two major categories of law apply,
criminal and civil law.
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4. Importance of Law
 Without law, life and business would become
a matter of survival, not only for the fittest
but also of the most ruthless.
 Laws are required in society to regulate the
behaviour of the individual, organizations
etc.
 Law is the potential tool of social change.
Infact law and society are complementary.
No society can exist without law. It is
essential for up keeping of peace in the
society.
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5. The Purpose of Government
 The whole duty of government is to prevent
crime and preserve contracts.
Lord Melbourne (1779 – 1848)
British Prime Minister
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6. Branches of Law
 Constitutional law
 Administrative law
 Criminal Law
 Civil Law
 Commercial Law
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7. Constitutional Law
 Is the law which regulates the structure of
the principal organs of the government and
their relationships to one another and
determines their principal functions.
 The rules consist both of legal rules and of
usages, commonly called conventions, which
without being enacted are accepted as
binding by all concerned with the
government
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8. Administrative Law
 It is the law that governs the executive
branch of the government.
 It is as old as the executive.
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9. Criminal Laws
 Are the laws which wrong doers are
punished.
 At the same time, civil laws are those laws
with which the private rights of an individual
are enforced
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10. Civil Laws
 It deals with the rights and obligations of
persons (natural and legal persons) in a
community.
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11. Commercial Laws
 It deals with the rights and obligations of
Commercial persons emerging from
commercial transactions in respect of
commercial property.
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12. Business Law
 Business law is that portion of the legal
system which guarantees an orderly conduct
of business affairs and the settlement of
legitimate disputes in a just manner.
 It establishes a set of rules and prescribes
conduct to order to avoid misunderstandings
and injury in our business relationships
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13. Scope of Business Law
 The scope of the business law has enormously
widened due to the increasing complexities
of the modern business world.
 It usually covers topics of contracts,
bailment, Agency, sale of goods,
partnerships, companies, negotiable
instruments, insurance, pollution control etc.
 These and other topics are covered by
legislations enacted by Central and State
Governments.
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14.  Objectives of Business Law:
• To enable enforcement of right
• To facilitate industrial growth
• To achieve social justice
• To define the rules
 Requirements of effective Business Law:
• Rules must be obeyed voluntarily
• Rules must be just and reasonable
• Rules must be flexible
• Rules must be knowable
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15. Sources of Business Law
1. Statutory law
2. Case law
3. Natural law
4. English mercantile law
5. Customs and usage
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16. Legal Positivism
 Law is the supreme will of the State that
applies only to the citizens of that nation at
that time.
 Law, and therefore rights and ethics, are not
universal. The morality of a law, or whether
the law is “bad or good,” is irrelevant.
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17. Cases of “First Impression”
 In cases of “first impression” where there is
no precedent, the court may refer to
 – positive law,
 – public policy, and
 – widely held social values in order to craft
the best new precedent.
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18. Legal Reasoning
 Method used by judges to reach a decision.
 Many courts and attorneys frame decisions
and briefs using the IRAC format:
1. Issue,
2. Rule,
3. Application (Analysis), and
4. Conclusion
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19. Civil vs. Criminal
 Civil law defines the rights between
individuals or individuals and governments.
 Criminal law defines an individual’s
obligations to society as a whole.
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20. Substantive vs. Procedural
 Substantive law defines or creates the rights
and obligations of persons and governments.
 Procedural law provides the steps one must
follow in order to avail oneself of one’s legal
rights or enforce another’s legal obligations.
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21. Business persons and the Law
 Laws regulate all areas of business.
 Factors business owners must consider:
– Is contract enforceable?
– Contract for goods vs. services?
– What happens if someone breaches the
contract?
– Dispute Resolution?
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22. Summary of Civil vs Criminal
Civil Criminal
Person
commencing the
action:
Plaintiff Government
Outcomes: • Damages
• Specific
performance
• Injunction
• Imprisonment
• Fines
• Good behavior bonds
• Community service
order
Standard of
proof:
On the balance of
probabilities
Beyond a reasonable
doubt
Burden of proof: Plaintiff Prosecutor
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23. Thank you
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