Introduction to business law

Unit 1

1: What is Law ?
The law is a set of legal rules that governs the way
members of a society act towards one another.
Law is that portion of the established habit and thought
of mankind which has gained distinct and formal
recognition in the shape of uniform rules backed by the
authority and power of the Government.
Woodrow Wilson
Laws are required in society to regulate the behaviour of
the individual, to correspond with what is acceptable to the
majority of individuals,
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NEED FOR LAW

Without law, life and business would become a matter of
survival, not only of the fittest but also of the most
ruthless.
Laws are required in society to regulate the behaviour of
the individual, to correspond with what is acceptable to the
majority of individuals,
Law is the potential tool of social change. In fact 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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BRANCHES OF LAW

CONSTITUTIONAL LAW
ADMINISTRATIVE LAW
CRIMINAL LAW
CIVIL LAW,
COMMERCIAL LAW

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

ADMINISTRATIVE LAW
It is the law that governs the executive branch
of the government.
It is as old as the executive.

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

MERCANTILE LAWS
It deals with the rights and obligations of
Commercial persons emerging from
commercial transactions in respect of
commercial property.

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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SOURCES OF BUSINESS LAW

1.
2.
3.
4.
5.

Statutory law
Case law
Natural law
English mercantile law
Customs and usage

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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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Legal Realism
Jurisprudence that holds law is not simply a
result of the written law, but a product of the
views of judicial decision makers, as well as
social,economic, and contextual influences.

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Stare Decisis
Stare decisis is a Latin phrase meaning to
stand on decided cases.
Makes the law stable and predictable.
Increases judicial efficiency by relieving courts of
having to reinvent legal principles for each case
brought before them.

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Stare Decisis and Precedent

Stare decisis is judge made law based on
precedent.
Precedents are judicial decisions that give rise to
legal principles that can be applied in future cases
based upon similar facts.
Precedents and other forms of positive law, such as
statutes, constitutions, and regulations, are referred
to as binding authority and must be followed.
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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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Legal Reasoning
Method used by judges to reach a decision.
Many courts and attorneys frame decisions
and briefs using the IRAC format: Issue, Rule,
Application (Analysis), and Conclusion.

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Civil vs. Criminal

Civil law defines the rights between
individuals or individuals and governments.
Criminal law defines an individuals obligations
to society as a whole.

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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 ones legal
rights or enforce anothers legal obligations.
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Reading &
Understanding Case Law
Legal cases are identified by a legal citation (or
a cite) as the example below:

Federal Express Corp. v. Federal Espresso,

Inc., 201 F.3d 168 (2nd Cir. 2000).
Title: First Party is Plaintiff, second party is
Defendant. The parties are either italicized or
underlined.

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Reading &
Understanding Case Law [2]
Legal cases are identified by a legal citation (or
a cite) as the example below:

Federal Express Corp. v. Federal Espresso,

Inc., 201 F.3d 168 (2nd Cir. 2000).
Case is found in volume 201 of the 3rd
Federal Supplement, page 168.

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Reading &
Understanding Case Law [3]
Legal cases are identified by a legal citation (or
a cite) as the example below:

Federal Express Corp. v. Federal Espresso,

Inc., 201 F.3d 168 (2nd Cir. 2000).
Case was decided by the United States
Second Circuit Court of Appeals in 2000.

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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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Civil

Criminal

Person
commencing the
action:

Plaintiff

Government

Outcomes:

Damages
Imprisonment
Specific performance Fines
Injunction
Good behaviour
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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