BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

IIMS College
Putalisadak, Kathmandu, Nepal

Name of Course Instructor: Binesh Maharjan

Course Code: Course Name: Business Law

Program Name: B Sc(HONS) Computing Semester: 9th Batch: September 2018

Assignment No: Tutorial 1 Assignment Type (Individual/Group): Individual

Assignment Title: Tutorial 1

Date of Allotment: Date of Submission:

Name of the Student ID number Contact Number Email

Binayak Lal Shrestha 1001852420 9860187299 binayakshrestha09@gmail.com

Evaluation: ________________________ obtained out of _____________________________________

Evaluator’s Comment:
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BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Chapter 1 : An Introduction to the Concept of Law in Malaysia

Law generally is a set of rules that regulates interactions that people have with each other, and
which sets standards of conduct between individuals and between individuals and the government
and which are enforceable through sanction.(Yes / No)
Ans/; Yes

Definition of Law stated in Article 161(2), Federal Constitution. (Yes / No).

Ans: No

Law in Malaysia comprises THREE (3) elements which is Written Law, Common law and
Islamic Law. (Yes / No)
Ans: No.

Give THREE (3), Rules of law mentioned by Prof Dicey.

Ans: Three rules of law mentioned by Prof Dicey are;
• No Person must be punished except for a breach of Law.
• All persons are equal before the law irrespective of status or position.
• The rights or freedoms of citizens are enforceable in the courts.

Lists down any TEN (10), Federal List stated under Federal Constitution.
Ans: Ten Federal List stated under Federal Constitution are;
1. National Defense
2. External Affairs
3. Internal Security
4. Federal citizenship and naturalization; aliens
5. The machinery of government
6. Finance
7. Trade, Commerce and Industry
8. Shipping, Navigation and Fisheries
9. Communication and transport
10. Civil and criminal law and Procedure and the administration of
justice

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BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Lists down any TEN (10), State List stated under Federal Constitution.
Ans: The Ten State list stated under Federal Constitution are listed below:
1. Islamic law and personal and family law of Muslims; Malay
customs; Offences by Muslims; Syariah Courts
2. Land
3. Agriculture and Forestry
4. Local Government
5. Local Services
6. State works and water
7. Machinery of the State Government
8. State Holidays
9. Offences against the State Law
10. Inquiries for State purposes

What is the effect to the law if any State law inconsistent with Federal law? Support your answer
with legislation.
Ans: The Federal Law shall be taken into consideration as of Article 75 of Federal Constitution
“If any State Law is inconsistent with a Federal Law, the Federal Law shall prevail”.

Malaysian legal system is a .

Ans: Malaysian legal system is the law of Malaysia which is mainly based on the
common law legal system which was direct result of the colonization of Malaya,
Sarawak and North Borneo by Britain between the early 19 th century to 1960s.

Malaysia classification of law divided by THREE (3) division types of law. Namely all the
THREE (3) classification of law.
Ans: Laws are;
1. International Law
2. Public Law
3. Private Law

Defined international law and gives TWO (2) categories under International Law.
Ans: The body of Law which is composed for its greater part of the principles and
rules of conduct which states feel themselves bound to observe, and consequently
commonly do observe, in their relations with each other is International Law.
Public International Law and Private International Law are the two categories
under International Law.

Briefly explain private laws and give the examples.

Ans: Private Law are the matters that affect the rights and duties of individuals
amongst themselves. It is intended to give compensation to persons injured, to
enable property to be recovered from wrongdoers, and to enforce obligations
(Contracts and Trusts). For example Contract, Tort and Trust.

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BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Tutorial Questions:

Define the concept of law in Malaysia in relation to the state and the constitution.
(10 marks)

Ans:
Laws are made in order to govern the conduct of all the members of society, whilst ethics guides
individuals in ascertaining then soundness of rules and their impact upon relationships. Law in
Malaysia, which consists of peninsular Malaysia, Sabah and Sarawak, is one political unit but it is
not governed by the same set of laws. This attempts are made to achieve uniformity in the law
throughout Malaysia but this is not possible in all areas of the law. There are two link that unites
Two parts of Malaysia i.e. The Parliament and The Federal Court. Malaysia is one state within
Malaysia, however there are thirteen states where each state has a government and has rules which
lay down who shall govern and how. Malaysia has a written constitution i.e. Federal Constitution
which is the supreme law of the Federation.

Federal Constitution: it is the supreme law of Malaysia

The Federal list
• External Affairs
• National Defense
• Internal Security
• Civil and criminal law and procedure and the administration of justice
• Federal citizenship and naturalization
• The machinery of government
• Finance
• Trade, commerce and industry
• Shipping, navigation and fisheries
• Communications and transport
• Federal works and power
• Surveys, inquires and research
• Education
• Medicine and health
• Labor and social security
• Welfare of the aborigines
• Professional occupations
• Holidays
• Unincorporated societies

• Control of agricultural pests etc.

• Newspaper
• Censorship
• Theaters, cinemas
• Federal housing and improvement trusts
• Cooperative societies
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 BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1
• Prevention and extinguishment of fire including fire services and fire brigades.

The Concurrent List

• Social welfare, social services, protection of women, children and young persons
• Scholarships
• Protection of wild animals and wild birds; National Parks
• Animal husbandry
• Town and country planning
• Vagrancy and itinerant hawkers
• Public health, sanitation and prevention of diseases
• Drainage and irrigation
• Rehabilitation of mining land and land which has suffered soil erosion
• Fire safety measures and fire precautions in the construction and maintenance of buildings
The State List
• Islamic law and personal and family law of Muslims; Malay customs; offences by Muslims;
Syariah Courts
• Land
• Agriculture and forestry
• Local government
• Local services
• State works and water
• Machinery of the State Government
• State holidays
• Offences against
• Inquiries for State purposes
• Indemnity
• Turtles and riverine fishing
The state legislatures have the power to enact legislation on any matter not listed in the list of in
Schedule Ninth and is not a matter for which Congress has the power to make laws on.

Explain the concept of rule of law and its importance. (10 marks)
Ans:
The concept of rule of law:
State are governed by law, not by the government or its officials appointed by the people.
Designated representatives and individuals enjoy the same treatment in law. They are not treated
for having special powers, privileges, protections, and are not immune from law. The Constitution
limits the powers of the Malaysian Parliament and the State Assembly, so laws cannot be passed
arbitrarily. The rule of law is very important, such as:
 Citizens can live and work safely because they are protected from abuse of power by the
state.
 It is the basis for trust and responsibility, and constitutes the social contract between the
government and its citizens.
 . It helps to achieve a higher rate of economic growth, peace, inequality, better health
outcomes, education, etc.
 It is the basis of justice, opportunity and peace.

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 BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1
 It is also the basis for development, responsible government and respect for fundamental
rights.

The Malaysian legal system is a common law system where legal principles are developed by judges
through case law, where the system was inherited from England and similar systems where
founded in British colonies. In Malaysia, we are applying Public Law, Private Law and International
Law.
Based on the above statements, classify what are public law, private law and international
law in Malaysia. (10 marks)

Ans: Malaysia’s legal system is a common law system. Judges develop legal principles through
case law. This system is inherited from the United Kingdom, and similar systems are also
established in the British colonies. In Malaysia, we are applying public law, private law and
international law. According to the above description, please classify public law, private law and
international law in Malaysia.
1. Public law: This is the law governing the relationship between individuals and the state. It
consists of the constitution and criminal law. The constitution mentions the individual
rights of the state, because the criminal law codifies various crimes against the country by
individuals in Law
2. Private Law: This is a law that affects the rights and obligations between people, and is
intended to grant those rights and obligations to those individuals Injury compensation so
that the property can be recovered from the criminals and fulfill their obligations. Covers
contracts, infractions and trusts. Contract is generally based on an agreement between the
parties for business purposes.
The basic elements of the contract include:
 offer
 accept
 Capacity to control
 Misrepresentation or undue influence
 Object must be lawful
 Intention to enter into legal relations
 Consideration
Tort is based on a legal obligation. Violation of general obligations of law. It can be remedied
through civil actions against unpaid damages. If the lawful rights and interests are violated, the
offender may be prosecuted in accordance with the law. The basic element of tort is:
 There must be an act or omission done intentionally or negligently
 There must be damage caused by such act or omission which is not remote
A trust is a fair obligation that binds people (trusted Person) takes care of the assets (trust
assets) he has control over, so that he himself can be one of them (any beneficiary) can
perform the obligation

THE END

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BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Tutorial for Multiple Choice Questions - Chapter 1

Which of the following statement define law?

Is the application of common law in so far as it its in operation in the Federation of
Malaya.
It is a common law that has been received through Article 160(2), Federal Constitution
1957.
 It is a set of rules, developed over a long period of time that regulates
interactions that people have with each others.
It is a people’s ideas of justice.

Which of the following case is the best describe definition of law?

 Danaharta Urus Sdn Bhd v Kekatong Sdn Bhd [2004], 2
MLJ 257. Borhan Hj Daud v Abd Malek bin Hussin [2010]
6 MLJ.
Mamat Bin Daud v Government of Malaysia [1988] 1 MLJ 119.
Mohamad Ezam bin Mohd Noor v Ketua Polis Negara [2002] 4 MLJ 449.

Rule of Law comes idea from .

 Prof Dicey
Judge Gopal Sri Ram
Prof Hashim Yeop
Sir John Salmond.

Which of the following is the one of the proposition rule of law.

The assumption that all parties will exercise good faith when entering into a contract.
The web issue such as privacy and cyber squatting.
Each party will exercise the utmost good faith towards the other party.
 All persons are equal before the law.

Which of the following provision stated the Article related to definition of law in Malaysia.
Article 4(1), Federal Constitution 1957
 Article 160(2), Federal Constitution 1957
Article 161(2), Federal Constitution 1957
Article 4(2), Federal Constitution 1957

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 BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Fill in the blanks questions - Chapter 1

The term law is turn defined by Article 160(2), Federal Constitution 1957 to include :
Ans: Customs and usages having the force of law.

In relation to the meaning and application of common law in so far as it in operation in the
Federation cited by the case of .
Ans: by the case of Danarharta Urus Sdn Bhd v Kekatong Sdn Bhd (Bar Council Malaysia,
Intervenor)

Prof Dicey suggested that the rule of law involves the following three propositions:
Ans: No person must be punished except for a breach of the law.
All persons are equal before the law irrespective of status or position.
The rights or freedoms of citizens are enforceable in the courts.

In Malaysia, the application of common law can be applied based on section

.

Ans: 3(1).

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BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Define law in Malaysian Perspective. (5 marks)

Ans: There are two types of laws in Malaysia: statutory law and unwritten law. A statutory
law is one that has been passed through legislation or the constitution. Unwritten laws are
those that do not appear in any regulations and can be discovered in a case's ruling. This is
referred to as case law or common law.

Answer Scheme:

Law define to be as it is a set of rules that regulates interactions that people have with each other,
and which sets standards of conduct between individuals and between individuals and the
government and which are enforceable through sanction.
For Malaysia Perspective law can be defined through Article 160(2) of the Federal Constitution
1957 and Item (43C) of section 2(1) of the Interpretation and General Clauses Ordinance
1948 to include:
(a) the written law
(b) common law insofar as it is in operation in the Federation or any part thereof
(c) any custom or usage having the force of law in
the Federation or in any part
Case: Danaharta Urus Sdn Bhd v Kekatong Sdn Bhd.

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 BG201- BUSINESS LAW MALAYSIAN PERSPECTIVE TUTORIAL CHAPTER 1

Problematic Question / Case Study

Mahmud does not maintain any account, nor does he have any business dealing with your
financial institution. One day, Mahmud arrived at your branch premises and as he stepped inside, he
slipped and fell as the floor at the branch’s entrance was very wet and slippery. There were no
warning signs cautioning that the floor was slippery or wet. Mahmud was hurt very badly and
was hospitalized for one month. If Mahmud decides to take legal action, will the legal action be
based on contract or tort? Give reasons for your answer.

Ans: If Mahmud decides to take legal action for above incident then the legal action would be based
on tort law because there are four elements to tort law: duty, breach of duty, causation, and injury.
Since this incident caused claimant to suffer loss or harm, financial losses resulting in legal liability,
Mahmud can take legal action based on tort. Tort law involves claims in an action seeking to obtain
a private civil remedy, typically money damages which may be compare to criminal law. Successful
claimants must show that they have suffered foreseeable loss or harm as a direct result of the breach
of duty.

Degree UCSI University Chapter 1- Tutorial