RAMIZARES, REIGN ASHLEY F.

BSA – 2A

Activity #1 Business Law 3

Regulatory Framework and Legal Issues in Business

1. Differentiate Law from Business Law.

- For me, a law is a set of guidelines, rules, and regulations that tell how something will
function. It is a system of rules, practices, and disciplines that we need to obey. In our

country, we have different kinds of laws: we have laws that our own government has

established; we have laws in our community, in our school, and even inside our

home. Business law is more specific; it pertains to a set of rules and regulations

associated with the business industry. Business law pertains to how businesses are

permitted and expected to operate legally. This is also about understanding the

business world.

2. What are the Characteristics of Law?

- Characteristics of Law

The Characteristics of law (in its specific sense) are;

(1) It is a rule of conduct. - Law tells us what shall be done and what shall not be done.

As a rule of human conduct, law takes cognizance of external acts only;

(2) It is obligatory. – Law is considered a positive command imposing a duty to obey and

involving a sanction which forces obedience;

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 (3) It is promulgated by legitimate authority. - In a democratic country, like the

Philippines, the legitimate or competent authority is the legislature. Under the

Constitution, laws called "statutes" are enacted by Congress which is the name of the

legislative branch of our government; local government units are also empowered to

enact ordinances which have the binding force of laws; and

(4) It is of common observance and benefit. - Law is intended by man to serve man. It

regulates the relations of men to maintain harmony in society and to make order and co-

existence possible. Law must, therefore, be observed by all for the benefit of all.

3. What are the Sources of Law?

- The Principal Sources of Law in the Philippines are the Constitution, legislation,
administrative rules and regulations, judicial decisions, and customs.

(1) Constitution – With particular reference to the Constitution of the Philippines, it

may be defined as "the written instrument by which the fundamental powers of the

government are established, limited, and defined, and by which these powers are

distributed among the several departments for their safe and useful exercise for the

benefit of the people." (Malcolm & Laurel, Phil. Constitutional Law, 1936 ed., p. 6.)

(2) Legislation – It consists of the declaration of legal rules by a competent authority.

(Salmond, Jurisprudence, 9th ed., p. 209.) It is the preponderant source of law in the

Philippines. Acts passed by the legislature are so-called enacted law or statute law.

Legislation includes ordinances enacted by local governments units.

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(3) Administrative or executive orders, regulations, and rulings – They are those

issued by administrative officials under legislative authority. Administrative rules and

regulations are intended to clarify or explain the law and carry into effect its general

provisions. Administrative acts are valid only when they are not contrary to the laws

and Constitution. (Art. 7, Civil Code.)

(4) Judicial decisions or jurisprudence – The decisions of the courts, particularly the

Supreme Court, applying or interpreting the laws of the Constitution form part of the

legal system of the Philippines. (Art. 8, Ibid.) The decisions of a superior court on a

point of law are binding on all subordinate courts. This is called the doctrine of

precedent or stare decisis.

(5) Custom – “It consists of those habits and practices which through long and

uninterrupted usage have become acknowledged and approved by society as binding

rules of conduct," It has the force of law when recognized and enforced by the state

(M.J. Gamboa, op. cit., p. 15) For instance, in a contract for services rendered where

no definite compensation is stipulated, the compensation to be paid may be

ascertained from customs and usages of the place (Smith vs Lopez, 5 Phil. 78.)

(book reference for my answers in numbers 2 and 3.)

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 4. Kinds of Law?

- Based on my research, there are different kinds of law.

- source: (Shaheen, 2020) https://lawwithshaheen.com/definition-of-law-and-its-kinds/

Kinds of Law:

There are eight kinds of law which are discussed here as follows:

1. Imperative or Positive law.

2. Physical or scientific law.

3. Natural or moral law.

4. Conventional law.

5. Customary law.

6. Practical or Technical law.

7. International law.

8. Civil law.

1. Imperative Law or Positive Law:

Positive law is a rule which prescribes a general course of action imposed by some authority

that enforces it by a superior power, either by physical force or another sort of compulsion. The

requirements of an imperative law are: –

1. It must be a general rule;

2. There must be some authority behind it; and

3. It must be enforced by superior power by physical force or compulsion.

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2. Physical or Scientific Law:

Physical or scientific laws are expressions of the uniformities of nature, or uniformity in

the conduct of living beings or lifeless things for example the law of motion, gravitation, and of

chemical reactions. The uniformity in the conduct of animate or inanimate objects is known

as Physical law which is governing that object.

3. Natural or Moral Law:

Natural or Moral law is also known as divine law, the law of reason, the unwritten law,

the universal law, the common law, and the eternal law. According to Salmond; “By natural law

or moral law is meant the principles of natural right and wrong”.

4. Conventional law:

Convention means agreement. Conventional law must have an agreement between two

parties- and not the force or coercion of a superior. It is thus the name given to a body of rules

agreed to be followed by some parties in order to regulate their conduct towards one another.

These are laws because they ensure uniformity of conduct.

For example, the rules of cricket and other games. International law is also a species of

conventional law.

Such Laws may be in two types:

1). Rules enforced by the parties themselves but not recognized by the State, e.g., the rules of

cricket and other games.

2). Rules recognized and enforced by the State, e.g., the articles of association of a limited

company whereby the shareholders agree to be bound in certain particulars.

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5. Customary Law:

Customary law means such rules of custom as habitually being followed by the majority

of persons, subject to them, since a long time in the past and are expected to be followed in the

future as well in the belief of their binding nature.

“Such laws derive their force from the long course of past conduct resulting in the same

uniformity of action in a given set of circumstances”.

Essentials of Customs:

1. Reasonableness

2. Unambiguous usage observed

3. Peacefully

4. Continuously

5. Since immemorial antiquity

6. As of right

7. In conformity with the statute

6. Practical or Technical Law:

Practical laws are such laws consisting of rules which are to be followed to achieve

uniformity of results in practical or technical matters for example the laws of health, the laws of

architecture or manufacture.

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7. International Law:

According to Salmond; “Those rules which govern the sovereign state in their relations

and conduct towards each other”.

According to Lord Russel “The aggregate of rules to which nations have agreed to

conform in their conduct towards one another”.

8. Civil Law:

The words “civil law” owe their origin to the Romans who described it as applicable to

their own citizens as jus civile, as distinguished from jus gentium which applied to foreigners.

In jurisprudence, civil law means laws of the land as are enforced by the courts.

Conclusion:

It is concluded that the definition of Law is that it is the body of principles that are

recognized and enforced by the State for the administration of Justice. It is difficult to give it a

comprehensive and perfect definition as it is a social science that grows and develops with the

growth and development of society.