Prepared by:

Mohd Hafizee Shahri

BUSINESS LAW
(ALW10103/BLW10103)
Topic 1

INTRODUCTION TO LAW
 Learning Outcomes
At the end of this lecture, students should
able to:
• Describe the concept of law to business
environment.
• Define law with reference to law jurists.
• Distinguish different classifications of law in
Malaysia.
• Explain sources of law available in Malaysia.
• Discuss the administration of justice in
Malaysia.
 Topic Outline

Introduction Definition Classification

Sources Administration
Symbol?
Symbol of Law
For me…
 A MEANS or DEVICE to REGULATE
the economic and social behavior of
society

TOOLS such as legislation and case-law

 Why?
• Law is a DYNAMIC and EVER-CHANGING field
that AFFECTS everyone.

• Studying the legal environment of business

helps us understand how to REDUCE LIABILITY
RISKS, IDENTIFY LEGAL PROBLEMS that
require an attorney’s assistance, and identify
the LINKS BETWEEN BUSINESS AND THE LAW.
 Definition

A general rule of
conduct.
 Oxford English Dictionary
Approved /
Passed by
lawmaker @
Parliament The body of ENACTED
or CUSTOMARY rules
recognized by a
Customs community as binding.
e.g. monogamous
marriage for non-muslim

Comes with punishment

e.g. imprisonment for
murder
 John Salmond John Austin

The body of principles A command set by a

recognized and applied superior being to an
by the State in the inferior being and
administration of justice. enforced by sanctions
(punishments).
 Classification of Law
Public law

• Law that governs the relationship between individuals and

the state.
• e.g. Constitutional law and criminal law.

International law

• Principles and rules of conduct which states feel

themselves bound to observe.
• e.g. Public international law and private international law.

Private law

• Matters that affect the rights and duties of individuals.

• e.g. Contract, tort, trust.
Sources of Law
MALAYSIAN
LAW

Unwritten
Written law

The
English law
Constitution

Legislation Case law

Subsidiary
Customs
legislation

Islamic law
 Constitution
• Laying down the
powers of the
Federal and State
governments.

• Enshrines the basic

and fundamental
rights of the
individual.
Legislation
• Law enacted by a constituted
body.
• Legislation made by
PARLIAMENT at the FEDERAL
LEVEL and by STATE
LEGISLATIVE ASSEMBLIES at
STATE LEVEL.
– Acts: laws enacted by the
Parliament.
– Enactments: laws made by
state legislative assemblies.
– Ordinances: laws in Sabah and
Sarawak, laws before 1957,
and laws during emergency.
 Subsidiary Legislation
• “Any proclamation, rule, regulation, order, notification, by-law or
other instrument made under any ordinance, enactment or other
lawful authority and having legislative effect” – Interpretation Act
1967.
• Law made by an authority other than the legislature UNDER
POWERS GIVEN to it by a primary / parent legislation.
• Parent Act: the Act, Enactment or Ordinance that confers power
to the relevant authority to make the subsidiary legislation.
• The relevant authority then makes the subsidiary legislation.
• The importance?
– Legislation is INSUFFICIENT to provide the laws.
– Deals with the DETAILS.
 English Law
• EL is used as a source of law which was
provided in s.3 and s.5 of Civil Law Act 1956.
• However; s.3 is bound on TWO LIMITATIONS:
– IN THE ABSENCE OF LOCAL STATUTES
– SUITED TO LOCAL CIRCUMSTANCES
 Doctrine of Judicial Precedent
• Judicial decisions of
courts.

• PRECEDENTS =
decisions made by
judges in similar
conditions.
 Customs
• Customs of the LOCAL INHABITANTS in Malaysia.

Malays Hindus

Native in
Chinese Sabah and
Sarawak
 Muslim Law
Syariah
Courts Muslims States
 Judicial System in Malaysia
(Jurisdiction)
Hear appeals from CoA and trials
Federal Court for constitutional issues.
Superior/Higher
Courts

Court of Appeal Hear appeals from HC.

Civil: >RM250k exc. Tenancy,

accidents, distress.
High Court Criminal: All.
Civil: >RM25k - <RM250k.
Subordinate/Lowe

Unlimited for tenancy, accidents,

Sessions Court distress.
r Courts

Criminal: All exc. Punishable with

death
Magistrate Court Civil: <RM25k.
Criminal: <5y imprisonment,
RM100k fine, <12 whipping.
 Summary
• Law is a tool to regulate and control the life of
society to be in peace and harmony.

• Malaysian legal system is based on common law

system and partly Islamic law.

• Video explanation:
https://www.youtube.com/watch?
v=H64ATEzBwp4