Amity School of Business

BUSINESS LAW

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 LAW Amity School of Business

The state regulates the conduct of its people by a set of rules. It

ordains, directly or indirectly, implicitly or explicitly, a general
course of conduct to be followed by people.

In the words of Salmond, “ Law is the body of principles

recognised and applied by the state in the administration of
justice”.
 Law is not Static Amity School of Business
As circumstances and situations in the society
change, laws are changed to fit the
requirements of the society.
 Need of law Amity School of Business

“Ignorantia juris not excusat” is a familiar

maxim. It means ignorance of law is no
excuse.
A person cannot escape liability on the ground of unawareness of
law. Hence, it is in our own interest that we shall be well
acquainted with the law to which we are subject.
For example: A person cannot plead if he/she found smoking in
the non-smoking zone.
 Characteristics of Law
Amity School of Business

• Law is a body of rules.

• Law is for guidance of conduct of persons both human and
artificial.
• Law is imposed.
• Law is enforced by the executive
• The state
• Content of law.
• Two basic ideas involved in law
- To maintain some form of social order in a group
- To compel members of the group to be within that
order.
• Law is made to serve some purpose which may be social ,
economic or political.
 Functions of LawAmity School of Business

• Defending us from evil

• Promoting the common good
• Resolving disputes over limited resources
• Encouraging people to do the right thing.
• Shaping moral standards
• Promoting social justice
• Providing a basis of compromise
• Facilitating planning
 Sources of Law Amity School of Business

There are four legal sources of business law in

India namely:
• English Mercantile Law
• Judicial decisions
• Indian Statute Law
• Customs & Trade Usage
 Legal Environment of Business
Amity School of Business

Legal environment of business means all factors relating to laws and legal
orders which affect business and its working.
Business must be operated under the rules and regulation of different laws
of India. The following is the list of main laws which affect business.
1. Indian contract act 1872
2. Indian sale of goods act 1930
3. Indian partnership act 1932
4. Industrial dispute Act 1947
5. Minimum wages act 1948
6. Indian companies act 1956
7. Foreign exchange regulation act (FERA ) 1973
8. Foreign exchange management act 1999
9. Monopolies and restrictive trade practice act 1969
10. Consumer protection act 1986
 Doctrine of Stare Decisis
Amity School of Business

Stare decisis—Latin for “to stand by the decision”—means

adherence to precedent.
• Based on the common law tradition, past court decisions
become precedent for deciding future cases.
• Precedent is a rule of law established in a court decision.
Lower courts must follow the precedent established by higher
courts.
• Judges use precedent (decisions in previous cases) to
determine the outcome of a current case
• Functions of stare decisis: efficiency, uniformity, stability, and
predictability
• However, some cases are “cases of first impression”

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 Classification of LawAmity School of Business
• Substantive & Procedural Law
• Civil & Criminal Law
• Public & Private Law

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 Essentials of LawAmity School of Business
1. Predictability :
2. Flexibility :
3. Reasonable application and coverage:

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 Meaning of Business Law
Amity School of Business

Business Law is a branch of general law. It relates to industry,

trade and commerce. It includes the remedying of private
grievances, the control of anti-social activities, and the
regulation of harmful activities. It is also called as Mercantile
Law, Commercial Law.
 Objectives of BusinessAmity
Law School of Business

1. Law lays down the framework within which business

activities shall be carried out.
2. A Business person can resort to various judicial and quasi
judicial authorities against the government in case his legal
rights have been infringed.
3. Some laws are made to facilitate the business persons to
achieve their goals smoothly.
4. Business law has social objectives too.
5. Business law aim to prevent concentration of economic
power and help in the adjustment of claims of individuals
against each other.

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 Amity School of Business

• Laws included in Mercantile Law .

•Contract Act
•Companies Act
•Intellectual Property Rights
•Negotiable instruments Act
•Sale of Goods Act
•Financial regulation
•Tax law
•Arbitration Act

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