Legal Environment & Legal System

Learning Objectives
Overview of Legal Environment. International Arbitration. Legal System.
Common Law. n Theocratic Law.
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LEGAL ENVIRONMENT OF BUSINESS

Law is an instrument of social justice of the state that seeks to provide justice, stability and security in the society. It assures uniform application of the laws by regulating the behavior and interactions of individuals against each other.

LEGAL ENVIRONMENT OF BUSINESS

Law is the commandofthesovereign..and its body of rules recognized and enforced by courts of law. . Law is a rule relating to the actions of human beings. .

Environments to by understood by Managers

What is Arbitration ?
The submission of a dispute to an unbiased third person designated by the parties to the controversy, who agree in advance to comply with the awarda decision to be issued after a hearing at which both parties have an opportunity to be heard.

It is a form of alternative dispute resolution (ADR).

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Avoid uncertainties associated with litigation in national courts. Obtain a quicker, efficient decision. Enforceability of arbitration agreements. Freedom to select & decide arbitral procedures.
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Procedures for Arbitration

Pre-Arbitral procedures : Efforts to avoid Arbitration Appointment of an Arbitrator or Tribunal Administrative Filings and Fees The Place (i.e., Seat) of the Arbitration Request to Arbitrate (Statement of Claim Claimant & Respondent) Necessary Parties Consolidation Discovery Arbitral Hearing Post-Hearing Memoranda The Arbitral Award
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New York Convention, 1958 The Convention on the Recognition and Enforcement of Foreign Arbitral Awards
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Widely recognized as a foundation instrument of international arbitration Requires contracting States to give effect to
o An agreement to arbitrate when seized of an action covered by an arbitration agreement and o To recognize and enforce awards made in other States.

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Initially attended by 142 countries. Current number is 192. The Convention entered into force on 7 June 1959.
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International Chamber of Commerce

Headquarters in Paris, France The two organs of the ICC are the International Court of Arbitration itself and its Secretariat. The Court of Arbitration is constituted by representatives of each member country. The Secretariat consists of several teams of counsel of a variety of nationalities who specialize in different regions of the world. Functions:
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select and appoint arbitrators if parties have not selected any confirm arbitrators selected, decide upon challenges to arbitrators review the first procedural document issued by the tribunal which sets forth the issues in dispute (the Terms of Reference)

American Arbitration Association

The AAAs International Centre for Dispute Resolution (ICDR) is headquartered in New York, USA AAA Commercial Arbitration Rules which are designed for domestic US arbitrations. Provision of sole arbitrator is acceptable under AAA rules It does not involve the creation of a document similar to the Terms of Reference, nor does the ICDR review the tribunals award before communicating it to the parties. The ICDR administrator will set the arbitrators fees on the basis of the arbitrators rate of compensation and the size and complexity of the case.

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World Intellectual Property Organization

Founded in 1994 in Geneva, Switzerland. WIPO has arbitration rules and procedures specifically attuned to the issues related to intellectual property disputes. WIPO allows the parties to choose the arbitrator on their own or gives them one if required The WIPO has developed a set of rules dedicated to expedited proceedings. It sets the administrative and arbitrators fees after consultation with the parties and the arbitrators in accordance with a schedule of fees.
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The Arbitration and Conciliation Act, 1996

In India, it is the prime legislation relating to

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Domestic arbitration International commercial arbitration Enforcement of foreign arbitral awards and To define the law relating to conciliation and for matters connected there with or incidental there to.

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FICCI conciliation and Arbitration Tribunal

Founded in the year 1952 Dispute resolution services primarily to FICCI members and other parties who may desire to submit their disputes The FACT mission is to resolve business disputes outside the traditional framework offered by courts of law, i.e. by various alternate dispute resolution methods Services offered:
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Administrative and support services Appointment of arbitrators Choosing the venue for the arbitration Fixation of the fees of arbitrators and conciliators

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Common law
Common law, also known as case law or precedent, is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action. A "common law system" is a legal system that gives great precedential weight to common law, on the principle that it is unfair to treat similar facts differently on different occasions.
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Precedent
The English civil courts are arranged in a hierarchy The House of Lords is at the top of this structure According to the rules of precedent a decision of a higher court is binding on a lower court

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Precedent (cont.)
So, a judge in the County Court must follow a decision made in the High Court, Court of Appeal or House of Lords And a judge in the High Court must follow a decision made in the Court of Appeal or House of Lords The Court of Appeal must follow the House of Lords This also applies to decisions of courts at the same level
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Finding a precedent (cont.)

However, not all parts of a decision in a previous case are part of the precedent which has to be applied There are two parts to a decision is a case
ratio decidendi (the reason). n obiter dicta (said by the way).
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Application of Precedent
Although the general rule of precedent is that a previous decision of a higher court must be followed, there is some flexibility Judges can avoid following a precedent by overruling it or distinguishing it

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THEOCRATIC LAW
A system based on religious doctrine, precepts, and beliefs. THEOCRACY means A species of government which claims to be immediately directed by God.

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Presented By:
Anurag Premchandani n Ashish Chanchlani n Gaytri Iyer n Nisha Tripathi n Umesh Ramchandani n Yogesh Punjabi
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THANK YOU
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