Unit-1 Law

Program Semester Subject Code Subject Name Unit number

: MBA : III : MB0051 : Legal Aspects of Business :1

Unit Title
Lecture Number

: Law
:1

1
PREVIOUS HOME NEXT

Unit-1 Law

Lecture Outline

Introduction

Meaning and Nature of Law

Sources of Indian Law Legal Environment of Business Mercantile Law

Sources of Indian business law

Some Basic Legal Concepts Essentials of Law Activity

2
PREVIOUS HOME NEXT

Unit-1 Law

Law
Objectives

Explain the nature of law Describe sources of Indian law Define business legal environment and mercantile law Analyze the essentials of law

3
PREVIOUS HOME NEXT

Unit-1 Law

Introduction
In this unit we will begin by answering the question, What is law? We discuss the meaning, nature and classification of law, different sources

of Indian law such as custom, precedents and the legislation.

Law is a system of rules, usually enforced through a set of institutions. It shapes politics, economics and society in numerous ways.

Serves as a primary social mediator of relations between people.

4
PREVIOUS HOME NEXT

Unit-1 Law

Meaning and Nature Of Law

In general terms, we discuss about the law to Physics, Law of Science, Law of Mathematics, health or football. Law means any rule of conduct, standard or pattern, to which actions are required to conform; if not conformed, sanctions are imposed. A rule of being or of conduct, established by an authority able to enforce its will; a controlling regulation; the mode or order according to which an agent or a power acts.

5
PREVIOUS HOME NEXT

Unit-1 Law

Characteristics Of Law
Law is a body of rules. Law is for the guidance or conduct of persons both human and

artificial.
Law is imposed. Law is enforced by the executive.

The state.
Content of law. Law is made to serve some purpose which may be social, economic or

political

6
PREVIOUS HOME NEXT

Unit-1 Law

Law and Morality

There is close relationship between Law and Morality. A person may not be legally bound towards all the times but morally. Example: A appoints B as his agent. B enters into contact with C on behalf of A. B commits fraud in the transaction and thereby injures C. A is bound to compensate C.

7
PREVIOUS HOME NEXT

Unit-1 Law

Ignorance of Law is no Excuse

Every Person of the society is presumed to know the legal rules.

He cannot take the plea that he did not know the rules.
One can obtain expert guidance from those who posses legal Knowledge.

Ignorance of law is not a good excuse.

8
PREVIOUS HOME NEXT

Unit-1 Law

Sources of Indian Law

SOURCES OF INDIAN LAW

Primary sources

Secondary sources

Customary Judicial law precedents

Statues

Personal Law

English Law

Justice Equity and good conscience

9
PREVIOUS HOME NEXT

Unit-1 Law

Main Sources of English law

Common law also known as Case law consists of all those unwritten legal doctrines embodying customs and traditions developed over centuries by

the English courts.

Equity means natural justice. It means a body of legal doctrines and rules emanating from the administrations of justice, developed to enlarge,

supplement or override a narrow rigid system of existing law of the land.

Statue Law is written law passed by the Parliament Constitution.

The law Merchant or lex mercatoria is a law based on customs and

usages prevalent among merchants and traders of the middle ages.

10
PREVIOUS HOME NEXT

Unit-1 Law

Legal Environment of Business

Every Civilized society needs a proper legal order. Law and business are closely related and controlled almost every aspect of

business is regulated by law.

The law may require business to provide certain facilities to its employees, even when the contract does not provide therefore.

The decision making process of business is guided by law, right from its
very inception.

Illegal conducts acts or omissions are subject to sanctions.

There may be fines or imprisonment if the conduct is declared a crime.

11
PREVIOUS HOME NEXT

Unit-1 Law

Mercantile Law
Meaning and Nature
A branch of law which prescribes a set of rules for the governance of certain

transactions and relations between:

Business persons themselves Business persons and their customers, dealers, suppliers, etc. Business persons and the state

12
PREVIOUS HOME NEXT

Unit-1 Law

Objectives
Lays down the framework within which business activities shall be carried out.

A businessperson can resort to various judicial and quasi-judicial authorities

against the government in case his legal rights have been violated.

To facilitate the business persons to achieve their goals smoothly.

It aim to prevent concentration of economic power and help in the

adjustment of claims of individuals against each other.

Example:
A Ltd. issues an advertisement disparaging the products of its rival- B Ltd. Further A Ltd. prohibits its dealers to deal in the products of B Ltd. These acts of A Ltd. are not in conformity with some legal rules prescribed by some statute or the other. Thus B Ltd. can enforce its right which have been infringed by the A Ltd. 13
PREVIOUS HOME NEXT

Unit-1 Law

Sources of Indian Business Law

Statutes

Common Law

Custom and Usages

Precedents

Justice, equity and good Conscience

14
PREVIOUS HOME NEXT

Unit-1 Law

Some Basic Legal Concepts

Concept of legal entity

Concept of legal rights

Concept of property

Intellectual Property Rights (IPR)

Concept of ownership

Concept of possession
15
PREVIOUS HOME NEXT

Unit-1 Law

Essentials Of Law

Predictability Flexibility Reasonable application and coverage

16
PREVIOUS HOME NEXT

Unit-1 Law

Activity
Activity 1
Identify a recent amendment in the law which will have a significant impact on business organizations in general. The change in the law may be in the form of an Act of Parliament, delegated legislation or judicial decision.

Activity 2
Even a wrongful possession is protected. What is your opinion on this?

Activity 3
Suggest your overview on Ignorance of law is no excuse.

17
PREVIOUS HOME NEXT

Unit-1 Law

THANK YOU

18
PREVIOUS HOME NEXT