Business Law

Legal Environment of Business

Chapter 1.

Concentration Legal Environment and Business An Overview Meaning of Legal Environment Rationale for Understanding Legal Environment The Demand for Legislation Reasons for Maintaining Legal Side An Evaluation of Legal Framework Law of Contract An Overview The Details of Essentials of Law of Contract Termination and Breach of Contracts Sale of Goods Act An Overview Essential Elements Transfer of Ownership Conditions and Warranties Carriage of Goods Act An Overview Carriage by Land Carriage by Sea Carriage by Air Company Law An Overview Memorandum of Association - Articles of Association Registration Prospectus and Winding up Other Important Acts Bangladesh Control of Essential Commodities Act 1956 Pure Food Ordinance 1969 Trade Marks Act 1940 Patent Design Act 1911 Standards of Weights and Measure Ordinance 1982 Drug Policy 1982 The Payment of Wages Act 1936 The Industrial Relation Ordinance 1969 The Shops and Establishment Rules 1970 Other Laws, Acts and Ordinances relating to Business Class Test Class/ Case presentation Review Class

# of Class

2.

3.

4. 5.

6.

7.

Text Books:
1. 2. 3. 4.

Commercial Law, A. K Sen and J. K. Mitra A Manual of Mercantile Law, MC. Shukla. Manual of Company Law (Amendment 1994). Labour and Industrial Law, A. A. Khan.

Course Teacher

Dr. Ataur Rahman

Department of Marketing University of Dhaka

Legal Environment of Business

Our society has not left business to its own devices- rather business operates within the constraints of law
Legal restrain would ensure the best allocation of resources

Meaning of legal environment

The Legal Environment of Business has as its basic purpose the equalization of market opportunities:
1.

Business conduct restrained Consumer protection

2.

Meaning of legal environment

Business conduct restrained

Consumer protection

Restraints of trade can be accomplished by several devices:

Price fixing scheme The division of market among conspiring competitors

Meaning of legal environment

Business conduct restrained

Consumer protection

Restraints of trade can be accomplished by several devices:

Discriminatory pricing practice Vertical restraint on institution within a channel of distribution

Meaning of legal environment

Business conduct restrained

Consumer protection

Consumer protection bases for some laws enacted to protect public

Meaning of legal environment

Business conduct restrained

Consumer protection

Consumer are also protected against false and deceptive practices:

False and deceptive advertising and mislabeling Use of impure materials

Meaning of legal environment

Business conduct restrained

Consumer protection

Consumer are also protected against false and deceptive practices:

Substances harmful to the human body The unrevealed presence of used, reprocessed and substitute materials

Rationale for understanding Legal Environment

Commitment to national economic priorities and development strategy Concern for and sympathy with emerging consumerism The need for regulation of commercial relation amongst the citizen of the country

Rationale for understanding Legal Environment

Commitment to national economic priorities and development strategy

Concern for and sympathy with emerging consumerism The need for regulation of commercial relation amongst the citizen of the country

What to be manufactured How much to be manufactured Who will manufacture

The power of these options is enormous enough to shape business decision

Rationale for understanding Legal Environment

Commitment to national economic priorities and development strategy

Concern for and sympathy with emerging consumerism

The need for regulation of commercial relation amongst the citizen of the country

Major causes of consumerism has been identified: 1. Rising price 2. Poor product performance 3. Deceptive advertising

Rationale for understanding Legal Environment

Commitment to national economic priorities and development strategy
Concern for and sympathy with emerging consumerism

Regulate relationship between marketers and:

1. 2. 3. 4. 5.

The need for regulation of commercial relation amongst the citizen of the country

Buyers Dealers Advertising agencies Transporters Other parties

The Demand for Legislation

Rapid economic growth and expansion Rapid change in social and economic structure
Other important developments

The Demand for Legislation

Others..

The growing demand for capital created by the high investments requirement for specialization Pressures for larger and larger volume of sales to compensates for the high cost of industrialization Expanding network of rail-roads providing the means of market expansion The opportunities for skilled and unskilled labor in the countries/cities

An Evaluation of the Legal Framework

Impact in the marketing behavior

Maintenance of competition Public health and safety Effecting business decision

Definition of Law

The term Law is used to denote rules of conduct emanated from and enforced by the State. Law is the command of the Sovereign. It means
1.

Law has its source in sovereign authority. Law is accompanied by sanctions.

2.

3.

The command to be a law should compel a course of conduct.

Definition of Law
Law

is the rule of external human action enforced by the sovereign political authority.
Holland

Definition of Law
Law

is the body of principles recognized and applied by the State in the administration of justice
Salmond

Definition of Law

Law is that portion of the established habit and thought of mankind which has gained distinct and formal recognition in the shape of uniform rules backed by the authority and power of the government

Woodrow Wilson

Characteristics of Law

Law is the rule relating to the actions of human beings.

Law attempts to regulate the external action of human beings.

Law is enforced by the State.

Law and Social Objectives

Law

must be framed and changed on the basis of social needs.

Henry Maine

Law and Social Objectives

Moral

values rather than the settlement of disputes of interests should be the objective of Law.

Observed by

Emile Durkheim L. T. Hobhouse Max Weber

Law and Social Objectives

Law is profoundly related to the following three elements

1.

The legal structure of the society

Constitutional ideals and principles Legal procedure

2.

Rosco Pound

3.

Rules of Law

There are three rules1. The rule of law states that, No man is punishable or can be lawfully made to suffer in body or goods except for a distinct breach of law established in the ordinary legal manner before the ordinary courts. The rule of law mean, No man is above law. The rule of law is The result of statues and judicial decision determining the rights of private persons.

1. 1.