Introduction to business

law
Unit 1

1: What is Law ?
The law is a set of legal rules that governs the way
members of a society act towards one another.
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
Laws are required in society to regulate the behaviour
of the individual, to correspond with what is acceptable
to the majority of individuals,
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NEED FOR LAW

Without law, life and business would become a matter of
survival, not only of the fittest but also of the most
ruthless.
Laws are required in society to regulate the behaviour of
the individual, to correspond with what is acceptable to the
majority of individuals,

Law is the potential tool of social change. In fact law and

society are complementary. No society can exist without
law. It is essential for up keeping of peace in the society.
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BRANCHES OF LAW

CONSTITUTIONAL LAW
ADMINISTRATIVE LAW
CRIMINAL LAW
CIVIL LAW,
COMMERCIAL LAW

CONSTITUTIONAL LAW

Is the law which regulates the structure

of the principal organs of the
government and their relationships to
one another and determines their
principal functions.

The rules consist both of legal rules

and of usages, commonly called
conventions, which without being
enacted are accepted as binding by all
concerned with the government
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ADMINISTRATIVE LAW
It is the law that governs the
executive branch of the government.
It is as old as the executive.

CRIMINAL LAWS
Are the laws which wrong doers are
punished.
At the same time, civil laws are those
laws with which the private rights of
an individual are enforced

MERCANTILE LAWS
It deals with the rights and
obligations of Commercial persons
emerging from commercial
transactions in respect of commercial
property.

SCOPE OF BUSINESS LAW

The scope of the business law has
enormously widened due to the increasing
complexities of the modern business world.
It usually covers topics of contracts,
bailment, Agency, sale of goods,
partnerships, companies, negotiable
instruments, insurance, pollution control etc.
These and other topics are covered by
legislations enacted by Central and State
Governments.

SOURCES OF BUSINESS LAW

1.
2.
3.
4.
5.

Statutory law
Case law
Natural law
English mercantile law
Customs and usage

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Legal Positivism
Law is the supreme will of the State
that applies only to the citizens of
that nation at that time.
Law, and therefore rights and ethics,
are not universal. The morality of a
law, or whether the law is bad or
good, is irrelevant.
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Legal Realism
Jurisprudence that holds law is not
simply a result of the written law, but
a product of the views of judicial
decision makers, as well as
social,economic, and contextual
influences.

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Stare Decisis
Stare decisis is a Latin phrase
meaning to stand on decided
cases.
Makes the law stable and predictable.
Increases judicial efficiency by relieving
courts of having to reinvent legal
principles for each case brought before
them.

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Stare Decisis and Precedent

Stare decisis is judge made law based on
precedent.
Precedents are judicial decisions that give rise
to legal principles that can be applied in future
cases based upon similar facts.
Precedents and other forms of positive law, such
as statutes, constitutions, and regulations, are
referred to as binding authority and must be
followed.
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Cases of First Impression

In cases of first impression where
there is no precedent, the court may
refer to
positive law,
public policy, and
widely held social values in order to
craft the best new precedent.

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Legal Reasoning
Method used by judges to reach a
decision.
Many courts and attorneys frame
decisions and briefs using the IRAC
format: Issue, Rule, Application
(Analysis), and Conclusion.

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Civil vs. Criminal

Civil law defines the rights between
individuals or individuals and
governments.
Criminal law defines an individuals
obligations to society as a whole.

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Substantive vs. Procedural

Substantive law defines or creates
the rights and obligations of
persons and governments.
Procedural law provides the steps
one must follow in order to avail
oneself of ones legal rights or
enforce anothers legal obligations.
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Civil

Criminal

Person
commencing the
action:

Plaintiff

Government

Outcomes:

Damages
Imprisonment
Specific performance Fines
Injunction
Good behaviour
bonds
Community service
order

Standard of proof:

On the balance of
probabilities

Beyond a reasonable
doubt

Burden of proof:

Plaintiff

Prosecutor
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