Chapter -I

Business and Law

BUSINESS ENVIRONMENT

Social

Technology

Business

Politico- legal

Economic

 Social Evironment: Comprises of the customers, employees, society as a whole.

Technological Environment: Comprises of technical support available to the business. If technology available is not updated the business will have to make investment inorder to develop it for use.

Economic Environment: Consists of other competitive firms, financial institutions etc.

Politico-legal Environment: it consists of the government and other regulating authorities.

LEGAL ENVIRONMENT

Decision making
Prevents concentration of economic power

Settlement of disputes
Tool for implementation of government policies.

Sources of Law

Statutes

Customs
Judicial Precedents

1. Statutes: Law enacted by the parliament. 2. Judicial Precedents: Judgment given in the similar cases 3. Customs: Certain practices that are prevalent in the society. Every custom does not becomes a law It must be observed over a long period of time Must not be opposed to public policy and morality

CLASSIFICATION OF LAW
Public Law and Private Law
Criminal Law and Civil Law

Substantive Law and Procedural Law

PUBLIC LAW AND PRIVATE LAW

Public Law: That branch of which determines the relation of the state with its subjects.

Private Law: That branch of which determines the relation of citizens with one another.

CRIMINAL LAW AND CIVIL LAW

Criminal Law: That part of law which characterises certain kinds of wrongdoings as offences against the state, not necessarily violating any private right.
It is a part of public law. Wrongs not only against injured party but also against the society. Generally a governmental agency, officer or officials are appointed to protect the interest of society. Punishment is awarded to violator but compensation is not given to injured person.

Civil Law: Is the Law that protects the rights and duties of citizens towards each other.
It is a part of private law. Wrongs are only against injured party. The aggrieved person initiates action against the offender. Object of Civil law is to restore the injured party to his initial position. Damages are awarded. A single act may, in some cases, be civil or criminal offence both.

SUBSTANTIVE LAW AND PROCEDURAL LAW Substantive Law: Defines rights, obligations and relationships of parties. It also provides for punishment for the crime.
Procedural Law: It lays down the methods for administering substantive law. It provides for machinery for enforcing those rights and duties.

Law and Morality

Both are for guidance of conduct of parties. What may be morally right may not be protected legally. What is legally protected may be morally wrong.

Business Law/ Mercantile Law

Business law is that 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. Business persons and the state

Thank you!