Introduction to Business Law

P.S.Swathi Associate Professor SSIM Secunderabad

Law and Society



Law prevails in almost every part of our life. Without law there will be indiscipline in the society. Hence knowledge of law is necessary for all persons who live in a society. This is further reinforced with the famous maxim ignorantia juris non exusat (ignorance of law is no excuse).

Definitions of Law
 

A law is a rule of conduct imposed and enforced by the Sovereign-Austin. Law is the body of principles recognized and applied by the State in the administration of justice- Salmond. Law in its most general and comprehensive sense signifies a rule of action and is applied indiscriminately to all kinds of actions whether animate or inanimate rational or irrational Black Stone.

Branches of Law


 

With the growth of civilization human beings social and economic behaviour has assumed many branches. Hence State made different laws to regulate activities in these branches Ex: Civil Law ,Criminal Law, Constitutional Law , International Law, Labour Law and Business Law.

What is Business Law



Business Law refers to those rules and regulations which govern the formation and execution of business transactions made by various persons in the society. Business Law includes laws relating to contract, sale of goods, negotiable instruments, partnership, company and many other economic laws having a bearing on trade, industry and commerce. These Business Laws are framed through various Sources of Law.

Sources of Business Law

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Sources of Business Law are: English Law Judicial Decisions or Case Law Customs and Usages Indian Statutes

English Law


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2.

3.

4.

Indian Business Law is Modeled on the lines of English mercantile law as India was under British rule before its independence. The influence of English Law on Indian Laws have their roots in the following: English Common Law: The customs usages of British are found in the reported decisions of the courts of law. Equity: Principles of Equity is based of fairness and concepts of justice developed by the judges whose decisions became precedents. Law Merchant or Maritime Usage: The courts recognizes the usages or customs of merchants and traders. Statute Law: The Statute Law refers to the law laid down in the Acts of Parliament.

Judicial Decisions or Case Law



Judicial Decisions or Case Law: This is called judge made law. These are called as precedents and are binding on all courts having jurisdiction lower to that of the court which gave the judgment. Customs and Usages: Where a statute specifically provides that the rules of law contained therein are subject to any well-recognized custom or usages of trade, the latter may override the statute law. Indian Statutes: The Constitution of India confers power to enact law on its Parliament and Legislature of states when a bill is passed by the President or Governor of a state, It becomes an Act or Statute .

The Importance of the Constitution of India



1. 2.

3. 4.

The Indian Constitution has granted to its Citizens : Citizenship (Articles 5 to 11) Fundamental Rights (Articles 12 to 30) Fundamental Duties (Article 51A) Directive Principles of State Policy (Articles 36 to51)

Citizenship ( Articles 5 to 11)



The Constitution in these articles deals with the rights of citizenship wherein it states that a Person who is born and whose domicile is in India acquires the citizenship of India and he will enjoy the rights guaranteed under the Indian Constitution. It also provides that on acquiring a foreign citizenship a person cannot be considered to be an Indian citizen.

Fundamental Rights
   1. 2. 3. 4.

Fundamental Rights are guaranteed by the Constitution of to its citizens. If there is any infringement of Fundamental Rights it can be enforced in the Courts of Law. The Fundamental Rights can be enforced by the High Courts which has power to issue writs like Habeas-Corpus Mandamus Prohibition Quo Warranto

Fundamental Rights are: 1. Right to Equality 2. Right to Freedom 3. Right against exploitation 4. Right to freedom of religion 5. Cultural and Educational Rights 6. Right to Constitutional Remedies These Rights are available against the state and other authorities


Fundamental Duties
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Fundamental Duties these are not enforceable in the Courts of Law. These are enumerated for laying down a code of conduct for citizens. Some of the fundamental duties which are relevant for managers are: To develop the scientific temper, humanism and the spirit of inquiry and reform; To strive towards excellence in al spheres of individual and collective activity so that the nation constantly rises to high levels of Endeavour and achievement.

Directive Principles of State Policy

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The Constitution under (Articles 36to51) laid down a code of conduct for the administrators of India. It is the duty of the state to apply these principles in making laws They are not enforceable in court of Law. Some of the important and relevant directive principles are: Equal pay for equal work for both men and women A living wage, conditions of work ensuring a decent standard of life, to all workers Workers participation in the management of Industries Organization of agriculture and animal husbandry on modern and scientific lines.

Structure of Judiciary
1. 2. 3.

Supreme Court High Courts The Subordinate Courts

Supreme Court
It consists of Chief Justice and other judges  Every Judge of the Supreme Court is appointed by the President of India as per the guidelines given by the Constitution.  The Supreme Court has the following jurisdiction and powers: 1. Original Jurisdiction 2. Appellate Jurisdiction 3. Special Apppellate Jurisdiction 4. Power of Reviewing decisions of other Courts as well as its own I t also acts as advisor to the President as and when required by Him. The decisions of Supreme Court is binding upon all other Courts.


High Court
Every State has a High Court and it has Chief Justice and as many other Judges the President deems fit. The powers of the High Court are  power to issue writs  Power of superintendence of other Courts in the States  Power to transfer cases to itself from subordinate courts  Power to appoint officers of High Court


Subordinate Courts


They are responsible for the administration of justice at district level. In addition to District Judges there are Session judges and Metropolitan Magistrates for criminal matters and Senior and Junior Civil Judges for civil matters.

Principles of Natural Justice

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4.

Rules of Principles of Natural Justice No one shall be judge in his own cause Hear the other side No one can be penalised on the ground of conduct which was not penal on the day it was committed. A quasi judicial order must be supported by reasons

Legislative Powers
  

Parliament has exclusive power to make Laws regarding matters listed in Union List The State Legislature has exclusive power to make Laws regarding matters listed in State List. Both the Parliament and State Legislatures are empowered to make laws in respective matters listed in Concurrent Lists. If there is difference of opinion between Centre and State the opinion of centre prevails.All the residuary powers are vested with the Parliament.

Basic Principles of the Constitution

1. 2. 3. 4. 5. 6. 7.

Sovereignity Socialism Secularism Judicial Independence Federalism Ensuring Fundamental Rights Directive Principles of State Policy

Conclusion


A good Constitution may be turned into a bad Constitution by the people who implement it , similarly a bad Constitution may be turned into a good Constitution by the people who implement it . Effective implementation of the Constitution is more important than effective framing of it.