Introduction to business law: Introduction to business law Unit 1 1: What is Law ? : 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, NEED FOR LAW: 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. If fact law and society are complementary. No society can exist without law. It is essential for up keeping of peace in the society. BRANCHES OF LAW: BRANCHES OF LAW CONSTITUTIONAL LAW ADMINISTRATIVE LAW CRIMINAL LAW CIVIL LAW, COMMERCIAL LAW CONSTITUTIONAL 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 ADMINISTRATIVE LAW: ADMINISTRATIVE LAW It is the law that governs the executive branch of the government. It is as old as the executive. CRIMINAL LAWS: 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: 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: 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: SOURCES OF BUSINESS LAW Statutory law Case law Natural law English mercantile law Customs and usage Legal Positivism : 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. Legal Realism : 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. Stare Decisis: 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. Stare Decisis and Precedent : 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. Cases of “First Impression”: 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. Legal Reasoning: 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 . Civil vs. Criminal : Civil vs. Criminal Civil law defines the rights between individuals or individuals and governments . Criminal law defines an individual’s obligations to society as a whole. Substantive vs. Procedural : 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 one’s legal rights or enforce another’s legal obligations. Reading & Understanding Case Law: Reading & Understanding Case Law Legal cases are identified by a “legal citation” (or a “cite”) as the example below: Federal Express Corp. v. Federal Espresso, Inc., 201 F.3d 168 (2 nd Cir. 2000). Title: First Party is Plaintiff, second party is Defendant. The parties are either italicized or underlined . Reading & Understanding Case Law : Reading & Understanding Case Law  Legal cases are identified by a “legal citation” (or a “cite”) as the example below: Federal Express Corp. v. Federal Espresso, Inc., 201 F.3d 168 (2 nd Cir. 2000). Case is found in volume 201 of the 3 rd Federal Supplement, page 168. Reading & Understanding Case Law : Reading & Understanding Case Law  Legal cases are identified by a “legal citation” (or a “cite”) as the example below: Federal Express Corp. v. Federal Espresso, Inc., 201 F.3d 168 (2 nd Cir. 2000). Case was decided by the United States Second Circuit Court of Appeals in 2000. Business persons and the Law: Business persons and the Law Laws regulate all areas of business. Factors business owners must consider: Is contract enforceable? Contract for goods vs. services? What happens if someone breaches the contract? Dispute Resolution?