University of Jaffna Business Legislation and Ethics PDF

University of Jaffna Faculty of Management Studies And Commerce Department of Marketing BBAM 21053 : Business Legislation and Ethics Prepared by :- Dr.(Mrs). Sathana.Vaikunthavasan Introduction to Law What is law? All the rules found in a society are laws. Law is s...

University of Jaffna Faculty of Management Studies And Commerce Department of Marketing BBAM 21053 : Business Legislation and Ethics Prepared by :- Dr.(Mrs). Sathana.Vaikunthavasan Introduction to Law What is law? All the rules found in a society are laws. Law is stagnant. What is legislation Introduction to Business Legislation Legal system in SL Court system in SL 1. Law Law is an integral part of society. Society can not function without law. Law is defined as rules made for the proper regulation of the society or for correct conduct in life. Ignorance of law by a defaulter , is not treated as an excuse for breaking the law. Commercial law or business law can be applied for business and commerce. Definition of Law A set of rules made by the people to govern their behavior. All the rules found in a society are not laws, because there are legal rules and non - legal rule. The word ‘Law’ deals with ‘the legal rules’ that are enforceable through the courts. ‘Law’ means “rule” made by authority for the proper regulation of a community or society or for correct conduct in life. Some fundamental concepts relating to law Law has some fundamental features. They are: Law has a subject that can be learnt - Law is by no means a secret subject. E.g.: sociology, medicine & etc Law can be complex - while it is true that law can be studies and learnt and there is no magic in it, at times when dealing with certain subjects, the law can be complex. The rule of Law - Sri Lanka’s entire legal system is built on the principle of the rule of law. Laws are enforceable - it is important to appreciate that the law will be enforced by the state. Law and Morals – morals are concerned with the goodness or badness of human character or behavior. When one speaks of good morals, one is referring to distinction between right and wrong. Law and Justice - the relationship between law and justice is similar to that between law and moral. Introduction to Business Legislation Sources of Law The point where the law originate from Anything which account for the existence of a legal rule or to any place in which the law is stated. Main sources of Law: Legislation Case law-judge made law/ unenacted law/ judicial decision(supreme court or court of Appeal) Customs Introduction to Business Legislation A set of laws put in place by the government to protect businesses, employees and consumers. Businesses must operate within these laws to ensure the fair and safe treatment of any party involved with a business. Legislation is known as “Enacted law or statute law”: this consists of acts passed by Parliament. 1948- legislature of Sri Lanka – state council- ordinances. Legislation includes “ delegated legislation” as well. Delegated legislation or subordinated legislation refers to the by-laws, orders, regulations etc. and mage by local authorities, ministries etc., to whom parliament has given such law making powers Delegated legislation , to be effective, must be presented to, and approved by the Parliament. 2. The Constitution of SL Supreme law in Sri Lanka It is a set of fundamental principles according to which a state or entity is acknowledged to be governed. The current constitution of SL is the Constitution of 1978. Concerned with the relationship between the individual and the state It covers laws of The president The minister The government departments Individual citizens The Constitution of SL The following main areas are covered in our Constitutions: The interpretation of provisions of constitution Issues as to the National flag, National anthem and National day, fundamental rights, freedom of expression, freedom of association and assembly protection of civil liberties including the freedom to engage by himself or in association with others in any lawful occupation, profession, trade, business or enterprises. Issues relates to the national language Citizenship, immigration and extradition Presidential powers and functions Public service commission and public sector appointments The presidential, parliamentary, provincial and local government elections. The Constitution of SL Public security, official secrets etc. International treaties and agreements. Office of auditor-general and his duties and functions. Approval of bills. Establishment, power and duties of police commission Establishment, power and duties of parliamentary Ombudsman. 3. Legal system of Sri Lanka Legal system Sri Lank-multicultural and multilingual country 1505- European control- 1656- Portuguese- Dutch – Roman Dutch Law Three courts-Colombo, Galle and Jaffna 1796 British A unitary administrative and Judicial system 1801 - Kandyan law, Thesawalamai, Muslim law, Buddhist law and Hindu law Our legal system A mixed system of law Many special laws operate alongside the general law It has features of both the common law system as well as the civil law system Legal System Comprises of two major areas: Statute Law Common Law Statute Law This refers to legislation or laws passed by the legislature. The legislature refers to the branch of government, which has power to make laws. In Sri Lanka, the supreme legislature is the parliament. Common Law This consists of Judicial decision. Found in the decisions of the judges. Judicial precedent Judicial Precedent Once a legal principles is established through a court decision, future cases with similar facts should be decided as per the same legal principles. Our laws Roman Dutch law English Law Special law Kandyan law Thesawalamai law Muslim law Roman Dutch law The common law of the country which applies when statutes and indigenous laws do not regulate the issues in question It has co-existed with several systems of indigenous law and the English law creating a district legal culture which is described as a mixed civil and common law system. Greater importance was given to Roman Dutch under British era than in the Dutch era. Sri Lanka and south Africa English law The long duration of British rule caused the English law to influence over the development of legal system of Sri Lanka. A large number of statutes were passed incorporating English law in the country The civil law ordinance Sale of good ordinance Bill of exchange ordinance Special laws Special laws are rules and principles that apply to a particular category of Sri Lankans. They are mainly Kandyan Law Thesawalamai law Muslim Law 3.1. Classification of law Civil law and criminal law Substantive law and procedural law Public law and private law National law and international law Personal law and territorial law Civil law Civil law defines the rights between individuals or individuals and governments. Civil Wrong/disputes Purpose: Remedy the wrong – suffered by the breach of the civil law claimed Parties: the plaintiff and the defendant Filed in District court Eg: contract, property matters, divorce matters Criminal law Crime are the offences against the state Criminal law defines an individuals' obligation to society as a whole Purpose: preserve law and order in a particular society by punishments Magistrate’s court or High court Eg: Murder, rape , theft etc Substantive law Substantive law deals with written statutory law passed by legislation It talks about the structure and facts of the lawsuit. They govern behavior of people They define crime and set forth punishment They define rights and duties Substantive law defined or creates the rights and obligations of persons and governments. Procedural law Procedural law provides the steps one must follow in order to avail oneself of one’s legal right or enforce another’s legal obligations How a case should be filed in court, How a trail is conducted How an appeal can be lodged to High court Public law and private law Public law deals with issues that affect the relationship between the state and its individuals Private law exist to assist citizens in disputes that involve private matters. National law and international law National law is the law that applies to a particular country International law is a set of rules regarded as binding in relations between states. Personal law and territorial law Personal law applies only to specific persons in a particular territory E.g. Muslim law Territorial law applies alike to all persons within a given territory E.g: Thesawalamai 3.2. Different branches of law Constitutional law Insurance law Administrative law Trust law Criminal law Banking law Contract law Bankruptcy law Property law Intellectual law Family law Labour law Trot law Law of succession Company law International law Partnership law Environment law Agency law Cyber law  Constitutional law: It discussed with the relationship between the state and its individuals Administrative law: Law relating to the public administration It is set of principles which govern the exercise of power and duties entrusted to public authorities. Criminal law: Law relating to crimes Crime is misconduct which threaten and harm public safety and welfare E.g: murder, robbery, house broking, theft, cheating and rape Contract law: Contract law is a part of civil law It concerns the enforceability of agreements entered in to between two or more persons  Property law: The most important rights people have is the ownership of both movable and immovable property Deals with registration of title to land and movables, joint ownership, mortgages, leases etc. Family law: Related to matters such as Birth and legitimacy, marriage, divorce, adoption, the rights of parents and children, husband and wife, minority, guardianship and the protection of mentally unsound person Tort law: Delict or tort law refers to a civil wrong and concerns breaches of duties which give rise to a legal action by the aggrieved party against the wrongdoer Partnership law: Partnership is the relation which subsists between persons carrying on a business together with the objective of making profit. Partnership law in Sri Lanka is based on English law Company law The law applied to companies is company law Company becomes a separate legal person Company enter into contract It can sue or can be sued The company act no.7 of 2007 is the main legislation dealing with company law  Agency law: A representative called an agent contract with third parties on behalf of another person called “principal” The principal will acquire rights and liabilities under the contract. The legal relationship between the agent and the principal is called ‘agency’. Insurance law: The practice of law surrounding insurance is known as insurance law. This includes issues arising out of life insurance, motor insurance, accident insurance, property insurance, marine insurance etc. Banking law concerns all activities conducted by a bank and transaction between banks and its customers. Bankruptcy or insolvency law deals with persons or business that are judicially declared as unable to pay debts. Sri Lanka bankruptcy law is based on English law Trust law A trust a relationship whereby property is held by one party for the benefit of another. The person who hold the trust is known as the trustee and the person for whose benefit the property is held is known a beneficiary. The person who created the trust is known as the settler. The law governing trust property, the settler, the trustee and the beneficiary is called the law of trust Intellectual property law It refer to creations of mind such as copyright, patents, trademarks and industrial designs. Copyright grant the creator of an original work the exclusive right to use and distribute the product Patent is the exclusive right given to the investors for a specific period in exchange for the public discloser of an invention A mark is an expression which identifies product or services of a specific source from other products or services An industrial design is the creation of a new product or a packaging design which is eligible for the protection under intellectual property law  Labour law It deals with rights and liabilities between employers and employees It protects employees from unjust termination and wrong full treatment It ensures that employees are properly treated International law It is a body of rules that control and affect the right of nations in their relationship with each other. Matters such as united nations, international treaties and conventions and agreements signed by Sri Lanka are covered Environment law: It deals with the protection of the environment Sri Lanka has enacted legislation in this area called the national environment Act No. 47 of 1980 Cyber law/ IT law : IT or computer Law or internet law is a term that addresses legal issues pertaining to information technology. Law of succession Law of succession regulated inheritance of property The property passed on the death of the owner is called ‘the estate’ an estate is all the real property and assets a person owns at the time of his or her death. an automobile or a house, or more basic goods such as clothing, small appliances, ‘The will’ is the document passing the property and the ‘testator’ is the person making the will. The ‘executor’ is the person named in the will to administer the property. Law of succession also covers areas like the making of a will and intestate succession 4. Court system, Power and Functions Article 4 (c) of the constitution stated that the “ judicial power of the people shall be exercised by parliament through court, tribunals and institutions created and established or recognized by the constitutions or created by law” Article 105 of the constitution of Sri Lanka stipulated that the institution for the administration of Justice should be the Supreme court Court of Apple High court Section 2 of the Judicature Act no. 2 of 1978 provides the courts of first instance for the administration of justice are High court District court Family court Magistrate’s court Primary court Primary court Primary court which is the lowest court of first instance was established under the judicature Act No. 2 of 1978 The jurisdiction of the primary court is exercised by the magistrate’s court This court possesses limited powers to impose a sentence of imprisonment and of fines and has limited jurisdiction both in relation to civil and criminal disputes. The monetary jurisdiction does not exceed thousand five hundred rupees The Primary Court exercise civil and criminal jurisdiction within its area or jurisdiction. The value of claim for compensation should not exceed Rs. 1500/- Hearing of land disputes involving threat to or breach of peace. Magistrate’s court Magistrate’s court exercise original jurisdiction in criminal cases and they have been established under the Judicature Act No. 2 0f 1978 The jurisdiction of the Magistrate's court includes the offence is punishable only with imprisonment for a term not exceeding two years or fine not exceeding Rs 1500 First mortem examinations. Post mortem examinations. Issue of Warrants of Judicial orders to arrest and produce suspected persons. Issue of search warrants. Ordering persons to enter into bonds of good conduct and preventive jurisdiction on public nuisance. Appeals from Magistrate’s court may be submitted to the Provincial High court, court of Appeal and under certain circumstances to the supreme court as well Magistrate’s are appointed by the judicial service Commission which exercises oversight over the judge The Judicial Service Commission The Judicial Service Commission consists of the Chief Justice and two other Supreme Court Judges appointed by the President. The chief Justice shall be the Ex Officio Chairman of the Judicial Service Commission. The Secretary shall not hold the office of the Judge of the Court of First Instance on completion of his tenure of office as Secretary. The Secretary to the Judicial Service Commission shall be a Senior Judge of the Court of First Instance. District court The court of first instance for civil cases are district court. They have unlimited Jurisdiction in all civil, revenue, trust, insolvency and testamentary matters. In every judicial district a district court is established civil issues handled by district court include Cases which relate to properly issues Actions by landlords to eject tenants Actions to recover debts Claims for compensation and damages Family disputes Appeals from the District court could be made to the High Court of Civil, Appeal and the Supreme Court thereafter. The High Court of Civil Appeal was established with the objective of expediting the civil appeals from District Courts. There are 54 judicial districts in Sri Lanka. High court The High Court of Sri Lanka established under the Constitution and is vested basically with the following Jurisdiction. Criminal Jurisdiction Admiralty jurisdiction( concerning activities which occur at sea) Jurisdiction with regard to offences committed abroad aircraft and within the territorial air space Appellate jurisdiction over convictions, sentences and orders imposed by the Magisrate’s court and Primary Court within the Province In respect of powers exercised under any law or statute enacted by the Provincial Council Appeals of decisions reached by Labour Tribunals, Agrarian Tribunal and Small Claims Court Judges of the High Court are appointed by the President of Sri Lanka Court of Appeals The Court of Appeal established under the Constitution of Sri Lanka and has the following powers Appellate Jurisdiction Appellate Jurisdiction over the courts of first instance and other judicial institutions. Jurisdiction for correction Jurisdiction for correction of all errors in fact or in law. Cognizance of matters and things of Courts of First Instance May call for case records and examine them. Powers to impose punishment for contempt of Court. Imprisonment for a period not less than 08 years can be imposed. Power to issue writs The Court of Appeal is composed of the President of the court of Appeal and not less than six and not more than eleven judges (6-11) The court sits in Colombo. The Chief Justice may direct that a particular sitting be held in another judicial zone or district Judges of the Court of Appeal are appointed by the President of Sri Lanka Supreme Court The supreme court is the apex court in Sri Lanka and the final appellate Court. It consists of the Chief Justice and not less than six to ten judges. Powers of the Supreme Court include Appellate Jurisdiction Final and conclusive civil and criminal appellate jurisdiction on appeals from the Court of Appeal or any Court of first Instance. Constitutional Jurisdiction Interpretation of the Constitution and to determine whether any bills an inconsistent with the Constitution. Protection of fundamental rights. Freedom of thought, freedom of Conscience, Freedom from torture, Right to equality, Freedom from arbitrary arrest, Freedom from arbitrary detention, Freedom of speech, assembly and association. Jurisdiction in respect of the breaches of Parliamentary privileges. Presidential election-Jurisdiction in election petitions; the enrolment, suspension and removal of attorneys- at-law. Judges of the supreme are appointed by the President of Sri Lanka  End