Principles Of Business Law PDF

PRINCIPLES OF BUSINESS LAW TOPIC 1: THE NATURE AND FUNCTION OF LAW  The difference between legal rules and non-legal rules Who makes ‘the law’? (ie legal rules) The subject-matter of law: some examples What is ‘business law’? The anatomy of law Then our first hypothetical…. Case Stu...

PRINCIPLES OF BUSINESS LAW TOPIC 1: THE NATURE AND FUNCTION OF LAW  The difference between legal rules and non-legal rules Who makes ‘the law’? (ie legal rules) The subject-matter of law: some examples What is ‘business law’? The anatomy of law Then our first hypothetical…. Case Study: The Coffee Shop  We can define law as rules of conduct or organisation that are recognised, applied and enforced by the power of the state. Non-legal rules are rules of conduct or organisation that are enforced by things such as peer pressure, a need for co- operation, feelings of goodwill, or convenience. Non-legal rules are derived from a variety of sources, eg: – moral or philosophical beliefs – religious beliefs – the ‘laws’ of nature – social values – rules that have become customary in a community.  Non-legal rules work well enough in smaller groups and communities. In larger groups, non-legal rules become inadequate. Rules enforced by the state are common in all larger societies as a necessary means of regulating conduct. The particular rules that the state chooses to enforce are identified and made in different ways. One possibility is for the state to decide to enforce rules that originate as non-legal rules, eg philosophical beliefs, or established customs. Another possibility is for new rules to be created in response to a perceived need for regulation. This raises the question: who has the authority to make law?  The main agencies of law-making at federal, state and territory level in Australia are: elected legislatures, and the courts. There are recognised procedures and processes for making law in legislatures, just as there are rules for judges in making law.  Many aspects of daily life are governed or affected by the law. Consider and explain each of the terms listed below. Each term refers to a generally recognised ‘division’, ‘area’ or ‘category’ of law. Criminal law Contract law Tort law Property law Agency law Corporations law Constitutional law Administrative Law National and international law It is important to note that each area of law is concerned with particular types of conduct or situations. Dividing legal rules into areas helps to clarify the nature and structure of the law.  If you take examples of particular situations or events, you should be able to identify the relevant area of law.  For example, if a person is arrested for deliberately setting fire to a building, the facts suggest that the criminal law is relevant, because this conduct is prohibited and punished by the state.  What about:  Forming a new company and registering it?  Buying an apartment in the city?  Getting the latest iPhone on a cheap mobile plan?  Slipping on a wet floor at the supermarket and sustaining serious injury?  Business law consists of selected rules of law that are of particular relevance to business activities. For example, business law includes aspects of: contract law tort law consumer law agency law corporations and tax law* plus selected topics from other traditional divisions of law.  Knowledge of business law is important because it enables a person to: Recognise the legal aspect of typical business situations and understand the legal rules involved. Know the extent to which they can rely on legal rights and duties. Know how to use the law constructively to achieve desired outcomes. For example, it is useful to know : How enforceable agreements for goods and services can be created. How you might be able to be compensated if a person does not fulfil their obligations to you in an agreement. How to advertise goods and services in a way that does not mislead customers under consumer protection law. How to delegate responsibilities and discretion to certain employees. 5. An Anatomy of Law In studying law, you will encounter references not just to ‘the law’ as a whole, and to the major ‘areas of law, but also to things such as legal ‘concepts’, ‘principles’ and ‘rules’. What do these terms mean? Study the diagram on the next page.