Legal Environment of Business PDF

LEGAL ENVIRONMENT OF BUSINESS Introduc8on to Business Law Spring 2023-24.Dr. Sheer Abbas [email protected] DEFINITION OF LAW CHARACTERISTICS OF LEGAL RULES and SANCTIONS 2 Business Environment 3 De4nition of Law A set of (1) general and mandatory rules, which (2) organize and control externa...

LEGAL ENVIRONMENT OF BUSINESS Introduc8on to Business Law Spring 2023-24.Dr. Sheer Abbas [email protected] DEFINITION OF LAW CHARACTERISTICS OF LEGAL RULES and SANCTIONS 2 Business Environment 3 De4nition of Law A set of (1) general and mandatory rules, which (2) organize and control external behaviors and actions of people and bodies, and which (3) involve legal sanctions in case of their breach. Rules that meet all three of these elements are legal rules It is a set of rules that regulates human conduct It has certain amount of stability and uniformity – Uniformity: it applies to many people in the same way – Stability: law remains the same for a long time It is created by the State – Laws are adopted by the Government It is maintained and supported by a formal authority – State checks whether you follow the law 4 Its violation leads to punishment The purpose of law in (UAE) is to establish a legal framework that promotes justice, order, and stability within the society. The UAE legal system serves several important :purposes Upholding Justice: The law in the UAE is designed to ensure fairness, equality, and protection of individual rights. It aims to provide a just and impartial mechanism for resolving disputes, addressing grievances, and punishing those who violate the law. It seeks to prevent discrimination and promote equal treatment under the law. Public Interest: The primary purpose of law is to promote the public interest and the well-being of society as a whole. Laws are often designed to protect individual rights, maintain public order, promote justice, and ensure the.common good Maintaining Social Order: The law plays a crucial role in maintaining social order and stability. It sets out guidelines and regulations that govern the behavior of individuals, organizations, and institutions. By establishing clear rules and standards of conduct, the law.helps to prevent conflicts, regulate social interactions, and safeguard public safety and welfare 5 Protecting Rights and Liberties: The UAE law is intended to protect the fundamental rights and liberties of individuals. It encompasses various areas, including civil rights, human rights, labor rights, property rights, and privacy rights. The legal framework aims to ensure that individuals are treated fairly, have access to due process, and are protected from.arbitrary actions Promoting Economic Development: The law in the UAE fosters a favorable environment for economic growth and development. It provides a legal framework for business operations, contracts, investments, and intellectual property rights. By establishing transparent and predictable rules for economic activities, the law encourages.entrepreneurship, foreign investment, and overall economic prosperity Safeguarding Public Interest: The UAE legal system works to protect the public interest and welfare. It addresses various societal concerns, such as public health, consumer protection, environmental conservation, and national security. The law provides mechanisms to regulate industries, ensure product safety, preserve natural resources, and.address issues that affect the well-being of the society as a whole 6 Preserving Cultural and Islamic Values: The UAE legal system takes into account the country's cultural heritage and Islamic principles. Islamic Sharia law influences certain aspects of the legal framework, particularly family law and personal status matters. The law aims to strike a balance between preserving cultural values and embracing modern legal.principles To establish a just and orderly society that respects the rights and dignity of individuals, encourages economic growth, protects public interests, and 7 upholds the values and traditions of the UAE De4ning Characteristics of Law vary depending on the legal system and jurisdiction. However, there are several general characteristics that are commonly associated with law. Here are some of :the key defining characteristics of law Normativity: Law is a normative system that establishes rules and standards of conduct. It sets forth what individuals and entities can and cannot do within a society. It provides a framework for regulating behavior and resolving.disputes Authority: Law is created and enforced by a recognized authority, such as a government or legislative body. This authority is typically granted by the constitution or other legal documents, and it has the power to make and.enforce laws 8 De4ning Characteristics of Law Legitimacy: The authority of law is generally derived from its legitimacy, which is the belief and acceptance by individuals and society that the law has the right to govern. Legitimacy is often based on democratic processes, adherence to.constitutional principles, and the consent of the governed Universality: Law applies to all individuals and entities within a given jurisdiction, regardless of their social status, wealth, or influence. The principle of equality before.the law ensures that everyone is subject to the same legal rules and standards Enforceability: Laws are backed by a system of enforcement mechanisms, such as police, courts, and penalties. This ensures that violations of the law can be addressed.and punished, maintaining order and social stability Flexibility: Law can adapt and evolve over time to reflect changing societal values, circumstances, and needs. Legal systems often include mechanisms for amending or.revising laws to accommodate social, technological, and economic developments 9 De4ning Characteristics of Law (1)General rules  rules that addresses All people in a State/Emirate Or: All people of a speciJc part/group of people in a State/Emirate – For example: legal rules for traders, doctors, judges, employers, … In contrast, the generalized character of rule of law does not contract the possibility for the rule of law to deal with speciJc group in the state Or: One person on a functional basis – For example: Businessman, lawyers, doctors, employees etc.) As those parties have special rules that organize their activities. Moreover, the law may address one person by his own position, rather than by his personality, example, president minister, chairman of court, chancellor university etc. In all these cases, the.characteristics of generalities exists  A rule is NOT general if it addresses one person on a personal basis 10  For example: a decision by the President to appoint Ms. X as Minister of Education Characteristics of Law (2) (2) Rules that organize and control external behaviors of people 11 Law regulates actions of people Law does NOT deal with the internal intentions of people – Thoughts/beliefs are not illegal However: – Actions do not have to be completed Attempted murder will be punished under law – Intention may be taken into account when determining how action should be punished Harder punishment when hit someone with car intentionally vs. accident Characteristics of Law (3) (3) Mandatory Rules involve legal sanctions What are legal sanctions? Sanctions that are provided and executed by the authority of the State – Police, ministerial department, court, … – Compare sanctions by employer: not legal sanctions Can be criminal, civil or administrative – Criminal: punishment by court for actions prohibited by law because they are against the security of the State (=crime), such as stealing, tra_c violations, … Criminal sanctions can be physical (prison/death penalty) or Jnancial 12 – Civil: punishment by court for breach of contract or when you in`ict Jnancial losses on others. Civil sanctions can be obligation to perform contract, or Jnancial compensation – Administrative: punishment by State without intervention of a court (tra_c Jne, expropriation or destruction of house built without a permit, …) known as disciplinary sanctions which a business uses in order to ensurebest practice at work in public or private. Legal rules and Religious rules: differences Law and religion both are similar: they are both general sets of rules that regulate human conduct. In some countries, like the UAE, religion is source of law. However, three main differences 13 1. Source (authority) of rules: State vs. Religion 2. Type of controlled behaviour: external vs. external AND internal 3. Type of sanctions: present (immediate punishment) vs. day of judgment Are the following rules legal rules? 1. "Ministers are appointed by the President of a State” Legal rule: general and applies to all persons that are appointed as Minister 2. "Prof. X is appointed as the Minister of High Education” Administrative rule: decision applies to only one person on personal basis 3. "Severe traffic violations will be punished by a maximum fine of AED 10,000 and a suspension of driving license for a period of maximum 3 years” Legal rule: a general rule adopted by the State, punished by legal sanction 4. "Mr. X is fined 2000 Dirhams for speeding 40 kilometers above the speed limit” Administrative sanction: it applies only to Mr. X because of his personal actions 14 What type of sanctions ?(civil or criminal or administrative) Every citizen joining, in any manner, the armed forces of a.1 country at war with the State or the armed forces of a group.aggressive to the State shall be sanctioned to death The seller shall deliver the sale to the buyer immediately upon.2.the conclusion of the contract Buildings that are erected without proper permits shall be.3.demolished within 1 month 15 Categories/Branches of Law law can be categorized in several ways. In terms of the function of law, there is a clear distinction between substantive law and procedural law; while the former consists of the rights and duties that each person has in society (e.g. the right to own property, the right to make contracts, the duty to avoid injuring others and the duty to follow various laws), procedural law recognizes the protection and enforcement of these rights and duties of substantive law before formal courts (it rules on how to put those rights and duties before courts into practice). In short, substantive law relates to what the law is, while procedural law relates to how it is enforced. ?) Another method of classification is based on the parties involved in the relation in question, and this would be between public law and private law.In this classification, the state plays a central role. 16 Categories/Branches of Law Branch of law: classification of law depending on subject matter – What is regulated? Crimes? Commercial activities? Labour activities? Two main branches of law: Public Law and Private Law – Public Law: regulates relations between individuals/companies and the government (criminal law, administrative law, …) act  Two requirements: (1) State must be a party and (2) the State must in its official capacity (NOT for example sales contracts) – Private Law: regulations relations between individuals or companies (including State if acting in private capacity)  Example: commercial law (sale contract between State and company) 17 Each branch (Public/Private) is divided into various sub-branches Sub-branches of Public Law Public law Cons/tu/onal Law Public interna/onal Law Criminal Law Rules regula/ng rela/ons between States and interna/onal organisa/ons Rules regula/ng crimes and criminal sanc/ons Criminal procedure Law Rules regula/ng procedures for prosecu/ng crimes (inves/ga/on by police, procedure criminal court…) Administra/ve Law Rules regula/ng ac/vi/es of administra/ve agencies of a government (environmental agency, transport…) Fiscal law 18 Rules regula/ng regime of State, main authori/es and their powers + rights of individuals Rules regula/ng taxes Sub-branches of Private Law Private law Civil Law 19 Civil procedure Law Private interna/onal law Rules regula/ng rights and du/es of individuals (including contract law and tort law) Rules regula/ng procedures in case of conFicts under civil law (procedures in civil court cases) Rules regula/ng applicable na/onal law in interna/on civil cases (example: sale contract between ci/zens (of two diIerent States Business Law Rules regula/ng rights and obliga/ons of companies and professionals (commercial law) Labour Law Rules regula/ng rights and obliga/ons of employers and employees