EIB 20303

BUSINESS LAW

Tutorial 1

Law is basically a means or device to regulate the economic and social behaviour of
society. It purpose is mainly to preserve the economic and social welfare of our society by
implementing the element of control into the day to day activities of its citizen and its businesses.
In relation to the statement describe :

a) Various sources of Malaysian law. (20 marks)

b) What is meant by 'judicial precedent'? (20 marks)

c) State the similarities and differences between legislation and subsiadiary legislation.

(20 marks)
Answer guidelines

a. Various sources of Malaysian law. (20 marks)

The most important of Malaysian law is written law (legislation) consist of

fed.constitution,statute and delegated or subsidiary legislation

Unwritten law -principles of english law and judicial decision,custom

Islamic law

English common law and equity

textbook on law

b. What is meant by 'judicial precedent'? (20 marks)

judicial precedent is the procees of judication, whereby after argument before

a judge decisionin a dispute given forms one of the important means by which

the law is created in Malaysia

In reaching his conclusion the judge will formulate and apply a legal

principle

A judge will give reason (ratio decidendi) for reaching his decision .The ratio

decidendi may bind other in similar dispute in future

A decision of superior court will bind the lower court

Explain the advantages of 'judicial precedent

c. State the similarities and differences between legislation and subsidiary

legislation. (20 marks)

The similarities and differences between legislation and subsidiary legislation

both are written law.Legislation refers to the laws which have been formally

passed by the properly elected bodies, i.e. the Parliament (at the Federal level)

and the State Legislative Assemblies (at the State level). Legislation passed by

Parliament is generally called an Act of Parliament, while those passed by the

 State Legislative Assemblies are called Enactments (with the exception of

Sabah and Sarawak, where they are called Ordinances).

legislation are laws enacted by parliament and state legislative assembly

both are important laws of malaysia but legislation have greater impact

example : act of Parliament

subsidiary legislation /Delegated Legislation

Delegated legislation (also known as subsidiary legislation) refers to the rules

and regulations, which are passed by some person or body under some

enabling parent legislation. The Interpretation Act 1967 defi nes it as any

proclamation, rule, regulation, order, bye-law or other instrument made

under any Act, Enactment, Ordinance, or other lawful authority and

having legislative effect.

b. Advantages of Subsidiary Legislation

The importance of subsidiary legislation lies in its many advantages, which may be
summarized as follows:

Subsidiary legislation can be passed very speedily as it does not have to undergo the

various stages of procedure which has to be followed in Parliament or the State

Legislative Assemblies. Similarly, if the need arises, subsidiary legislation can be

just as speedily rescinded to meet the changing needs of society.

Parliament does not have sufficient time to deal with detailed rules necessary to

implement the law. Subsidiary legislation fulfils this need.

Some matters require the special skill and knowledge of experts in that area.

Parliament itself may not have sufficient experts for this purpose. Thus, subsidiary

legislation fulfils this need as well.

c. Disadvatages of Subsidiary Legislation

However, subsidiary legislation has several disadvantages as well. The main
complaints are the following:

The growth of subsidiary legislation goes against the doctrine of separation of

powers. This is because law is not being passed by persons elected for that purpose

(i.e. the legislature). Instead it is being passed by officers of government departments.

As parliament cannot effectively supervise the making of subsidiary legislation due to

lack of time, many rules and regulations may have been passed without proper

consideration of some very important factors.

Too much law is passed through subsidiary legislation. In view of these

disadvantages there is a need to control the proliferation of subsidiary legislation.