LEGAL ASPECTS OF BUSINESS

Mr. KARTEEK MADAPANA,

Assistant Professor,
School of Management Studies,
GIET UNIVERSITY, GUNUPUR
 Krishnan Bajaj vs. PepsiCo.
• K Bajaj, a resident of Ahmedabad, had purchased a Lay’s packet on
28 June 2010 and sensed its being underweight.
• He wrote twice to the manufacturer. While the first letter got no
response, in reply to the second, it offered Bajaj gifts hamper
which he refused.
• Bajaj approached Consumer court.

• Company refused to accept their fault and gave several

unsatisfactory clarifications
• Finally The company asked for the bill of purchase which Bajaj
could not produce.
 Judgment
• The Court overruled the argument of his not
having a bill.
 Law…
• 1. A citizen may think of ‘law’ as a set of rules
which he must obey.
• 2. A lawyer who practices ‘ law’ may think of
law as a vocation.
• 3. A legislator may look at ‘law’ as a
something created by him.
• 4. A judge may think of ‘law’ as a guiding
principles to be applied in making decisions.
• Law includes all those rules and regulations
which regulate our relations with other
individuals and with the state.
 Why should one know law
“Because ignorance of law is no excuse”
►Ex : 1
• If X is caught traveling in a train without ticket, cannot
plead that he was not aware of the rule regarding the
purchase of ticket and therefore, he may not be excused.
►Ex : 2
• If Y is caught driving scooter without driving license, he
cannot plead that he was not aware of the traffic rule
regarding the obtaining of a driving license and
therefore, he may not be excused.
 Object of law
• The object of law is order, and the result of
order is that men are enabled to look ahead
with some sort of security as to the future.
 Meaning of law
• Law means a set of rules.
• The word “law” is generally associated with
the word “rules.
• a simple definition of law as “a rule that can
be enforced by the courts.”
• The law is not rigid, it is flexible.
• Since the value system of society keeps on
changing , the law also keeps changing according
to the changing requirements of the society.
• There are several branches of law such as
International law, constitutional law, criminal law,
civil law etc..
• Every branch of law regulates and controls a
particular field of activity.
 BUSINESS LAWS
• Business laws are those laws which regulate
the conduct of the business.
 Sources of Business Law
►1.English Mercantile Law
►2.The Statute Law
►3.The Common Law (sometimes called as
case law)
►4.Customs and Usages
►English Mercantile Law: English laws are the primary
sources of Indian Mercantile Law. English laws are
based on customs and usages of merchants in
England.
►The Statute Law: The various Acts passed by the
Indian Legislature are the main sources of
mercantile law in India, e.g. Indian Contract Act,
1872, The Sale of Goods Acts,1930, The Partnership
Act, 1932, The Negotiable Instruments Act 1881, The
Companies Act, 1956.
• The Common Law : This source consists of all
those unwritten legal doctrines embodying
customs and traditions developed over
centuries by the English courts. Thus, the
common law is found in the collected cases of
the various courts of law and is sometimes
known as ‘case law’.
• The common law emphasizes precedents.
►Customs and usages: The customs and usages
of a trade are also one of the sources of
mercantile law in India. These customs and
usages govern the merchants of a trade in
their dealings both each other. Some Acts
passed by the Indian Legislature recognizes
the importance of such customs and usages.