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Unit-1 Law

Program Semester Subject Code Subject Name Unit number Unit Title Lecture Number

: MBA : III : MB0051 : Legal Aspects of Business :1 : Law :1


Unit-1 Law Lecture Outline ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Introduction Meaning and Nature of Law Sources of Indian Law Legal Environment of Business Mercantile Law Sources of Indian business law Some Basic Legal Concepts Essentials of Law Activity 2 PREVIOUS HOME NEXT .

Unit-1 Law Law Objectives ‡ ‡ ‡ ‡ Explain the nature of law Describe sources of Indian law Define business legal environment and mercantile law Analyze the essentials of law 3 PREVIOUS HOME NEXT .

‡ Law is a system of rules. ‡ Serves as a primary social mediator of relations between people. different sources of Indian law such as custom. nature and classification of law. ³What is law?´ We discuss the meaning.Unit-1 Law Introduction ‡ ‡ In this unit we will begin by answering the question. usually enforced through a set of institutions. economics and society in numerous ways. 4 PREVIOUS HOME NEXT . It shapes politics. precedents and the legislation.

´ 5 PREVIOUS HOME NEXT . a controlling regulation. Law of Science. ‡ ³A rule of being or of conduct.Unit-1 Law Meaning and Nature Of Law ‡ In general terms. sanctions are imposed. standard or pattern. Law of Mathematics. health or football. we discuss about the law to Physics. to which actions are required to conform. the mode or order according to which an agent or a power acts. ‡ µLaw¶ means any rule of conduct. established by an authority able to enforce its will. if not conformed.

Law is enforced by the executive. economic or political 6 PREVIOUS HOME NEXT . Content of law. Law is for the guidance or conduct of persons ± both human and artificial.Unit-1 Law Characteristics Of Law ‡ ‡ Law is a body of rules. ‡ ‡ ‡ ‡ ‡ Law is imposed. Law is made to serve some purpose which may be social. The state.

A is bound to compensate C. B commits fraud in the transaction and thereby injures C.Unit-1 Law Law and Morality ‡ There is close relationship between Law and Morality. Example: A appoints B as his agent. ‡ A person may not be legally bound towards all the times but morally. 7 PREVIOUS HOME NEXT . B enters into contact with C on behalf of A.

8 PREVIOUS HOME NEXT . ‡ One can obtain expert guidance from those who posses legal Knowledge.Unit-1 Law Ignorance of Law is no Excuse ‡ Every Person of the society is presumed to know the legal rules. ‡ He cannot take the plea that he did not know the rules. ‡ Ignorance of law is not a good excuse.

Unit-1 Law Sources of Indian Law SOURCES OF INDIAN LAW Primary sources Secondary sources Customary Judicial law precedents Statues Personal Law English Law Justice Equity and good conscience 9 PREVIOUS HOME NEXT .

It means a body of legal doctrines and rules emanating from the administrations of justice. ‡ Equity means natural justice. 10 PREVIOUS HOME NEXT .Unit-1 Law Main Sources of English law ‡ Common law also known as ³Case law´ consists of all those unwritten legal doctrines embodying customs and traditions developed over centuries by the English courts. supplement or override a narrow rigid system of existing law of the land. ‡ The law Merchant or lex mercatoria is a law based on customs and usages prevalent among merchants and traders of the middle ages. developed to enlarge. ‡ Statue Law is written law passed by the Parliament Constitution.

right from its very inception.Unit-1 Law Legal Environment of Business ‡ ‡ Every Civilized society needs a proper legal order. ‡ The law may require business to provide certain facilities to its employees. There may be fines or imprisonment if the conduct is declared a crime. ‡ ‡ Illegal conducts acts or omissions are subject to sanctions. Law and business are closely related and controlled almost every aspect of business is regulated by law. even when the contract does not provide therefore. 11 PREVIOUS HOME NEXT . ‡ The decision making process of business is guided by law.

Business persons and the state 12 PREVIOUS HOME NEXT . dealers.Unit-1 Law Mercantile Law Meaning and Nature A branch of law which prescribes a set of rules for the governance of certain transactions and relations between: Business persons themselves Business persons and their customers. suppliers. etc.

issues an advertisement disparaging the products of its rival. are not in conformity with some legal rules prescribed by some statute or the other. ‡ A businessperson can resort to various judicial and quasi-judicial authorities against the government in case his legal rights have been violated. ‡ ‡ To facilitate the business persons to achieve their goals smoothly.B Ltd. Example: A Ltd.Unit-1 Law Objectives ‡ Lays down the framework within which business activities shall be carried out. prohibits its dealers to deal in the products of B Ltd. It aim to prevent concentration of economic power and help in the adjustment of claims of individuals against each other. can enforce its right which have been infringed by the A Ltd. Further A Ltd. Thus B Ltd. These acts of A Ltd. 13 PREVIOUS HOME NEXT .

equity and good Conscience 14 PREVIOUS HOME NEXT .Unit-1 Law Sources of Indian Business Law Statutes Common Law Custom and Usages Precedents Justice.

Unit-1 Law Some Basic Legal Concepts Concept of legal entity Concept of legal rights Concept of property Intellectual Property Rights (IPR) Concept of ownership Concept of possession 15 PREVIOUS HOME NEXT .

Unit-1 Law Essentials Of Law ‡ Predictability ‡ Flexibility ‡ Reasonable application and coverage 16 PREVIOUS HOME NEXT .

17 PREVIOUS HOME NEXT . delegated legislation or judicial decision. What is your opinion on this? Activity 3 Suggest your overview on ³Ignorance of law is no excuse´.Unit-1 Law Activity Activity 1 Identify a recent amendment in the law which will have a significant impact on business organizations in general. The change in the law may be in the form of an Act of Parliament. Activity 2 ³Even a wrongful possession is protected.