BLO1105 - Lecture 1

BLO1105 – Business Law
Week 1 - Lecture
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Victoria University CRICOS Provider No: 00124K (Melbourne), 02475D (Sydney)
Agenda
• Welcome
• Unit Overview
• VU Collaborate
• The Australian Legal System
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Welcome
• Sunway KL Teaching Staff – Semester 1, 2022
• Dharshini M Balasingam (lecturer) - dharshinib@sunway.edu.my
• Alison Wong (tutor) - alisonw@sunway.edu.my
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Agenda
• Welcome
• Unit Overview
• VU Collaborate
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Unit Overview
Topics Covered
1. The Australian Legal System

2. Introduction to Contract Law
3. Offer an Acceptance
4. Consideration and Estoppel
5. Contents of a Contract and exclusion clauses
6. Misrepresentation and Enforceability
7. Consent and Excuses
8. Discharge and Remedies
9. Business Structures – Sole Proprietors and Partnerships
10. Business Structures - Companies
11. Business Structures – Companies Continued and Trusts
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Unit Overview
Assessment
1. Online Test – multiple choice questions
1. Counts for 10% of your mark
2. Held during week 4 – 14 to 20 March 2022
2. Research Problem Based Assignment
2. Due end of week 9 – 22 April 2022
3. Tutorial Participation
2. Ongoing
4. Final Exam
2. Open Book
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Agenda
• Welcome
• Unit Overview
• VU Collaborate
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VU Collaborate
• News Posts
• Lecture and tutorial content
• Assessments
• Quiz
• Dropbox
• Discussion Posts
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Agenda
• Welcome
• Unit Overview
• VU Collaborate
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Australian Legal System
Overview
• Outline the origin, scope and operation of the Australian Constitution.
• Provide an overview of the structure of government in Australia.
• Identify the sources of law in Australia.
• Distinguish common law from legislation.
• Describe the hierarchy of courts and their roles.
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1. Background
1. The Australian legal system is based on the English legal system known as the
common law system.
2. Australia became a self-governing nation on 1 January 1901.
3. Australia is part of the Commonwealth of nations consisting of countries that
were formerly under British rule (indicated in green on the map below).
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The Australian Legal System
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Background
1. Australia has a constitution established under the Commonwealth of Australia
Constitution Act 1900 (discussed below).
2. Under the Australian constitution, Australia operates under a federal system that
provides for two key levels of government:
1. Federal (or Commonwealth) government is responsible for making and enforcing
national laws. The federal government is in charge of most aspects of taxation;
defence; immigration; foreign policy, etc.
2. State governments are responsible for making and enforcing State laws (which only
apply to the particular State).
3. Examples of States: New South Wales, Victoria.
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The Australian Constitution

1. The Australian Constitution - Constitution
2. Function
a) Divides powers between Federal government and State governments e.g Federal
Government is responsible for defence; immigration; and regulation of banking
system.
b) Adopts the English 'Westminster System' of government by separating powers
between 3 branches of ‘government’.
3. This separation of powers, although not absolute, aims to maintain checks and
balances in the system e.g independent courts must deal with disputes or
criminal matters without interference from government ministers or
bureaucrats.
1. Powers
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Branches of Government
Branches of
Government
Legislature Judiciary Executive
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Branches of Government
1. Legislature
1. Parliament makes laws, authorises the Government to spend public money, scrutinises
government activities, and is a forum for debate on national issues.
2. Members of Parliament (MPs)
1. Makes laws known as ‘legislation’ (also described as ‘Statutes’ or ‘Acts’).
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Judiciary
1. The court system
1. Judges
1. Interpret laws made by parliament.
2. Develop laws known as ‘common law’.
3. Resolve civil disputes and hear criminal matters.
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Executive
1. Government administrators and regulators.
2. Bureaucrats (civil servants):
1. These include numerous agencies or departments such as police, defence forces,
immigration, social welfare, education agencies, etc.
2. Responsible for performing tasks set by legislation involving administration and, in
some cases, law enforcement.
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Making Law
1. Two Types
1. Legislation:
1. Government Made;
2. Legislation is a primary source of law; and
3. Legislation.
2. Common Law:
1. Judge Made – Courts; and
2. Courts.
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Making Law
1. Legislation
 Law made by Parliament is described as legislation .
 Also known as ‘Acts’ or ‘Statutes’.
 Legislation can be seen as a set of rules or instructions written by parliament ,
to be obeyed by society.
 ‘Legislation’ also includes ‘regulations’ made by a lower-level regulator (aka
subordinate or delegated legislation):
 e.g., regulations or bylaws made by an airport authority or local regional
council.
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Making Law
1. Commonwealth (Federal) Parliament is given the power by the Commonwealth
Constitution to make laws (legislation) in relation to a wide range of matters.
Examples include:
 Corporations Act
 Crimes Act 1914
 Taxation administration Act 1953
 Legislation always prevails over the common law to the extent of any
conflict between them (see below)
 Parliament has the final say as to what the law will be in any area because it
is regarded as the sovereign or supreme law maker (parliamentary
sovereignty)
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Making Law
1. Common Law
2. Courts function is to:
1. Interpret laws made by parliament, and
2. Develops its own area of law known as common law
3. Courts
4. Interpreting Law
1. Issue: What does this law made by Parliament mean? What is parliament’s intention or
purpose?
1. In this role, courts are not making law, but interpreting the law made by parliament in order
to apply it to the cases they are dealing with.
2. An analogy can be made with computers: the legislation ( a set of rules or instructions) is
like software to be interpreted and applied by a computer ( the courts) to achieve an output
or outcome. In this process, the court is stating “This is what the law says”.
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Making Law
1. Common Law - Interpretation
1. Courts follow special rules when interpreting legislation.
2. Normally courts adopt ‘literal approach’ to find normal and ordinary
meaning of words in the legislation.
3. If a problem arises, adopt the ‘purposive approach’- interpret the
legislation to find the purpose or intention of parliament. This is required
to do this by legislation known as ‘Acts Interpretation Acts’.
1. e.g in interpreting s55 Australian Consumer Law what is the purpose
of this law?
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Making Law
1. Common Law - Interpretation
1. s54 Australian Consumer Law
2. Guarantee as to acceptable quality
1. If:
1. a person supplies, in trade or commerce, goods to a consumer; and
2. the supply does not occur by way of sale by auction;
2. [then] there is a guarantee that the goods are of acceptable quality.
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Making Law
1. Common Law – Courts Making Law
1. Common law consists of rules developed by judges when they decide certain cases (not made by
Parliament).
2. Common law is known as Judge made law or case law.
3. Common law has developed in key areas such as:
1. law of contract
2. law of torts (harms or wrongs)
3. law of trusts
4. property law (but modified by legislation)
4. Following precedent means that similar cases are treated the same. This has advantages in
promoting:
1. Fairness
2. Consistency
3. Predictability
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Making Law
1. Precedents can be of two kinds: binding ( must be followed) or persuasive ( may be followed).
1. Binding
1. Judges must follow the rule or principle set out in an earlier case if the earlier case comes from
a court in the same jurisdiction as their own court, and the earlier case is from a superior court,
and the case is the same or very similar to the current case
2. Persuasive
1. Judges may choose to follow the rule or principle set in an earlier case even if the earlier case
comes from a court in a different jurisdiction as their own court e.g USA even if the earlier case
is from the same or inferior court in their own jurisdiction e.g in Australia the case is the same or
very similar to the current case
2. Precedents are set by courts in a hierarchy of courts
1. Lower Courts must follow a higher courts decision
1. A case may start off in a lower court and then be appealed by one of the parties to a higher
court. This may occur when one of the parties (appellant) is unhappy with the decision of the
court
3. Decisions are recorded in law reports which can be accessed by judges and lawyers.
1. e.g Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd [1952] 2 QB 795
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Making Law
1. Precedents have some flexibility and can be adapted to new situations
2. There is a branch of law called the law of torts (harms or wrongs). In it, the principles of
negligent liability of manufacturers was first established created by the court in the case of
Donoghue v Stevenson [1932] AC 562.
1. In this case, the Plaintiff Mrs Donoghue, did not actually buy the product (ginger beer) made by the
manufacturer but was given it by a friend, and consumed it , resulting in injury (gastroenteritis). She
alleged that it contained the remains of a snail!.
2. In this case, the court held that every manufacturer owes a duty of care to any person who might be
harmed by carelessness in the manufacturing process. This is the principle or rule of the case –
known as the ‘ratio decidendi’ of the case. The ratio decedendi is the precedent that may be followed
by later courts dealing with similar fact situations.
3. The defendant manufacturer was found to have breached a duty of care to the plaintiff and was
therefore found to have been negligent and accordingly ordered to pay damages.
3. As a precedent, the rule of the case has in later cases been applied to a wide range of
situations involving negligence not just beverage manufacturers- extending to manufacturers of
other products such as cars, medicines, and electronic tablets.
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Making Law
1. Parties to a matter
Civil Action Criminal Action
Parties Plaintiff v defendant State v Person
• involves assessment of legal • Police prosecution for breach
right e.g., right or duty under a of criminal law
contract • Local council prosecuting for
• involves private rights breach of bylaw
e.g., Donoghue v Stevenson
Burdon of Proof On Plaintiff On State
Standard of Proof Balance of Probabilities Beyond Reasonable Doubt
Outcome Win or lose Guilt or Innocence
• Winner may get compensation • Freedom, fine imprisonment,
etc.
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Next Session
Introduction to Contract Law

• What is a contract?
• What is Intention to be legally bound?
• Read Sweeny Chapter 4
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BLO1105 – Business Law

• Sunway KL Teaching Staff – Semester 1, 2022

• Dharshini M Balasingam (lecturer) - dharshinib@sunway.edu.my

• Alison Wong (tutor) - alisonw@sunway.edu.my

1. The Australian Legal System

The Australian Constitution

Legislature Judiciary Executive

Introduction to Contract Law

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