Scribd
Upload
75 views

Business Legal Environment

This document provides an introduction to the legal environment of business. It discusses key concepts including definitions of law from various scholars, the nature and characteristics of law, importance of business law, types of law, and sources of law. The main points are: 1) Law is generally defined as a rule that regulates human actions and is developed and enacted by the state to be enforced in administering justice. 2) Business law regulates business and commercial activities and transactions, and includes areas like company law, contract law, consumer protection law, and more. 3) The importance of business law is that it provides legitimacy and security for business, regulates transactions, helps shape business activities, and establishes ethics and social responsibilities

Uploaded by

anantarajkhanal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
75 views

Business Legal Environment

This document provides an introduction to the legal environment of business. It discusses key concepts including definitions of law from various scholars, the nature and characteristics of law, importance of business law, types of law, and sources of law. The main points are: 1) Law is generally defined as a rule that regulates human actions and is developed and enacted by the state to be enforced in administering justice. 2) Business law regulates business and commercial activities and transactions, and includes areas like company law, contract law, consumer protection law, and more. 3) The importance of business law is that it provides legitimacy and security for business, regulates transactions, helps shape business activities, and establishes ethics and social responsibilities

Uploaded by

anantarajkhanal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

Introduction to the

Legal Environment of Business

Unit 1
Concept of Legal Environment

 The term law is frequently used in our day-to-day life though there is no precise and universally accepted
meaning of it. In general, law is defined as a rule which regulates the human actions.
 The term law, is most common and widest sense, used to denote any rule of action, that is to say, any
standard or pattern, a canon or norm to which actions are required to conform, or by which actions of things
are regulated.
E.g.

 A person driving his vehicle is arrested and fined him by police stating that driving vehicle by consuming
alcohol is an offence, therefore, punishable because it is against the law.
Definition

 “Every law is a gift of God and decision of sages”- Demosthenes

 “Law is the body of principles recognized and applied by the state in the administration of justice”-
Salmond

 “Law is a rule of civil conduct, prescribed by the supreme power of state, commanding what right and
prohibiting what is wrong”- Blackstone

 “Law is command of sovereign.”- Austin


Nature of Law

 Law is made by sovereign/state.


 Law is nature of command.
 The command of general nature.
 The command is backed by sanction.
1. Law consists of a rule.
2. It is a rule of the external rational human beings.
3. It is developed, issued or enacted by state.
4. It is enforced by the state in the administration of justice.
5. It is backed by sanction or punishment.
6. It treats all persons in the same situation equally.
7. It regulates human actions in three ways, i.e., Prohibitory, Mandatory and Promissory.
8. It is pervasive in nature.
9. The function of law is to keep the peace by maintaining law and order situation.
10. The aim of the law is justice.
Commercial/Business Law

 Business law is the law that regulates the business and commercial activities and manages all the
transactions of business community.
 Business law is a branch of civil law or private law which makes certain rules for business transactions.
 Thus, the law which deals with business activities of people and provides various provisions for commercial
world is known as business law.
E.g. Commercial Law

 In general, company law, contract law, agency law, arbitration law, consumer protection act, fiscal law,
banking law, insurance law, law of carriage, sale of goods industrial law, labour laws, negotiable instrument
Act, environment (protection) law, industrial enterprises act, insolvency law income tax law, monopoly
control Act.
Importance of Business Law

1. It provides legitimacy, peace and security to the business community, i.e., producers,
suppliers, workers and consumers.
2. It regulates the commercial transactions or operation of an industry directly or indirectly
through the different rules or polices.
3. It is involved in making, shaping and enhancing the business activities.
4. It provides such a ground in which the law breakers are to be punished and law abiders
are to be awarded.
5. It establishes the business ethics of a business entity and its social responsibilities.
Cont…

6. It guides in the area of establishment and operation of a company and provides the provisions to
carry out its internal management.
7. It protects the industrial interests and the national interests.
8. It creates the various institutions to provide incentives and facilities to the investors or the
business communities.
9. It tells us what kinds of business in what manner can be carried out in a given country.
10. It creates the various organs to hear and decide disputes rose in the business community by
which the rights and interests are enforced and duties or liabilities are imposed.
11.It guarantees the justice or remedies to all involving in the business dealings.
Importance of Legal Environment

 Contract
 Consideration
 Jurisdiction
 Remedy
 Peace Transaction
 International Trade
 Survival
Types of Law

1) On the basis of Territorial Limits of Operations


A. National law:
B. International law:
2) On the basis of Nature of Law
A. Substantive law:
B. Procedural law:
3) On the basis of Subject Matter of Law
A. Public law:
B. Private law:
4) On the basis of an Individual's Duty to Wards Society
A. Criminal law:
B. Civil law:
Sources of Law
Thank You

You might also like