Business Law Introduction

2. 2 Those who listen to the word
and follow the best thereof,
those are whom Allah has
guided and those are men of
understanding
39:18

3. Introduction to Law
• General
– One of the important functions of law in any society is to provide
stability, predictability, and continuity so that people can know how to
order their affairs.
– If any society is to survive, its citizens must be able to determine what
is legally right and legally wrong.
– They must know what sanctions will be imposed on them if they
commit wrongful acts.
– If they suffer harm as a result of others’ wrongful acts, they must know
how they can seek redress.
– By setting forth the rights, obligations, and privileges of citizens, the
law enables individuals to go about their business with confidence and
a certain degree of predictability.
– The stability and predictability created by the law provide an essential
framework for all civilized activities, including business activities.

4. Introduction to Law
• General
– The study of business law and, more generally, the legal
environment of business has universal applicability.
– A student entering any field of business must have at least
a passing understanding of business law in order to
function in the real world.
– Additionally, students preparing for a career in accounting,
government and political science, economics, and even
medicine can use much of the information they learn in a
business law course.
– In fact, every individual throughout his or her lifetime can
benefit from a knowledge of contracts, real property law,
landlord-tenant relationships, and other legal topics.

5. Introduction to Law
• General
– We will learn to perform IRAC (Issue, Rule,
Application, and Conclusion) case analysis.
Students must identify the legal issue presented in
the chapter’s Extended Case, understand the rule
of law, determine how the rule applies to the facts
of the case, and describe the court’s conclusion.

6. Introduction to Law
• What is definition of law
– No definition (Thurmann Arnold)- Definition will
be fixed while human society is dynamic
– The deeper you study law, the difficult it becomes
to define law
• Salmond’s definition: law is the body of
principles recognized and applied by the state
in administration of justice

7. Sources of law
• Primary sources of law
1. The Constitution of Pakistan. Supreme law
2. The constitutions of the various provinces. Supreme
within the province
3. Statutory law—including laws passed by NA,
provincial legislatures, or local governing bodies.
4. Regulations created by administrative agencies, such
as the Food and Drug Authorities.
5. Case law and common law doctrines or Stare Decisis.
6. Equity: Fair dealing and notion of justice
7. Cases of first impression

8. Sources of law
• A case in point
– Court rules deputy speaker’s ruling is “set aside
and declared to be void” amid the government’s
boycott
– Supreme Court orders Punjab Governor Balighur
Rehman to administer oath to Elahi by 11:30pm
tonight

9. Sources of law
• Cases of first impression. Cases for which no precedents
exist. For example, the extensive use of the Internet has
presented many new and challenging issues for the courts to
decide. In deciding cases of first impression, courts often look
at persuasive authorities (precedents from other jurisdictions)
for guidance. A court may also consider a number of factors,
including legal principles and policies underlying previous
court decisions or existing statutes, fairness, social values and
customs, public policy (governmental policy based on widely
held societal values), and data and concepts drawn from the
social sciences. Which of these sources is chosen or receives
the greatest emphasis depends on the nature of the case being
considered and the particular judge or judges hearing the case.

10. Legal Reasoning
• Legal reasoning is the reasoning process used
by judges in deciding what law applies to a
given dispute and then applying that law to the
specific facts or circumstances of the case.
Through the use of legal reasoning, judges
harmonize their decisions with those that have
been made before, as the doctrine of stare
decisis requires.

11. Legal Reasoning
• Steps of Legal reasoning (IRAC)
– What are the key facts and issues?
– What rules of law apply to the case
– Analysis: How do the rules of law apply to the
particular facts and circumstances of this case?
– What conclusion should be drawn?

12. Legal Reasoning
• Example Multiple-Issue IRAC
• Issue: Under the law, Laila is guilty of leaving the scene
of an accident, but is likely justified in doing so due to
the nature of the injury she sustained.
• Rule:
• “it is illegal for any involved party to leave the scene of
a vehicular accident before police arrive”; “an involved
party is defined as any person driving or riding in a
vehicle involved in an accident”.
• Public Act states that “an involved party is justified in
leaving an accident if seeking immediate & necessary
medical treatment”.

13. Legal Reasoning
• Application:
• Laila was driving a car down a rural road and impacted another vehicle
which was exiting a driveway. Laila suffered a sprained wrist that
developed severe swelling. A passerby drove Laila to the nearest hospital
before any police arrived on scene.
• Because Laila was driving a car that was involved in an accident, she is an
“involved party” . Because she is an involved party and left the scene of
the accident prior to police arriving, she meets the elements of the Act
and is likely guilty unless her actions are justified under relevant Act.
• It is arguable that immediate medical treatment was not necessary for
Laila’s sprained wrist, thus she would not be justified in leaving the scene.
Because Laila’s wrist experienced severe swelling, she has a strong
argument that she reasonably believed that her injuries were much worse
than a sprain, and thus she was justified in leaving the scene

14. Legal Reasoning
• Conclusion:
• Although Laila meets all elements of the
Act, leaving the scene of an accident, she will
likely be deemed justified in leaving that scene
due to the severe appearance of her injuries.
If the court does not accept her argument,
that she reasonably believed medical
treatment was immediately necessary, she will
be found guilty.

15. SCHOOLS OF JURISPRUDENTIAL THOUGHT
• JURISPRUDENCE: Part of the study of law, which involves learning
about different schools of jurisprudential thought and discovering
how the approaches to law characteristic of each school can affect
judicial decision making. A judge’s function is not to make the laws,
but to interpret and apply them. However, the courts play a
significant role in defining the laws enacted by legislative bodies,
which tend to be expressed in general terms. Judges thus have
some flexibility in interpreting and applying the law. It is because of
this flexibility that different courts can, and often do, arrive at
different conclusions in cases that involve nearly identical issues,
facts, and applicable laws.

16. SCHOOLS OF JURISPRUDENTIAL THOUGHT
• Positivism- Theory by John Austin. Also read
as man made law. His definition is, “law is a
command of sovereign backed by sanctions”
– Ingredients of Law according to positivism:
» Command
» Sovereign
» sanctions

17. SCHOOLS OF JURISPRUDENTIAL THOUGHT
• Naturalism: An ancient approach. It says morality
comes from nature. According to this approach
definition of law is “ principles of right and wrong
which are inherent in people and not created by
society or judge.”
– Law is morality, conscience, fairness and justice
– Morality is your sense of right and wrong
– Natural law is not man made, it is ordained by some super
power, may coincide with divine law.
– The notion that people have “natural rights” stems from
the natural law tradition.
– According to Quraan 91:8, and we gave understanding of
good and bad to you.

18. SCHOOLS OF JURISPRUDENTIAL THOUGHT
• The Historical School of legal thought
emphasizes the evolutionary process of law by
concentrating on the origin and history of the
legal system. This school looks to the past to
discover what the principles of contemporary
law should be. The legal doctrines that have
withstood the passage of time— those that
have worked in the past—are deemed best
suited for shaping present laws.

19. SCHOOLS OF JURISPRUDENTIAL THOUGHT
• Legal Realism: school of legal thought that
advocates a less abstract and more realistic
and pragmatic approach to the law and takes
into account customary practices and the
circumstances surrounding the particular
transaction. Legal realism strongly influenced
the growth of the sociological school of
jurisprudence, which views law as a tool for
promoting social justice.

20. Civil Law and Criminal Law
• Civil law spells out the rights and duties that exist
between persons and between persons and their
governments, as well as the relief available when
a person’s rights are violated. Typically, in a civil
case, a private party sues another private party
(although the government can also sue a party
for a civil law violation) to make that other party
comply with a duty or pay for the damage caused
by failure to comply with a duty. Contract law, for
example

21. Civil Law and Criminal Law
• Criminal law, in contrast, is concerned with
wrongs committed against the public as a
whole. Criminal acts are defined and
prohibited by local, state, or federal
government statutes. Criminal defendants are
thus prosecuted by public officials, such as a
district attorney (D.A.), on behalf of the state,
not by their victims or other private parties.

22. Cyberlaw
• Frequently, people use the term cyberlaw to
refer to the emerging body of law that governs
transactions conducted via the Internet.
Cyberlaw is not really a classification of law,
nor is it a new type of law. Rather, it is an
informal term used to describe both new laws
and modifications of traditional laws that
relate to the online environment.

23. Types of Courts
• Supreme Court: Acts as the final guardian of
the Constitution. It is also the final Court of
Appeal in matters arising out of cases decided
by the High Courts. The permanent seat of the
Supreme Court is in Islamabad while it has
branch registries in all four provincial capitals.

24. Types of Courts
• High Court: the four High Courts in the
Provinces, exercise general control over the
administration of justice in their respective
territorial limits. There is also High Court in
federal Capital Islamabad. The High Court is an
appellate Court for all Civil and Criminal
matters in the respective province. Articles
192 to Article 203 in Part VII of the
Constitution deal with matters pertaining to
High Court functioning.

25. Types of Courts
• Civil Courts: All Civil Courts are subordinate to the
High Court and subject to the general superintence and
control of the High Court; the District Judge has control
over all Civil Courts within the local limits of his
jurisdiction. Civil Courts in Pakistan are established by
the respective province under different laws titled the
Civil Courts Ordinance 1962 which recognizes the
following main classes of Civil Courts:
• The court of District Judge
• The court of Additional District Judge
• The court of Civil Court

26. Types of Courts
• Criminal Courts: The Criminal procedure in Pakistan is laid down in the
Code of Criminal Procedure 1868, whereas the substantive law about
definition about a crime and its punishment is found in Pakistan Penal
Code 1860. The main Criminal Courts in Pakistan are:
• 1. High Court
• 2. Court of Session
• 3. Court of Magistrate
• High Courts are the Constitutional courts established under the
Constitution of Pakistan. However at the same time they also exercise
powers as criminal courts.
• A Court of Session comprises of Sessions Judge and Additional Sessions
Judge.
• Magistrates fall under three main categories namely Magistrates of first
class, Magistrates of Second Class and Magistrate of third Class. All
Magistrates are subordinate to the Sessions Judge of their respective
division.

27. Types of Courts
• Special Courts: Several special Courts and
Tribunals have also been established through
different laws to deal with specified matters
such as Income Tax Tribunal, labour Courts,
Family Courts, Rent Tribunals, Anti-Terrorism
Courts, and Board of Revenues etc. their
powers and jurisdiction are specified in the
statues creating them.

28. Types of Courts
• Federal Shariah Court: Federal Sharaih Courts have been
established to examine and decide the question whether or not any
provision of law is repugnant to the Injunctions of Islam as laid
down in the Holy Quran and Sunnah of the Prophet (peace be upon
him). If a law is found to be repugnant the Court is to provide
notice to the level of government concerned specifying the reasons
for its decision. The court also had jurisdiction to examine any
decision of any criminal court relating to the application of hudod
penalties. The Supreme Court also has a Shariat Appellate Bench
empowered to review the decisions of Federal Shariat Court.
According to Article 277 all existing laws shall be brought in
conformity with the Injunctions of Islam and Chapter 3-A pertains
to the functions and organization of Federal Shariah Court.

29. Types of Courts
• Qazi courts: This idea of Qazi courts gained momentum during the 1980s
Islamization program. Basically, efforts were being made to replace the
current judicial system with the system of Qazi and Majlis e Shura as it was
practiced in the early day of Islam.
• Qazi courts were established in KPK and Baluchistan provinces to provide
speedy legal remedies but this idea could not be implemented on a
national level.
• A person can be appointed as Qazi if he possesses a Sanad/Dars e Nizami
from a renowned Darul Uloom or if he is a law graduate from a recognized
university. The minimum age limit is 28 years but the government can
relax the age restriction if it wants. Qazis are appointed through the Public
Service Commission.
• Court fee and process fee of the Qazi courts are levied according to the
provisions of Dasturul Amal Diwani of Kalat. Proceedings before the Qazi
courts are according to the Civil Procedure Code. However original civil
suits are filed with the Assistant Commissioners and Tehsildars who will
refer them to Qazi or Majlis e Shura.

30. Types of Courts
• Jirga System
• The Jirga system was enacted in KPK through an
Act of Parliament in 1977, because it was felt that
there must be a separate local body for
adjudication of disputes on special matters which
are relevant to a specific area. This Act only
provided for a jirga system in KPK but then in
Baluchistan, the practice of Jirga system was quite
common because it’s a custom there that the
notables of area would decide various disputes
concerning minor offences.

31. Types of Courts
• Jirga System
• A jirga consists of a government official normally a Naib or Naib
Tehsildar who works as the president of the Jirga and he is assisted
by two other members, which are appointed by the Deputy
Commissioner. Jirga has the same powers as a civil court does under
the Code of Civil Procedure, 1908, pertaining to enforcing
attendance of witness or production of documents, etc. Jirga must
give both parties equal opportunity to present their point of view
and it may demand such evidence as may be necessary. The Qanun-
e-Shahadat order of 1984 applies to all proceedings before the jirga.
Witnesses may be cross examined and the Jirga has the authority to
administer oath to a witness, consistent with his/her religion. The
parties can be represented and defended by legal practitioners in
cases before the Jirga.

32. Types of Courts
• Jirga System
• If any party is dissatisfied with the decision of
the Jirga it may file for an appeal with the
Commissioner within 60 days of the receipt of
the decision. Furthermore, unless stated in
the Act, no decision, decree or judgment
passed by the Jirga cannot be called up in any
court or before any other authority.

33. ALTERNATIVE DISPUTE RESOLUTION (ADR)
• Negotiation: Parties meet informally with or
without their attorneys and attempt to agree
on a resolution. The parties themselves decide
the dispute. This is the simplest and least
expensive method of ADR.

34. ALTERNATIVE DISPUTE RESOLUTION (ADR)
• Mediation: A neutral third party meets with the parties
and emphasizes points of agreement to bring them
toward resolution of their dispute.
• This method of ADR reduces hostility between parties.
• Mediation is preferred for resolving disputes between
business partners, employers and employees, or others
involved in long-term relationships. This is the simplest
and least expensive method of ADR. The parties decide
the dispute, but the mediator may suggest or propose
a resolution.

35. ALTERNATIVE DISPUTE RESOLUTION (ADR)
• Arbitration: The parties present their arguments and
evidence before an arbitrator at a hearing, and the
arbitrator renders a decision resolving the parties’ dispute.
• This ADR method is the most formal and resembles a court
proceeding because some rules of evidence apply.
• The parties are free to frame the issues and set the powers
of the arbitrator.
• If the parties agree that the arbitration is binding, then the
parties’ right to appeal the decision is limited.
• The arbitrator imposes resolution on the parties that may
be either binding or nonbinding
• Frequently, parties include an arbitration clause in a
contract

36. 36

37. PAKISTAN ZINDABAD
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