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Legal Environment of
Business
Noor Nahar Begum
Lecturer
Faculty of Business Studies
Bangladesh University of Professionals (BUP)
Chapter 1
Introduction to Law
Learning Outcome
 Definition
 Importance of law
 Branches of law
 Sources of business law
 Scope of business law
What is Law ?
 The law is a set of legal rules that governs the way
members of a society act towards one another.
 Law is “ that portion of the established habit and
thought of mankind which has gained distinct and
formal recognition in the shape of uniform rules
backed by the authority and power of the
Government”. – Woodrow Wilson
 Laws are required in society to regulate the behaviour
of the individual, to correspond with what is
acceptable to the majority of individuals,
Importance of LAW
 Without law, life and business would become a matter
of survival, not only of the fittest but also of the most
ruthless.
 Laws are required in society to regulate the behaviour
of the individual, to correspond with what is
acceptable to the majority of individuals,
 Law is the potential tool of social change.If fact law
and society are complementary. No society can exist
without law. It is essential for up keeping of peace in
the society.
BRANCHES OF LAW
 CONSTITUTIONAL LAW
 ADMINISTRATIVE LAW
 CRIMINAL LAW
 CIVIL LAW
 COMMERCIAL LAW
CONSTITUTIONAL LAW
 Is the law which regulates the structure of the
principal organs of the government and their
relationships to one another and determines their
principal functions.
 The rules consist both of legal rules and of usages,
commonly called conventions, which without being
enacted are accepted as binding by all concerned with
the government
ADMINISTRATIVE LAW
 It is the law that governs the executive branch of the
government. It is as old as the executive.
CRIMINAL LAWS
 Are the laws which wrong doers are punished. At the
same time, civil laws are those laws with which the
private rights of an individual are enforced
MERCANTILE LAWS
 It deals with the rights and obligations of Commercial
persons emerging from commercial transactions in
respect of commercial property.
SCOPE OF BUSINESS LAW
 The scope of the business law has enormously
widened due to the increasing complexities of the
modern business world.
 It usually covers topics of law of contracts, law relating
to Agency, law relating to sale of goods, law of
partnerships, law of companies, law relating to
negotiable instruments, law of banking, law relating to
insurance, pollution control etc.
 These and other topics are covered by legislations
enacted by Central and State Governments.
SOURCES OF BUSINESS LAW
 Statutory law: Acts passed by Parliament
 English mercantile law
 Local Customs and usage
 Equity: Judges follow decisions that had been
made in similar, previously decided cases, with
remedies based on fairness.
 Common law - Judges follow decisions that had
been made in similar, previously decided cases,
with the remedy of damages.

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Ch01 Lecal Environment

  • 1. Legal Environment of Business Noor Nahar Begum Lecturer Faculty of Business Studies Bangladesh University of Professionals (BUP)
  • 3. Learning Outcome  Definition  Importance of law  Branches of law  Sources of business law  Scope of business law
  • 4. What is Law ?  The law is a set of legal rules that governs the way members of a society act towards one another.  Law is “ that portion of the established habit and thought of mankind which has gained distinct and formal recognition in the shape of uniform rules backed by the authority and power of the Government”. – Woodrow Wilson  Laws are required in society to regulate the behaviour of the individual, to correspond with what is acceptable to the majority of individuals,
  • 5. Importance of LAW  Without law, life and business would become a matter of survival, not only of the fittest but also of the most ruthless.  Laws are required in society to regulate the behaviour of the individual, to correspond with what is acceptable to the majority of individuals,  Law is the potential tool of social change.If fact law and society are complementary. No society can exist without law. It is essential for up keeping of peace in the society.
  • 6. BRANCHES OF LAW  CONSTITUTIONAL LAW  ADMINISTRATIVE LAW  CRIMINAL LAW  CIVIL LAW  COMMERCIAL LAW
  • 7. CONSTITUTIONAL LAW  Is the law which regulates the structure of the principal organs of the government and their relationships to one another and determines their principal functions.  The rules consist both of legal rules and of usages, commonly called conventions, which without being enacted are accepted as binding by all concerned with the government
  • 8. ADMINISTRATIVE LAW  It is the law that governs the executive branch of the government. It is as old as the executive.
  • 9. CRIMINAL LAWS  Are the laws which wrong doers are punished. At the same time, civil laws are those laws with which the private rights of an individual are enforced
  • 10. MERCANTILE LAWS  It deals with the rights and obligations of Commercial persons emerging from commercial transactions in respect of commercial property.
  • 11. SCOPE OF BUSINESS LAW  The scope of the business law has enormously widened due to the increasing complexities of the modern business world.  It usually covers topics of law of contracts, law relating to Agency, law relating to sale of goods, law of partnerships, law of companies, law relating to negotiable instruments, law of banking, law relating to insurance, pollution control etc.  These and other topics are covered by legislations enacted by Central and State Governments.
  • 12. SOURCES OF BUSINESS LAW  Statutory law: Acts passed by Parliament  English mercantile law  Local Customs and usage  Equity: Judges follow decisions that had been made in similar, previously decided cases, with remedies based on fairness.  Common law - Judges follow decisions that had been made in similar, previously decided cases, with the remedy of damages.