Business Law 01

Business Business LawLaw

Legal Environment Legal Environment of Businessof Business

Chapter Concentration # of Class

1. Legal Environment and BusinessAn Overview— Meaning of Legal Environment— Rationale for Understanding Legal Environment— The Demand for Legislation— Reasons for Maintaining Legal Side— An Evaluation of Legal Framework—

1

2. Law of Contract An Overview— The Details of Essentials of Law of Contract— Termination and Breach of Contracts—

4

3. Sale of Goods Act An Overview— Essential Elements— Transfer of Ownership Conditions and Warranties—

2

4. Carriage of Goods Act An Overview— Carriage by Land— Carriage by Sea— Carriage by Air—

2

5. Company LawAn Overview— Memorandum of Association— - Articles of Association— Registration— Prospectus and Winding up—

3

6. Other Important ActsBangladesh Control of Essential Commodities Act – 1956— Pure Food Ordinance – 1969— Trade Marks Act – 1940— Patent Design Act – 1911— Standards of Weights and Measure Ordinance – 1982— Drug Policy – 1982— The Payment of Wages Act – 1936— The Industrial Relation Ordinance – 1969— The Shops and Establishment Rules 1970— Other Laws, Acts and Ordinances relating to Business—

2

7. Class Test— Class/ Case presentation— Review Class 1

Text Books:Text Books:

1.1. Commercial Law, A. K Sen and J. K. Commercial Law, A. K Sen and J. K. MitraMitra

2.2. A Manual of Mercantile Law, MC. A Manual of Mercantile Law, MC. Shukla.Shukla.

3.3. Manual of Company Law (Amendment Manual of Company Law (Amendment 1994).1994).

4.4. Labour and Industrial Law, A. A. Khan.Labour and Industrial Law, A. A. Khan.

Course TeacherCourse Teacher

Dr. Ataur RahmanDr. Ataur RahmanDepartment of MarketingDepartment of Marketing

University of DhakaUniversity of Dhaka

Legal Environment of Legal Environment of BusinessBusiness

Our society has not left business to Our society has not left business to its own devices- rather business its own devices- rather business operates within the constraints of lawoperates within the constraints of law

Legal restrain would ensure the best Legal restrain would ensure the best allocation of resourcesallocation of resources

Meaning of legal Meaning of legal environmentenvironment

The Legal Environment of Business The Legal Environment of Business has as its basic purpose the has as its basic purpose the equalization of market opportunities:equalization of market opportunities:

1.1. Business conduct restrainedBusiness conduct restrained

2.2. Consumer protectionConsumer protection


Business conduct Business conduct restrainedrestrained

Consumer protectionConsumer protection

Restraints of trade Restraints of trade can be can be accomplished by accomplished by several devices:several devices: Price fixing schemePrice fixing scheme The division of The division of

market among market among conspiring conspiring competitorscompetitors



Consumer protectionConsumer protection

Restraints of trade Restraints of trade can be can be accomplished by accomplished by several devices:several devices: Discriminatory Discriminatory

pricing practicepricing practice Vertical restraint on Vertical restraint on

institution within a institution within a channel of channel of distributiondistribution



Consumer Consumer protectionprotection

Consumer Consumer protection bases protection bases for some laws for some laws enacted to protect enacted to protect publicpublic




Consumer are also Consumer are also protected against protected against false and false and deceptive deceptive practices:practices: False and deceptive False and deceptive

advertising and advertising and mislabelingmislabeling

Use of impure Use of impure materialsmaterials




Consumer are also Consumer are also protected against protected against false and deceptive false and deceptive practices:practices: Substances harmful to Substances harmful to

the human bodythe human body The unrevealed The unrevealed

presence of used, presence of used, reprocessed and reprocessed and substitute materialssubstitute materials

Rationale for Rationale for understanding Legal understanding Legal

EnvironmentEnvironment Commitment to national economic Commitment to national economic

priorities and development strategypriorities and development strategy

Concern for and sympathy with Concern for and sympathy with emerging consumerismemerging consumerism

The need for regulation of commercial The need for regulation of commercial relation amongst the citizen of the relation amongst the citizen of the countrycountry


EnvironmentEnvironment Commitment to Commitment to

national economic national economic priorities and priorities and development development strategystrategy

Concern for and sympathy Concern for and sympathy with emerging consumerismwith emerging consumerism

The need for regulation of The need for regulation of commercial relation amongst commercial relation amongst the citizen of the countrythe citizen of the country

• What to be What to be manufacturedmanufactured

• How much to be How much to be manufacturedmanufactured

• Who will Who will manufacturemanufacture

The power of these The power of these options is options is

enormous enough enormous enough to shape business to shape business

decisiondecision


EnvironmentEnvironmentCommitment to national Commitment to national economic priorities and economic priorities and development strategydevelopment strategy

Concern for and Concern for and sympathy with sympathy with emerging emerging consumerismconsumerism

The need for regulation of The need for regulation of commercial relation amongst commercial relation amongst the citizen of the countrythe citizen of the country

Major causes of Major causes of consumerism has consumerism has been identified:been identified:1.1. Rising priceRising price2.2. Poor product Poor product

performanceperformance3.3. Deceptive Deceptive

advertisingadvertising


EnvironmentEnvironmentCommitment to national Commitment to national economic priorities and economic priorities and development strategydevelopment strategy

Concern for and sympathy Concern for and sympathy with emerging consumerismwith emerging consumerism

The need for The need for regulation of regulation of commercial relation commercial relation amongst the citizen amongst the citizen of the countryof the country

Regulate Regulate relationship relationship between marketers between marketers and:and:1.1. BuyersBuyers2.2. DealersDealers3.3. Advertising agenciesAdvertising agencies4.4. TransportersTransporters5.5. Other partiesOther parties

The Demand for The Demand for LegislationLegislation

Rapid economic growth and Rapid economic growth and expansionexpansion

Rapid change in social and Rapid change in social and economic structureeconomic structure

Other important developmentsOther important developments

The Demand for The Demand for LegislationLegislation

Others………..Others……….. The growing demand for capital created The growing demand for capital created

by the high investments requirement for by the high investments requirement for specializationspecialization

Pressures for larger and larger volume of Pressures for larger and larger volume of sales to compensates for the high cost of sales to compensates for the high cost of industrializationindustrialization

Expanding network of rail-roads providing Expanding network of rail-roads providing the means of market expansionthe means of market expansion

The opportunities for skilled and unskilled The opportunities for skilled and unskilled labor in the countries/citieslabor in the countries/cities

An Evaluation of the Legal An Evaluation of the Legal FrameworkFramework

Impact in the marketing behaviorImpact in the marketing behavior

Maintenance of competitionMaintenance of competition

Public health and safetyPublic health and safety

Effecting business decision Effecting business decision

Definition of Law

The term Law is used to denote rules of conduct emanated from and enforced by the State.

Law is the command of the Sovereign. It means –

1. Law has its source in sovereign authority.

2. Law is accompanied by sanctions.

3. The command to be a law should compel a course of conduct.

Definition of Law

Law is the rule of external human action enforced by the sovereign political authority.

Holland

Definition of Law

Law is the body of principles recognized and applied by the State in the administration of justice Salmond

Definition of Law

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

Characteristics of Law

Law is the rule relating to the actions of human beings.

Law attempts to regulate the external action of human beings.

Law is enforced by the State.

Law and Social Objectives

Law must be framed and changed on the basis of social needs.

Henry Maine


Moral values rather than the settlement of disputes of interests should be the objective of Law.

Observed by

Emile Durkheim

L. T. Hobhouse

Max Weber


Law is profoundly related to the following three elements –

1. The legal structure of the society

2. Constitutional ideals and principles

3. Legal procedure

Rosco Pound

Rules of Law There are three rules-

1. The rule of law states that, “No man is punishable or can be lawfully made to suffer in body or goods except for a distinct breach of law established in the ordinary legal manner before the ordinary courts.”

1. The rule of law mean, “No man is above law.”

1. The rule of law is “The result of statues and judicial decision determining the rights of private persons.”

Business Law 01

Documents

national economic

understanding

understanding

development

legal environment

consumer protection

deceptive

human beings