Post on 27-Apr-2023
Business And The Law
Chapter No.08Business Studies
BY:- ISRAR K. RAJA.Preston University, Islamabad.
The Nature of LawCriminal law:-general well being of society and punishments
Civil law:-rules for the conduct of relation between people or organizations.it includes
Contracts lawEmployment lawConsumer rightsProperty lawSuccession lawTort;- negligence, nuisance, defamation and trespass
Criminal VS Civil lawCriminal CivilDefines actions that the state punishes
Deals with the crimes against society
The prosecutionPunishes the guiltyProof of guilty beyond reasonable doubt is required
Rules for the conduct of relation between people or organization
Deals with wrong against individuals
SuingDamages/compensation are awarded
Proof on the balance of probability is required
Sources of LawCommon law-established since centuries-contract and tort
Statute law-acts of parliament-business organizations, employment and trade unions
Delegated legislation-detailed regulation issued by regulatory bodies
Statutory-interpretation of law by judges in particular circumstances
Case law-developed over years through judgments of judges
Custom-ancient custom become law-land useEquity-justice and fairness otherwise law leads to an injustice.
Contract lawIn common law legal systems, a contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them.
Requirements for a contractOffer + Acceptance = Agreement An offer once accepted creates an agreement
ConsiderationSome element of mutual exchange in term of money.
Intention to Create Legal RelationsLegally binding
CapacityAbility and authority to make contract
Agency LawAn agent is a representative of another legal party ( Principal) with its consent.
Duties of agentTo act in the best interests of the principalNo conflict of interestNo secret profitDuty of confidentialityDuty to use care and skillDuty to accountDuty not to delegateDuty of obedience
The Law Of TortTort is defined as a civil wrong and includes a variety of activities that cause harm. Examples are assault, false imprisonment, defamation, trespass, negligence and nuisance ( It means that which causes offence, annoyance, trouble or injury.)
Negligence is a failure to exercise the care that a reasonably prudent person would exercise in like circumstances. The area of tort law known as negligence involves harm caused by carelessness, not intentional harm.
Nuisance-the unjustifiable interference with the right to enjoy and live comfortably on it.
Public Nuisance:- is suffered by a group and can be crime as well.
Private Nuisance:- involves one person against the activities of other.
Vicarious LiabilityVicarious liability is a doctrine of tort law that imposes liability on employers for the wrongdoings of their employees. Generally, an employer will be held liable for any tort committed while an employee is conducting their duties.
Reasons:-Control over employeesNegligence in selecting employeesBetter position to compensateCan provided incentives to not do the actBenefits from employees , so as well responsible for their actions.
The Law and EmploymentContract of Employment
The contract of employment is the agreement between employer and employee which governs the relationship between both parties.
Employment Contract in PakistanEvery employer in an industrial or commercial establishment is required to issue a formal appointment letter at the time of employment of each worker. The obligatory contents of each labour contract, if written, are confined to the main terms and conditions of employment,
namely nature and tenure of appointment, pay allowances other fringe benefits admissible, terms and conditions of appointment. All terminations of service in any form must be documented in writing stating the reasons for such an act.
Similarly, no young person, under the age of 18, can be required or permitted to work in excess of seven hours a day and 42 hours a week.
Employment Contract in PakistanIn factories, the periods and hours of work for all classes of workers in each shift must be notified and posted in a prominent place in the principal language in the industrial or commercial establishment.
Paid Leave every worker who has completed a period of twelve months continuous service in a factory shall be allowed, during the subsequent period of twelve months, holidays for a period of fourteen consecutive days
Maternity Leave and Maternity Protection qualifying period, a worker may have up to six weeks prenatal and postnatal leave during which she is paid a salary drawn on the basis of her last pay.
Equality in the form of securing the well-being of the people, irrespective of sex, caste, creed or race.
Other LawsSex Discrimination ActMaternity RightsRacial DiscriminationEmployee’s SafetyOccupier’s Liability ( Visitors)
Intellectual Property rightsIntellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.
IP right refers to the general term for the assignment of property rights through patents, copyrights and trademarks. These property rights allow the holder to exercise a monopoly on the use of the item for a specified period.
(IPRs) are legal rights that protect creations or inventions resulting from intellectual activity in the industrial, scientific, literary or artistic fields. Patents, copyrights, marks and trade secrets are some of the most common intellectual property rights.
Consumer Protection LawConsumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace.
The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors.
Consumer Protection LawsMisleading description bannedPrice reductions have to be genuineIllegal to demand payment for good/service not ordered.
Display of price informationNo hastily signed agreementsProduct safetyGoods to be merchantable quality fit to sellStrict liabilityAnyone injured by defective products can sueGoods must be of satisfactory quality