Business And The Law

Chapter No.08Business Studies

BY:- ISRAR K. RAJA.Preston University, Islamabad.

The Business Law

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

The Nature of Law

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 law

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 Tort

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.

The Law Of Tort

Trespassing Law

Tort Liability

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.

Vicarious Liability

The Law and EmploymentContract of Employment

The contract of employment is the agreement between employer and employee which governs the relationship between both parties.

The Law and Employment

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)

Social Media And The Law

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.

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