BUS 2033 - BUSINESS LAW

DIPLOMA IN MANAGEMENT WITH MULTIMEDIA

MULTIMEDIA COLLEGE

Lecturer:Zakaria bin Embizakariae@pjh.com.my013-380 0030

COURSE OUTLINE

1.Introduction to Law 2.Law of Contract 3.Company Law 4.Commercial Law 4.1Sales of Goods4.2Hire Purchase4.3Insurance5.Law of Torts6.Law of Negotiable Instruments 7.Revenue Law

ALLOCATION OF MARKS

5 Class Tests/Quizes:25%Assignment :10%Presentation:10%Class Attendance/Participation: 5%Final Exam:50%

BUSINESS LAW

INTRODUCTION TO LAW

BUSINESS LAWINTRODUCTION TO LAW

Nature of Law Sources of Malaysia Law The Judicial System in Malaysia

INTRODUCTION TO LAWNATURE OF LAW

What is Law? The relevance of law to business Law in relation to Justice Relevance of Law to Business Rule of Laws Classification of Law

INTRODUCTION TO LAWNATURE OF LAW- WHAT IS LAW?

A general rule of conduct Set of rules, developed over a long period of time that regulates interactions that people have with each other, and which sets standards of conduct between individuals and between individuals and the government and which are enforceable through sanction.

INTRODUCTION TO LAWNATURE OF LAW- WHAT IS LAW?

The body of principles recognized and applied by the State in the administration of justice. Law is a body of rules which are enforced by the State Sir John Salmond.

INTRODUCTION TO LAWNATURE OF LAW- WHAT IS LAW?

A command set by a superior being to an inferior being and enforced by sanctions (punishments). The superior being is the State and the inferior being is the individual. The sanctions are wide and include imprisonment, fines, damages, injunctions and decrees of specific performance John Austin.

INTRODUCTION TO LAWNATURE OF LAW- WHAT IS LAW?

Define in Article 160(2) of the Federal Constitution 1957 and Section 2(1) of the Interpretation and General Clauses Ordinance 1948 to include:

The written lawCommon law in so far as it is in operation in the Federation or any part thereof; andAny custom or usage having the force of law in the Federation or in any part thereof.

INTRODUCTION TO LAWNATURE OF LAW- LAW IN RELATIONS TO JUSTICE

Law aims to maintain justice in society.

Justice is an abstract idea of right and wrong, fairness and equality. Therefore the aim of a given law is to encourage the doing of what is right or just in a particular set of circumstances.

What is seen to be just today may not be seen to be so in the future. This is because society norms change from time to time. Thus as society evolves, the legal system should also evolve so that existing injustices will gradually disappear and be replaced by fairness.

INTRODUCTION TO LAWNATURE OF LAW- RELEVANCE OF LAW TO BUSINESS

Law is needed to regulate and control the affairs of society.

Law guarantees our freedoms, enable free enterprise and provide means to settle disputes amicably.

Business are affected and shaped by laws as seen in corporate mergers, privatization of governmental organizations, crimes committed within the securities industry, corporate collapses and corporate fraud cases.

Application of the principles of contract law to both individuals and businesses when they enter into agreements or contracts of employment, agency, sale and purchase contracts, credit facilities documentation, insurance, service contracts and the like.

Provide remedies for breach of contracts.

INTRODUCTION TO LAWNATURE OF LAW- RULES OF LAW

No person must be punished except for a breach of the law. This means that a person should be able to know whether what he may want to do is lawful or unlawful. Law is the highest authority in society.

All persons are equal before the law irrespective of status or position

The rights or freedoms of citizens are enforceable in the courts.

INTRODUCTION TO LAWNATURE OF LAW- CLASSIFICATION OF LAW

Public Law (administer the relations between the individual and the State/Govt.)e.g.- Constitutional Law- Criminal Law

International Law (administer the relations between different countries)- Public International Law- Private International Law

Private Law (administer the relations between individuals)e.g.- Contract Law- Torts- Trust

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Historical sources Legal sources Places where the law can be found

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Written Law Unwritten Law Islamic Law

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Written Law

The main source of law in Malaysia. Laws enacted by Parliament and State Legislatures.

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Source of Written Law in Malaysia

Federal and State Constitutions Legislations Subsidiary legislations

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW The Federal Constitutions -Supreme law of the land - Any law that is inconsistent with the Federal Constitution is invalid and void. - e.g. Human Rights, Powers of the Federal/State Government, Powers of the Agong, Separation of power in the administrative system, official religion and language in Malaysia, etc.

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW The State Constitutions -13 State Constitutions administered by the respective Dewan Undangan Negeri. - Contain matters determined under Schedule 8 of the Federal Constitution. - e.g. the power of the Sultans

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Legislation

- Federal Legislation - State Legislation (laws enacted by State Legislatures)

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Federal Legislation

-Laws enacted by Parliament-Ordinances - before Merdeka-Acts - after Merdeka-Applicable throughout the whole of Malaysiae.g.Contracts Act, 1950Company Act. 1965

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW State Legislation

-Laws enacted by State Assemblies-Enactments -Applicable only to the respective Statese.g.Enakmen Tanah Rizab Melayu Kelantan, 1930Enakmen Undang-Undang Pentadbiran Islam Selangor, 1984 Enakmen Bekalan Air, 1951 (Pindaan) 1984

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Subsidiary Legislation

-Laws made by persons/bodies under powers conferred upon them by Acts of Parliament or enactment of State Assemblies

- Rules and Regulations and By-laws

e.g.Peraturan Perihal Dagangan (Harga Jualan Murah), 1987Peraturan-Peraturan Sewa Beli (Caj-Caj Terma), 1968,Undang-Undang Kecil Suruhanjaya Pelabuhan Pulau Pinang, 1957

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Unwritten Law

Law not enacted by Parliament or the State Assemblies. Not found in the Federal and State Constitutions.

Comprises of: (i)Principles of English Law applicable to local circumstances (ii)Judicial Decisions and Judgments of the superior courts (iii)Customs of the local inhabitants

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW (i)Principles of English Law

- applicable only(a) when there is a lacuna in the law (b) relevant to local circumstances

- Section 3 & 5 Civil Law Act, 1956

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW (ii) Judicial Decisions and Judgments of the superior courts

- Doctrine of stare decisis- Ratio decidendi- Obiter dicta

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW (iii)Customs of the local inhabitants - Adat Pepatih dan Adat Temenggong

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Judicial Decisions and Judgments of the superior courts -

Doctrine of stare decisis

In arriving at a decision, judges do not decide arbitrarily. They are bound to follow certain accepted practice commonly known as precedent.

A precedent is commonly defined as a judgement or decision of a court of law cited as an authority for the legal principle embodied in its decision.

If a judge fails to follow a binding precedent, the decision will be legally wrong and it is likely to be reversed on appeal. Where there is no appeal, it can be overruled in a later case.

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Judicial Decisions and Judgments of the superior courts -

Ratio decidendi

i.e. the legal reasoning.

It is the legal reasoning of the precedent that is binding.

The court in a later case decided to apply the legal principle established in an earlier case on account of similarities in the material facts. The parties to the dispute are not the same, the kind of goods bought is different but nevertheless, there is a common element justifying the application of the same rule.

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Judicial Decisions and Judgments of the superior courts -

Obiter dicta

things said by the way

i.e. the opinion on a question of law expressed by the judge in the course of a judgement which is not directly relevant to the case before him.

It is not part of the rule (ratio) and hence is strictly not binding on courts although it may have very high persuasive authority, particularly if it originates from a higher court such as the Federal Court.

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Islamic Law

Only applicable to Muslims Administered by the Syariah Courts Important because Muslims form the majority religious group in the whole of Malaysia.

Others

English Common Law and Equity Textbooks on law authoritative statements of the law which are reliable

INTRODUCTION TO LAWSOURCES OF MALAYSIAN LAW Examples of Written Law applicable to bankers

Banking and Financial Institutions Act Offshore Banking Act Contracts Act Companies Act Bills of Exchange Act

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Judicial system in Malaysia is divided into 2:-

Civil CourtsSyariah Courts

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA SYARIAH COURT

Mahkamah Rendah Mahkamah Tinggi Mahkamah Rayuan

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA CIVIL COURT

Subordinate Courts in Peninsular Malaysia Subordinate Courts in East Malaysia Superior Courts in Malaysia

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Subordinate Courts in Peninsular Malaysia

Penghulus Courts Magistrates Courts Juvenile Courts Sessions Courts

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Subordinate Courts in East Malaysia

Native Courts Magistrates Courts Juvenile Courts Sessions Courts

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Superior Courts in Malaysia

High Court Court of Appeal Federal Court

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Other Courts in Malaysia

Mahkamah Khas Raja Mahkamah Kanak-kanak Mahkamah Tentera Mahkamah Perusahaan Mahkamah Anak Negeri

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Roles of a Judge

Formulating original precedents Overruling earlier precedents Constitutional review Statutory interpretation Operation of doctrine of binding precedent Application of doctrine of ultra vires Import of rules of natural justice

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA

Alternative Methods of Dispute Resolution

Tribunals Mediation Arbitration

INTRODUCTION TO LAWTHE JUDICIAL SYSTEM IN MALAYSIA Small Claims Court - settle industrial disputes through conciliation and arbitration

Consumer Claims Tribunals - Mediate disputes between consumers and traders

Financial Mediation Bureau - Mediates disputes between banks and other financial institutions and their customers