1. Dear Students
Welcome back
to
AIT

2. Chapter 15 2

3. Legal Issues in Business
Syllabus
 Indian Contract Act, 1872
 Negotiable Instruments Act, 1881
 Indian Sale of Goods Act, 1930
 Indian Partnership Act, 1932
 Companies Act, 1956
 Consumer Protection Act, 1986
 Information Technology Act, 2000
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4. Law- Introductory
 Law has different connotations :
 Set of rules to be obeyed by a citizen
 Vocation for a lawyer
 Creation of a legislator
 Guiding principles to be applied in making decisions – for a
judge
 Law includes all the principles and rules which regulate our
relations with other individuals and with the State.
 Laws can be :
 Civil Laws (CPC-Code of Civil Procedure-1908)
 Criminal Laws (Cr. PC/IPC-Criminal Procedure Code-1860)
 Mercantile Laws
 Industrial Laws
 International Laws so on and so forth
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5. Law - Definitions
 Holland- A jurist, defines ‘law’ as rules of external human
action enforced by the sovereign political authority i.e.
the State
 Salmond- Law is the body of principles recognized and
applied by the State in the administration of justice
 Woodrow Wilson – law as 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.
 It represents the code of conduct which is established
and enforced by the State.
 It is an abstract body of rules and also a social
machinery for securing order in community
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6. Objectives of Law
 To maintain order
 Uniformity in socio-economic justice
 Safety and Security
 Welfare
 Improvement in material, moral and spiritual
wellbeing
 For the people and by the people (Thro their
reps.)
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7. Need for the knowledge of law
 “Ignorantia juris not excusate”- a maxim
 For business
 For safety and security
 For rights and duties
 For general knowledge
 For peace and harmony
 To avoid conflict
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8. Mercantile Law
 Branch of law dealing with contractual
situations and the rights and obligations
arising out of business transactions
between mercantile persons.
 A mercantile person can be an individual,
a partnership firm or a joint stock
company.
 The aggregate body of those rules which
are connected with trade, industry and
commerce.
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9. Sources of Mercantile Law
 English Mercantile Law (Modified)
 Common Law- Habits, Usages, Traditions and
Customs (Unwritten but evolved systematically)
 Equity- Concept of justice developed by the
judges (Unwritten)
 Statute Law
 Maritime Law (14th & 15th Century laws)
 Roman Laws- based on Bible
 Case Laws- Precedents
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10. THANKS
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