Business Law Question Answers of Chapter 1 & 2

BBS 3rd year business law notes 

The answer to Questions from Chapter 1 and 2; General Introduction to Law and Business Law

1. What are the sources of law/business law?

Answer

Commonly, the term sources mean the spot from where something develops. It implies the origination and formulation of something are viewed as a source. The first spot or organization or rules from where law or business law rises is known as the source of law or business law. In such sense, a wellspring/source of law or business law is the article or thought that adds to the development of the law or business law.

The source of law/business law comprises the appropriate response of the inquiries where does the law originates from? Where does it start? Who makes it? So the wellspring of law is identifying with its introduction to the world and legitimacy. Concerning wellspring of law, there is no consistent view among the scholars as there is no single jurisprudential view. 

Some have unified on its association, some have on causes behind creation law, and some have focused on power as the wellspring of law. Thusly, it is exceptionally hard to refer to a specific thing as a wellspring of law. Considering the perspectives communicated by the various law specialists and scholars, the wellsprings of law are not consistent but rather there are a few likenesses. Because of these basic components communicated by the various legal scholars, wellsprings of law can be enrolled as follows:

Legislation or Statutory Law or act by the legislature

The term 'Legislation' is applied to denote the purposeful formation of legitimate statutes (आदेशहरु )by an organ of the nation or state, which set up for this reason and gives formalized authoritative archive. The legislation is an organ shaped to establish, alter, and repeal/drop the part law of the national legal framework. It is the primary wellspring of law in contemporary states. It holds and appreciates the law-making intensity of the nation. 

The legislation is the wellspring of law which changed over into statutory law in the wake of passing it from the parliament. It is made in the composed structure and called statutory law. It is made by the adjustment in time and result of a long arrangement of conversations among the representatives of the individuals, for example, Contract Act, Company Act, Negotiable Instrument Act, Sale of Goods Act, Banking and Financial Institution Act, Arbitration Act, and so on.

Precedent (नजीर)

The law has enabled the court to decipher the law itself. In this manner, the court likewise makes the law living by deciphering it. For the situation where the law is quite regarding a case to be settled, the court chooses by analyzing its outcomes. Such legal choices later become a wellspring of law in the future comparable case and called precedent. Hence, it implies the choices of the Supreme Court for the case while settling it. 

A choice of the Apex Court, which impliedly or expressly set out a legitimate suggestion which turns into a general and formal wellspring of law. So the precedent is the term used to portray a court's prior holding on an issue of law which is like the issue in a pending case. The apex court of the nation is the last mediator of the statutory law, in this way, the ratio decidendi (reasoning for the choice made in a specific instance) of the interpretation of the concluded case is known as precedent and such choice applies to other comparative cases in future time. 

However, all the choices of the Supreme Court do not point as precedent but rather those choices that build up new standards for satisfying the gap of law are known as the point of reference. It is likewise a legitimate and most significant wellspring of the law in the present states.

Customs and usages

It is the most established source of law. Custom is the routine conduct of human culture. The law got from custom is known as customary law, for example, arrangements of the basic code of Nepal (Muluki Ain). It shows that in unsophisticated society, the life of individuals was managed by customs. 

Customs is considered a supernatural law. So customs and usages play a remarkable job in the law-making process, settling and in any event, and even at enforcement as well. A substantial custom must be prehistoric (old) and followed ceaselessly, ought to be judicious, positive, certain, obvious, and good and it ought not to be against public well being, justice, and existing law of the state.

Treaties or Commercial arrangements

It is another significant wellspring of law.  Agreement denotes an understanding between at least two gatherings throughout their dealings. When there are no statutory laws and customs, the individuals may concur with administering their shared lead. Such understanding is authoritative to the concerned gatherings and the standards of understanding gradually will be acknowledged by the other general individuals and it is changed over into the general custom. 

So it is likewise the wellspring of law. The modification on such a settlement or understanding is additionally made according to the time. Notwithstanding, it is viewed as a powerless wellspring of law. For example, global laws/international laws are the assortment of such ordinary laws and understandings, for example, the law of the ocean, law of land, law of war sleuth.

Legitimate compositions and specialists' opinions

Compositions of the different researchers and assessments of the specialists are likewise the most significant wellsprings of law and business law. These are the rules for the legislators. So legitimate compositions and assessments of concern researchers are viewed as a source of law. 

The researchers produce information depends on profound investigation and looks into and scatter/spread it for the public well being. It improves the lawful jargon and thoughts in juristic talk. 

Books, diary articles and assessments of specialists may add to plan laws and its settling/procedure of adjudication. To be viewed as a wellspring of law works and assessments ought to be communicated by a specialist concerning the lawful field.

English commercial law

The English law was developed in England and is the pioneer of business law on the planet. Particularly it is the significant wellspring of business law with regards to Nepal and India. In the underlying stage, the British specialist built up the guidelines and standards for business exchanges. Later on, it was changed over into trade law. 

At the point when East India Company came to India for business purposes, it brought reasonable business rules and standards in India. In this way, India was colonized by the British implementing its legitimate standards. During the time of the colony, the Indian business, exchange, trade were created dependent on British guidelines. 

Because of land, social, and business conditions, Nepalese business undertakings were additionally influenced straightforwardly and in a roundabout way from Indian business exercises. So the British Mercantile law is viewed as the wellspring of Indian and Nepalese business law. For instance, the Indian Contract Act, 1872 is impacted by the British Contract law, and the Nepalese Contract Act, 2056 was affected by the Indian Contract Act, 1872.

These are the significant sources of law/business law and are comparative in numerous nations. For India and Nepal, most of the wellsprings of business law are comparable.

2. Explain the need and importance of business law.

Answer

Business incorporates human exercises of any sort to be managed for the employment; that is, an action that is finished with a view of winning benefit is business. The business incorporates different exercises of creation, dispersion, and trade performed to give products and enterprises to satisfy the needs of the general public with an equitable measure of benefit and public assistance. 

Trade and mechanical advancement is vital for the improvement of the whole society and country. For such improvement, there is a requirement for an appropriate lawful condition of business alongside different prerequisites. 

In this way, business law has an essential job in making, creating, directing, managing, controlling, upgrading, and systematizing the business and business exercises. Without this law, no such transactions can be run easily. No financial status of the individuals can be sound, and no economy of a nation can take movement without a decent trade law.

In such a foundation, business law ought to be authorized and changed by the pace of time and the area's circumstance. As a managing and controlling instrument, the business law altogether adds to build up the business territories. Along these lines, the need, and significance of business law can be pointed as underneath;

Help in foundation, function, and crumbling of business

Business law makes all the important arrangements or techniques in regards to joining, functioning, disintegration, and institute of the business or business association, for example, business entity, organization, bank, and so on. And business can direct its exercises in the trained, steady, and great way or etiquette.

It is the methods for keeping up harmony and command

Harmony and good order are fundamental in the business network also. Business law directs, systemizes, and controls business exercises of any sort to stop issues like disorder, terror, disarray, vulnerability, and so on in the business network. It ties all the businesspersons, and every one of them regards it. Business law is hence intended to keep up harmony and order in the business network.

Help in the formation of a decent business environment

The best condition for working together is conceivable in the business network because of business law. It makes a decent business condition by making different arrangements in the business network. For instance, it makes a decent domain among businesspersons and non-business people, businesspersons, and government, and guides businesspersons to run business in a trained manner, precludes them to embrace economic dealings in undesired habits. With a decent lawful system, the businessman can run business with certainty and without dread, and the business will also cultivate.

Support and instigation

Business law energizes and instigates any individual who is eager to lunch business. For this, it ensures different kinds of rights, concessions, and offices, for example, right on the benefit earned from the business, the exception in various sorts of assessments, extract obligation, and so on according to the nature and size of business. Due to these arrangements of business law individuals consistently pulled in to lunch new organizations and need to go to various regions inside and outside the nation.

Mindfulness for rights and alert to duties

Business law makes businesspersons mindful and alerts them to their commitments or obligations. It additionally gives an individual ready to lunch a business point by point data about what kind of business exercises can be run or can't be run and about what concessions and offices are accessible and what discipline must be borne before beginning it, etc.

Settlement of debates

Various potential debates or contrasts in the intrigue are unraveled by the business law. To settle such debates, business law perceives or decides systems or modalities which the concerned gatherings ought to receive while settling questions. The question can comprehend without going into the official courtroom if the gatherings like to d so.

Help in economic advancement

Business law makes an ideal situation for working together and working with a decent domain is the most grounded base for building up the economy. In this manner business law is the weapon of general improvement of the economy and to make a nation financially stable.

Aside from previously mentioned focuses, the accompanying focuses are additionally mulled over for the clarification of the significance of business law;

It decides discipline and prize.

It builds up business morals and social duty.

It secures business intrigue.

It makes the foundations for the improvement of business networks.

It creates and controls the capital market.

Business law is, accordingly, the foundation of the economic advancement of any nation. It is important to build up a modern state in the nations and for the advancement of business, business law including each side of the business ought to be made according to the interest of time and circumstance.

References

Kalika, S. N. (2015), Business Law, Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd

Agrawal, N.  (2005), Jurisprudence, Allahabad, Central Law Publications

Kuchal, M.C. (1978), Mercantile Lw, New Delhi: Vikas Publication Pvt Ltd

Mishra, B.P. (2006), Mercantile Law, Kathmandu: Asia Books Distributions Pvt Ltd

For the answers to other questions from the same chapter click HERE

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