Business Law Question Answer Chapter 1 & 2

Answer to the questions of Chapter-1 &2 General Introduction to Law and Business Law

1. Define law and explain its characteristics.

Answer

Law is a substantial instrument to oversee the general public. Law influences everybody in the public arena concerning their exercises. It is an important articulation of the enlightened society. It directs and controls human practices, regardless of whether outside or inside, and forces a punishment for its infringement. 

It is, therefore, methods for rendering fairness/justice, looking after control, harmony, and giving security to the improvement of the general public. Being a subject of law each individual from the general public ought to control his/her carry out or go about as determined by the law or inside the ambit/extent of the law.

Nobody is allowed to break the law. On account of the encroachment of the law, an individual ought to be the subject of lawful outcomes or punishment. It is assumed that 'everybody should know the law'. It is an all-around perceived rule that 'ignorance of law and blunder as to law is no exempt'. 

Therefore, every individual should know the present laws. This guideline is important to execute law equally in the general public as an instrument to accomplish its end. Law isn't itself an end it is just the way to serve the requirements of people.  Some definitions of the law given by law scholar are mentioned below;

Black’s law dictionary – ‘Law is that which must be obeyed and followed by citizens subject to sanction/penalty or legal consequences.’

Austin- “A law is a rule of conduct imposed and enforced by the sovereign”.

Salmond-“Law is the body of principles recognized and applied by the state in the administration of justice”.

By watching all the descriptions of the law given above, it turns out to be evident that the law presumes a state. In its nonattendance, no presence of law can be introduced. The state has an essential obligation to keep up harmony and security in the general public, regarding its matters. 

For such reason, the state makes or approves to make, perceives, or endorses rules which are known as the law. For rules to be successful there are legal consequences behind them. Law might be through composition or unwitting, for example, customs. Yet, to be law whether rules or customs, they should be official and obligatory.

Answers to the Questions of Business Law/BBA/BBS/TU

Characteristics of Law

In view of various ways of thinking and meanings of law, the nature, and qualities of law can be enlisted as follows:

Proclamation/declaration of Law

The law is made and executed by the proficient a power which is known as sovereign authority and the figured law is reported liberally to the general public.

The same treatment

the law treats all similarly. This implies that the individual on a similar circumstance is dealt with similarly aside from in certain remarkable cases, for instance, children’s, women, tribes, etc.

Law ought to follow standards of natural justice

law that can't keep away from the standards of common justice. It ought to be based on reasons No one ought to be the judge in his/her case, sufficient hearing ought to be made before choosing the case and nobody ought to be denounced unheard. These standards of common equity are inseparable over the span of law-formulation, implementation, and in the adjudication.

The impression of social intrigue

The law depends on the regular enthusiasm of the general public and attempts to keep up the parity of interests for social solidarity and amicability. It is concerned with individuals and society reflecting social qualities.

Enactment of law

Law is enacted by the sovereign or the incomparable intensity of the state with full force against the individual or body of the individual.

Supremacy

the law has boundless power behind it. This power is called a sanction, and due to that law is relied upon to have complied.

Unbending nature/solidness

Law is inflexible and not the subject of everyday change. It cannot be changed in light of certain individuals or groups of individuals. It shows its unbending nature even in its enforcement.

Means for equity

Justice is constantly given through law. Law implies that consistently helps to give appropriate equity to the individuals.

Unfixed/Changeable

It is conceivable to change the law on the enthusiasm of a more prominent number of individuals in the general public. It is subject to modification and variation concerning time and normal needs. It ought not to be conflating to the idea of inflexibility.

Translation/Interpretation by the court

The understanding of the law is made by the court of the nation. The administration of equity/justice through law is conveyed by the free and skillful legal executive or court of the nation.

Preeminent

Law is incomparable in the arrangement of the rule of law. It is in every case incredible than the administrator. Law is the lord of the rulers; nothing is mightier/incredible than the law.

In this manner, the law is a set of rules made and applied by the sovereign to guide, order, and direct the people, business, and different associations inside the general public. 

It is the standard to keep up the connection between the general public and its individuals. Without law, no general public exists in the ideal standard and the absence of law makes frailty, disorder, heartbreaking, and turmoil.

2. State and explain the characteristics of Nepalese business law.

Answer

The term business law also called trade law/commercial law or mercantile law is the part of the law that includes law concerning exchange, trade, commerce, and industry. It is an ever-developing part of the law with the changing conditions of business and trade. 

The term 'business law' is a blend of two distinct terms 'business' and 'law'. The term business caries certain significance and the equivalent are applied in regard to the term law. 

So 'business law' talked about the foundation, function, development, and ending up of any business exercises, offices, and the business community. It manages the connection between the general public and private segments/business, and it makes keeps up and advances the helpful condition for business/maintains a healthy business environment.

It includes the law relating to the contract, sale of goods, agency, industry, company, indemnity, and guarantee, bailment, and pledge, insurance, banking, arbitration, foreign investment, technology transfer, and so on. So it is the aggregate of those law concerned with trade, commerce, and industry. Some of the famous definitions of business law can be pointed as below:

A.K. Sundaran- ‘Business the law provides legitimacy, security, control, and incentives to business activities. It also protects the rights and interests of consumers, labors, businesses, and society.’

M.C. Kuchhal- ‘ The  term mercantile law may be defined as that branch of law, which comprises laws concerning trade, industry, and commerce.’ 

In this manner, it is a piece of common law, which manages all the laws associated with every business movement and rights and obligations of businesspersons and business firms emerging from the business involvements. It causes the business network to convey its transactions with no terror and stumbling, with assurance and certainty.

Attributes of Nepalese business law

Business law is the law that is sanctioned by the state concerning the business. On account of Nepal also, the government has defined and authorized distinctive laws connection to business and their administration. This part of the law has a few qualities different from other parts of laws and which areas underneath;

Formulation by the competent authority of the state

Business law is not formulated by any ordinary individual rather it is formulated by the competent person(state) or body of the persons (house of representatives) having sovereignty. 

With this, there is sanction to be obeyed and facility to regulate daily behavior. The Civil Code, 2074, The Company Act, 2063, etc are examples of law relating to business and their management in Nepal.

Branch of civil law

Business law is the branch of civil law dealing with the rights and duties of businesspersons and business firms arising from business transactions. However, there is no clear-cut line of demarcation between mercantile law nd another branch of law. 

There are many common aspects of business law and civil law regarding property, compensation, and so on. So we can take the Civil Code as an example. Civil Code is not the direct example of business law but a certain part of the Civil Code is for business regulation and management so we can say that business law is the branch of civil law.

Regulation

Business law administers all the subject matters linking to trade, industry, commerce, etc. and also deals with rules regarding such matters. But it does not concern with the matters not relating to business-like marriage, separation, etc.

Equal treatment

It treats uniformly all the business people. It does not make any sort of discrimination while adjudicating its matters. It means this law will apply equally to all the persons involving in the business sector.

Status

Business law is placed in the top position in hierarchy than the business involving. Each business involving must follow and obey it very sincerely with good intention.

Means

Business law is a means to maintain peace, order, security, and discipline in the sector of trade and commerce. It creates a good environment, for protecting and reminding the rights and interests of business.

Administration

Business law is administered either by the judicial body or quasi-judicial body or any person having authority. 

Close to justice

Business law is closely connected with justice. This nature of law is necessary to promote business and sound relationships between businessmen and stakeholders.

Thus, business law is an important component to make a decent domain for the improvement of business, ensure and safeguard the rights and interests of the business people and to keep up great relations among national and global business and among business and society overall.

3. Explain the types of law.

Answer

(For the definition of law please see the initial part of answer 1)

Classification of law

Law is a significant articulation of the socialized society, which demonstrates different sorts of rules or standards. Law can be arranged into a few kinds and ways; however, one country cannot differentiate or classify the law on the entire basis. 

Various laws might be ordered for various purposes thus that there is no single method to arrange the law. From various perspectives, various scholars have characterized laws in separate ways. Right now, division of law can be introduced as beneath;

Substantive and Procedural Law

Substantive law is crucial or significant piece of the law identifying with the rights, obligations, and liabilities of it's subject. It characterizes such rights, obligations, and liabilities. In another word, substantive law depends on the lawful standards and identified with the topic and thought process of the law. 

It manages the substance of law and is idealistic. What we comprehend in the general feeling of law is substantive law. As per W.W. Cook, substantive law gives knowledge about the people’s rights and provisions of remedy available in case of infringement of rights. And procedural law is identified with the procedure of lawful process and proceedings and known as formal law. 

Containing rights and powers in the legitimate arrangements isn't sufficient. There must be contained the arrangements of the methodology to accomplish the points of the law. So it manages 'how the substance of the law is actualized?' 

Thus, Procedural law portrays the strategies and approaches to accomplish the rights endorsed in the law/substantive law. It manages the procedure with respect to how to secure the legitimate cure and disclose the directions to the solution for check rights. 

The system of case enlistment, summons, response, confirmation, pleading, witness testing, judgment, and execution of judgment is secured under it. It is the applied piece of substantive law, aside from its help substantive piece of law gets aloof. So it is the use of the content of the law.

Criminal and Civil Law

Criminal law is a piece of the law that is identified with control the unwanted actions or exercises in the general public for keeping harmony and security. Criminal law characterizes humans lead as wrongdoing and announces the discipline for it. 

Criminalization, decriminalization, and re-criminalization are its topic. It is sanctioned and implemented by the state to direct human lead as an endorsed way. This law forbids such sorts of human exercises which are viewed as unsafe to the general public. It proclaims the criminal obligation and discipline for specific human activities. 

It ought to be clear and certain. Then again, Civil Law is that piece of the law, which is identified with the property and position of the individual or civil issues. So the law concern about rights, status, position, and property of the individuals is called civil law. Common/civil law is instituted and upheld by the state to manage the conduct of people in society. 

The significant target of this law is to guarantee the privileges of the individuals to appreciate in their everyday life and to guarantee a cure if there is a violation over their rights. It is otherwise called municipal or state law since it might vary starting with one nation then onto the next nation. Land law, contract law, business law, family law, and so on are the matter of common law.

Public and Private law

The division of matter of law into public and private law is trailed by European nations Italy, Germany, France, and so on. Public law is that piece of the law, which manages public issues. It characterizes and directs the connection between the state and individuals. 

It has a wide degree to administer the state's organs like the lawmaking body, official and legal executive, and other constitutional bodies. Public law is a particularly significant law for the country and individuals also. It manages the state's exercises. 

Constitutional law, administrative law, criminal law, etc. are the part/matter of public law. Private law is legitimately identified with the individual intrigue or the intrigue other than public issues. This piece of the law is especially fundamental and significant for the overall population of their everyday life. It controls the connection between at least two people. 

It discusses individual rights, obligations, and liabilities and it might be civic and criminal. Contract law, family law, business law involves the matter of private law. The idea of private law is equivalent to the common law.

National and International Law

Every nation has the privilege to establish any sort of law according to the need under the national legal framework. The state formulates and implements the law to accomplish its destinations inside the regional ward. 

So, national law intended to work inside the domestic territory of the country. National laws might be a few sorts, for example, Constitutional law, Civil law, criminal law, and Administrative law, etc. These sorts of laws are established by the state for its purpose and by following the genuine procedure. 

National laws are more grounded in contrast with international law because of it’s unbending nature. International law is the law made by the universal network. It controls the relationship and behaviors of countries. There is no supreme authority on the planet to uphold such a law. So it is otherwise called moral for the countries, for example, rules of WTO, rules of UN, the law of the sea, the rule of the land, etc.

In this manner, based on nature, creation, jurisdiction, and legitimate impact, the law can be arranged into different kinds. Despite the fact that we have various kinds of law on the various premise yet the consummation reason for all the classifications of law is the equivalent and common.

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

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