Business law summary semester 1
General legal issues 1: nature, sources, and origins of law
Law consists out of rules and rights:
We need law to regulate human behaviour.
- Regulate: regulation ensures that individuals, organizations, and
entities operate within a framework that promotes order, fairness,
safety, and public interest.
Rights: define what individuals are allowed to do, have, or receive under
the law or moral principles.
Rules: something that tells us what to do and what not to do.
- Explicitly excluded: in legal terms refers to something that is
specifically and clearly stated as not included or not covered by a
particular law, rule, contract, or agreement. When something is
"explicitly excluded," it means that the parties involved or the law itself
has made a deliberate decision to leave it out, and it will not be subject
to the terms or conditions being discussed.
Balance: achieving fairness, proportionality, and equity when weighing
competing interests, rights, duties, or responsibilities.
There are 2 legal systems civil law and common law
Civil law: refers to the branch of law that deals with private rights and
obligations, rather than criminal matters. It governs the relationships
between individuals, businesses, and other legal entities.
- Codified
- Used in the Netherlands
Common law: refers to a legal system and body of law that is developed
by judges through decisions in individual court cases.
- Case law: refers to the body of law developed through judicial
decisions. It consists of past decisions made by courts that serve as
precedents or guidelines for future rulings.
o Precedent: refers to a previous court decision or legal case that
serves as an authority or guide for deciding similar future cases.
When a court makes a decision, it often sets a precedent that
lower courts must follow when handling cases with similar facts
or legal issues.
- Used in UK, USA, South-Africa
- It is not codified
3 differences of legal systems:
1. The origin:
- Common law UK
- Civil law France
2. If it is codified or not
- Common law has case law
- Civil law has codified statutes
3. If there is case law (precedent) or not
There are 2 areas of law private law and public law
, Private law: refers to the branch of law that governs relationships and
disputes between individuals, private entities, or organizations. It primarily
deals with matters where the state is not directly involved as a party
focussing on regulating interactions and ensuring fair treatment in
personal and commercial relationships.
- Examples are: contract law, employment law.
Public law: refers to the branch of law in which the government tells us
what the rules are and what we have to do.
- Examples are: criminal law, tax law, statute law, constitutional law.
- Regulation: is a rule or directive issued by an authorized body (such
as a government agency, regulatory authority, or administrative body)
that governs specific activities, behaviours, or procedures within a
certain area.
Contract law: defines the rights and duties of the parties involved in a contract
and provides legal remedies in the event of a breach of those obligations.
Rental disputes: refer to disagreements or conflicts between landlords
and tenants regarding the terms and conditions of a rental agreement or
lease. Renting is a subject of contract law.
Employment law: outlines the rights and duties of employers and employees,
helping to ensure fair treatment, prevent exploitation, and create a safe and
equitable work environment.
Employment disputes: refer to disagreements or conflicts between
employees and employers regarding various aspects of the employment
relationship.
Criminal law: defines crimes, regulates the prosecution and punishment of
those who commit crimes, and establishes penalties for the offenders. The main
objective is to maintain public safety, protect individuals and property, and deter
illegal conduct.
Conduct: refers to how a person behaves or acts.
Tax law: refers to the body of law that governs the collection, assessment, and
enforcement of taxes by the government.
Statute law: refers to the body of law that is created and enacted by legislative
bodies such as parliaments. It is written law, formally codified into statutes or
acts.
Constitutional law: is a branch of law that deals with the interpretation and
application of a countries constitution.
There are 3 R’s rights, responsibilities and reasonableness
Responsibilities: refer to the duties, obligations, or legal requirements
that individuals, organizations, or entities are bound to follow under the
law.
Reasonableness: refers to a legal standard that evaluates actions,
behaviour, or decisions based on what an average persons would consider
fair, logical, and just under the circumstances.
, Legal representation: everybody has the right to a lawyer to act on your
behalf.
Promotes fairness and gives everybody and equal chance.
To prevent vigilantism.
Procedural and substantive law:
Substantive law: tells you what the law is about.
Procedural law: tells you what the procedural steps that need to be
taken are. It ensures that legal proceedings are carried out in a fair,
consistent, and efficient manner, while safeguarding the rights of the
parties involved.
- Legal proceedings: refer to the formal steps and processes involved
to resolve issues in accordance with the law.
Appeal vs review:
Appeal you don’t agree with the decision made by court when they
made a mistake with the facts.
Review the court made a mistake with the rules they needed to follow.
Rule of law: everyone must follow the law, so also those who made it on one
is above the law.
Rechtsstaat: refers to a legal and political system in which government
actions are strictly governed by law, and the legal rights of individuals are
protected againt arbitrary actions of the state.
International law:
CISG (Convention on Contracts for the International Sale of
Goods): is an international treaty that governs the sale of goods between
businesses. It is also known as the Vienna Convention.
- B2B (business to business): a term used to describe transactions,
relationships or activities between two or more businesses rather than
between a business and individual consumers (B2C).
There are different types of EU-law:
- Precisely there are 8, but treaties and directives are the most important
ones:
o Treaties: formal, legally binding agreements between 2 or more
sovereign states or international organizations.
o Directives: types of legal acts used by institutions of the EU to
direct member states to achieve specific results. Directives set
out goals or objectives that member states must achieve, but
allow each country to decide how to implement them within their
national legal framework.
The consumer rights directive is an example of B2C sales
within the EU. B2C (Business to Consumer): refers to a
type of commerce or transaction where businesses sell
goods or services directly to individua consumers. In this
model, businesses target and serve the end consumer,
who is purchasing the product or service for personal use,
rather than for resale or business purposes.
General legal issues 1: nature, sources, and origins of law
Law consists out of rules and rights:
We need law to regulate human behaviour.
- Regulate: regulation ensures that individuals, organizations, and
entities operate within a framework that promotes order, fairness,
safety, and public interest.
Rights: define what individuals are allowed to do, have, or receive under
the law or moral principles.
Rules: something that tells us what to do and what not to do.
- Explicitly excluded: in legal terms refers to something that is
specifically and clearly stated as not included or not covered by a
particular law, rule, contract, or agreement. When something is
"explicitly excluded," it means that the parties involved or the law itself
has made a deliberate decision to leave it out, and it will not be subject
to the terms or conditions being discussed.
Balance: achieving fairness, proportionality, and equity when weighing
competing interests, rights, duties, or responsibilities.
There are 2 legal systems civil law and common law
Civil law: refers to the branch of law that deals with private rights and
obligations, rather than criminal matters. It governs the relationships
between individuals, businesses, and other legal entities.
- Codified
- Used in the Netherlands
Common law: refers to a legal system and body of law that is developed
by judges through decisions in individual court cases.
- Case law: refers to the body of law developed through judicial
decisions. It consists of past decisions made by courts that serve as
precedents or guidelines for future rulings.
o Precedent: refers to a previous court decision or legal case that
serves as an authority or guide for deciding similar future cases.
When a court makes a decision, it often sets a precedent that
lower courts must follow when handling cases with similar facts
or legal issues.
- Used in UK, USA, South-Africa
- It is not codified
3 differences of legal systems:
1. The origin:
- Common law UK
- Civil law France
2. If it is codified or not
- Common law has case law
- Civil law has codified statutes
3. If there is case law (precedent) or not
There are 2 areas of law private law and public law
, Private law: refers to the branch of law that governs relationships and
disputes between individuals, private entities, or organizations. It primarily
deals with matters where the state is not directly involved as a party
focussing on regulating interactions and ensuring fair treatment in
personal and commercial relationships.
- Examples are: contract law, employment law.
Public law: refers to the branch of law in which the government tells us
what the rules are and what we have to do.
- Examples are: criminal law, tax law, statute law, constitutional law.
- Regulation: is a rule or directive issued by an authorized body (such
as a government agency, regulatory authority, or administrative body)
that governs specific activities, behaviours, or procedures within a
certain area.
Contract law: defines the rights and duties of the parties involved in a contract
and provides legal remedies in the event of a breach of those obligations.
Rental disputes: refer to disagreements or conflicts between landlords
and tenants regarding the terms and conditions of a rental agreement or
lease. Renting is a subject of contract law.
Employment law: outlines the rights and duties of employers and employees,
helping to ensure fair treatment, prevent exploitation, and create a safe and
equitable work environment.
Employment disputes: refer to disagreements or conflicts between
employees and employers regarding various aspects of the employment
relationship.
Criminal law: defines crimes, regulates the prosecution and punishment of
those who commit crimes, and establishes penalties for the offenders. The main
objective is to maintain public safety, protect individuals and property, and deter
illegal conduct.
Conduct: refers to how a person behaves or acts.
Tax law: refers to the body of law that governs the collection, assessment, and
enforcement of taxes by the government.
Statute law: refers to the body of law that is created and enacted by legislative
bodies such as parliaments. It is written law, formally codified into statutes or
acts.
Constitutional law: is a branch of law that deals with the interpretation and
application of a countries constitution.
There are 3 R’s rights, responsibilities and reasonableness
Responsibilities: refer to the duties, obligations, or legal requirements
that individuals, organizations, or entities are bound to follow under the
law.
Reasonableness: refers to a legal standard that evaluates actions,
behaviour, or decisions based on what an average persons would consider
fair, logical, and just under the circumstances.
, Legal representation: everybody has the right to a lawyer to act on your
behalf.
Promotes fairness and gives everybody and equal chance.
To prevent vigilantism.
Procedural and substantive law:
Substantive law: tells you what the law is about.
Procedural law: tells you what the procedural steps that need to be
taken are. It ensures that legal proceedings are carried out in a fair,
consistent, and efficient manner, while safeguarding the rights of the
parties involved.
- Legal proceedings: refer to the formal steps and processes involved
to resolve issues in accordance with the law.
Appeal vs review:
Appeal you don’t agree with the decision made by court when they
made a mistake with the facts.
Review the court made a mistake with the rules they needed to follow.
Rule of law: everyone must follow the law, so also those who made it on one
is above the law.
Rechtsstaat: refers to a legal and political system in which government
actions are strictly governed by law, and the legal rights of individuals are
protected againt arbitrary actions of the state.
International law:
CISG (Convention on Contracts for the International Sale of
Goods): is an international treaty that governs the sale of goods between
businesses. It is also known as the Vienna Convention.
- B2B (business to business): a term used to describe transactions,
relationships or activities between two or more businesses rather than
between a business and individual consumers (B2C).
There are different types of EU-law:
- Precisely there are 8, but treaties and directives are the most important
ones:
o Treaties: formal, legally binding agreements between 2 or more
sovereign states or international organizations.
o Directives: types of legal acts used by institutions of the EU to
direct member states to achieve specific results. Directives set
out goals or objectives that member states must achieve, but
allow each country to decide how to implement them within their
national legal framework.
The consumer rights directive is an example of B2C sales
within the EU. B2C (Business to Consumer): refers to a
type of commerce or transaction where businesses sell
goods or services directly to individua consumers. In this
model, businesses target and serve the end consumer,
who is purchasing the product or service for personal use,
rather than for resale or business purposes.
