Lecture_1_Introduction_to_Business_Law_Final.pptx

An introduction to the laws and Acts applied to business world

1. Lecture 1: Introduction to Business Law BBA 5th Semester / BS A & F Department of Management sciences

2. Learning Objectives • Define Business Law and its importance • Identify sources of business law in Pakistan • Understand law and business ethics • Explain the scope and branches of business law

3. Meaning of Law Law refers to a set of rules and principles established by a governing authority to regulate human conduct in society. “Law is a body of rules which are enforced by the state to regulate human conduct.” — Salmond

4. Meaning of Business Law Business Law (also called Commercial or Mercantile Law) governs business and commercial transactions. It deals with: • Contracts • Sale of Goods • Negotiable Instruments • Partnerships and Companies • Consumer and Labour laws

5. Importance of Business Law • Ensures fair practices in business • Protects rights of buyers and sellers • Helps resolve disputes • Provides legal framework • Builds consumer and investor confidence

6. Scope of Business Law 1. Law of Contract 2. Law of Sale of Goods 3. Law of Agency 4. Negotiable Instruments Act 5. Company Law 6. Partnership Act 7. Labour Laws 8. Consumer Protection Laws

7. Sources of Business Law in Pakistan 1. The Constitution of Pakistan (1973) • Supreme law of the country. • All business and commercial laws must conform to it. • Defines powers of Federal and Provincial governments. 2. Legislation / Statutes • Laws passed by Parliament or Provincial Assemblies. • Examples: Companies Act 2017, Contract Act 1872, Partnership Act 1932, Sale of Goods Act 1930. 3. Judicial Precedents (Case Law) • Decisions of higher courts that set legal principles. • Ensure uniformity and fairness in legal interpretation. 4. Customs and Usage of Trade • Long-established business practices recognized by traders. • Used when no written law applies. • Example: market delivery or trade discount customs. 5. English Common Law • Inherited from British legal system. • Applies where no specific Pakistani law exists. • Many contract and commercial principles originate here.

8. Diagram: Classification of Law Law │ ├── Public Law │ ├── Constitutional Law │ ├── Administrative Law │ └── Criminal Law │ └── Private Law ├── Civil Law │ ├── Contract Law │ ├── Tort Law │ ├── Family Law │ └── Property Law │ └── Commercial (Business) Law ├── Company Law ├── Partnership Law ├── Sale of Goods ├── Negotiable Instruments └── Consumer Protection

9. Branches of Law 1. Public Law • Regulates relationship between individuals and the state. • Ensures justice and control over government powers. Sub-branches: - Constitutional Law: Defines structure and powers of government. - Administrative Law: Controls actions of public officials. - Criminal Law: Defines offences and punishments. 2. Private (Civil) Law • Deals with rights and duties between individuals. Sub-branches: - Contract Law: Agreements enforceable by law. - Tort Law: Compensation for harm or negligence. - Property Law: Ownership and transfer of assets. - Family Law: Marriage, divorce, and inheritance. 3. Commercial (Business) Law • Focused on trade, commerce, and business transactions. Sub-branches: - Company Law: Formation and regulation of companies. - Partnership Law: Rights and duties of partners. - Sale of Goods Act: Legal rules for buying and selling goods. - Negotiable Instruments Act: Rules for cheques and promissory notes. - Consumer Protection Law: Safeguards consumer rights.

10. Law and Business Ethics Law defines what is legally right or wrong. Ethics defines what is morally right or wrong. A good business follows both law and ethics for sustainable success.

11. Relationship Between Law and Business Law maintains justice and regulates conduct. Business aims for profit but must operate within legal boundaries. Law provides the structure; business provides activity.

12. Key Legal Terms • Plaintiff – the person who brings a case • Defendant – the person being sued • Contract – a legally binding agreement • Liability – legal responsibility • Breach – failure to perform a duty Aggrieved part – party suffering loss

13. Summary Business Law provides a legal foundation for smooth business operations, ensuring fairness, protection, and confidence for all parties.

14. Discussion Questions 1. Why is Business Law important for managers and entrepreneurs? 2. What are the main sources of Business Law in Pakistan? 3. How do law and ethics differ in business?