Legal and Regulatory Framework

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Unit 1
Structure: 1.1 Introduction Objectives 1.2 Meaning and Scope of Business Law Difference between law and regulations 1.3 Sources of Law Sources of Indian business laws 1.4 Laws applicable to Business in India Commercial laws Labour laws Corporate laws Taxation laws Financial laws Miscellaneous laws 1.5 Summary 1.6 Glossary 1.7 Terminal Questions 1.8 Answers

Introduction

1.1 Introduction
Legal and regulatory framework of business refers to the norms and stipulations laid down by laws, legislations and regulations that define the behavioural boundaries for business activity and thereby govern business, trade and commerce. The major purposes of business legislation include laying down laws governing all aspects of business, protection of companies from unfair competition, protection of consumers from unfair business practices and protection of the work force from exploitation. It also works on conservation of the environment and protection of the interests of society from unbridled business behaviour such as monopolising trade, manipulating prices, creating artificial shortage of goods by hording etc. It also aims at creating an environment conducive for trade within the country as well as with other countries as well as to make the business environment an attractive economic hub for foreign investment.
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The legal environment becomes more complicated as organisations expand globally and face governmental structures quite different from those within their own countries. Legal and regulatory framework has become even more important and crucial in the post liberalisation business scenario of India. In this unit, we will get an overview of the complexities of legal and regulatory framework impacting business in India. We will also become familiar with the definition of business laws and know the sources of laws in general and business laws in particular. In subsequent units, we will study these aspects in detail. Objectives: After studying this unit, you should be able to: recognise the legal framework of business define the laws applicable to business discuss the laws governing business

1.2 Meaning and Scope of Business Law

The term Law denotes the rules and regulations that are enacted by the legislature and enforced through designated authorities to govern various aspects of public and personal life. It is a body of rules recognised and enforced by courts of law. In the Indian context law may be defined as an Act passed by the Parliament or a state legislature and signed by the President of India or Governor of a state. According to Clause 3 of the Indian Constitution, the term Law includes ordinances, orders, bye-laws, rules, regulations, notifications as well as custom and usage having the force of law. An amendment to an existing law is also termed as law. Business laws lay down norms and stipulations for production, quality control, fair trade practices, flow and accounting of finance, raising of capital, foreign direct investments and so on. In subsequent units you will be reading these in detail.

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Scope of business law: The ambit of business law spreads across the following areas related to business: Protection of companies from unfair competition. Regulation of production. Defining norms for quality control. Raising of funds and capital. Deployment, management and accounting of funds. Protection of consumers from unfair business practices. Protection of the work force from exploitation. Conservation of environment. Protection of civil rights and the interests of society from unbridled business behaviour. Ensuring an environment conducive for trade within the country as well as with other countries. Making the business environment an attractive economic hub for foreign investment. Laying down norms for Foreign Direct Investment (FDI). Interpreting business related laws and clauses of the Constitution. Arbitrating business and trade related disputes. 1.2.1 Difference between law and regulations A Law or an Act is a bill passed by both houses of Parliament or the State Legislature. It acquires the status of an Act after it is signed by the President of India or the Governor of a state. It comes into force when it is notified in the official Gazette. Rules and regulations are subordinate legislations framed by the executive branch or autonomous statutory organisations of the Government to implement the provisions of the Act. When there is a discrepancy between the law and the implementing regulation, courts normally give the law supremacy over regulations unless it can be proved that the regulation interprets the intent of the legislators better. This illustrates the spirit of checks and balances operating in a democracy. The legislature creates the law, the executive branch issues a regulation for implementing it and the judicial branch decides on the constitutionality and jurisdictional issues.
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Self Assessment Questions Fill in the blanks: 1. A bill passed by both houses of Parliament or the State Legislature becomes an Act when it is signed by _________________ or ________________. 2. An Act comes into force when it is notified in the __________. 3. An _______ to an existing law is also termed as law. 4. According to ________________, the term Law includes ordinances, orders, bye-laws, rules, regulations, notifications as well as custom and usage having the force of law. 5. The _______ creates the law, the _________ issues a regulation for implementing it and the ___________ decides on the constitutionality and jurisdictional issues.

1.3 Sources of Law

The word Source denotes the origin from which something is derived. It may also refer to the circumstances or causes that become responsible for something coming into existence. Law has evolved over the ages all over the world. Indian law has also passed through various stages of development. Prior to the British Raj, Indian princely states were governed according to the laws laid down by the kings and emperors. All successive dynasties that ruled India from time to time laid down their own laws. When the British colonised India they imposed their own legal framework adopted from the legal system prevailing in Britain to govern this vast subcontinent. Most of the laws applicable in India have their source in the British laws. Before we study the sources of business laws of India, let us become familiar with the sources of laws in general. There are various sources which can be classified as under: Formal sources: A formal source of law is usually a constitutional process by which a legal rule comes into existence, for example the passage of a bill through Parliament. The state is the sole formal source of law. Laws derived from formal source have force and validity as instruments of state governance.
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Material sources: Material sources are concerned with the substance and content of legal obligation. These refer to various processes which result in the evolution of the constituents of law. Material sources may be divided into the following a) Legal sources: These are the sources which are recognised by law itself as authoritative, for example i) Statutes and laws which derive their force from the legislature. ii) Case laws which have their source in precedents. iii) Customary laws which spring from customs. b) Historical sources: The sources which have no binding force and which are not recognised by law are called historical sources. Examples include juristic writings, literary writings and decisions or judgements passed by foreign courts. 1.3.1 Sources of Indian business laws The oldest business law which was applicable in India was the barter system. Business laws existed even under the monarchy systems prevailing in most of the princely states. However, we can trace the background of modern business laws in India to 1600 A.D. Most Indian laws in general and business laws in particular have their source in the British legal system. The foundation of the East India Company not only initiated a drastic shift in the Indian political scenario but also marked a major milestone in the legal history of India. The British Crowns charter of 1600, under which the company was set up, gave it sweeping juristic powers. The Company was legally empowered to make laws for its government and to impose such fines and penalties as might be necessary to impose these laws. It is interesting to note that till the early 1900s, most of the British law was not a written law. Only certain portions like the Magna Carta existed in writing. As Britain colonised most of the world, its trade and commerce grew. At times, disputes regarding trading issues occurred and were taken to the kings court. All such cases were decided according to the usage and custom of the community and the prevailing concept of equality and justice. Judges relied heavily on precedence in deciding cases. When a number of similar cases were decided alike, the reasoning and principle underlying the judgment acquired the force of an unwritten law. As more and more such laws emerged, they became part of what is called Common Law.
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As British trade and commerce flourished, its influence increased in the world. The increase in trade across the world raised newer issues and disputes for which the common law was not adequate. New laws were required to resolve them. That is when the practice of enactment of statutory laws to regulate trade and commerce started. The Contract Act, the Sale of Goods Act and the Negotiable Instruments Act are example of such enactments. As more and more enactments came into force, it was decided that the law be systematised and written down as Acts. By the early 1900s the British Government got the Common Law and the enactments written down as Acts. When the British colonised India, they needed a body of law to govern this vast and diverse nation. They borrowed, adapted and imposed many Acts existing and prevailing in Britain as Acts applicable in India. Some examples are The Indian Contract Act, 1872, the Indian Sale of Goods Act, 1930 and the Negotiable Instruments Act, 1881 and so on. Thus, most of the business laws of India have their roots in the British laws such as: 1. English mercantile law: Lex mercatoria is a Latin expression meaning law merchant. In business context it refers to a body of trading principles used by the merchants throughout Europe in the medieval ages. Evolving from a system of customs and best practice, it functioned as the international law of commerce. It was enforced through a system of merchant courts along the main trade routes. The English Mercantile Law constitutes the foundation on which the superstructure of the Indian Mercantile Law has been built. 2. Statutory Law: Statutory law is a written law enacted by the legislature or other authorised governing body such as the executive branch of the government. Statutory law contains all laws enacted to facilitate, regulate or clarify the process of governance, to improve civil order, codify or amend existing laws, or to grant special treatment to an individual or company. In the Indian context, all laws are statutory. When a Bill passed by the Parliament is signed by the President of India, it becomes an Act or a Statute. The bulk of Indian Mercantile Law is statutory law. 3. Judicial Decisions: The past judicial decisions or precedents of courts are important sources of law. Sometimes existing statutory provisions
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are not adequate enough to resolve an issue. In such cases the court adjudicates according to past precedents on similar matters. The precedents set by the higher courts have a binding force on lower courts and the precedents set by the courts of the same status like High Courts of different states, exercise a persuasive power over each other. 4. Customs and usages: Like all other aspects of human activities, business and trade also rely heavily on customs and usages, practices and business dealings related to a particular trade. In many cases such practices acquire a binding and legal force on the parties. For example, as per the mercantile usage prevailing in the Delhi Iron Market among big merchants, no interest can be charged on the unpaid price for transactions before 1917. However, the custom or usage must be certain, reasonable and well known to have a binding force. Self Assessment Questions Fill in the blanks: 6. _____________ is a Latin expression meaning law merchant. 7. ________ is a written law enacted by the legislature or other authorised governing body. 8. The past judicial decisions are known as ______________. 9. A formal source of law is usually a _________ process by which a legal rule comes into existence. 10. Till the early 1900s most of the British law was not a ________ law.

1.4 Laws Applicable to Business In India

The legal and regulatory framework plays a crucial role in the economy of a nation. The politico-legal ideology and the economic policies of the government as well as the prevailing laws and regulations have a bearing on all aspects of business, commerce and trade. The Government of India has enacted several laws that lay down the boundaries within which business and industries are required to function. These enactments play a very significant role in the nations overall progress and economic development. These legislations are amended from time to time according to the needs of the changing circumstances. Following are the major business laws applicable in India:

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1.4.1 Commercial laws Commercial laws govern business and trade relationships and transactions. Following are the major commercial laws in India: The Indian Contract Act, 1872: Most of the transactions in trade, commerce and industry in India are based on contracts. The Indian Contract Act, 1872 lays down the general principles relating to formation, performance and enforceability of contracts and the rules relating to certain special types of contracts like Indemnity and Guarantee; Bailment and Pledge as well as Agency. The law related to Agency is a part of this Act. It also contains provisions pertaining to breach of a contract. Sales of Goods Act, 1930: This Act governs all aspects of sale and purchase of goods. A sale is a specialised form of contract. Therefore, the basic principles of the contract Act applies to the sale of goods also. It also deals with issues of ownership and the quality of goods sold or to be sold. Indian Partnership Act, 1932: Partnership is the relationship between two or more persons who agree to enter into business together with mutual assent. This law governs all the modalities and issues arising out of such business relationships. Indian Negotiable Instruments Act, 1881: A negotiable instrument is a document that guarantees the payment of a specific amount of money as per the stipulations contained in the document. This Act deals with the following three instruments recognised in India: i) Promissory note ii) Bill of exchange iii) Cheques and Demand Drafts Industries (Development and Regulation) Act, 1951 (IDRA): This Act empowers the government to take necessary steps and actions for the development of industries, to regulate the pattern and direction of industrial development; and to control the activities, performance and results of industrial undertakings in the public interest. The Consumer Protection Act, 1986: It is the most important and comprehensive Act for the protection of consumer rights. It was amended in 1989 and since then has been amended five times to keep pace with the changing times and increased awareness about consumer rights. The Act
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identifies the following six rights of the consumers which are protected by legislation and enforced through consumer courts: i) The right to be protected against goods and services that are hazardous to life and property. ii) The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services. iii) The right to assured access (wherever possible) to a variety of goods and services at competitive prices. iv) The right to be heard and to be assured that proper forums will give due consideration to consumers interests and grievances. v) The right to seek redressal against unfair trade practices or exploitation. vi) The right to consumer education. Competition Act, 2002: This Act provides for a modern framework of protection against unfair competition. The Act replaced the Monopolies and Restrictive Trade Practices (MRTP) Act of 1969. The main objectives of the Act are: i) Establishment of a Commission to prevent practices having adverse effect on competition. ii) Promotion and sustenance of healthy competition in Indian markets. iii) Protection of the interests of consumers. iv) Ensuring freedom of trade to the participants in Indian markets. Vide this Act, the Government of India has set up the Competition Commission of India (CCI) in order to ensure a healthy and fair competition in the market economy. You will read about these and other related laws in detail in subsequent units. 1.4.2 Labour laws It is the responsibility of the Ministry of Labour and Employment to safeguard the interests of workers in general and of the poor, deprived and disadvantaged sections of the society, in particular. The Ministry is also entrusted with the task of creating a healthy work environment for higher production and productivity and to develop and coordinate vocational skill training and employment services.

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In order to do so, the Parliament enacts labour laws which deal with employer-labour relationship, trade unions, wages payable to the workers, post retirement benefits, the health and safety of workers and so on. The Indian government has enacted the following important laws for this purpose: The Indian Trade Unions Act, 1926: A Trade union is a voluntary organisation of workers pertaining to a particular trade, industry or a company. Its objective is to promote and protect the interests and welfare of the workers by collective action. The Trade Unions Act, 1926 deals with the registration of trade unions and their rights, liabilities and responsibilities. It also lays down stipulations to ensure that their funds are utilised properly. The Industrial Disputes Act, 1947: This legislation governs industrial relations, which involve various aspects of interactions between the employer and the employees, among the employees as well as between the employers. The Industrial Disputes Act is invoked for the investigation and settlement of all industrial disputes. It also addresses conflict of interests in the industry. The Act also enumerates the contingencies when a strike or lock-out can be lawfully resorted to and when they can be declared illegal or unlawful. It lays down conditions for layoffs, retrenchment, discharge or dismissal of a workman. It also defines the circumstances under which an industrial unit can be closed down. The Industrial Employment (Standing Orders) Act, 1946: This Act requires employers to clearly state the conditions of employment to their workers. The Factories Act,1948: This Act aims to regulate the working conditions in factories; to ensure provision of the basic minimum requirements for safety, health and welfare of the factories workers as well as to regulate the working hours, leave, holidays, employment of children, women etc. It includes provisions for the licensing of factories and their inspection. The Constitution also prohibits the employment of a child below the age of fourteen years in any factory or mine or to be engaged in any other hazardous employment. Other such important Acts are The Workmens Compensation Act, 1923,The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, The
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Employees Provident and Miscellaneous Provisions Act, 1952 and The Payment of Gratuity Act, 1972, the Bonded Labour System (Abolition) Act, 1976 etc. 1.4.3 Corporate laws Corporate law pertains to all aspects of business enterprise in the modern world. Issues such as the role of shareholders, directors, employees, creditors and stakeholders; the interest of the consumers and the community; and the impact of the company activities on the environment etc. are part of this law. They also deal with mergers, takeovers and winding up of sick units. The Companies Act, 1956: This is the most important corporate law in India. It lays down the provisions relating to the formation of a company, powers, roles and responsibilities of the directors and managers, raising of capital, holding company meetings, maintenance and audit of company accounts, powers of inspection and investigation of company affairs, reconstruction and amalgamation of a company and, if necessary, its winding up also. The Act applies to the whole of India and to all types of companies, whether registered under this Act or an earlier Act. However, it does not apply to universities, co-operative societies, unincorporated trading, scientific and other societies. The Act empowers the Central Government to inspect the books of accounts of a company, to direct special audit, to order investigation into the affairs of a company and to launch prosecution for violation of the Act. In response to the changing business environment, the Companies Act, 1956 has been amended from time to time to make it commensurate with changing business requirements and to provide more transparency in corporate governance. Foreign Exchange and Management Act, 1999 (FEMA) is a successor to the Foreign Exchange Regulation Act, 1973 (FERA). FEMA was enacted to consolidate and amend the already existing law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. However, the provisions of FEMA are very different from those of FERA.
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The Foreign Trade (Development and Regulation) Act, 1992 and the EXIM Policy: Foreign trade is the exchange of goods and services between two countries, across their international borders. Imports and exports are the two important components of a foreign trade. 'Imports' imply the physical legal movement of goods into one country from another while 'exports' imply the physical movement of goods out of a country in a legal manner. Thus, imports and exports have made the world a global market. In India, exports and imports are regulated by Foreign Trade (Development and Regulation) Act. It authorizes the Central Government to formulate and announce an Export and Import Policy (EXIM). Other major corporate laws are The Securities Contracts (Regulation) Act, 1956 and The Depositories Act, 1996. These deal with and govern the sale of securities. Issues like acquisitions of companies where the shares are held by the general public, is governed by the Substantial Acquisition of Shares and Takeovers (SEBI) Regulations, 1997. Mergers of companies require the approval of the High Court. 1.4.4 Taxation laws The Constitution of India bestows the authority to levy taxes on the Central and the State Governments. However, no government can impose any tax unless an appropriate Act, duly enacted by the Parliament or the State Legislature permits it. Article 265 of the Constitution clearly states that "No tax shall be levied or collected except by the authority of law." The Constitution vide Article 246, has listed the areas on which the Parliament or the State Legislatures or both can enact laws to levy taxes. Schedule VII demarks these areas into three lists as follows: List I: Areas on which only the Parliament is competent to make laws. List II: Areas on which only the State Legislature can make laws. List III: Areas on which both the Parliament and the State Legislature can make laws. All taxation laws fall within the purview of the Ministry of Finance. The main body responsible for administration of taxes in India is the Central Board of Direct Taxes (CBDT). The Central Board of Direct Taxes (CBDT) is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of
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the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes. The CBDT is a part of the Department of Revenue in the Ministry of Finance. It has the following responsibilities: providing essential inputs for policy and planning of direct taxes in India administration of direct tax laws through the Income Tax Department The Central Board of Revenue is the main body responsible for the administration of taxes. It exists and functions as per the stipulations of the Central Board of Revenue Act, 1924. Initially the Board was in charge of both direct and indirect taxes. However, as the task of administrating all the taxes in a vast nation could not be handled by one Board, it was decided to set up another Board, namely the Central Board of Excise and Customs with effect from 1.1.1964 to levy and administer excise taxes and custom duties. This bifurcation was brought about by constitution of the two Boards under section 3 of the Central Board of Revenue Act, 1963. Let us now discuss the major taxation laws in India: Income Tax Act of 1961: This Act is the most important tax law in India. All taxes on the income of individuals and corporations are levied and realised vide this Act. The tax on income is imposed under the following five heads: income from house and property income from business and profession income from salaries income in the form of capital gains and income from other sources Wealth Tax Act deals with the assets one possesses. The Act has been passed and repealed many times. Service Tax, imposed under Finance Act, 1994 taxes the provision of services provided by service providers within India or services imported by an Indian from outside India. Central Excise Act, 1944 imposes a duty of excise on goods manufactured or produced in India. Customs Act, 1962 imposes duties of customs, countervailing duties and anti-dumping duties on goods imported into India.
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Central Sales Tax, 1956 deals with sales tax on goods sold in inter-state trade or commerce within India. Transaction Tax pertains to taxes imposed on transactions of sale of securities and other specified transactions. 1.4.5 Financial laws Financial laws deal with savings and investments products as well as the services related to these products. Savings and investments play a vital role in the economy of a nation. Financial laws subject financial institutions to certain stipulations, restrictions and guidelines in order to maintain the integrity of the financial system. The specific aims of such laws and regulations are: To enforce applicable laws. To prosecute cases of market misconduct, such as insider trading. To ensure fair play by licensed providers of financial services. To protect clients of such service providers and investigate complaints. To maintain confidence in the financial system. Financial laws lay down stipulations and regulations for financial services such as banking services, brokerage services, commodities, consumer lenders (including credit card issuers), insurance, investment advisors, mortgages, mutual funds and stocks and bonds 1.4.6 Miscellaneous laws Apart from the major categories of law listed here, there are some assorted but very important laws that you will be reading in the subsequent units. These are: The Environmental Regulations: Over the years, there has been an increasing consciousness and realisation that environmental quality and economic development are complementary and not mutually exclusive. With tremendous technological advancements, environmental challenges are also on the rise. Therefore, the government has framed many laws to protect every aspect of environment. Broadly, the environmental concerns include the emission standards for gasses in the air, noise, water etc. Separate set of laws for emission of hazardous wastes have also been enacted. Every industry has to abide by these guidelines and parameters for environmental protection. The main priorities of these regulations is
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controlling water and air pollution, forest conservation, wildlife protection and safeguarding biological diversity. Intellectual Property Legislations pertain to all the creations of the human mind such as ideas, knowledge, inventions, innovations, creativity or research etc. The rights relating to intellectual property are known as 'Intellectual Property Rights' (IPRs). In today's globalised scenario of expanding multilateral trade and commerce, it has become imperative for any country to protect its intellectual property by providing statutory rights to the creators and inventors. Thus, the statutory rights help them fetch adequate commercial value for their efforts in the world market. Intellectual property rights cover two main areas:i) Indian Copyright Act: The rights of authors or creators of literary and artistic works such as books and other writings, musical compositions, paintings, sculpture, computer programs and films etc. are protected under this Act. The Copyright Act also covers the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organisations etc. ii) Industrial Property Rights: Industrial property rights such as patents, distinctive signs, in particular, trademarks which distinguish the goods or services of one undertaking from those of another are protected under these rights. Innovations, original designs and the creation of technology, industrial designs and trade secrets also come within the purview of this Act. Information Technology Act, 2000 deals with the issues of electronic communication. In the modern business scenario, a great deal of business is done online. Hence, there is a need to regulate, govern and protect such dealings. The Act grants legal recognition to transmission of data through the electronic communication. It holds such transactions as valid and also stipulates that all such communications can be treated as evidence. It also deals with the issues of hacking, deliberate spread of virus, transmission of obscene material and treats these as criminal offences. As all business, trade and commerce related activities have to operate within the statutory framework of the country, every enterprise must take business laws into account while framing its basic aims and objectives.
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Knowledge of these laws helps the business houses to know about the rights, responsibilities as well as the challenges that they may have to face. Self Assessment Questions State whether the following statements are True or False: 11. Corporate laws govern business and trade relationships and transactions. 12. It is the responsibility of the Ministry of Home Affairs to enact laws to protect and safeguard the interests of workers. 13. Commercial laws lay down how corporate companies are to be run and also discuss issues such as the role of shareholders, directors, employees. 14. The Constitution of India bestows the authority to levy taxes on the Central and the State Governments. 15. Financial laws deal with savings and investments products as well as the services related to these products.

1.5 Summary
Let us review the important concepts that have been discussed in this unit. Legal and regulatory framework of businesses lay down the parameters within which business, trade and commerce can function. These regulations and legislations govern the governments relationships with organisations, subsidies, tariffs, import quotas and deregulation of industries, labour laws etc. In India, various laws have been enacted to govern how business is conducted. In the post liberalisation era these Acts have become even more important. In the Indian context, law may be defined as an Act passed by the Parliament or a state legislature and signed by the President of India or Governor of a state. Business laws have a wide scope. They govern almost every aspect of business dealings. The sources of law can be categorised into formal and material sources. The latter comprises of legal and historical sources. The primary sources of Indian law are custom, judicial precedents; statute, law or legislation and personal laws. The secondary sources are the doctrine of Justice, Equity and Good Conscience; and the English law.

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Sources of business laws in India are the English mercantile law, statutory law, judicial decisions and customs and usage. There are various categories of laws and regulations applicable to business in India such as commercial, labour, corporate, taxation, financial and miscellaneous laws. These laws play a major role in the country's overall progress and economic development. These legislations are amended from time to time in accordance with the changing circumstances and environment. These laws and regulations are aimed at providing an equitable and fair business environment to all the people concerned, be it the investor, consumer or labour or anyone.

1.6 Glossary
Arbitration: Resolution of dispute between two parties at the mediation of a third impartial party. Entrepreneur: A person who undertakes a commercial venture. Equitable: Something that deal fairly and equally with all concerned. Equity: A system supplemental to law. Liberalisation: Opening up of the economic system. Promissory Note: A written document by which one person agrees to pay money to another.

1.7 Terminal Questions

1. 2. 3. 4. 5. What are business laws? What are the sources of law? Discuss the sources Indian business laws? Which are the main labour laws applicable in India? Discuss the major commercial and corporate laws prevailing in India. Give the main taxation and financial laws of India.

1.8 Answers
Self 1. 2. 3. 4. 5. Assessment Questions: The President of India, the Governor of a state Official Gazette Amendment Clause 3 of the Indian Constitution Legislature, Executive, Judiciary
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6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Lex mercatoria Statutory law Precedents Constitutional Written Incorrect Incorrect Incorrect Correct Correct

Terminal Questions: 1. Business laws define the boundaries within which all businesses have to operate. These laws have sprung from various sources. For more details refer to section 1.3. 2. The main source of Indian business laws is the British mercantile law. For more details refer to section 1.3. 3. Labour laws safeguard the interest of the workers. For further detail refer to section1.4.2. 4. Corporate and commercial laws govern how companies operate. Refer to sections 1.4.1 and 1.4.3. 5. Taxation and financial laws deal with the levying of various taxes and various financial services respectively. Refer to sections 1.4.4 and 1.4.5. References: Bedi, Suresh. (2004). Business Environment. Excel Books, New Delhi. Tulsian, P. C. (2000). Business Law. Tata Mcgraw-Hill Publishing Company Ltd. New Delhi. Pathak, Akhileshwar (2007). Legal Aspects of Business. Tata McgrawHill Publishing Company Ltd. New Delhi.

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