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Entrepreneurship Level-7
Year 2013
ASSIGNMENT
b) Describe the two primary or main processes by which law in New Zealand is made.
Answer:
New Zealand law is heavily based on English law. The two primary processes by which
law in New Zealand is made as following:
New Zealand Parliament
Decisions of Court
New Zealand Parliament:
The New Zealand Parliament consists of the Queen of New Zealand and the New Zealand
House of Representatives. The Parliament building is known as House of Representatives
which is located in capitol of the country Willington. The House of Representatives
usually consists of 120 Members of Parliament. The form of New Zealand government
essentially follows the Westminster system. Laws are initially proposed in Parliament as
bills. These are the stages in which law in New Zealand made as follow:
Introduction
First reading
Bill Introduce
No debate
Initial Debate
Second
reading
Committee of
the whole
House
Third reading
Finial Debate
Royal assent.
Select
committee
Parliament
Retrieved from:
http://www.parliament.nz/en-nz/about-parliament/how-parliament-works/laws/00CLOOCHowPWorksLawsHow1/how-abill-becomes-law.
Decision of Court:
Decision of court or Case Law is the essential part of New Zealand law system. Case law
is the set of existing rulings which have made new interpretations of law and, therefore,
can be cited as precedent. This term is applied to any set of rulings on law which is
guided by previous rulings, for example, previous decisions of a government agency that
is precedential case law can arise from either a judicial ruling or a ruling of adjudication
within an executive branch agency. There are many different types of courts like Supreme
Court, high court, family court etc which help people to solve issues belong to different
categories.
Retrieved from: http://en.wikipedia.org/wiki/Case_law
Question 2
a) What is (i) International Law and Domestic Law.
Answer:
International Law:
International law is the set of rules generally regarded and accepted as binding in relations
between states and nations. It serves as a framework for the practice of stable and
organized international relations. As a small international player New Zealand places great
importance on the international rule of law, supported by mechanisms to hold States to
their international legal obligations and peacefully settle international disputes. New
Zealand has sought assistance in settling international disputes from the International
Court of Justice, International Tribunal for the Law of the Sea and the World Trade
Organisation.
New Zealand was one of the key proponents in establishing the International Criminal
Tribunal for Rwanda, and has also been a consistently strong supporter of the permanent
International Criminal Court.
23 March. Retrieved from: http://www.mfat.govt.nz/Treaties-and-International-Law/06-International-Courts-andTribunals/index.php
Domestic Law:
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Domestic law or Family law is an area of the law that deals with domestic relations. This
law includes not only law at the national level, but law at the state, provincial, territorial,
regional or local levels. The law of the state is concerned and these may be distinct
categories of law. It deals with the pertaining to the internal affairs or products of a
country relating to matters of the family.
Retrieved from: http://www.familylaw.org.nz/
b) What is (i) Public law and (ii) Private (or civil) law?
Answer:
Public Law:
Public law is the branch of law that deals with the state or government and its relationships
with individuals or other governments. Public laws are those laws that are relevant to
matters affecting the entire community like laws about criminal activity or the
environment. This law involves interrelations between the state and the general
population. It is that area of the politics governing the relationship between individuals
like citizens, companies and the state. The sub-divisions of public law are:
Constitutional law
Administrative law
Criminal law
West's Encyclopaedia of American Law, edition 2. Retrieved From:
http://legal dictionary.thefreedictionary.com/Public Law
Private Law:
Private Law is an act that deals with the particular interest or benefits of an identified
person or a body, such as law of contracts and torts. This act is the part of civil law legal
system. Private law is diverse from the public law. This law is involves with the
interactions between private citizens or persons like organisations.
Private law consist the following laws:
Contract Law
Law of Torts
Property Law
Family Law
Law of Agency
Labour Law
Retrieved from http://www.legislation.govt.nz/glossary.aspx
Retrieved from http://en.wikipedia.org/wiki/Private_law
c) List of two examples of public law and briefly explain what each is?
Answer:
The examples of the public law are defined as following:
A. Constitutional Law:
Constitutional law is a body of law dealing with the distributions and exercises of
government power. In New Zealand, Constitutional law consist of collection of status that
is Act of Parliament, Treaty of Waitangi, Order in Council and Decision of court. New
Zealand is a constitutional monarchy with a parliamentary system of government. This
system is known as Westminster system.
The elements of Constitutional Law: According to the constitution act 1852 and
Constitution act 1986 there are three branches of government in New Zealand are as
follow:
1. The executive or The Cabinet: The Head of Government of New Zealand is the Prime
Minister. The Prime Minister, as the leader of the political party or coalition of parties
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holding or having the support of a majority of seats in the House of Representatives, leads
the Cabinet.
2. The Legislature: New Zealand has a unicameral parliament and house of repetitive,
which have at least 120 Members. New Zealand has used the mixed member proportional
system.
3. The Judiciary or Courts: New Zealand's judiciary is a hierarchy consisting of
the Supreme Court of New Zealand, the Court of Appeal of New Zealand, the High Court
of New Zealand, and the District Courts. These courts are all of general jurisdiction.
Retrieved from http://en.wikipedia.org/wiki/Constitution_of_New_Zealand
B. Criminal Law:
Criminal law governs the relationships between an individual, or organisation, and the
state. It is contained in statutes. Criminal law involves conduct that society has outlawed
as a threat to the safety or welfare of the public and that is therefore investigated,
prosecuted and punished by the state through the police and the courts.
Most criminal proceedings are brought less than one of the following statutes:
I. Crimes Act 1961: This includes serious crimes such as murder, manslaughter, burglary and
sexual offences.
II. Land Transport Act 1998: This includes traffic offences.
III. Summary Offences Act 1981: This includes offences against public orders which are usually
less serious; for example, fighting in a public place, trespass and wilful damage.
IV. Misuse of Drugs Act 1975: This includes offences relating to the possession, use and supply
of controlled drugs.
Retrieved from http://www.communitylaw.org.nz/community-law-manual/chapter-1-new-zealand-legal-system/civil-andcriminal-law/
d) List two examples of Private (or civil) law and briefly explain what each is.
Answer:
The examples of private law or civil law are as follow:
A) Contract Law:
A contract is an agreement with the specifics terms between two or more persons or
entities in which there is a promise to do something in return for a valuable befits known
as a consideration. In New Zealand, Contract law is initially drives from English Law.
This law is largely distinct from other jurisdiction. The main distinction is the wide
discretionary power given to the courts in grating relief.
2013, Retrieved From http://legal-dictionary.thefreedictionary.com/contract
Retrieved from http://en.wikipedia.org/wiki/Law_of_New_Zealand
B) Family Law:
Family law is an area of the law that deals with family-related matters and domestic
relations, including:
Marriage, civil unions, and domestic partnerships;
Adoption and surrogacy
Child abuse and child abduction
The termination of relationships and ancillary matters.
Juvenile adjudication
Paternity testing and paternity fraud
It has primary responsibility on behalf of the Society in all areas of family law and has a
strong and active voice in relation to such issues as Family Courts management, the
independence of the Family Court, Lawyer for Child rates, legal aid rates, and education.
The Family Court deals with proceedings under the following the few numbers of family
law Acts:
1. Adoption Act 1955
2. Births Deaths and Marriages Registration Act 1995
3. Children Young Persons and Their Families Act 1989
4. Family Protection Act 1955
5. Family Courts Act 1980
6. Marriage Act 1955
Retrieved from http://en.wikipedia.org/wiki/Family_law
Retrieved from http://www.justice.govt.nz/courts/family-court/legislation/family-court-acts/family-court-acts
Question 3:
The New Zealand Constitution is derived from 6 legal sources- list these sources.
Answer:
The New Zealand constitution is to be found in formal legal documents, in decisions of the
courts. It reflects and establishes that New Zealand is a monarchy, that it has a
parliamentary system of government, and that it is a democratic system. There are six
legal sources for which New Zealand Constitution is derived as follows:
1. Legislation:
Legislation refers to Acts, Bills, Regulations, Deemed Regulations, and Supplementary
Order Papers. New Zealand's Parliament has developed from the British parliamentary
system known as the Westminster system of government and is the highest law-making
body in New Zealand. Parliament has two parts:
The Head of State of New Zealand who is represented by the Governor-General:
The Governor-General is appointed by the Sovereign on the Prime Minister's
recommendation for a term of five years. The Governor-General is also able to make
regulations and his or her assent is required for all Bills passed by the House of
Representatives before they can become law.
The House of Representatives: The New Zealand Parliament has one chamber, called the
House of Representatives. The House's responsibilities are to debate and pass legislation,
provide a Government, supervise the Government's administration by requiring it to
explain policies and actions, supply money, and represent the views of the people of New
Zealand. It has a number of Select Committees which examine proposed legislation in
detail often hearing submissions from interested members of the public.
Retrieved from http://www.justice.govt.nz/publications/global-publications/t/the-new-zealand-legal-system
2.
Decision of Court:
Courts have a wide variety of roles including enforcing the criminal law, resolving civil
disputes and upholding the rights of individuals or ensuring that government agencies stay
within the law and explaining the law. New Zealand courts have following structure:
A) Supreme Court
B) Court of appeal
C) High Court
D) District Court
These are courts of general jurisdiction. They are the main courts in our justice system.
Courts are independent and impartial and the decisions of individual judges sitting in
courts are subject only to law. A jury is made of 12 ordinary people selected at random
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from the jury roll and its role is to decide questions of fact. A jury is made of 12 ordinary
people selected at random from the jury roll and its role is to decide questions of fact.
Retrieved from http://www.justice.govt.nz/publications/global-publications/t/the-new-zealand-legal-system
3. Treaty of Waitangi:
The Treaty of Waitangi was signed in 1840, as an agreement between the British Crown
and a large number of the Maori of New Zealand. Today the Treaty is widely accepted to
be a constitutional document, which establishes and guides relationships between the
Crown in New Zealand and Maori. The Treaty of Waitangi had at its heart a promise to
protect a living Maori culture. This means that the Treaty relationships between the
Government and Maori are ongoing and dynamic. Under the Treaty of Waitangi Act 1975,
any Maori may take a claim to the Tribunal that he or she has been prejudicially affected
by any legislation, policy or practice of the Crown since 1840. The Tribunal has the power
to make recommendations to the Government.
Retrieved from http://www.justice.govt.nz/publications/global-publications/t/the-new-zealand-legal-system
5. Constitutional Conversation:
A constitution is central to a country's legal system because it defines the principles on
which the system is based. It sets up the most important institutions of government, states
their principal powers and makes broad rules about how those powers can be used. New
Zealand's constitution, which is the foundation of our legal system, is drawn from a
number of important statutes, judicial decisions, and customary rules known as
constitutional conventions. New Zealand's constitutional arrangements can be found in a
number of key documents. Key written sources include the Constitution Act 1986, the
New Zealand Bill Of Rights Act 1990, the Electoral Act 1993, the Treaty of Waitangi and
the Standing Orders of the House of Representatives.
Retrieved from http://en.wikipedia.org/wiki/Act_of_Parliament
Question 4:
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What is the significance of the Treaty of Waitangi for business in New Zealand today?
Answer:
The Treaty of Waitangi was an agreement made between Maori and the British Crown in
1840. Today it is considered to be New Zealands founding document. The Treaty is
relevant and provides a huge amount of opportunities for the business sector and
ultimately the nation as whole.
HRINZ 2011.Retrieved from
http://www.hrinz.org.nz/Site/Resources/Knowledge_Base/Q-Z/Treaty_of_Waitangai.aspx
a.
b.
c.
d.
Question 5:
Briefly describe the following constitutional features: The sovereignty of Parliament;
The separation of power; and the rule of law.
Answer:
The Sovereignty of Parliament:
Parliamentary sovereignty is also called parliamentary supremacy or legislative supremacy
is a concept in the constitutional law of some parliamentary democracies. The concept of
parliamentary sovereignty in New Zealand is derived from that in the United Kingdom. It
holds that the legislative body has absolute sovereignty and is supreme over all other
government institutions including executive or judicial bodies. The concept also holds that
the parliamentary body may change or repeal any previous legislation, and so that it is not
bound by written law or by precedent. Parliamentary sovereignty may be contrasted with
the doctrines of separation of powers which limits the legislature's scope often to general
law making and judicial review where laws passed by the legislature may be declared
invalid in certain circumstances.
a. The Sovereigns role in Parliament:
b. Call Parliament to meet
c. Dissolve Parliament
d. Grant Royal assent to bills passed in the House so that they become laws.
Retrieved From https://en.wikipedia.org/wiki/Parliamentary_sovereignty
The most important application of the rule of law is the principle that governmental
authority is legitimately exercised only in accordance with written and publicly disclosed
laws adopted and enforced in accordance with established procedural steps that are
referred to as due process.
The rule of law also forms a significant part of the New Zealand constitution. The
principles of the rule of law are not easily defined, but encompass ideas such as:
The powers exercised by parliamentarians and officials are based on legal authority
There are minimum standards of justice to which the law must conform like laws affecting
individual liberty should be reasonably certain and clear.
The law should have safeguards against the abuse of wide discretionary powers.
Unfair discrimination should not be allowed by the law.
A person should not be deprived of his or her liberty, status or other substantial interest
without the opportunity of a fair hearing before an impartial court or tribunal.
Retrieved From http://www.justice.govt.nz/publications/global-publications/t/the-new-zealand-legal-system
Question 6:
(i) How could decisions made under this by-law be legally challenged?
Answer:
This decision can be legally challenged in High Court. According to this law students are
only use the public transport. Students may be suffering because they dont have
permission to use their own vehicles as per this law. This is the negative side of the law. So
as per the students convinces they have to appeal against this law in High Court.
(ii) On what grounds could the power of the City Council to make such a by-law be
challenged?
Answer:
City council has no power to make new law for the people. Only Parliament has a right to
make any bill to become a law in the House of Reprehensive.
Question 7:
Discuss and explain whether the following statements are true or false:
A Sole trader has a separate legal identity from the business.
Answer:
This statement is false because a sole trader is liable for every loss and profit of the
business. A sole trader is the owner for his business. But it does not mean that legally is
associated with the chain of business. He does not need any legal process for his business.
Retrieved from http://www.business.govt.nz/starting-and-stopping/business-structures/focus-on-sole-traders
Answer:
This statement is false because in every business people invest for making profit only.
A partner owes fiduciary duty to all other partners.
Answer:
The given statement is true because Partners in a partnership are fiduciaries.
A fiduciary is a person who is bound to act for other benefits in circumstances which give
rise to a relationship of trust and confidence. All the tasks performed under the fiduciary
duty for the advantage of receiver.
Retrieved from http://www.slatergordon.co.uk/partnerships/duties-of-partners-to-each-other-and-to-third-parties/
A company is not separate from its members- which mean the shareholders are
responsible for the debts of the company.
Answer:
Yes this given statement is true because the shareholders are responsible for the profits and
debts of the company.
Retrieved from http://www.cro.ie/en/business-registration-company.aspx
Question 8:
By referring to the characteristics advantages and disadvantages, compare and contrast
between the three forms of business ownership.
Answer:
A business is an organization involved in the trade of goods, services or both
to consumers. There are three types of business ownership which are as follows:
Sole
Basics
Partnership
Corporation
proprietorships
Nature Of
Business
Formation
A sole proprietorship is a
business that has a single
owner who is responsible for
making desiccation for the
company.
In this, when a single person
decided to open a business.
Liabilities
Taxation
Partners in a partnership
business have unlimited
liability for all debts and
liabilities that occur while
operating the business.
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Structure
Legal Formalities
Retrieved
3990.html
from:
Question 9:
There are eight primary duties that an agent has towards there principals. List six of
these duties.
Answer:
In commercial law, a principal is a person, legal or natural, who authorizes an agent to act
to create one or more legal relationships with a third party. This branch of law is
called agency. And an agent is person who is employed by the principle in order to
represent the business dealings. His primary duties towards their principles are as follows:
To act in the best interest of the principle:
According to principles, the agent to use his due diligence and skill to negotiate terms of a
transaction on the behalf of his principle with a third party to the greatest advantages of his
principle in the situation.
Retrieved from:
https://www.eaa.org.hk/Home/Publications/AgencyLaw/5Agentsdutiestoprincipalundercommonlaw/tabid/383/language/
en-US/Default.aspx
No secret Profits:
An agent should not make any profit or acquire any benefit in the course and in the matter
of his agency without the knowledge and consent of his principal. Such profit, generally
known as secret profit, is not restricted to money but may include anything of value. For
example an interest-free loan, a club membership. An agent who has made secret profit is
liable to account to the principal for such profit in addition to any other remedies available
to the principal for the agent's breach of duty. The following situations are some examples
of secret profit:
Use of position
Use of property
Use of information
Retrieved from:
https://www.eaa.org.hk/Home/Publications/AgencyLaw/5Agentsdutiestoprincipalundercommonlaw/tabid/383/language/
en-US/Default.aspx
Duty of Confidentially:
Relationship between a principal and his agent, the agent shall not disclose any
information concerning the principal or any confidential information entrusted to him by
the principal to any third party in the absence of the principal's consent. Confidential
information entrusted to an agent includes any information which is not readily available
to the public. An agent has implied authority to disclose information concerning the
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principal if to do so is necessary for the agent to carry out the duties entrusted to him by
the principal. For example, an estate agent may disclose to the appointed solicitors of the
purchaser such information relating to the purchase as will enable the solicitors to handle
the transaction on behalf of the purchaser.
Retrieved from:
https://www.eaa.org.hk/Home/Publications/AgencyLaw/5Agentsdutiestoprincipalundercommonlaw/tabid/383/language/
en-US/Default.aspx
Duty to Account:
An agent who receives any property for his principal or from his principal is bound to
keep such property separate from his own and he is to be treated as a trustee of such
property. And also an agent has a duty to keep proper accounts of the property received by
him in the course of the agency and to render such account to the principal on request. The
agent is obliged to return to his principal all documents and property originally given to
the agent by the principal and documents prepared by the agent on the instruction and at
the expense of the principal.
Retrieved from:
https://www.eaa.org.hk/Home/Publications/AgencyLaw/5Agentsdutiestoprincipalundercommonlaw/tabid/383/language/
en-US/Default.aspx
Duty of obedience:
Agents are under a duty to obey the lawful and reasonable instructions of the principal.
Where the principal's instructions are clear, the agent does not normally have any
judgment and must follow those instructions, unless an agent is a professional and the
principal relies on the agent to exercise his professional skill and discretion in
accomplishing the tasks he has been appointed to accomplish. If the principal's instructions
are unclear or if the agent is not certain as to their meanings so the agent should clarify
such instructions with the principal before acting.
Retrieved from:
https://www.eaa.org.hk/Home/Publications/AgencyLaw/5Agentsdutiestoprincipalundercommonlaw/tabid/383/language/
en-US/Default.aspx
Question 10:
(a) Where the agent makes a contract with a third party on behalf of the principle who is
liable on the contract?
Answer:
When an agent makes a contract with the third party on behalf of the principle, agent is not
liable for the contract. The third party is only liable for the contract. An agent is not a
party to the contract. Because when an agent entered into the agreement he was acting in a
representative capacity only, not in his personal capacity. So as per law when an agent
who enters into a contract on behalf of another person does not give any promise that his
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principal is willing and able to perform his obligations under the contract. Only the third
party is liable for all activities which are written in a contract.
Roodt Inc. 2013. Retrieved from http://www.roodtinc.com/newsletter35.asp
(c)In what two circumstances may an agent be personally liable on the contract?
Answer:
There are two following situations in which an agent is personally liable for the contract:
(a)When an agent sign a negotiable instrument on its own name:
If an agent signs a flexible implement without making it clear that he is signing it
as an agent only. He may be held personally liable on the same. He would be personally
liable as the maker of the note, even though he may be described in the body of the note as
the agent.
Scribd inc.
AGENT
http://www.scribd.com/doc/58567062/41/PERSONAL-LIABILITY-OF-AN-
Question 11
(a) On what legal basis might Nigel and Jeremy be able to claim the costs of moving the
cattle from Cindy and Tom?
Answer:
Nigel and Jeremy have spent their money to save the life of cattle from the flooding. They
did this because the owner of the cattle is not there. According to situation they decide to
move the cattle to safer area. As per law of connivance Nigel and Jeremy are able to claim
the costs of moving the cattle because in absent of owner they want to secure the life of
cattle from the flood.
(b)What will Nigel and Jeremy have to prove to be able to claim these costs from
Cindy and Tom?
Answer:
Nigel and Jeremy hired four trucks from a transport company to move the cattle to safer
area. So they can show the invoice and payment slips as legal proof to Cindy and Tom for
claim.
Question 12
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(b) In this case, Marry do not break the Privacy act because she only wishes to use the
information database for collecting the data on Law of commerce. So, she want only
access the data on Law which is not erroneous according to the Privacy Act.
Retrieved from http://www.legislation.govt.nz/act/public/1993/0028/latest/DLM297038.html
(c) As per this situation, you are not label for read the information of other students on the
receptionists computer. It is breach the principal 4 in Privacy Act1993 because you are not
stealing the information of others in any situation.
Retrieved from http://www.legislation.govt.nz/act/public/1993/0028/latest/DLM297038.html
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(d) There are no breaches the Privacy Act in this case. Because there are need some correction
in official work. According to Principle 7 in Privacy Act, this under the law to correct your
personal information.
Retrieved from http://www.legislation.govt.nz/act/public/1993/0028/latest/DLM297038.html
(e) As per Principle 3 in Privacy Act, any agency or company can be liable to collect the
personal information directly from the persons. So, there is no breach the any kind of
rules.
Retrieved from http://www.legislation.govt.nz/act/public/1993/0028/latest/DLM297038.html
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References
https://www.eaa.org.hk/Home/Publications/AgencyLaw/3Formationofagency/tabid/403/language/
en-US/Default.aspx
Scribd inc. (2013). Retrieved from
http://www.scribd.com/doc/58567062/41/PERSONAL-LIABILITY-OF-AN- AGENT
Retrieved from https://en.wikipedia.org/wiki/Law_of_agency
Retrieved from http://www.legislation.govt.nz/act/public/1993/0028/latest/DLM297038.html
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