LEGAL ASPECTS OF BUSINESS

PGDM_2016

Prof. Navin Shrivastava

MBA,LLB(Hons)
LLM (Corporate Laws)
Cabin:F-59
n.shrivastava@bimtech.ac.in
 Course Learning Goals (CLGs)
2

 To give insight to various Business and Economic

Laws so that the students are able to interpret the
provisions of some of the important laws and apply
the same in commercial and industrial enterprises.
This will ultimately help in building foundation of
corporate governance.

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 Course Intended Learning Outcomes (CILOs)

 To provide an overview of important laws that have a

bearing on the conduct of business in India
 To examine the various legal forms that a business
entity can take and the relative advantages and
disadvantages of each of these forms
 To understand the importance of healthy competition
and torts in current business scenario

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 CONTENTS
Module I Legal Environment of Business
4

(One Session)
 Module –I: Legal Environment of Business

 Environment of Business,
 Concept of Law as incorporated in different legal systems and
 Develop approaches to managing the legal function and
maximizing its utility.

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 Module II Law of Contracts

1.Indian Contract Act, 1872

5

(One session)
 Nature and kinds of Contracts,
 Concepts related to offer,
 Acceptance and Consideration,
 Principles Governing Capacity of Parties,
 Free Consent,
 Legality of Objects,
 Performance and Discharge of Contract,
 Breach of Contract and its Remedies,

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 Module III: Law of Sales of Goods
Indian Sale of Goods Act, 1930

(One Session)
 Sale and Agreement to Sell,
 Hire Purchase – Pledge – Mortgage – Hypothecation Lease.
 Goods – Different types of Goods, Passing of Property in
Goods,
 Conditions and Warranties,
 Doctrine of Caveat emptor,
 Rights of an unpaid Seller.

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6
 Module IV :Negotiable Instruments Act, 1881
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(Two Session)
 Meaning of Negotiability and Negotiable Instruments –
Cheques Bill of Exchange and Promissory Note

 Crossing of Cheques

 Endorsement – Dishonour of Cheques.

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 Module V: Consumer Protection Act, 1986
8

(One Session)
 Need for Consumer Protection
 Meaning of Consumer
 Different Redressal agencies for Consumers,
 Rights of Consumers,
 Unfair Trade Practices,
 Procedure for Filing Complaints

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 Module VII: Elements of Company Law
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(One Session)
 Meaning and types of companies,
 Formation of a company,
 Memorandum and Articles of Association,
 Prospectus and Issue of Shares, Share Capital and
Shareholders,
 Company Meetings and Proceedings,
 Powers and Liabilities of Directors and
 Winding up of Company.
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 Module VIII:Law of Competition
10

(One Session)
 Salient Features of Competition Act, 2001

 Anti Competitive Agreements

 Abuse of Dominance

 Role of CCI

 Role of Sectorial Regulators

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 Module IX : Law of Torts
11

(One Session)
 Meaning of Torts
 Contractual and Tortious Liability
 Application of Tortious Liability in Business Situations

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 Review and Discussion
12

(One Session)
 A session exclusively dedicated on prevailing legal
framework and upcoming issues in the light of corporate
ethics and managing corporate social responsibility

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 BOOKS AND TEXTS

13
TEXT:
 Legal Aspects of Business by Daniel Albuquerque, Fourth Impression Edition,
Print 2015 (or Latest),Oxford Publication

REFERENCE:
 International Business Law by Ashok Kumar, Organisation Development Institute.
 International Business Law by Richard Schaffer, Filberto Agusti and Beverley Earle,
First Indian Reprint 2015, Cengage Learnings.
 Mercantile and Commercial Laws by Rohini Agarwal, 2012, Taxmann Publication.
 Legal Aspects of Business, Akhileshwar Pathak, 2010, Tata McGraw-Hill.

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 Scheme of Evaluation

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(I) Internal Evaluation 50 Marks

On Line Test (OLT) 40%( 20 marks)
Assignment based on Legal Research/ Detail analysis of a Indian/International
contract 20% ( 15marks)
Presentation /Group Activity 20%( 10 marks)
Attendance and Class participation 10%( 5 marks)

(II) External Evaluation of 50 Marks

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 BUSINESS
15

 The some total of economic activities involving buying and

selling or producing goods or services with a view to satisfy
human wants for profit

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 LAW
16

Law refers to a kind of conduct or a prescribed rule that is

enforced by a controlling authority.

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 MEANING OF LAW

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 FOR A CITIZEN : Rules –which he must obey

 FOR A LAWER: Who practices law-it as a vocation

 FOR A LEGISLATOR :Something created by him

 FOR A JUDGE :Guiding principles-to be applied in

decision making

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 LAW
18

 Law includes all the rules and principles which regulate our
relations with other individuals and with the state

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 LAW
19

Means rules and principles framed for and enforced by the

state to regulate the product of its people so as to maintain
peace and order in society

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 SOURCES OF LAW
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 Common law

 Equity

 Statute law

 Judicial decisions or the system of precedents

 Customs and usages

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Classification of Law
Nature of Indian Legal System
Administrative Structure of the Indian Legal System
 Fundamental Rights
24

 Right to equality (Articles 14–18)

 Right to freedom (Article 19)
 Protection in respect of conviction or offences (Article 20)
 Protection life and personal liberty (Article 21)

 Protection against arrest and detention (Article 22)

 Right against exploitation (Articles 23, 24)
 Right to freedom of religion (Articles 25–28)
 Cultural and educational rights (Articles 29, 30)
 Right to constitutional remedies (Article 32)

Prof Navin Shrivastava

 Writs
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HABEAS CORPUS: Order to produce person

detained.
MANDAMUS: To demand for some activity or action
or performance.
PROHIBITION: Preventing subordinate Courts from
exercising jurisdiction.
CERTIORARI: To quashing of decision of lower court
or to remove case from lower body.
QUO WANRRANTO: To oust the one who has not
legally qualified to hold public office.
Prof Navin Shrivastava
 JUDICIAL PROCEDURES
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Judicial procedure: There are essentially five elements of judicial procedure

as follows:

 Summons: To enable the litigants to present their case before the court with
their petitions and claims.
 Pleadings: Both the plaintiff and the defendant present their versions of
dispute before the court through their counsels
 Proof: Presentation of evidence to draw a conclusion of the case.
 Judgment: Drawing of the conclusion by the judge; the decision of the court.
 Execution: Enforcement of the decree or the order of the court.

Prof Navin Shrivastava

 OFFENCES UNDER IPC
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Prof Navin Shrivastava

 INDIAN EVIDENCE ACT
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Evidence’ means and includes:

(1) All statements which the Court permits or requires to be made before it by witnesses,
in relation to matters of fact under inquiry; such statements are called oral evidence;

(2) All documents produced for the inspection of the Court; such documents are called
documentary evidence.

‘Proved’: A fact is said to be proved when, after considering the matters before it, the
Court either believes it to exist, or considers its existence so probable that a prudent
man ought, under the circumstances of the particular case, to act upon the
supposition that it exists.

- The Evidence Act, 1872 Sec. 3 (1)(2)

Prof Navin Shrivastava

 Classification of Evidences
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Prof Navin Shrivastava

 BUSINESS LAW
30

 That branch of law which is applied to merchants or people

doing business to regulate their rights and obligations
arising out of promises made by them

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Manager and the Legal Environment
 LEGAL FORCES AFFECTING BUSINESS
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 ECONOMIC LAWS(CONDUCT OF BUSINESS)

 SOCIAL LAWS(RELATED TO SOCIETY)

 POLITICAL(GOVERNANCE)

 ENVIRONMENTAL(EXTERNAL FACTORS )

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 NATURAL LAW
33

 NEMO JUDEX IN CAUSA SUA

 AUDI ALTEREM PARTEM

IN ACCORDANCE WITH THE RULE OF LAW

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NEED FOR KNOWLEDGE OF LAW

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 “IGNORENTIA JURIS IS NON EXCUSAT”

 IT IS A MATTER OF GREAT INTRICASIES

 AVOIDING BUSINESS CONFLICTS

 LUBRICATING BUSINESS TRANSACTIONS

 CHECK ON FINANCIAL IRREGULARITIES

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Question
&
Answer

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