INTRODUCTION TO BUSINESS LAW & ETHICS NOTES

Transcription

1 INTRODUCTION TO BUSINESS LAW & ETHICS NOTES

2 TABLE OF CONTENTS AUS Legal System & Sources of Law (Australian Constitution)... 3 Business Ethics... 6 Business Structure & Agency... Error! Bookmark not defined. COMMON LAW: Intention, capacity, privity...error! Bookmark not defined. Terms of a contract... Error! Bookmark not defined. COMMON LAW: Interpretation of Terms, vitiating factors... Error! Bookmark not defined. COMMON LAW: Termination, breach & Ethical Behaviour... Error! Bookmark not defined. Sale of Goods & Services, Statutory Guarantees... Error! Bookmark not defined. Consumer Law... Error! Bookmark not defined. The law of TORTS- Negligence... Error! Bookmark not defined. Law Revision... Error! Bookmark not defined. Exam Review - Cases... Error! Bookmark not defined.

3 AUS Legal System & Sources of Law (Australian Constitution) Law is a set of rules and guidelines for us to follow. What does law do for business? We are always in a contract with someone. Parties Law is important because it helps us get business confidence by doing something. There will always be a difference of opinion. How do we settle disputes? The law helps us come to an agreement. Alternative dispute resolution. There will be a mediator who will assist the parties to come to an agreement. Both parties are winners. However if you take court action there will be a loser. And the loser has to pay the other parties barrister fees too. Lawyers are expensive. ADR is a better resolution. Law regulates business fairness. The rule of law pg 7. Australia is a democracy. Australia follows the rule of law with 3 essential principles Equality before the law for all citizens Freedom from arbitrary arrest (before you can be arrested, police need solid evidence) Freedom of speech Rule of law is derived from the common law of England. Cori court. Indigenous people. We aim to rehabilitate people. Where does law come from? P Legislation: the law made by parliament. Federal parliament in Canberra as well as the state parliaments. Bicameral system system. House of representatives: more elective members in it, larger states (population wise) have larger members of parliament in the house. The Priminister sits, gets a proposal, the bill is draughted.. goes to the senate and back 3 times and then if it s good the law is passed. Senate: has an equal number of members from each state. State parliaments: there is a house of assembly & legislative council in Victoria. Legislation: rules made by special departments ie Road Traffic Rules

4 Common law: decisions made by courts. *** Statute of Westminister Act 1942 (UK). Pg13 Statute is another word for act of parliament. Agreed that they would not make any more laws for Australia unless Australia asked them to do so. We didn t ask them for any after this statute. If we didn t like a law, we could appeal to an English court privy council. Australia act Ended England s power to make laws for Australia. Ended the right to appeal to the English privy court. The dismissal: movie. Seperation of powers Doctrine. Pg18. Parliament legislature make the laws Executive: Crown, Ministers, public service administer the law Juditiary, judges- Courts- interpret the law. (No role in making the law) All separate. Doctrine: separation of powers. In Australia we have a constitutional monarchy. Queen of England is the head of state. The queen is represented by governor general sir Peter Cosgrove, he signs off legislation passed by federal parliament. The Australian Constitution Commonwealth of Australia constitution act 1900 (UK) Each state had its own constitution. Each state had their own note, made problems. Decided to be one commonwealth all together. Thus, federation of states. Federation 1 st January 1901 Constitutional monarchy. The constitution Federal parliament have exclusive powers: S90- customs, excise, bounties. S114- defence force S115- currency for the whole of Australia S121 making new states only the federal parliament can do. S122- government of territory S51 (xxi) marriage. Concurrent powers p22.

5 State & Commonwealth parliaments together S51: the commonwealth may make laws in 40 specific areas for peace, order and good government eg: HEALTH, EDUCATION, TAX, CONSUMER PROTECTION. (xxi) laws for the activities of corporations. Gillard government decided that all children should be taught the same things in school. Some states don t like that. Commonwealth has said if you don t follow we won t give you the money for education. Residual Powers p preserves state constitutions States can make laws in areas where commonwealth does not have power. 251(xxxVii) states can ask commonwealth to make laws for corporations so that all companies follow the same rules, but every 5 years that ends and then each state has to ask commonwealth if a state & commonwealth law is inconsistent, commonwealth prevales. Expanding commonwealths powers p23. S96: commonwealth can make grants to states & attach conditions to the grants. 252: consumer protection. S51 (xxix) external affairs power- to regulate environmental activites. Hierarchy status of Australian Courts p37. Federal Courts High court of Australia The family court (what to do with children ect) The federal court (bankruptcy, tax ect) State courts Full court of the supreme court (appeals) Supreme court County court p41 Childrens ct.. Magistrates ct.. Coroners Ct The doctrine of precedent pp34. Precedent means a court judgement has established a point of law. Similar cases should be decided the same way. To retain certainty and confidence in the law. Ratio decidendi reason for the decision. Obiter Dictum judicial comment (not binding) going through all the evidence. Courts are persuaded to follow a decision by an eminent court outside their jurisdiction

6 The rules of equity p 44 Middle ages, monarch, the chancellor > Englands court of chancery. - equity aims for fairness, to do justice Equity is for civil matters, not criminal. Equity is discretionary by the courts. Equity gives relief for someone going back on a promise. (p98 Central London property trus v high trees house ltd) Equity gives relief for unconscionable bargains. Prevails over common law. Remedies: injunction; specific performance. Criminal & Civil Law p5. Cival law regulates the conduct between private citizens eg having a loud barking dog next to a neighbours house p47. Proof - Balance of probability. Criminal law regulates the laws made by parliament eg driving a car while intoxicated. Proof beyond reasonable doubt because the penalties are so large. R v Rose or The Crown v Rose (eg criminal case) Rose v Wells (cival case: two names) Business Ethics What are business ethics? How do we determine what we should do if there isn t a law telling us what to do? Values- where do they begin? What is their base? The purpose of business ethics? Sustainability of the business entity? Fair and honest profitability Repayments to creditors - Honouring commitments to suppliers Increasing shareholder dividends Qantas: Alan joyce director says they re getting better, shareholders believed and voted for him to continue even though Qantas wasn t making any profit. Client satisfaction Maintenance of fair dealings Establishing a respectable reputation in the community needed to exceed. Community outreach Mcdonalds: Ronald mcdonald house where families can stay. Woolworths: stickers after $20 purchases for people to give to their schools. Physical environmental responsibility. Not making anymore land and our water supply is diminishing. How can businesses show their global responsibility? Employers need to make sure their not wasting energy/water.

7 Australian Business Personnel Contrasting values of altruism v self Mr Christopher Skase p405 (self) Built a company up, Quintex, made lots of money and spent a lot. Owed lots of credit and people took legal action. They took his passport off him. Then gave it back after weeks of hassling saying he wouldn t leave the country. Left as soon as he got it back. Couldn t get him back from this country because of extradition. Extradition: can get police to get the person into custody and take them back home if there is a treaty with another country. Mr Alan Bond p404 (self) 275 richest men. Even after jail. Altruism: mr dick smith philanthropy First person to fly around the world in a certain way. Adventurer. Paid ransoms