Law 200: Legal Environment of Business
Course Nutshell No. 1
Introduction with Law
Definition of Law:
There have been several attempts to produce "a universally acceptable definition of law".
However, "what is law?" has no simple answer. The meaning of the word "law" depends on the
context in which that word is used. Number of Jurists have tried to define law in one theory
however, none of them has been successful to provide a criticism-less definition of law.
There are two schools which are principally dominating the scientific theories of law. One is
Positivist School another one is Naturalist School. Positivists see no place for the theories of
morality and religion since such theories are unenforceable and should therefore not a factor in
elucidation and enforcement of the law. The naturalist school of jurisprudence believes that
there are inherent laws that are common to all societies and a representation of the morals of
society forms such natural laws. Any action that is morally wrong would be contrary to such
natural law and therefore illegal. Such laws may or may not be written or enforced, but enjoy a
natural existence - whether they are enacted or not.
The Famous Jurist John Austin, a Positivist (1790–1859) said, Law as it is, is the command of the
Sovereign. According to him, Law is the command of the sovereign which is backed by
sanction/punishment. For example: Traffic Law [ You stop at Red Light Signal, otherwise
Sanction], Tax Law [ You don’t pay tax, you either pay fine or go to jail.]
H.L.A. Hart another famous Positivist jurist in his highly appreciated work The Concept of Law
provides that, laws are rules made by humans and that there is no inherent or necessary
connection between law and morality. He introduced "external" and "internal" points of view
with respect to how the rules of a legal system may be described or evaluated. The external
point of view is that of an observer who does not necessarily have to accept the rules of the legal
system. The external observer may be able to evaluate the extent to which the rules of the legal
system produce a regular pattern of conduct on the part of individuals to whom the rules apply.
The internal point of view, on the other hand, is that of individuals who are governed by the
rules of the legal system and who accept these rules as standards of conduct.
On the other hand, Lon Fuller (a Naturalist) says that, certain moral standards, which he calls
"principles of legality," are built into the very concept of law, so that nothing counts as genuine
law that fails to meet these standards. In virtue of these principles of legality, there is an inner
morality to the law that imposes a minimal morality of fairness. Some laws, he admits, may be
so wicked or unjust that they should not be obeyed. But even in these cases, he argues, there are
positive features of the law that impose a defensible moral duty to obey them.
Law and Morality
Positivist law view believes that, legal rights and moral rights are not related. The natural law
view believes that the creation of law should be based on natural laws or common morals.
However, this is a still big debate among the theorist. For example laws on abortion, Allowing
pre-marital sex, Homosexuality, gun laws etc. poses profound debate among Positivists and
Naturalists.
Sources of Law
There are many sources of law. The political scientists have pointed out the six sources of law.
These main sources of laws are- (1) customs (2) Divine Law (3) Judgments of Cases (4)
Scientific deliberation/discussion (5) Equity (6) Legislature.
1. Customs: The rules and regulations that are prevalent in society for a long time are called customs.
2. Divine Law: From religion, the religious dictates and the religious books the laws originated. The
Hindu laws, the Muslim laws etc. are the best example.
3. Judgment of Cases: The judges with their intelligence and wisdom, give interpretation of the
prevalent ambiguous law to settle the matters. These laws are called the judge-made laws.
4. Scientific deliberations: Writings and scientific deliberations of renowned jurists are also regarded
as important source of laws.
5. Equity: Many a time the judges settle the case by their own sense of justice. Thus, new laws are
formulated by the judge's sense of justice.
6. Legislature: In modern time legislature is the most important source of law. The legislature creates
new laws according to the needs of the state.
Rule of Law
rule of law means, in the state everybody can equally enjoy the independence and the amenities
and facilities of the state. The stronger cannot deprive the right of the weak. Everybody gets the
opportunity to develop his personality by enjoying of rights. The rule of law means two main
ideas: (a) Supremacy of law, (b) Equality in the eye of law. As there is the supremacy of law the
government cannot misuse power. Nobody can be detained and punished without trial.
Equality, in the eye of law means everybody will have the shelter of law irrespective of the rich,
the poor, and religion and community. The influential and the poor will enjoy the same right.
The same law is for all.
Corporate Social Responsibility
Corporate responsibility is a way for companies to take responsibility for the social and
environmental impacts of their business operations. Corporate social responsibility (CSR) is a
self-regulating business model that helps a company be socially accountable — to itself, its
stakeholders, and the public. The main example of Corporate\social Responsibilities
are Environmental efforts, Philanthropy, Ethical labour practices etc.
Court Structure in Bangladesh
Ishtiak Abdullah
Barrister-at-Law (Lincoln’s Inn)
Lecturer, Department of Law, NSU
