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LEGAL ENVIRONMENT
OF BUSINESS
By Advance Saraswati Prakashan Pvt. Ltd
Tinkune, Kathmandu
01-4790359, 9851103159, 9851103169
COURSE CONTENT
Nature, Types and Sources of Law
Legal Environment of Business : Concept and importance of
legal environment of business.
Meaning and sources of business law in Nepal.
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DEFINITION OF LAW
Law is very vague. It has been defined from the point of view of
philosophers, theologians, sociologists, historians, etc. They
have presented the definition law through different approach
which is known as the “School of Law.”
Law is a definite rule of behavior which is backed by the
sovereign power of the State.
It is a general rule of human conduct in society which is made
and enforced by the government’. Each Law is a binding and
authoritative rule or value or decision. Its every violation is
punished by the state.
John Austin- “A law is the rule of conduct imposed and
enforced by the sovereign authority”.
Each Law is a binding and authoritative rule or value or decision.
NATURE/ CHARACTERISTICS OF LAW
• The nature of law can be listed below :
General rules of Coercive nature
human behavior
Pervasive Applied by the
NATURE/ sovereign authority
CHARACTE
Equal treatment RISTICS OF Administration
LAW through the Court
Means of Justice Supreme Nature
Betterment of the Dynamic
Society
SOURCES OF LAW
The sources of law in aggregate can be presented below:
Legislation
Precedent
SOURCES OF Custom
LAW
Convention
Writings, and Opinions
Miscellaneous Sources
CONCEPT AND IMPORTANCE OF LEGAL
ENVIRONMENT
The legal environment of business refers to the rules and
regulations formed by different legislations or government
bodies to govern the day-to-day activities of business
organization.
The legal environment refers to the framework of laws,
regulations, and court decisions intended to encourage, guide,
and control business activities.
Some are designed to protect workers, consumers, and
communities. Others are designed to regulate the behavior of
managers and their subordinates in business and other
enterprise.
Some of the types of legal environment are Social
environment, Competitive Environment, International Legal
environment, Regulatory Environment and Domestic Legal
CONTD…
Some of the importance of the business legal environment are
discussed below:
Business compliance
Provides stability
IMPORTANCE Helpful and maintaining ethics
OF LEGAL
ENVIRONME Framework for business operations
NT
Protecting the business
MEANING AND SOURCES OF BUSINESS LAW IN
NEPAL
MEANING OF BUSINESS LAW
Business law is also known as commercial law or mercantile law.
It is an aggregate of those rules, which are concerned with trade
, commerce and industry.
It includes the law relating to contract, sale of goods, agency,
industry, company, indemnity and guarantee, bailment and
pledge, insurance, banking, arbitration, foreign investment and
technology transfer etc.
It also includes the law relating to the formation and dissolution
of different types of business organization.
Rosenberg and Whitcraft- ,”The real purpose of law is to help
you get along smoothly with other people in business and social
relationship.”
SOURCES OF NEPALESE BUSINESS LAW
The sources of Nepalese business law in aggregate can be
presented below:
Legislation
Precedent
SOURCES OF Custom
NEPALESE
BUSINESS British Mercantile law
LAW
Agreements or Commercial
laws
Writing and Opinions of Experts
SOURCES OF NEPALESE BUSINESS LAW
The sources of Nepalese Business Law are as follows :
Legislation
Precedent
SOURCES OF Custom
NEPALESE
British Mercantile law
BUSINESS
LAW
Agreements or Commercial treaties
Writing and Opinions of Experts
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Assignment
Brief Answer Questions
1. Define the term law.
2. State any three nature of law.
3. What is procedural law?
4. Differentiate between substantive law and procedural law.
5. What do you mean by business law?
6. State any three sources of law.
7. Define legislation.
8. Give the concept of legal environment of business.
9. Mention the various sources of business.
10.Why is legal environment is important?
11.How can you classify various law?
12.Differentiate between private and public law.
Assignment
■ Descriptive Answer Questions
1. Define the term law. Explain the various types of law.
2. What do you understand by sources of law? Discuss the
sources of law as stated by Austin?
3. What is business law? Is there any clear-cut line of
demarcation between business law and other branches of
law?
4. Explain the nature and sources of Nepalese business Law.
5. Define business law. Explain the sources of Nepalese business
Law.
6. Give the concept of business law and explain its importance.
7. Define business law. Explain any three major sources of
Nepalese business law.
Assignment
■ Long Answer Questions
1. Business law is a branch of civil law which lays down the
various principles to the business community and provides
them the legitimacy, security and peace. Comment in the
light of importance of business law.
2. “Law is the means to regulate external activities of a man”.
Discuss.
3. “Sound business laws contribute to promote the business
activities.” Explain
Case Study/ Situational Analysis
Please go through the book of Advance Saraswati
Prakashan for relevant Case Study
Any Question?
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Tinkune, Kathmandu
01-4750359, 9843262646
www.advancesaraswati.com
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