Mgt legal environment of business

Legal Environment of Business[MGT315]
• Students are required to the following question individually.
• You will be evaluated out of 5 marks
Questions to answer:
From Chapter 1: There are 10 general sources of Law, you are required to search
for, define, explain, and give examples on International Sources of Law. (Mark
5)
Guidelines:
The Deadline is 7th of January 2023
1. Students failing to submit the assignment in time would not be given another
chance, and they will lose the assignment’s marks in full.
2. All the answers should be type written.
3. The font used should be Times New Roman with font size 12, headings to be
bold and font size 14. The line spacing should be 1.5. It should be right and
left aligned.
4. The answers should be in report format.
5. Please refer to textbook, reference materials and online sources to complete
your assignments.
6. There should be no copy and paste among students. If found the assignment
would stand cancelled.
7. Assignment must be done individually.
8. The word limit between 500 to 700 words.
1
Chapter 1
 That
which must be obeyed and followed by
citizens, subject to sanctions or legal consequences
 A body of rules of action or conduct prescribed by
controlling authority and having binding legal force
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Keeping the peace
Shaping moral standards
Promoting social justice
Maintaining the status quo
Facilitating orderly change
Facilitating planning
Providing a basis for compromise
Maximizing individual freedom
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 The U.S. legal system is
 Comprehensive
 Fair
 democratic systems of law ever developed and
enforced
However, some misuses and oversights of our legal system allow
some guilty parties to go unpunished
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 U.S. law has evolved and changed along with the
norms of society, technology, and the growth and
expansion of commerce in the United States and the
rest of the world
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
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The philosophy or science of the
law
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Natural Law
School
• Law is based on what is “correct”
Historical
School
• Law is an aggregate of social traditions and customs
Analytical
School
• Law is shaped by logic
Sociological
School
• Law is a means of achieving and advancing certain sociological goals
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
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Command
School
• Law is a set of rules developed, communicated, and enforced by the
ruling party rather than a reflection of the society’s morality, history,
logic, or sociology
Critical Legal
Studies
School
• Legal rules are unnecessary and are used as an obstacle by the
powerful to maintain the status quo
Law and
Economics
School
• Promoting market efficiency should be the central concern of legal
decision making; also called the Chicago School
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The Holy Book of Qura’an
2. SUNNAH- the traditions of Prophet Mohammed
(PBUH).
3. Ijmah
4. Qiyas
5. Constitutions
6. Legislatures and Statutes
7. Administrative Agencies
8. The Judiciary
9. The Executive
10. International Sources of Law
1.
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 The
Quran, also romanized Qur’an or
Koran, is the central religious text of
Islam, which Muslims believe to be a
revelation from God. It is widely regarded
as the finest work in classical Arabic
literature.
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(Arabic:
‫سنَّة‬
sunnah,
ُ ,
plural Arabic: ‫سنَن‬
ُ sunan [sunan]), also sunna or sunnat, is
the body of literature which discusses and prescribes the
traditional customs and practices of the Islamic
community, both social and legal often but not
necessarily based on the verbally transmitted record of
the teachings, deeds and sayings, silent permissions (or
disapprovals) of the Islamic prophet Muhammad, as well
as various reports about Muhammad’s companions.
 In the pre-Islamic period, the word sunnah was used with
the meaning “manner of acting”, whether good or bad
 Sunnah
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 Ijmāʿ (Arabic: ‫) إجماع‬is an Arabic term referring to
the consensus or agreement of Islamic scholars on a
point of Islamic law.
 In Islamic jurisprudence, qiyās (Arabic: ‫) قياس‬is the
process of deductive analogy in which the teachings
of the Hadith are compared and contrasted with
those of the Qur’an, in order to apply a known
injunction (nass) to a new circumstance and create a
new injunction.
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Body of fundamental
principles or established
precedents according to
which a state or other
organization
is
acknowledged to be
governed.
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

The Consultative Assembly of Saudi Arabia ( ,)‫مجلس الشورى السعودي‬
also known as Majlis ash-Shura or Shura Council, is the formal advisory body
of the Kingdom of Saudi Arabia, which is an absolute monarchy. The
Consultative Assembly has no executive power.
Statutes: Written laws that establish certain courses of conduct that
covered parties must adhere to:
 Federal
 State
▪ State legislatures delegate lawmaking authority to local government
bodies
▪ These governmental units are empowered to adopt ordinances
(authoritative order)
▪ The local government bodies include cities and municipalities, school
districts, and environmental control Bodies
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Administrative agencies: Agencies that the
legislative and executive branches of federal and
state governments are empowered to establish
 Administrative agencies adopt rules and regulations to
interpret statutes that they are authorized to enforce
 They have the power to hear and decide disputes
• Their decisions are called order
• Various Ministries can formulate its laws
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
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According to the website of Ministry of Justice, there are three types of
courts. At the top comes the supreme court, followed by courts of appeal,
then courts of first instance
 Type 1: Supreme Court: According to the Saudi judicial system, there is
only one Supreme Court in Saudi Arabia. This court oversees
implementation of Islamic laws and decrees issued by the Saudi
Monarch in conformity therewith in matters that lie within the
jurisdiction of the general judiciary system.
 Type 2: Courts of Appeal: According to the Saudi judicial system, in each
region of Saudi Arabia there is one or more courts of appeal. Dubbed as
“Second Degree Courts”, they review verdicts issued by courts of first
instance, that are subject to appeal, within their respective jurisdiction.
 Type 3: Courts of first instance: Courts of first instance deal with a
variety of claims that are divided into five types: General Courts, Criminal
courts, Matrimonial Courts, Business courts, Labor Courts
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An order issued by a member of the
executive branch of the government
The president and state governors can issue
executive orders
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
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
Firms doing business in other countries are subject to
countries’ laws.

Treaties and Trade Agreements among countries define the
laws that affect business practices.
Ex: NAFTA (North American Free Trade Agreement, GCC)

Multinational regional or global organizations affect
businesses
Ex: World Trade Organization
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 Based on the common law tradition, past court
decisions become precedent for deciding future cases
 Precedent: Rule of law established in a court decision
 Lower courts must follow the precedent established by
higher courts
 Stare decisis—adherence to precedent
 Not Applicable in Saudi
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