SHREE MEDHA COLLEGE Dept.

of Management Studies

BUSINESS LAW
Module-1 Introduction:
Business vis-a-vis environment, nature and scope of business legislations,
importance of law & business law, evolution of law.

What is Law?

• Salmond defined law as, “ the law may be defined as body of principles
recognised and applied by the state in the administration of justice.”

• According to John Chipman Gray, “the Law of the State or of any

organised body of men is composed of the rules which the courts, that is
judicial organ of the body lays down for the determination of legal rights
and duties.” His definition also received criticism that his definition
focused neither on nature of law nor on statute laws.

Nature and Scope of Laws

• Justice is a set of universal principles which guide people to analyse what

is right and what is wrong. It disregards the culture and society one lives
in. Fiat justitia ruat caelum is a Latin phrase which means, “Let justice be
done, though the sky falls.”

• Social control refers to mechanisms which regulate individual and group

behaviour. E.A. Ross, the famous sociologist believed that it is not the
laws that guide human behaviour but it is the belief systems that guide
what individuals do. Social control mechanisms can be adopted as laws
and norms which control and define human behaviour.

Law serves many purposes and functions. It helps to maintain peace. Violence
should not be allowed in the society and thus, peace is maintained by the orders
or we can say the laws of the government. Law also helps to establish
standards. It also protects rights of the people. Without laws, people will not
even get the basic rights which they deserve.
Also, law can be called as a good career option. From Mahatma Gandhi to
Barack Obama, all are associated with the career of law. It acted as a stepping
stone to their success. There are various career options in law like litigation,
civil services, professors or one can go in the corporate sector.

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Evolution of Law

Christianity and Law

• Many centuries ago, it was believed that according to Christianity, God
and Old Testaments created the law. Law was a set of rules written by
God. People believed in Divine power. Also, it was believed that only if
the laws are considered to be sacred then it will be followed.
• Christians placed a lot of emphasis on morals. They believed that if the
foundations of law are weak, then society will easily revise them
according to their needs. The laws will become crooked according to
man’s selfish needs.
• As Christians, it was believed that the omniscient, omnipotent,
omnipresent loving God is the world’s Lawgiver (Psalm 127:1). He
provides Himself as an absolute basis for law. The Christian system of
law did not change according to the whims and remained static.
• Christianity did not neglect human rights. It ensured certain human rights
that are written in the Bible. The Bible has certain instructions specified
and He commands us to follow them. The Bible tells us what God
believes to be good and what He wants from us: “to do justify, and to love
mercy, and to walk humbly with thy God” (Micah 6:8).
• It was believed that one can hoodwink man’s laws but no one can escape
from God’s punishment.
• This theory led to diverse views. The people who believed in God were
questioned by others. People questioned them because there was no
evidence of God coming to earth and formulating the laws.
• As a result, the definition changed over time. Later people started
believing more in themselves than in the supreme commander. The
meaning of law became closer to humans. The definition shifted its
emphasis from God to lawmakers.

Sovereignty and Law

• There was a time when people believed in command of the sovereign.
Various Political philosophers have their own controversial statements
related to sovereignty. It was regarded as absolute. No power is above
superior.
• Another feature is, that it was considered to be permanent. It did not end
with the death of the king, rather the eldest son of the king became the
next ruler, the principle of primogeniture.

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• Now, this poses a question what if the new king is inefficient? No one had
the right to remove the king.
• Starting with Austin’s theory which meant that sovereignty is the
command given by superior to inferior. So, whatever the King proclaimed
can be considered as law and should not face any revolt. Divisibility of
power was not allowed. The ultimate power rested with the king and he
was the one who imposed all the laws on the society.
• If there was only one person who made all the laws, is he competent
enough to frame laws for all the sectors of the society? The laws made by
King could not be questioned. Whatever the king said, prevailed.
• However, Hans Kelsen believed in the idea to end sovereignty. He
gave his new definition.
• He believed that there was no need for the word sovereignty to
understand the meaning of law and to locate the applications of legal
norms. He believed that legal norms are not valid because they are given
by sovereign or compatible with moral laws. He discarded the theory that
sovereignty is the ultimate source of law.
• It is believed that where there is sovereignty there is no law and where
there is law, there is no sovereignty.

Therefore, times changed and people realised that whatever King ordered
should not be proclaimed as law. Rather, they should have the freedom to
choose their ruler or decide whom they want to be ruled by. So, sovereignty part
was disregarded by time.

Modern time and Law

• Law in modern time is dynamic. Law is what the judges say. Law evolved
from religious books to Kings proclamation to what it is today.
• Law in the modern times is influenced by time and places. A crime in one
place may be an ordinary act of another. Thus, nothing is wrong or right,
it is now the law of the state which governs the act. It is customs,
practices and habits that become law.
• Different culture punishes different things, which means that different
rules guide different laws of the land. The punishment for a crime varies
from one country to the other.
• For instance, punishment for negligent driving, witch branding, adultery
is different at different places. Though main aim of the present laws is to
provide justice to the one in need. Also, no one is condemned unheard
which leads to the idea that justice is given after hearing both the sides.

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• Law is defined as, “a set of special legal rules, enforceable by the courts,
regulating the government of the state, relationship between the organs of
the state and relationship or conducts subjects towards each other.” It is a
body of rules made by the legislature.
• In fact, laws are the rules that bind human together. Without laws, man
can become worse than an animal. Law is a necessity for the nation to
prosper. The rules are made by man, enforced by man, on the man.
• Law can only be enforced by the majority. When there is general support,
law enforces itself. A body is elected which frames the law for everyone.
People have to be governed by law to avoid illegal and immoral acts.
• Even in ancient times there were certain customs which acted as laws. In
other words, it can be said that law can be called as the supreme force
which acts as a catalyst between society and illegal practices.
• Also, every single person has his own definition for the three-letter word.
Even the judges that make law, give judgements according to time.

Importance of Law:
• Law acts as a medicine to cure the sufferer. We all must be aware that a
condition of lawlessness is neither desirable for the nation, nor for the
individual.
• Civilisation has developed the humans, not only in emotions but also in
technology. So, at every new turn, we require a law to help us move
forward in society. When politicians prove to be a dark horse, then the
law is required.
• Lord Dylan said,” to live outside the law, you must be honest.” The words
within the quotes are absolutely right because if everyone is honest then
there will be no need for law. There would have been peace all around but
we all know that this is not the reality. We require more and more laws
because we are progressing at a very fast pace though inside we are
regressing.
• The current generation requires law the most. Though laws are filled with
flaws i.e. Every law has some deficiency but law is what limits and
coerces the majority. If it is necessary, it is required for survival and
sustenance.
So, just imagine a day without law. A hell lot of problems will arise if there is
not any law. We humans are filled with self-interest and our selfishness will
override every single thing on this planet. There will be misery all around.

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There will be war of all against all. Thus, law acts as a guard of all the negative
human emotions of life. Law are guidelines which are required to be followed.

Conclusion:
• Law is an instrument of positive social change and also as a means of
changing existing social arrangements. It acts as a catalyst change agent.
• Law has influenced literature. Shakespeare has mentioned law more than
any other profession in his plays. That is to say, Law is so important that
it has its impact even in literature.
• Lawyers can look into literature as a rich source of certain forms of
knowledge. Law is what everyone of us look forward to.
• Law may prove to be deterrent at times, but its main purpose is to provide
justice. Law means a strong order in the society. All this can be provided
by government. All things considered, law is the most crucial part of the
state. It is the supreme power of the state commanding what is right and
what is wrong.
• Although law has one syllable and has only three letters yet the word can
be understood in various ways.

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