BUS 2033 - BUSINESS LAW

DIPLOMA IN MANAGEMENT WITH

MULTIMEDIA
MULTIMEDIA COLLEGE
Lecturer:
Zakaria bin Embi
zakariae@pjh.com.my
013-380 0030

COURSE OUTLINE
1.
2.
3.
4.

5.
6.
7.

Introduction to Law
Law of Contract
Company Law
Commercial Law
4.1 Sales of Goods
4.2 Hire Purchase
4.3 Insurance
Law of Torts
Law of Negotiable Instruments
Revenue Law

ALLOCATION OF MARKS
1.5

Class Tests/Quizes
2.Assignment
3.Presentation
4.Class Attendance/Participation
5.Final Exam

:
:
:
:
:

25%
10%
10%
5%
50%

BUSINESS LAW

INTRODUCTION TO LAW

BUSINESS LAW
INTRODUCTION TO LAW
Nature of Law
Sources of Malaysia Law
The Judicial System in Malaysia

INTRODUCTION TO LAW
NATURE OF LAW

What is Law?
The relevance of law to business
Law in relation to Justice
Relevance of Law to Business
Rule of Laws
Classification of Law

INTRODUCTION TO LAW
NATURE OF LAW
- WHAT IS LAW?

A general rule of conduct

Set of rules, developed over a long period
of time that regulates interactions that
people have with each other, and which
sets standards of conduct between
individuals and between individuals and
the government and which are enforceable
through sanction.

INTRODUCTION TO LAW
NATURE OF LAW
- WHAT IS LAW?

The body of principles recognized and

applied by the State in the administration
of justice. Law is a body of rules which are
enforced by the State Sir John Salmond.

INTRODUCTION TO LAW
NATURE OF LAW
- WHAT IS LAW?

A command set by a superior being to an

inferior being and enforced by sanctions
(punishments). The superior being is the
State and the inferior being is the
individual. The sanctions are wide and
include imprisonment, fines, damages,
injunctions and decrees of specific
performance John Austin.

INTRODUCTION TO LAW
NATURE OF LAW
- WHAT IS LAW?

Define in Article 160(2) of the Federal

Constitution 1957 and Section 2(1) of the
Interpretation and General Clauses
Ordinance 1948 to include:

(a)The

written law
(b)Common law in so far as it is in
operation in the Federation or any part
thereof; and
(c)Any custom or usage having the force of
law in the Federation or in any part
thereof.

INTRODUCTION TO LAW
NATURE OF LAW

- LAW IN RELATIONS TO JUSTICE

Law aims to maintain justice in society.

Justice is an abstract idea of right and

wrong, fairness and equality. Therefore the
aim of a given law is to encourage the doing
of what is right or just in a particular set of
circumstances.

What is seen to be just today may not be

seen to be so in the future. This is because
society norms change from time to time. Thus
as society evolves, the legal system should
also evolve so that existing injustices will
gradually disappear and be replaced by

INTRODUCTION TO LAW
NATURE OF LAW

- RELEVANCE OF LAW TO BUSINESS

Law is needed to regulate and control the affairs of society.

Law guarantees our freedoms, enable free enterprise and

provide means to settle disputes amicably.

Business are affected and shaped by laws as seen in

corporate mergers, privatization of governmental
organizations, crimes committed within the securities
industry, corporate collapses and corporate fraud cases.

Application of the principles of contract law to both

individuals and businesses when they enter into agreements
or contracts of employment, agency, sale and purchase
contracts, credit facilities documentation, insurance, service
contracts and the like.

Provide remedies for breach of contracts.

INTRODUCTION TO LAW
NATURE OF LAW

- RULES OF LAW

No person must be punished except for a

breach of the law. This means that a person
should be able to know whether what he may
want to do is lawful or unlawful. Law is the
highest authority in society.

All persons are equal before the law

irrespective of status or position

The rights or freedoms of citizens are

enforceable in the courts.

INTRODUCTION TO LAW
NATURE OF LAW
- CLASSIFICATION OF LAW

Public Law
(administer the relations between the individual and the
State/Govt.)
e.g.
- Constitutional Law
- Criminal Law

International Law
(administer the relations between different countries)
- Public International Law
- Private International Law

Private Law
(administer the relations between individuals)
e.g.
- Contract Law
- Torts
- Trust

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Historical sources
Legal sources
Places where the law can be found

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Written Law
Unwritten Law
Islamic Law

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Written Law
The main source of law in Malaysia.
- Laws enacted by Parliament and State
Legislatures.
-

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Source of Written Law in Malaysia
Federal and State Constitutions
Legislations
Subsidiary legislations

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
The Federal Constitutions
- Supreme law of the land
- Any law that is inconsistent with the
Federal Constitution is invalid and
void.
- e.g. Human Rights, Powers of the
Federal/State Government, Powers of
the Agong, Separation of power in the
administrative system, official
religion and
language in Malaysia, etc.

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
The State Constitutions
- 13 State Constitutions administered
by the
respective Dewan Undangan
Negeri.
- Contain matters determined under
Schedule 8 of the Federal
Constitution.
- e.g. the power of the Sultans

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW

Legislation
- Federal Legislation
- State Legislation
(laws enacted by State Legislatures)

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Federal Legislation
Laws enacted by Parliament
Ordinances - before Merdeka
Acts - after Merdeka
Applicable throughout the whole of
Malaysia
e.g. Contracts Act, 1950
Company Act. 1965

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
State Legislation
-

Laws enacted by State Assemblies

Enactments
Applicable only to the respective States

e.g. Enakmen Tanah Rizab Melayu Kelantan,

1930
Enakmen Undang-Undang Pentadbiran
Islam
Selangor, 1984
Enakmen Bekalan Air, 1951 (Pindaan) 1984

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW

Subsidiary Legislation

Laws made by persons/bodies under powers

conferred
upon them by Acts of Parliament or
enactment of State Assemblies
-

Rules and Regulations and By-laws

e.g.
Peraturan Perihal Dagangan (Harga Jualan Murah),
1987
Peraturan-Peraturan Sewa Beli (Caj-Caj Terma),
1968,
Undang-Undang Kecil Suruhanjaya Pelabuhan Pulau
Pinang, 1957

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Unwritten Law
Law not enacted by Parliament or the State
Assemblies.
Not found in the Federal and State Constitutions.

Comprises of:
(i) Principles of English Law applicable to local
circumstances
(ii) Judicial Decisions and Judgments of the
superior courts
(iii) Customs of the local inhabitants

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
(i)

Principles of English Law

- applicable only
(a) when there is a lacuna in
the law
(b) relevant to local circumstances
- Section 3 & 5 Civil Law Act, 1956

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
(ii) Judicial Decisions and Judgments of the
superior courts
- Doctrine of stare decisis
- Ratio decidendi
- Obiter dicta

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
(iii)

Customs of the local inhabitants

- Adat Pepatih dan Adat Temenggong

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Judicial Decisions and Judgments of the superior courts Doctrine of stare decisis
In arriving at a decision, judges do not decide arbitrarily.
They are bound to follow certain accepted practice
commonly known as precedent.
A precedent is commonly defined as a judgement or
decision of a court of law cited as an authority for the legal
principle embodied in its decision.
If a judge fails to follow a binding precedent, the decision
will be legally wrong and it is likely to be reversed on
appeal. Where there is no appeal, it can be overruled in a
later case.

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Judicial Decisions and Judgments of the superior courts
Ratio decidendi
i.e. the legal reasoning.
It is the legal reasoning of the precedent that is binding.
The court in a later case decided to apply the legal
principle established in an earlier case on account of
similarities in the material facts. The parties to the
dispute are not the same, the kind of goods bought is
different but nevertheless, there is a common element
justifying the application of the same rule.

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Judicial Decisions and Judgments of the superior courts
Obiter dicta
things said by the way
i.e. the opinion on a question of law expressed by the
judge in the course of a judgement which is not directly
relevant to the case before him.
It is not part of the rule (ratio) and hence is strictly not
binding on courts although it may have very high
persuasive authority, particularly if it originates from a
higher court such as the Federal Court.

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Islamic Law

Only applicable to Muslims

Administered by the Syariah Courts
Important because Muslims form the majority
religious group in the whole of Malaysia.

Others
English Common Law and Equity
Textbooks on law
authoritative statements of the law which are
reliable

INTRODUCTION TO LAW
SOURCES OF MALAYSIAN LAW
Examples of Written Law applicable to
bankers

Banking and Financial Institutions Act

Offshore Banking Act
Contracts Act
Companies Act
Bills of Exchange Act

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Judicial system in Malaysia is divided into
2:1.Civil

Courts
2.Syariah Courts

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
SYARIAH COURT
Mahkamah Rendah
Mahkamah Tinggi
Mahkamah Rayuan

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
CIVIL COURT
Subordinate Courts in Peninsular
Malaysia
Subordinate Courts in East Malaysia
Superior Courts in Malaysia

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Subordinate Courts in Peninsular Malaysia
Penghulus Courts
Magistrates Courts
Juvenile Courts
Sessions Courts

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Subordinate Courts in East Malaysia
Native Courts
Magistrates Courts
Juvenile Courts
Sessions Courts

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Superior Courts in Malaysia
High Court
Court of Appeal
Federal Court

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Other Courts in Malaysia

Mahkamah
Mahkamah
Mahkamah
Mahkamah
Mahkamah

Khas Raja
Kanak-kanak
Tentera
Perusahaan
Anak Negeri

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Roles of a Judge
Formulating original precedents
Overruling earlier precedents
Constitutional review
Statutory interpretation
Operation of doctrine of binding
precedent
Application of doctrine of ultra vires
Import of rules of natural justice

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Alternative Methods of Dispute Resolution
Tribunals
Mediation
Arbitration

INTRODUCTION TO LAW
THE JUDICIAL SYSTEM IN MALAYSIA
Small Claims Court
- settle industrial disputes through
conciliation
and arbitration

Consumer Claims Tribunals

- Mediate disputes between consumers and
traders

Financial Mediation Bureau

- Mediates disputes between banks and
other
financial institutions and their customers