3_IntrotoBusiness_LegalEnvironment

Introduction to Business
WEEK 3: LEGAL ENVIRONMENT

Learning Outcomes
5.1: Explain the meaning and purpose of law

5.2: Differentiate between statutory and common law
5.3: Define tort law, and explain the role of product liability in tort law
5.4: Explain the purpose and characteristics of intellectual property law
Understanding Law
• The law is a set of rules of conduct or procedure

established by customs, agreement or authority.
• Refers to the entire body of rules governing a community
and enforced by a political authority.
Purposes of Law
Main purposes of laws are to

 maintain order
 establish standards
 resolve conflict
 protect individual rights and liberties
In a civil society, law is required to maintain order and to
establish what personal behavior and business practices are
right or wrong based on a society’s values and circumstances.
Statutory Law
 Statutory laws are passed by parliament and represent one of the primary sources of laws in
Bangladesh.
 The written law established by enactments expressing the will of the legislature
 The Bangladeshi legal system is based on a written constitution and the laws often take
statutory forms which are enacted by the legislature and interpreted by the higher courts.
 For example, The Contract Act, 1872 governs contracts in Bangladesh, setting out the rules
for valid contracts, enforceability, and consequences of breach of contract. The Act
outlines requirements for offer and acceptance, consideration, and mutual consent, all
essential for a contract to be legally binding
Common Law
 Common law is based on the concept of precedent and stare decisis, which requires judges
to decide based on prior rulings or, at minimum, consider the reasoning of prior judges when
deciding a case with similar facts.
 Law that is derived from judicial decisions instead of from statutes
 A type of law that is established by particular cases
 If a doctor or hospital is accused of providing inadequate care that leads to patient harm,
the court may look to common law principles of negligence
Class Discussion: Precedent and
Business
How does the role of precedent and stare decisis contribute to the business climate?
Understanding Tort Law
In common law jurisdictions, a tort is a violation of

civil law that causes harm or injury to a person or
property and an associated legal liability on the part
of the person who commits a tortious act.
In tort law, it is the responsibility of the plaintiff to file

a lawsuit to seek damages for the wrong.
Tort Law and Burden of Proof
Tort lawsuits have a lower burden of proof than criminal law.
In a criminal case, the fault of the defendant must be proven beyond a reasonable doubt.
However, in tort law, the plaintiff must only prove a preponderance of the evidence – that there is
more than a 50 percent chance, given the evidence, that the plaintiff's claim is true.
Strict Liability
Strict liability acknowledges that some products are inherently dangerous; thus strict liability is a
significantly higher level of liability that applies when a tort or harm results from ultrahazardous
activity or defective products.
In a strict liability case, elements of proof such as duty of due care, breach, and proximate
causation are irrelevant.
Suppose a consumer buys a blender from a store, and due to a manufacturing defect, the
blender explodes and injures the consumer
Class Discussion: Strict liability
Write 5 examples of Strict liability.

Practice Question 1
In a legal context, a tort is __________________ that is generally remedied through payment of

monetary damages.
A. a violation of criminal law
B. a violation of the social contract
C. a violation of civil law
D. a violation of common law
Practice Question 2
Strict liability is a __________ liability that applies when a tort or harm results from __________.
A. Significantly higher level of; ultrahazardous activity or defective products
B. Lower level of; common, everyday activity
C. Release from; end-user negligence
D. Release from; product misuse by an end-user
Intellectual Property
Intellectual Property (IP) refers to creations of the mind, like inventions, literary and artistic works,
designs, symbols, names, and images used in commerce
This legal framework encourages innovation and creativity by allowing creators to benefit from
their ideas and creations
There are three main ways to protect intellectual property:
1. Patents
2. Trademarks
3. Copyrights
Copyrights
A copyright gives an owner “the exclusive right to reproduce the copyrighted work,
to prepare derivative works, to distribute copies or phono-records of the
copyrighted work, to perform the copyrighted work publicly, or to display the
copyrighted work publicly.”
Protects creative and artistic works such as literature, music, films, software code,
architecture, and other forms of expression.
Patents
Protects new inventions or processes, granting the inventor exclusive rights to make,
use, or sell their invention for a specific period (usually 20 years).
Protects inventions or processes that offer a new way of doing something, such as
mechanical devices, new drugs, industrial designs, or technological innovations. It is
designed to protect functional aspects rather than creative expression.
Trademarks
Protects brand names, logos, slogans, and other identifiers used to distinguish goods
or services in the marketplace. Trademarks help businesses build brand recognition
and prevent others from using similar marks that could confuse consumers. Examples
include logos like the Nike "Swoosh" or the word "Coca-Cola."
Quick Review
• What is the meaning and purpose of law?

• What is the difference between statutory and common law?
• What is tort law? What is the role of product liability in tort law?
• What is the purpose and characteristics of intellectual property law?
QUESTIONS?
Thank You!

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Introduction to Business

WEEK 3: LEGAL ENVIRONMENT

5.1: Explain the meaning and purpose of law

• The law is a set of rules of conduct or procedure

Main purposes of laws are to

In common law jurisdictions, a tort is a violation of

In tort law, it is the responsibility of the plaintiff to file

Tort lawsuits have a lower burden of proof than criminal law.

Write 5 examples of Strict liability.

In a legal context, a tort is __________________ that is generally remedied through payment of

• What is the meaning and purpose of law?

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