Legal environment for business is the legal  framework which resolve dispute and regulate behavior of the  business for the benefit of the community

what is law?

Legal positivism “law is what the sovereign says it is.”

A rule of external human action enforced by the sovereign political authority

Established habits and thought of mankind which has gained distinct and formal recognition in the shape of uniform rules backed by the authority and power of govt.

The technique for the regulation of social power ( the capacity to direct the behavior of other) – the power to make policy , to make rules and to make decisions

The law consists of rules that regulate the conduct of individuals, businesses, and other organizations within society.

It is intended to protect persons and their property from unwanted interference from others. The law forbids persons from engaging in certain undesirable activities.

Classifications of law

Public and private

  • Public- legal relationships between members of society and the government to influence behavior and bring about social change
  • Private- legal relationships among members of society resolves disputes and administrative affairs

Substantive and procedural

  • Substantive -defines legal rights and regulates behavior
  • Procedural -how it is to be enforced establishes processes for settling disputes how it is to be enforced

Civil and criminal

  • Criminal law- criminal law concerns those activities that society has outlawed
  1. Dangerous behavior outlawed by society
  2. it is determined guilty can be fined, imprisoned or both (Punishment)
  3. Beyond a reasonable doubt
  • Civil law-civil law concerns the rights and liabilities between private parties;
  1. Regulates rights and duties of parties
  2. Victim, not government brings suit
  3. Guilt not determined
  4. Preponderance of the evidence

Legal environment for business

Legal environment for business is the legal  framework which resolve dispute and regulate behavior of the business for the benefit of the community

Key functions of the legal systems

  • Enhancing social stability – limit actions that are detrimental to the “public interest” and encourage beneficial actions
  • Conflict resolution – courts are one mechanism for resolving disputes
  • Social maintenance – reflect the social values and customs of a society
  • Social change – effective way to change what is “acceptable” behavior

Reasons to study law

  • 1. Law is relevant to everyday life. The law governs our conduct – some behaviour amounts to a crime; some actions may be civil wrongs. Every time we buy something, we make a contract, whether the purchase is a newspaper, a bar of chocolate or an expensive item such as a car or a house.
  • 2. Knowledge of current affairs is essential to the study of law. There are many influences that result in changes to the law –among them are political, technological, international and moral influences. To appreciate the role of law in society, you need to be aware of these influences through knowledge of current affairs.
  • 3. Going to court is not an activity just for lawyers and offenders. Anyone may witness an accident or a crime and be required to go to court to give evidence. Often cases are resolved in private through negotiation, arbitration or mediation.
  • 4. Knowledge of how and why law changes is useful background knowledge for a whole range of subjects. It is essential for students of law to understand how and why law changes and on any law course there is likely to be a section about law making
  • 5. Good communication is a valuable skill in any walk of life and studying law helps to develop and improve that skill.

What is crime

Crimes that harm business

  • Larceny — the trespassory taking of personal property with the intent to steal it. Someone else originally had the property.
  • Embezzlement — fraudulent conversion of someone else’s property already in the defendant’s possession.
  • Fraud — deception for the purpose of taking money or property from someone. Includes bank fraud, wire and mail fraud, insurance fraud, medicare fraud.
  • Computer crime — by means of an internet that crosses state lines

What is tort

A tort is a wrongful act, other than breach of contract, for which the law provides a civil remedy.  Some acts, which are torts, are also crimes.  Tort law protects personal, property, and economic interests.  Torts are categorized according to the degree of fault that must be proven

Seek remedy

  • A person has to file a case before the appropriate court or authority.
  • Claims regarding money, property, compensation etc is to be filed before the civil court presided over by the assistant judge or subordinate judge according to value of the claim, and complaint against commission of crime is to be filed either with the local police station or in the criminal court of the magistrate of the first class of the locality.
  • The police investigates the cases lodged with the police station and produces witnesses before the court during trial.
  • On the other hand, it is the responsibility of the complainant to produce witnesses before the court in the cases in which magistrates take cognizance on the basis of a written complaint.

Jury Judge Lawyers

  • Jury- Decide the issues of fact presented by the case. Applies the law, as instructed by the judge, to the facts to arrive at a verdict. As long as there was evidence presented at trial from which the jury could reasonably reach its decision on the facts, those facts may not be challenged on appeal.
  • Judge- Decide the issues of law presented by the case. The facts are not in dispute, but the parties disagree about the legal consequences of the facts. In such cases, the judge can decide the case by ruling on the issues of law and no trial is needed. There are facts in dispute, but no jury is used, the judge will decide both the issues of fact and the issues of law.  As referee, the judge monitors the parties to ensure compliance with the rules of procedure and rules of evidence.
  • Lawyers who represent parties at trial are hired to serve as advocates for their clients. The rules of professional responsibility governing lawyers require the lawyer to represent her client zealously within the bound of the law.At trial, each lawyer presents the case in the light most favorable to her client in an attempt to persuade the trier of fact to decide in the client’s favor. At the same time, the lawyer must not mislead the court by using false evidence, and may even be required by law to disclose some non-confidential information that is detrimental to her client.

The legal system

The legal system is so vast and complicated that an ordinary person without the help of a legal practitioner (known as advocate) cannot effectively seek legal remedy from the court, administrative authorities or tribunals though there is no legal bar in seeking remedy directly without engaging a lawyer.

In bangladesh every one is equal before the law and entitled to equal protection of law, and there cannot be any discrimination on the ground of religion, race, sex, etc and no one can be detrimentally affected in life, liberty, body, reputation or property except in accordance with law. Law is the result of judicial decisions

Steps to legal reasoning

  • What are the facts? The basic building blocks which provide the environment or context within which the legal issue is to be resolved. They are the facts relevant to the dispute at hand.
  • Key parties and actions list case name (plaintiff v. Defendant)
  • What is the issue?
  • What are the relevant rules of law? Importance of stating the issue: parties to the dispute expend great effort to get the court to see the issue in a particular way.
  • Reasoning-the logic given by the court for deciding this issue this way based on these facts-what are the relevant rules of law? Include the social, business, and factual reasons the court gives for its decision.  How did the court react to the issue, 5. Does the legal argument contain significant ambiguity?


  • 5. Wording is important — words may have several meanings. Even against the backdrop of the same set of facts, alternative meanings of word may give different results. Seek clarification — what did the court mean – interpret from its reasoning, if possible.
  • 6. Is there missing, relevant information?
    Are the known facts in the case incomplete? What other information might be relevant to the case? Why is it “missing”? Ask for more detail and context in pursuing the facts.
  • 7.Decision/holding-how does the court rule based on this reasoning?
    How does the court rule based on this reasoning? Case analysis