Keenan/Riches,BusinessLaw8/e

AnswerstoSelftestQuestions
Chapter1TheNatureofLaw
1.

Thereisnostandarddefinitionofwhatismeantbylawbutanyexplanationof
theconceptoflawshouldincludethefollowingelements:
thelawconsistsof asetof rules
therulesareenforceablebythecourts
therulesregulate
(i) thegovernmentofthestate (publiclaw)
(ii) therelationshipbetweenthestateanditscitizens(publiclaw)
(iii) therelationshipbetweenonecitizenandanother (privatelaw)
Theideaoflawissometimesexplainedbythinkingaboutwhatisnotlaw.The
rulesofacluborasportarenotregardedaslawandwouldnotbeenforceable
inthecourts.Similarly,moralruleswidelysharedbeliefsandvaluesina
society arenotthesameasthelaw,althoughthelawwillusuallyreflectthe
prevailingmorality.
Lawisnecessarytomaintainorderinsociety:withoutlawtherewouldbe
anarchyandchaos.

2.
(a) Publiclawconcernstherelationshipbetweenthestateanditscitizens.It
includesconstitutionalandcriminallaw.Privatelawconcernsthe
relationshipsbetweencitizensandincludes,forexample,thelawof
contractandtort.]
(b) Civillawreferstothosebranchesofthelawwhichgovernstherightsand
obligationswhicharisebetweenprivatecitizensitprovidesasystemof
rulesforresolvingdisputesbetweenindividuals.Criminallawconcerns
wrongfulbehaviourwhichthreatensthegoodorderofsocietyandthe
statetakesactiononbehalfofthewholecommunitytopunishoffenders.
(c) A contractisalegallybindingagreementwhichisenforceableinthe
courts.Thelawofcontractprovidesaframeworkfordecidingwhich
agreementsarebindingandenforceable,thenatureandextentofthe
obligationswhichthepartieshaveagreedandtheconsequencesof
breakingcontractualpromises.A tortisabreachofadutyimposedbythe
law.Thelawoftortprovidesaremedyforcertaintypesof harmful
conduct, e.g.negligence,nuisance.
(d) Thecommonlawhasthreemainmeanings.(i)Itisusedtorefertoatype
ofjurisdictionorlegaltradition,inwhichsubstantialpartsofthelaware
tobefoundinthedecisionsofjudgesdecidingcasesinthecourts(judicial
precedent).Examplesincludethosecountrieswhoselegalsystemscanbe
tracedbacktotheEnglishlegalsystem,e.g.Australia,NewZealand,
federallawintheUSA.Thisisincontrasttocivillawjurisdictions,
descendedfromRomanLaw,inwhichusuallymostofthelawistobe
foundinlegalcodes.Incivillawtraditionsthereisfarlessweightgiven
tojudicialprecedent.ExamplesofcivillawtraditionsincludeScotland,

Keenan/Riches,BusinessLaw8/e
andmostofcontinentalEurope.(ii)Commonlawisalsotorefertolaw
madebyjudgesthroughtheapplicationofthedoctrineofjudicial
precedentascontrastedwithlawmadebyalegislature,i.e.statutelaw
madebyParliament.(iii)Thethirduseofcommonlawistodistinguish
itfromequity.Inthiscontextcommonlawmeansthesystemoflaw
developedandappliedinthecommonlawcourts.Equityreferstothe
rights,legalprinciplesandremediesdevelopedbytheCourtofChancery.
ThedifferencesbetweenthecommonlawandequityaresetoutinFig1.3
(p.8).
(e) Ownershipdescribesthegreatestrightsthatapersoncanhaveinrelation
toproperty.Anownercanexercisethefullestrightsofuseanddisposal
thatareallowedbythelaw.Possessionmeanshavingphysicalcontrolof
propertyandanintentiontoexcludeothers.Athiefwhostealsyourcar
willhavepossessionofyourvehiclebutyouwillretainownership.
3.
(a) Ann.Divorcecivil.
(b) Colin.Parkingcivil(UndertheRoadTrafficAct1991,parking
offencesregulatedbylocalcouncilsweredecriminalisedandbrought
withinthecivilenforcementsystem).
(c) Diane.Faultygoods civil(breachofcontract).
(d) Eamonn.Trafficaccidentcriminal(exceedingthespeedlimit)andcivil
(tortofnegligence).
(e) Graham.Takingabookfromalibrary criminal(theft)andcivil(tortof
conversion).
(f) Hazel.Rentcivil(landlordandtenant).