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Summary CML1001F Business Law Notes
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Summary of entire Business Law (CML1001F) course.
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BUSINESS LAW INOTES FOR EXAMS
PART A: INTRODUCTION SECTION
1. What is Law?
Law is a body of rules governing human behaviour which is recognised and enforced by the
state.
When a law is disobeyed, the state can punish the offender and provide the wronged person
with an enforceable remedy (SERIOUS IMPLICATIONS).
The State = The Government – divide into 3 areas:
1. The legislature – makes law = parliament
2. The executive – enforces law = presidents/ministers/civil service (police)
3. The judiciary – applies and interprets law = courts, i.e. judges & magistrates
2. The South African Legal System
COURT STRUCTURE
Constitutional Court
Supreme Court of Appeal (pre-1994 Appellate Division)
High Courts
Magistrate’s Courts
Regional Magistrates’ Courts District Magistrates’ Courts
Definition of Appeal:
Taking a case from an inferior court to a higher court in the hope of getting a different
judgement.
Used as a mechanism for getting a second opinion on the judgement of an inferior court.
Definition of Jurisdiction:
1. The powers that a court has, for example, a court with criminal jurisdiction has the
power to hear criminal matters.
2. The geographical area over which the court has power, e.g. the Western Cape Court
has jurisdiction over the Cape.
2.1. The Constitutional Court (CC)
Our country now has a written constitution (England, for example, does not).
Constitution is an act of parliament.
It is divided into chapters.
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, It protects human rights, e.g. right to privacy, equality, life, shelter, education, freedom of
expression.
Human rights are contained in Chapter 2 of our constitution = BILL OF RIGHTS.
Other chapters set out how the country must be governed, e.g. president, number of
members in parliament, elections every 4 years.
NB – Any matters which relate to the protection of human rights or how the country must
be governed are known as constitutional matters.
The constitutional court only hears constitutional matters, i.e. human rights or political
cases.
Does not deal with ordinary civil and criminal cases, e.g. if a tenant does not pay his rent,
not a breach of human rights and does not affect how the country is governed, therefore
the constitutional court does not deal with it. E.g. someone steals your wallet –
constitutional court does not deal with it.
In most situations, cases will come on appeal to the CC.
Can also be a court of first instance (or a trial court).
Only hears cases of a constitutional nature ALWAYS.
Court sits in Johannesburg and has jurisdiction over the whole country.
It has 11 judges, at least 8 must be on the bench to hear a matter at minimum.
11 judges would be a “full bench”.
2.2. The Supreme Court of Appeal (SCA)
Pre-1994 was called the Appellate Division (AD or A)
This court is only an ‘appeal’ court.
It will never be a court of ‘first instance’.
Final court of appeal in all matters except constitutional matters.
It can hear constitutional appeals, but it is not the final court of appeal in constitutional
matters.
It can hear all matters – civil, criminal and constitutional.
o Example 1: Thief is called guilty in magistrates’ court. Appeals to high court –
also guilty. Also an appeal to SCA – still guilty – goes to jail.
o Example 2: Same facts as example 1. SCA still finds him guilty and imposes the
death penalty. Appeals to CC, but only about death penalty.
There are 20 judges working at the SCA.
Cases are heard by a bench of 3 to 5 judges.
A full bench is 5 benches.
Court sits in Bloemfontein and has jurisdiction over the whole country.
2.3. The High Courts
There is a high court for each of the 9 provinces.
Some provinces have more than one simply to accommodate for population size.
Each high court only has jurisdiction over its geographical area (bold are those important
for the exam):
Western Cape High Court, Cape Town (WCC) or Cape Division (C). Hears
matters that arise in the Western Cape.
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, Eastern Cape High Court, Grahamstown (ECG) or Eastern Cape Division (E).
Hears matters that arise in the Eastern Cape.
Eastern Cape High Court, Port Elizabeth (ECP) or South Eastern Cape Local
Division (SE).
Eastern Cape High Court, Bhisho (ECB) or Ciskei High Court (CK).
Eastern Cape High Court, Mthatha (ECM) or Transkei High Court (TK).
Northern Cape High Court, Kimberly (NCK) or Northern Cape Division (NC).
North Gauteng High Court, Pretoria (GNP) or Transvaal Provincial Division
(T). Hears matters that arise in Gauteng.
South Gauteng High Court, Johannesburg (GSJ) or Witwatersrand Local
Division (W).
o Example: You live in Sandton. You have a case there → GSJ, for
convenience, you can choose to go to GSJ rather than Pretoria.
KwaZulu Natal High Court, Pietermaritzburg (KZP) or Natal Provincial
Division (N). Hears matters that arise in KwaZulu Natal.
KwaZulu Natal High Court, Durban (KZD) or Durban and Coast Local
Division (D). Hears matters that arise in Durban & surrounding areas.
Free State High Court, Bloemfontein (FB) or Orange Free State Provincial
Division (O).
North West High Court, Mafikeng (NWM) or Bophuthatswana High Court (B).
Jurisdiction over North West province.
Limpopo High Court, Thobayandou (LT) or Venda High Court (V).
Mpumalanga is covered between LT and GNP.
Power of High Courts
Each court only has jurisdiction to hear cases in their geographical area.
They can hear all cases – civil, criminal and constitutional.
The can be courts of first instance (or trial courts). When sitting as a court of first
instance, normally one judge will preside.
In criminal matters, there will be one judge and two assessors. NB – Assessors are not
judges, usually advocates/attorneys who assess the judge in assessing the evidence.
High courts can also hear appeals:
o Will hear appeals from the Magistrates’ Court. In an appeal from the Magistrates’
Court, two judges will be on the bench.
o They can also hear appeals from a single judge of their own division – in those
appeals, 3 judges must be on the bench (not the same judge as the first time).
2.4. Magistrates’ Courts
2.4.1. Types of Magistrates’ Courts
South Africa is divided into various magisterial districts.
A magisterial district encompasses approximately 6 or 8 suburbs, e.g. Wynberg
magisterial district encompasses Rondebosch, Newlands, Claremont, Kenilworth etc..
E.g. Cape Town Magistrates’ Court – CBD, Observatory, Green Point.
Each magisterial district has a district magistrates’ court. Some also have a regional
magistrates’ court, but not all.
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, 2.4.2. Powers of the District Magistrates’ Courts
Each court only has jurisdiction over their geographical area.
In criminal cases, they cannot hear murder, rape and treason (Treason is a crime against
the state – e.g. terrorism).
In cases that are not criminal (i.e. civil), e.g. sue your landlord, they cannot hear cases
where the value of the claim exceeds R100 000.
o Example: You sell your car to someone for R200 000. They fail to pay. This is not
a crime (i.e. theft), it is a breach of contract. You would take your case to the High
Court or the Regional Magistrates’ Court.
They have no constitutional jurisdiction.
They have no appeal jurisdiction.
Presided over by magistrates and not judges.
2.4.3. Powers of the Regional Magistrates’ Courts
The powers of these courts changed at the end of August 2010.
They only have power over their geographical area.
They can hear all criminal matters except treason.
With civil matters, they cannot hear a case where the value of the claim exceeds
R300 000.
They have no constitutional jurisdiction.
They have no appeal jurisdiction.
They are presided over by magistrates.
There are certain specialist courts, e.g. tax court, labour court.
o Examples (NB for test/exam):
1. X lives in Cape Town and is charged with murder.
Where will this case be heard?
a) Regional Mag Court in CT.
b) High Court, 1 judge, WCC, 2 assessors
What are the avenues of appeal?
a) High Court, 2 judges at WCC, then SCA, guilty & death penalty → CC for
death penalty.
b) WCC High Court, 3 judges, then SCA.
2. X enters into a contract with Y to buy Y’s car for R1 million. They both live and
work in Cape Town. X does not pay on the due date and Y wants to sue him for
the money.
Is this a crime? No, a breach of contract.
What court will Y sue in & what is their route of appeal? Starts in WCC High
Court, 1 judge, no assessors. Appeals to WCC, 3 judges. Appeals to SCA.
If amount was R250 000, could you go to the District Mag Court? No.
Could you go to Regional Mag Court? Yes, Cape Town region, but you also start
in the WCC.
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