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Summary Business Law 2

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Summary of Business Law 2 for BA2 Business Economics at the VUB.

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  • 26 februari 2022
  • 113
  • 2019/2020
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Madikan
BUSINESS LAW II BUSINESS ECONOMICS II




BUSINESS LAW II
BUSINESS ECONOMICS II, SEMESTER I
Table of Content:
- What is Law? p. 1
- Contracts p. 9
- Corporate Law p. 31
- Property Law p. 53
- Bankruptcy and Secured Transactions p. 63
- Commercial Law p. 73
- Guest-lecture Data Law (28p.) p. 78

,BUSINESS LAW II




Course objectives:
- Not to turn you into lawyers!
- Become better businesspersons
- Develop a ”Legal Edge”
- Sensitized to legal issues
- Aware of legal perspective
- Understand how to use the law to create value & competitive advantage
- Informed about possible legal conflicts
- Understand how to avoid legal problems
- Improve working relationship with your lawyer
- Gain a stronger understanding of legal principles that govern international business

,WHAT IS THE LAW?

, BUSINESS LAW II BUSINESS ECONOMICS II



Chapter 1: Law and Society

KEY TERMS:
Law: that which a judge will decide concerning matters properly brought before him/her, in a broader
sense, any rule that society will enforce.
Code: in the common law, a collection of statutes enacted by legislative bodies, including Congress
and state legislatures.
Civil Law: codified law based on the Roman code of Justinian; the basis of the legal system of almost
all European and Latin American countries as well as many African and Asian nations.
Common Law: law as developed and pronounced by the courts in deciding cases (“case law”), based
on the common law of England and juridical precedent.

1.1. Origins of law
The origin of law is obscure; society cannot exist without law. Individual power and cunning
constituted the first law, and primitive governments merely presided over the lex talionis, or
law of private retribution.
As society became complex, it became necessary to adopt rules of conduct for various
purposes:
- To prescribe certain kinds of behavior that society finds objectionable. (public law)
- To make an injured party whole. (private law that includes tort, agency, contract,
corporation, partnership, and property law)
- To end disputes.

1.2. Definition of law
Legal definition: the law are enforceable rules governing relationships among individuals and
between individuals & their society.
/the law sets out rights, duties and obligations of citizens.
However, there are other widely accepted definitions of law. “Legal positivism” defines law as
the command of a constituted political authority;” natural law” theorists argue that there is a
higher law grounded in absolute moral rules and that any law contrary to such natural law is
not law. The English jurist Blackstone defined law as “a rule of civil conduct prescribed by the
supreme power in a state, commanding what is right, and prohibiting what is wrong.”

Schools of jurisprudence: the different philosophies of the law
- Critical legal studies: manipulable concepts to preserve the socioeconomics status
quo while maintaining the fiction of a just decision-making process.
- Historical school: law is shaped by events, traditions, and customs.
- Law and economics: market efficiency is, or at least should be, the law’s prime focus.
- Natural law: law is tied to morals and ethics.
- Positivism: law is a set of rules developed and enforced by governing authority.
- Utilitarianism: approach to life and law is often reduced to the phrase, ‘the greatest
good for the greatest number”.

Result of law: “stability and predictability”
Why? The law regulates your conduct in society
- Personal level: citizens need to be able to determine “right from wrong”
- Business level: degree of “legal certainty” in business dealings




1

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