Managing the Legal Environment

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Managing the Legal Environment

• BL629
• Brendon Stewart
• Rosemary Shaw

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• Brendon.Stewart_at_vu.edu.au ph 99191848
• Rosemary Shaw r.shaw_at_ballarat.edu.au
• - B109
• - ph 53279360

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Topic OneUnderstanding the Legal Environment
within which Business Operates

• 1. Functions of the Law
• Maintain social order
• Govern relationships
• Settle disputes

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What is the rule of law?

• No person must suffer punishment or pay damages
  for any conduct not expressly forbidden by the
  law as determined through the courts.
• Note that it applies to the State with equal
  force as it applies to the individual citizen

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Functions of the Law (contd)

• - allows for the governing of the nation, state
  and shire
• - protects the citizen from the State
• For business, the law provides a framework within
  which business and organisations can function
• The law also provides rights and obligations that
  managers/ business people must be aware of

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2. Role of Regulation

• Why does the law regulate behaviour
• To protect others
• To provide a competitive business environment
• To provide a safe working environment
• To provide workable systems for the operation of
  business organisations
• To provide business systems in which people have
  confidence

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3. Regulation response of management

• How do managers respond to regulation?
• Risk management
• - extends beyond personal injuries to all areas
  of responsibilities liabilities
• - the risk management loop

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Regulation response of management (contd)

• b) Compliance
• - concentration on legal obligations but should
  extend to organisations extended role into its
  community responsibilities
• - all management should take part
• - circular process
• - importance of it being in writing and record
  keeping

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4. Structure of Australian Legal System

• Inherited the English legal system with arrival
  of first European settlers moved from the
  martial law to self government
• What existed before 1901
• Separate semi-independent colonies
• What does federal and federation mean?
• Creation of the Constitution

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Structure of Australian Legal System (contd)

• Division of Power within the Constitution
• - exclusive powers
• - concurrent powers
• - if conflict, Cth wins
• - powers of Cth extending
• - residual powers

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Division of Power within the Constitution
(contd)

• b) Who Makes the Law
• - before there was a parliament
• - after the rise of parliament
• - judges hearing cases (common law)
• - the supremacy of parliament
• - subordinate legislation

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5. Finding the Law

• Primary sources
• - legislation, federal and state
• - cases in law reports online (difference
  between a trial and an appeal)
• Secondary sources
• Text books and journal articles
• Websites (but beware!)

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6. How does the Law Change

• The parliament passing legislation
• Judges applying the principles of precedent
• - following previous cases with similar
  facts/issues
• - lower/higher courts
• - same hierarchy
• - ratio decidendi and obiter dictum

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Statutory interpretation

• Judges role in interpreting legislation
• Statutory interpretation
• - literal rule
• - golden rule
• - mischief rule
• - the purposive approach extrinsic materials