BUSINESS LAW 1 - Introduction to law Flashcards
What is the definition of a social norm?
Behavioral standards that prescribe what is correct and needs to be followed in society.
Social norms are not sanctioned by the state.
What is a legal norm?
A social norm enforced (sanctioned) by the state.
Example: ‘If you earn money, you should pay tax. If you do not pay, you will be fined by the state.’
Who are the subjects of the law?
State, legal persons (e.g., companies), natural persons (human beings).
What does public law govern?
Issues related to the functioning of the state and protection of public interest.
What are typical branches of public law?
- Constitutional law
- Administrative law
- Tax law
- Criminal law
What does private law deal with?
Relationships between natural and legal persons, and sometimes between them and the state.
What are typical branches of private law?
- Civil law
- Company law
- International trade law
What is the difference between substantive law and procedural law?
Substantive law establishes rights and obligations; procedural law lays down how those rights can be enforced.
What are the characteristics of validity in law?
- Created by an empowered body
- Fits into the hierarchy of laws
- Procedural rules respected
- Proper publication of the law
What does effectivity in law indicate?
The applicability of the norm.
What are the four scopes of effectivity?
- Material scope
- Personal scope
- Temporal scope
- Territorial scope
Fill in the blank: Public law protects _______ interest.
public
Fill in the blank: Private law protects _______ interest.
private
What is the material scope of a law?
What is covered by the norm (e.g., public transportation, education, trade).
What is the personal scope of a law generally?
Everybody, but it may have specific scopes such as official persons or traders.
What defines the temporal scope of a law?
The applicable period usually starting with its publication and ending with a new law or as specified by the law itself.
What is the territorial scope of a law?
The territory on which it should be applied.
What are the main sources of business law?
- Constitution
- International treaties
- National laws
- Decrees
What are conflict of laws rules?
Rules that help determine which country’s substantive law applies in private law relationships involving foreign elements.
What are examples of sources of business law that are not formally laws?
- Contract
- International commercial customs
- Written usages
- Unique business practices
- Practice of international commercial arbitration
- Lex mercatoria
What is a regulation in EU law?
A binding legislative act that must be applied in its entirety across the EU.
What is a directive in EU law?
A legislative act that sets out a goal for EU countries to achieve, allowing them to devise their own laws to reach these goals.
