Chapter 1: Summary

Question 1

What are the two types of law?

Answer 1

Criminal and Civil Law

Question 2

What does Criminal Law refer to?

Answer 2

To the conduct of which state disapproves and seeks to control with threat of punishment.

Question 3

What proof is required in Criminal Law?

Answer 3

State must prove guilt beyond reasonable doubt.

Question 4

What does Civil Law refer to?

Answer 4

To the relationship between individuals and provides remedies to settle disputes.

Question 5

What proof is required in Civil Law?

Answer 5

Claimant must show liability on balance of probabilities.

Question 6

What are the two sources of law?

Answer 6

Statute and Case Law

Question 7

What are the two types of Statute Law?

Answer 7

Direct and Indirect (Delegated) Legislation

Question 8

How does Direct Legislation occur?

Answer 8

To become law a Bill must pass through the House of Commons, House of Lords and receive Royal Assent.

Question 9

What are three examples of delegated legislation?

Answer 9

Statutory Instruments
Bye-Laws
Orders in Council

Question 10

Who makes Statutory Instruments?

Answer 10

Government Ministers

Question 11

Who makes Bye-Laws?

Answer 11

Local Authorities

Question 12

Who makes Orders in Council?

Answer 12

The Privy Council in the name of the Monarch on the advice of the PM.

Question 13

What is Case Law?

Answer 13

Law which has been developed over time by judges when deciding the outcome of cases brought before the courts.

Question 14

What is the relationship between Statute and Case Law?

Answer 14

Statute Law takes precedence over Case Law

Question 15

What is meant by ‘choice of laws’?

Answer 15

Parties entering cross border contracts may agree in advance which country’s laws will apply.

Question 16

What two entities have created alternative rules to ‘choice of laws’?

Answer 16

The United Nations and The International Chamber of Commerce

Question 17

What does UNCISG stand for?

Answer 17

UN Convention on Contracts for the International Sale of Goods

Question 18

What rules does the UNCISG set out on?

Answer 18

The obligations of the buyer and the seller.

The point of passage of risk from seller to buyer for loss or damage to the goods.

Question 19

When does the UNCISG apply?

Answer 19

Only to the commercial sale of goods where the buyer and seller of the goods have their places of business in different countries.

Question 20

What types of sale does the UNCISG not apply? (5 types)

Answer 20

Where the supply of labour is a major part of the contract.

Where the buyer provides most of the materials for the goods.

Where the goods are bought for personal or household use.

Where the goods are sold by auction.

Where the sale relates to certain specific restricted products such as electricity, aircrafts and investments.

Question 21

What is an Incoterm?

Answer 21

They are standard terms of trade which parties can use in cross border contracts, created by the ICC.

Question 22

What does Incoterms set out?

Answer 22

Rules in connection with paying for things such as delivery, import and export duties, insurance and freight costs.

Question 23

What is Usury?

Answer 23

The belief that you shouldn’t make money from money which means avoiding paying or receiving interest.

Question 24

How is a savings accounts structured to avoid usury?

Answer 24

Customer is an investor.
Bank is a fund/asset manager.
At end of the investment period, customer’s money is returned with profit earned, less management fee payable to bank.

Question 25

How is a loan structured to avoid usury?

Answer 25

Bank purchases relevant asset.
Sell asset at profit to customer.
Customer pays the bank in instalments.
Banks owns asset until final payment is made.

Question 26

What legislation was introduced supporting the Environment?

Answer 26

Environment Act 2021

Companies Act 2006

Question 27

What legislation was introduced supporting the principle of Society?

Answer 27

Equality Act 2010

Employment Rights Act 1996

National Minimum Wage Act 1998

Bribery Act 2010

Proceeds of Crime Act 2002

Money Laundering Regulations 2017

Question 28

What legislation was introduced supporting the principle of Governance?

Answer 28

Data Protection Act 2018