1. 4Law1006 – Law for Accounts and
Finance
Teaching team:
Module leader - Miles Hurley
Jerome Chan
Justin Brunskell

2. Before we start…
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Law can seem
demanding
But….it is not
impossible, and
can be rewarding
Why are you
studying law?

3. 6 simple rules…
Rule 1 – keep calm
Rule 2 – be logical

4. 6 simple rules…
Rule 3 - Turn up!
Rule 4 – get involved!

5. 6 simple rules…
Rule 5 – read!
Rule 6 – turn it off!!

6. Resources
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Module guide is on
Studynet
Recommended text
available as “ebook”, via studynet
Other resources via
studynet include
Justcite, Westlaw, Lawt
el, LexisNexis – see
link on module site
N.B. “Wikipedia” is not
a proper learning
resource

7. Assessment
Coursework element (50% of final
mark) – An online MCQ test, and a
group work exercise - submitted
via studynet.
 Exam element – 3 problem
questions (out of 6 available).
Similar to seminar questions, so
use seminars to PRACTICE!!


8. Answering legal questions


9. Answering legal
questions
1.
2.
3.
4.
Read the entire question carefully.
Identify the main legal area the question covers and
then all the legal issues raised.
Select from your knowledge of the law the legal
principles applicable to those legal issues.
Make a short abbreviated outline of your answer
indicating the order in which you will tackle the various
issues, i.e. by separate thematic paragraphs; jot down
in abbreviated form the content of each paragraph, i.e.
the issue, the applicable principle, the legal authority
(case or statute) from which the principle derives, any
relevant commentary, and side issues.

10. Answering legal
questions

11. So…Law – what is it good
for?
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At its most basic level, law exists to protect
members of a society from those who would do
them harm. this includes bad businesses as much
as it includes criminals.
Law exists to ensure the citizen is kept safe.
Consider your own life:law ensures that you have been educated to a
certain level before arriving at University
law ensures the bus you travel to University on is
safe
law ensures that food you buy at a supermarket is
safe.

12. Why do you need to know the
law?
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In business, law has many
functions, e.g.:protecting consumers
allowing businesses to plan
providing employees with rights

13. Types of Law
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
“criminal law”; - a
public
wrong, committed by
an individual, who is
prosecuted and
punished by the state.
“civil law”; basically
covers all other aspects
of law. Regulates
disputes arising from
rights & obligations
parties have between
each other

14. Sources of Law
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Parliament
The Courts/Precedent
European Union
Delegated legislation
International Treaties
Custom

15. Source 1 – Parliament
•House
•First
of Commons
reading – purely formal
•Second reading – critical
stage, extensive debate on general
principles
•Committee stage – MPs amend and
tidy bill
•Report – the committee reports
changes to the House of Commons
•Third reading – restricted debate
House of Lords
Now the bill does the same again…in
the House of Lords.
Then the Commons consider any
changes
Royal Assent is given

16. How Parliament makes law

17. Source 2 - The Courts
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Some areas of
law are not
governed by acts
of Parliament.
Judges develop
and apply
common law –
known as
“judicial
precedent”

18. Precedent – what is it?
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1.
2.
A judicial decision which provides a pattern for
subsequent cases to follow
Judges are bound by the law of binding precedent, i.e.
they are bound by a decision reached in a previous case
Lower courts must follow higher ones
Two factors are crucial to determining whether a
precedent is “binding”:court hierarchy - position in the court hierarchy of the
court which decided the precedent and the position of
the court trying the case
the facts of the case to be decided come within the
scope of the principle of law in the previous decision

19. It’s Latin time…!!!

stare decisis – “to
stand by the
decided”.
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Ratio decidendi –
“reason for the
decision”
Obiter dicta –
things said “by the
way”.

20. “Ratio Decidendi” – The reason for
the decision


Donoghue v Stevenson
(1932)
The HoL held that a
manufacturer owed a duty of
care to the consumer that
products are safe.
Followed by …


Grant v Australian Knitting
Mills (1936)
The claimant bought some
underwear but the material
contained a chemical which
caused dermatitis.
Compensation was awarded
based on the precedent set by
Donoghue v Stevenson.

21. Obiter Dicta – things said “by
the way”


Hill v Baxter (1958)
The defendant driver
fell asleep and drove
into some people. His
conviction for driving
offences was upheld as
he was at fault for not
stopping when he felt
drowsy
Judge gave fictional
example of being stung
by bees while
driving, and losing
control as an example
of a driver not being at
fault.

22. Court Hierarchy

Supreme Court
(previously House of
Lords) – binds lower
courts; avoids binding itself by
Practice Statement
(Judicial Precedent) 1966 1

High Court -

County and
Magistrates Courts -
WLR 1234.

Court of Appeal -
bound by decisions of the
House of Lords even if it
considers them to be wrong;
Young v Bristol Aeroplane
Co Ltd [1944] KB
718, provides Court of Appeal
(civil division) with 3
exemptions to being bound by
its own previous decisions

bound by
the Court of Appeal and the
House of Lords; not bound by
other High Court decisions.
decisions of these courts are
not binding.
N.B.: Under the Human Rights
Act 1998, English courts must
now have regard to decisions
of the ECHR

23. Precedent - Good or Bad?
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Advantages
Certainty
Consistency
Efficiency
Flexible
Detailed
Practical
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Disadvantages
Inconsistency
Uncertainty
Delay

24. Source 3 - The European
Union
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Treaties - primary source of EU law - need
to be enacted (e.g. Tr. of R + ECA 1972)
Regulations – secondary source - “directly
applicable” (take effect immediately)
Directives – secondary source - need
interpreting by domestic law (usually within
a set time)
Decisions of ECJ
Decisions
Recommendations/opinions (not binding)

25. Source 4 - Delegated
Legislation
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Parliament passes an enabling act giving
law-making power to a delegate – e.g.
Welwyn & Hatfield Council, Education
Secretary. This delegate then draws up
detailed regulations
Statutory Instruments
Orders in Council
Bylaws
Professional regulations

26. Delegated legislation:
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Advantages:Saves time
Brings in expertise
Flexible – can be changed quickly
Disadvantages:Accountability – who is making law?
Difficult to scrutinise
Huge amount of it
Is it controlled properly by Parliament and the
courts?

27. Source 5 – International
treaties
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These are influential but only become
law if Parliament passes an act to
incorporate them.
E.g. Human Rights Act derived from
European Convention on Human
Rights

28. Source 6 - Custom
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Strict rules must be
satisfied if a custom is
to be recognised.
It has existed since
1189 – “time
immemorial”
Must have been
exercised continuously
and peaceably
Must be reasonable

29. Summary
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Major sources:
Parliament, delegat
ed
legislation, Europea
n Union, Courts
Less significant:
custom, internation
al treaties