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Introduction to Legal Environment of Business (Bankruptcy (some connection…
Introduction to Legal Environment of Business
Introduction to Law
What is law?
Why do you need law?
Is there a connection between law and business?
Why not just leave it to lawyers? Why should business know about the law?
Law and Ethics
Illegal, unethical
Legal unethical
Illegal, ethical
Legal, ethical
Differences
Law:
tells what you must do
involves external sanctions if not followed
definite answer
Ethics
:
tells what you should do
no external sanctions if not followed
no definite answer, depends on upbringing and religion
Importance of ethics
Lower chances of running foul of the law
Consequences on biz eg. reputation loss
Can gain first mover advantage in anticipating the law
Sources of Law
Statutes/Acts/Legislation
made by the parliament
can be enacted, amended
Cases
made by the court
general doctrine of precedent
fine balance made between change and consistency
Criminal and civil proceedings
Criminal:
Parties: State v Defendant (Public prosecutor persecutes the defendant
Aim: punish the perpetrator of the crime, deter others from committing the same crime
Terminology: jail, fine, arrested, charged
Burden of Proof: Beyond reasonable doubt
Decision: Guilty or not guilty
Sanctions: Jail sentence, fine, caning, others
Civil:
Parties: Plaintiff v Defendant (Plaintiff sues the defendant)
Aim: To seek a remedy for a private wrong
Terminology: compensation,sued
Burden of Proof: prove case on the balance of probabilities
Decision: liable or not liable
Sanctions: damages,injunctions, specific performance, others
can be both
Bankruptcy
disadvantage: need to share amount with other creditors
usually last resort
for individuals and partnerships
at least $10k
some connection to Singapore
domiciled in Singapore or have property in Singapore
Exempted assets
Writ of Seizure and Sale
advantage: can take unprotected assets from premis, no need to share amount with other creditors
involves the seizure and sale of the judgment debtor's property pursuant to a court order.
Civil dispute resolution: best way depends on circumstances
Small Claims Tribunal
$10,000 or less
can be heard up to $20,000 if both parties agree in writing
no lawyers involvement, does not require consent of the other party
hears claims relating to contract of sale of goods and services, damages to property (except accident from the use of motor vehicle), lease of residential premises that do not exceed 2 years
not all types of small claims can be heard eg. traffic accident, personal injury not heard
Mediation
Advantages
much
cheaper
much
faster
very
informal
privacy
attempts to create a win-win situation
mediator may have industry experience
disadvantages
no judgment
cannot be imposed legally
can be automatically offered or both parties apply for it
Arbitration
Advantages
may
be cheaper
usually
faster
More informal
Privacy
Arbitration awards are more internationally enforceable
Disadvantage
need consent of other party
limited grounds for appeal
follows strict legal principles
Model arbitration clause
Litigation
Advantages
don't need consent of other party
finality
Disadvantages
costly
time consuming
damage reputation
win-lose situation, damages relationship
not possible to choose the judge
can be difficult to enforce judgment in other countries
Levels of courts
Lowest Level: State Courts (<250k)
Magistrate's Court
District Court
Supreme Court (250k)
High Court
also has appellate jurisdiction for State Courts, SCT
Top: Court of Appeal (only appeal)
innocent party may choose not to take action or issue is resolved through negotiation
Obtaining legal advice
After problem arisen
Advocates, solicitors
Before a problem arises
Fees charged vary
Overcharge of legal fees, lawyer misconduct