Business Law & Ethics

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Dr. Jady @ Zaidi HassimFaculty of Law, UKM

jady@ukm.my / 03 89216361 / 019 3333238

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Course Outline (7 weeks)

Introduction To Malaysian Legal SystemContract Sale of GoodsAgencyInsuranceEmploymentPartnershipCompany

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Introduction to Law Classification of Law Sources of Malaysian Law Malaysian Legal System

Scope of Discussion Today

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Definition(a) Regulation(b) Human Behaviour(c) Enforceability(d) Up to date(e) Justice and Equality

Art. 160(2) Federal Constitution and Item 43C of s. 2(1) Interpretation and General Clauses Ordinance 1948 define law as:(a) Written law(b)Common law (c) Any custom or usage having the force of law

1. INTRODUCTION TO LAW

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2. CLASSIFICATION OF LAW

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SOU

RCES O

F LAW

Meaning of sources•Historical sources•Legal sources•Finding of the sources

Religious beliefLocal customsOpinion of jurists

Legal rulesPaper rules

StatutesLaw reportsText books

Sources of Malaysian Law(1) Written sources(2) Unwritten sources(3) Muslim law

Federal ConstitutionParliament and State AssemblyRules, Regulations and By-laws

Principles of English LawJudicial DecisionsCustoms

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1) Federal Constitution2) State Constitution3) Federal Law4) State Law5) Subsidiary Law

3. SOURCES OF MALAYSIAN LAW

Written Sources

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1. Perlembagaan Persekutuan Surinder Singh Kanda v Gov of the Fed of

Malaya (1962) - FC prevails over any other laws

Articles:

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2. State Constitutions- Perlembagaan Negeri Administered by State Legislative Assembly (DUN) 8th Schedule of FC (State List) Matters: Ruler, the Executive Council, the Legislature, the Legislative

Assembly, financial provisions, State employee

Different provision for each State Royal Hierarchy order Inconsistencies, removed by Art. 71 of FC.

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3. Substantive Legislations- Undang-undang Persekutuan Drafted and passed by Parliament (Federal Level) Drafted and passed by ADUN (State Level) Act – after Independence Ex: Contract Act 1950, Company Act 1965, Sale of Goods Act 1957

Ordinance – before Independence Enactment – for State Only Enakmen Tanah Rizab Melayu kelantan 1930; enakmen Undang-undang

Pentadbiran Islam Selangor 1984.

Contract Act 1950 (Amend. 2006)

ACTS

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4. Subsidiary Legislation-Undang-undang Subsidiari Minister / ADUN or Municipal Council Federal Level / State Level depending on debate presentation

(Parliament / DUN) Ex: Peraturan Perihal Dagangan (Harga Jualan murah) 1987; Undang-undang

kecil suruhanjaya Pulau Pinang 1957

Subsidiary legislation means any proclamation,rule, regulation, order, resolution, notice, ruleof court, bylaw or other instrument made underor by virtue of any Ordinance and havinglegislative effect. It is subject to the approval ofthe Council, which may be given through eitherthe positive procedure or the negativeprocedure.

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1.English Law Section 3 & 5 Civil Law Act 1956 Common Law and Equity Section 3 of the Civil Law Act 1956 provides that (1) save so far as other provision

has been made or may hereafter be made by any written law in force in Malaysia, the court shall (a) in West Malaysia apply the Common Law of England and the rules of Equity as administered in England on the 7th April 1956; (b) in Sabah, 1st December 1951; (c) in Sarawak, 12th December 1949 respectively.

whether there is any written law pertaining to the subject matter. whether local circumstances and local inhabitants would permit its application.

Commonwealth of Australia v Milford M Sdn Bhd (1990) the development of common law after 1956 may well be applicable in Malaysia.

Section 5 – the application of English commercial law in Malaysia.

UNWRITTEN SOURCES

Unwritten Sources (1)

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2. Judicial Decisions- Keputusan Mahkamah (Malaysia) Stare Decisis Doctrine Operate according to Court Hierarchy System 2 ways operation Vertical – higher courts Horizontal - their own prior decisions / court of the same level (past or

present) PP v Datuk Tan Cheng Swee (1980) / Mah Kah Yew v PP (1971) Followed the previous decision, no deviation of precedent of higher court. Binding upon Ratio decidendi only and not Obiter Dicta

Conway v Rimmer (1968) Deviation for justice

Stare decisis – doctrine of binding judicial precedent

Ratio decidendi(the reason for deciding)

Obiter dictum (remarks in passing judgement) – not binding

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3. Customs•Customs relating to family law – marriage, divorce and inheritance•Adat applies to Malay

•Adat perpatih - N.9•Adat Temenggong

•Hindu and Chinese customary law•Native customary law for Sabah and Sarawak

4. Muslim Law•Head of the Muslim religion in a state – Sultan•Penang, Malacca , Sabah & Sarawak, Federal Territories –Yang Dipertua Negeri•Court – syariah Courts (now 5 tiers)

Unwritten Sources (2)

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4. MALAYSIAN LEGAL SYSTEM

Hierarchy of Court (1)

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Mahkamah Khas Mahkamah Juvana Mahkamah Tentera Mahkamah Perusahaan Mahkamah Anak Negeri Mahkamah Syariah

Hierarchy of Court (2)

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