👉🏻MEANING OF LAW
Generally, law is defined as a rule regulating human actions. It is, in fact, a rule or set of principles developed in a society and recognized by the state in the administration of justice backed by some sort of punishment.
👉🏻CHARACTERISTICS OF LAW
The nature or characteristics of law can be stated as follows:
- Law consists of a rule,
- It is a rule of the external rational human beings.
- It is developed, issued, or enacted by the state.
- It is enforced by the state in the administration of justice.
- It is backed by sanction or punishment.
- It treats all persons in the same situation equally.
- It regulates human actions in three ways, le. Prohibitory, Mandatory, and Promissory.
- It is pervasive in nature.
- The function of law is to keep peace by maintaining law and order situation.
- The aim of the law is justice.
👉🏻TYPES OF LAW
- On the basis of Territorial Limits of Operations a. National law b. International law
- On the basis of the Nature of Law a. Substantive law b. Procedural law
- On the basis of the Subject Matter of Law a. Public law b. Private law
- On the basis of an Individual's Duty towards the Society a. Criminal law b. Civil law
👉🏻SOURCES OF LAW
The sources of law can be studied by dividing them into two categories: Binding Sources of Law: It includes
a. Legislation b. Precedent c. Customs or usages d. Agreements or conventions Persuasive Sources of Law: These include a. Decision of foreign courts
- b. The principles of foreign law c. Opinion of experts/Jurist d. Textbooks, journals, periodicals, etc. e. Rules of morality and religious books
MEANING OF BUSINESS LAW
Business law is a branch of civil law or private law that makes certain rules for business transactions. Thus, the law that deals with business activities of people and provides various provisions for the commercial world is known as business law.
👉🏻NATURE OR CHARACTERISTICS OF NEPALESE BUSINESS LAW
- Regulation of business activities
- State-made Law/ Statutory law.
- Backed by punishment
- Instrumental control of the business sector
- Enforced by state
- A component of the business environment
- Pervasive in nature
- The aim of business law is industrial peace and justice.
- Impact of Common Law
- Strengthening public-private partnership
👉🏻SOURCES OF NEPALESE BUSINESS LAW
- Legislation
- Precedent
- Customs or usages
- Agreements or conventions
- Decision of foreign courts
- The principles of foreign law
- Opinion of experts/Jurist
- Textbooks, journals, periodicals, etc.
- Business ethics and morality
- Religious texts and books
- Provisions of English law
- Principles of Indian law
👉🏻IMPORTANCE OF BUSINESS LAW
- It provides legitimacy, peace, and security.
- It regulates the commercial activities.
- It governs the trade and commerce or business sector.
- It determines punishment and reward.
- It establishes business ethics and social responsibility.
- It protects Industrial Interests.
- It creates institutions for the betterment of business communities.
- It establishes the dispute resolution system.
👉🏻CHANGING DIMENSIONS OF NEPALESE BUSINESS LAW
- Social dimension
- Cultural dimension
- Political dimension
- Economic dimension
- Technological dimension
- Global dimension
- Moral dimension
👉🏻CONSTITUTIONAL FRAMEWORK OF BUSINESS IN NEPAL
The constitutional framework provides Directive Principles of State Policy, Fundamental Rights, and division of legislative powers between the central and the state governments. Various civil, political, economic, social, and cultural rights are guaranteed as fundamental rights under the constitutional provisions. The Constitution intended to create a conducive and liberal environment for trade and industry by guaranteeing the freedom to practice any profession, carry on any occupation, and establish and operate any industry, trade, and business in any part of Nepal. The State shall not, except for public interest, requisition, acquire, or otherwise create any encumbrance on the personal or private property of a person. At the same time, the Constitution has imposed responsibility on the business communities by assuring the rights of consumers. All these rights can be enforced through the judicial process as a right to constitutional remedies in case of their violation or any infringement on them. Directive principles have kept the national prosperity through trade, industry, or business in the center. These principles, policies, and provisions enshrined in the Constitution have an immense impact on trade and commerce or on the entire business sector, and within this constitutional ambit all other required orders, directives, and legislations are enacted, amended, and repealed. Legislations such as the Civil Code, Companies Act, Industrial Enterprises Act, Foreign Investment and Transfer of Technology Act, Bank and Financial Institutions Act, Consumers Protection Act, Insolvency Act, Foreign Exchange Management Act, Securities Act, the various labor laws and host of other legislations, jointly create the framework of legal environment in the country.
👉🏻LEGAL ENVIRONMENT OF BUSINESS IN NEPAL
A business being a social organization has to operate in society and with other organizations and people. In the course of operation, a business firm is affected by other environmental factors or forces. In this sense, the environment is those influences that surround and affect the business. Environment factors or constraints are essentially the givers within which firms and their managements must operate in a specific country and vary from country to country. Among these factors
The legal factor is the most important factor that constitutes a legal environment of the business that provides incentives to the business for its development and controls it for the greater happiness of the society or welfare of the people. Thus, the scope of the study of the legal environment includes the following aspects of law.
- An introduction of major legal institutions and their processes in the concerned state.
- An overview of private law that includes the study of contract law, law of tort, corporate laws, property law, etc. which directly affects many business transactions.
- An examination of specific areas of law. e.g. agency law, insolvency law, sale of goods, partnership law, banking law, insurance law, etc. in which significant regulations and directions are made relating to business activities. 4. An analysis of the relationship between law and ethics where it emphasizes the social responsibilities of the business firm. Though there are a number of Acts, rules, regulations, and policies, these are not properly enforced in practice. So, to develop the national economy, we should adopt modern and developed legal principles and, similarly, efficient law enforcement mechanisms to handle properly the trade and commercial activities to develop the business and industrial sector.