INTRODUCTION TO BUSINESS LAW
Duration: 45 Hours
Module Overview
This module is designed to equip the learner with legal knowledge in handling issues in
business management. It will provide the learner with basic knowledge about the court
systems and his/her jurisdictions, terms of agreements in trade and how to settle commercial
disputes.
Learning Outcomes
By the end of this module, learners should be able to:
i) apply the legal principles to business problems.
ii) write legal agreements.
iii) operate business within the legal framework.
SUB MODEL 1. NATURE OF BUSINESS LAW
Competences Content Teaching and Learning Strategies
The learner: Definition. Nature Teacher tasks learners to define business law.
defines of law Teacher leads Brainstorm session about
business law. Purpose of the law purpose of law.
explains the Sources of law in Guided discussion on classification of law.
purpose of law. Uganda
identifies Classification of
classes of law. law
Assessment Strategy
Task learner to explain the purpose of law as applied in business.
Teaching and Learning Resources
The Constitution of the Republic of Uganda, 1995 (amended
2005)
The Local Government Act
1
,1. DEFINITION AND NATURE OF LAW IN UGANDA
Given that Uganda was a British colony, the English legal system and law are predominant in
Uganda; its legal system is based on English Common Law and customary law. However,
customary law is in effect only when it does not conflict with statutory law. The laws
applicable in Uganda are statutory law, common law, doctrines of equity and customary law.
The Constitution is the supreme law in Uganda and any law or custom that is in conflict with
it is null and void to the extent of the inconsistency. Uganda has adopted 3 constitutions since
her independence. The first was the 1962 constitution, which was replaced by the 1967
Constitution. In 1995, a new Constitution was adopted and promulgated on October 8, 1995.
The Constitution provides for an executive president to be elected every 5 years. Parliament
and the judiciary have significant amounts of independence and wield significant power.
Formerly, the Constitution limited the president to two terms. However, in August 2005, the
Constitution was revised to allow an incumbent to hold office for more than two terms. The
Constitution since its promulgation has been amended three times with the latest being the
Constitution (Amendment) Act, 2005, Act No. 21 that became effective on 30th December
2005.
The other written law comprises of statutes, Acts of Parliament and Statutory Instruments.
These are published in the National Gazette.
Definitions:
Business law is a section of code that is involved in protecting liberties and rights,
maintaining orders, resolving disputes, and establishing standards for the business concerns
and their dealings with government agencies and individuals. Every state defines its own set
of regulations and laws for business organizations. Similarly, it is also the responsibility of
the business concerns to know the existing rules and regulations applicable to them.
2. PURPOSE OF LAW
Business law plays a vital role in regulating business practices in a country. Here are some
points that prove why business law is so relevant:
Compensation Issues – Business law is essential to handle various compensation
issues in an organization. A professional business attorney in Santa Rosa can help
companies in settling issues related to compensation and salary management. It is the
responsibility of the attorney to ensure that his or her client does not violate
compensation and benefits laws at any cost. The consequences can be fatal in case of
any discrepancies.
Safeguard the Rights of Shareholders – Business law plays a vital role when it comes
to safeguarding the rights of a company’s shareholders. An experienced business law
2
, attorney can successfully handle such issues along with conflicts related to minority
shareholders, constitutional documents, and resolution by arbitration, and more.
Business Formation – Business law plays the role of a foundation stone for any
business concern. Establishing business includes a lot of legal processes, leasing, and
permits. A business law attorney is well-versed with all the relevant regulations and
can help the concern establish its operations successfully.
Functions of Business Law
Every business concern, either large-scale or small-scale, is bound to comply with their
respective legal regulations. Here are some significant functions of business law that can help
you in understanding it better.
Includes laws related to business ethics, substantive law, procedural law, court system
structure, and so on.
Business law entails the taxation system for different types of businesses.
The level of competition and antitrust are also involved.
Business law also includes regulations about employee rights and privileges,
workplace safety, overtime rules, and minimum wages law.
It strives to alleviate the impact businesses have on the environment and nature. It
aims to regulate pesticides, limit air and water pollution, chemical usage, and so on.
Business law determines the formal process of establishment of a business
organization and regulations related to the selling of corporate entities.
It also includes rights assignment, drafting, and work delegations, breach of contract,
transactions, contracts, and penalties for violation of the agreement.
It defines laws related to business partnerships, entities, sole proprietorships, liability
companies, and corporations.
It describes laws related to business and real property.
Business law analyses the overall impact of computer technology on other business
domains.
Includes laws related to bankruptcy and governance of the securities.
3. SOURCES OF LAW IN UGANDA
The legal system of Uganda is based on law derived from different sources. The sources are
as-
Legislation
Delegated Legislation
Judicial Precedents
English Common Law
Customs African customary law
Ecclesiastical Law or Religion
3
, Legislation: These are the acts made by parliament of Uganda. The parliament of
Uganda consists of 552 elected members. Whenever a legal proposal is accepted by the
major share of the parliament member then it comes as statute and published in the
national Gazette.
Delegated Legislation: Sometimes delegation of the power is given to subordinate
bodies to make law. It is done at crisis or whenever it is required to save the time for
parliament. Then laws are created through orders in council, statutory instruments, bye-
laws, court rules, professional regulations.
Judicial Precedents: These are the law made by the courts of Uganda or the judges of
courts in Uganda. Whenever a judge gives judgement to a case, later on it will be treated
as the law next time for the similar cases. Thus their judgement becomes the source of
law in Uganda.
English Common Law: Uganda was governed by United Kingdom for a long time. That
time they practiced the English common law to maintain the legal system of their colony
like Uganda. But though Uganda is independent now, they are still following the English
Common Law. Thus it has become ca big source of law in Ugandan legal system.
Customs: People from different customs and ethnic origins living in Uganda. Most of
them are from Bagabda, Bunyoro and Batoro ethnic groups who are from Bantus,
Bushmen, Sudanese, Nile-Hamites, Asian and European minorities. The customs they are
holding are taken into consideration in law making. Thus it has become a source of legal
system in Uganda.
African customary law: Geographically Uganda has fallen in African continent. That’s
why they have to follow African customary law in their legislation system. Thus it has
become a source of law in Uganda.
Ecclesiastical Law or Religion: Muslims and Christians are living are living peacefully
in Uganda for a long time. Both the religions are recognised by Ugandan constitution.
The Christian community are the major group who left key effect in Ugandan legislation.
On the other hand Ugandan constitution has recently made provision for Sharia law in
article 129 to include Islamic courts. Thus Ecclesiastical Laws are keeping effect in
Ugandan legislation.
4. TYPES/CLASSIFICATION OF LAW
a) Common law and civil law
It is more common to refer to them as the “common law tradition” and the “civil law
traditional“. Which contrasted with the Common Law Tradition, the Civil Law tradition is
that whole body of law practised by the continental countries of Europe and Latin America
and developed from Roman Law. It is the oldest surviving legal tradition dating back to 450
B.C.
The Roman of old developed two types of law – just civil which applied to citizens of the
Roman Empire and the jus gentium which applied to non citizens.
4
Duration: 45 Hours
Module Overview
This module is designed to equip the learner with legal knowledge in handling issues in
business management. It will provide the learner with basic knowledge about the court
systems and his/her jurisdictions, terms of agreements in trade and how to settle commercial
disputes.
Learning Outcomes
By the end of this module, learners should be able to:
i) apply the legal principles to business problems.
ii) write legal agreements.
iii) operate business within the legal framework.
SUB MODEL 1. NATURE OF BUSINESS LAW
Competences Content Teaching and Learning Strategies
The learner: Definition. Nature Teacher tasks learners to define business law.
defines of law Teacher leads Brainstorm session about
business law. Purpose of the law purpose of law.
explains the Sources of law in Guided discussion on classification of law.
purpose of law. Uganda
identifies Classification of
classes of law. law
Assessment Strategy
Task learner to explain the purpose of law as applied in business.
Teaching and Learning Resources
The Constitution of the Republic of Uganda, 1995 (amended
2005)
The Local Government Act
1
,1. DEFINITION AND NATURE OF LAW IN UGANDA
Given that Uganda was a British colony, the English legal system and law are predominant in
Uganda; its legal system is based on English Common Law and customary law. However,
customary law is in effect only when it does not conflict with statutory law. The laws
applicable in Uganda are statutory law, common law, doctrines of equity and customary law.
The Constitution is the supreme law in Uganda and any law or custom that is in conflict with
it is null and void to the extent of the inconsistency. Uganda has adopted 3 constitutions since
her independence. The first was the 1962 constitution, which was replaced by the 1967
Constitution. In 1995, a new Constitution was adopted and promulgated on October 8, 1995.
The Constitution provides for an executive president to be elected every 5 years. Parliament
and the judiciary have significant amounts of independence and wield significant power.
Formerly, the Constitution limited the president to two terms. However, in August 2005, the
Constitution was revised to allow an incumbent to hold office for more than two terms. The
Constitution since its promulgation has been amended three times with the latest being the
Constitution (Amendment) Act, 2005, Act No. 21 that became effective on 30th December
2005.
The other written law comprises of statutes, Acts of Parliament and Statutory Instruments.
These are published in the National Gazette.
Definitions:
Business law is a section of code that is involved in protecting liberties and rights,
maintaining orders, resolving disputes, and establishing standards for the business concerns
and their dealings with government agencies and individuals. Every state defines its own set
of regulations and laws for business organizations. Similarly, it is also the responsibility of
the business concerns to know the existing rules and regulations applicable to them.
2. PURPOSE OF LAW
Business law plays a vital role in regulating business practices in a country. Here are some
points that prove why business law is so relevant:
Compensation Issues – Business law is essential to handle various compensation
issues in an organization. A professional business attorney in Santa Rosa can help
companies in settling issues related to compensation and salary management. It is the
responsibility of the attorney to ensure that his or her client does not violate
compensation and benefits laws at any cost. The consequences can be fatal in case of
any discrepancies.
Safeguard the Rights of Shareholders – Business law plays a vital role when it comes
to safeguarding the rights of a company’s shareholders. An experienced business law
2
, attorney can successfully handle such issues along with conflicts related to minority
shareholders, constitutional documents, and resolution by arbitration, and more.
Business Formation – Business law plays the role of a foundation stone for any
business concern. Establishing business includes a lot of legal processes, leasing, and
permits. A business law attorney is well-versed with all the relevant regulations and
can help the concern establish its operations successfully.
Functions of Business Law
Every business concern, either large-scale or small-scale, is bound to comply with their
respective legal regulations. Here are some significant functions of business law that can help
you in understanding it better.
Includes laws related to business ethics, substantive law, procedural law, court system
structure, and so on.
Business law entails the taxation system for different types of businesses.
The level of competition and antitrust are also involved.
Business law also includes regulations about employee rights and privileges,
workplace safety, overtime rules, and minimum wages law.
It strives to alleviate the impact businesses have on the environment and nature. It
aims to regulate pesticides, limit air and water pollution, chemical usage, and so on.
Business law determines the formal process of establishment of a business
organization and regulations related to the selling of corporate entities.
It also includes rights assignment, drafting, and work delegations, breach of contract,
transactions, contracts, and penalties for violation of the agreement.
It defines laws related to business partnerships, entities, sole proprietorships, liability
companies, and corporations.
It describes laws related to business and real property.
Business law analyses the overall impact of computer technology on other business
domains.
Includes laws related to bankruptcy and governance of the securities.
3. SOURCES OF LAW IN UGANDA
The legal system of Uganda is based on law derived from different sources. The sources are
as-
Legislation
Delegated Legislation
Judicial Precedents
English Common Law
Customs African customary law
Ecclesiastical Law or Religion
3
, Legislation: These are the acts made by parliament of Uganda. The parliament of
Uganda consists of 552 elected members. Whenever a legal proposal is accepted by the
major share of the parliament member then it comes as statute and published in the
national Gazette.
Delegated Legislation: Sometimes delegation of the power is given to subordinate
bodies to make law. It is done at crisis or whenever it is required to save the time for
parliament. Then laws are created through orders in council, statutory instruments, bye-
laws, court rules, professional regulations.
Judicial Precedents: These are the law made by the courts of Uganda or the judges of
courts in Uganda. Whenever a judge gives judgement to a case, later on it will be treated
as the law next time for the similar cases. Thus their judgement becomes the source of
law in Uganda.
English Common Law: Uganda was governed by United Kingdom for a long time. That
time they practiced the English common law to maintain the legal system of their colony
like Uganda. But though Uganda is independent now, they are still following the English
Common Law. Thus it has become ca big source of law in Ugandan legal system.
Customs: People from different customs and ethnic origins living in Uganda. Most of
them are from Bagabda, Bunyoro and Batoro ethnic groups who are from Bantus,
Bushmen, Sudanese, Nile-Hamites, Asian and European minorities. The customs they are
holding are taken into consideration in law making. Thus it has become a source of legal
system in Uganda.
African customary law: Geographically Uganda has fallen in African continent. That’s
why they have to follow African customary law in their legislation system. Thus it has
become a source of law in Uganda.
Ecclesiastical Law or Religion: Muslims and Christians are living are living peacefully
in Uganda for a long time. Both the religions are recognised by Ugandan constitution.
The Christian community are the major group who left key effect in Ugandan legislation.
On the other hand Ugandan constitution has recently made provision for Sharia law in
article 129 to include Islamic courts. Thus Ecclesiastical Laws are keeping effect in
Ugandan legislation.
4. TYPES/CLASSIFICATION OF LAW
a) Common law and civil law
It is more common to refer to them as the “common law tradition” and the “civil law
traditional“. Which contrasted with the Common Law Tradition, the Civil Law tradition is
that whole body of law practised by the continental countries of Europe and Latin America
and developed from Roman Law. It is the oldest surviving legal tradition dating back to 450
B.C.
The Roman of old developed two types of law – just civil which applied to citizens of the
Roman Empire and the jus gentium which applied to non citizens.
4
