frameworks to regulate AI are still in their infancy, and establishing clear accountability and liability for AI
decisions remains a major challenge.#### 4.2 **Privacy and Surveillance**Technology also brings
concerns about privacy and surveillance. With the widespread use of smartphones, social media, and the
internet, vast amounts of personal data are continuously being collected and analyzed. Ethical questions
emerge regarding the extent to which companies should be allowed to track and monitor individuals' online
behavior. Legally, various countries have implemented laws that seek to protect privacy, but as technology
continues to advance, there are increasing concerns about data misuse and the potential for surveillance by
both corporations and governments.#### 4.3 **Intellectual Property and Patents**The creation and
distribution of new technologies also raise intellectual property issues. Companies and individuals seek
legal protection for their inventions through patents, copyrights, and trademarks, but this raises ethical
questions about the extent to which certain
Business Law
A Text Book
Zelalem T. Sirna
February, 2018 Addis Ababa, Ethiopia
,Table of Contents
Chapter One ................................................................................................. 7
Introduction to Law ........................................................................................................ 7
DEFINITION OF LAW.............................................................................................. 7
BASIC FEATURES OF LAW.................................................................................... 8
1.3.1. NATURAL LAW THEORY............................................................................ 12
1.3.2. POSITIVE LAW THEORY ........................................................................... 13
1.3.4. REALIST THEORY OF LAW [Biset; 2006]................................................. 15
1.4. FUNCTIONS OF LAW [Biset; 2006] ............................................................... 15
SOURCES OF LAW..................................................................................................... 17
MATERIAL SOURCES OF LAW........................................................................... 17
2.2.1. CUSTOM AS A SOURCE OF LAW .......................................................... 17
2.2.2. RELIGION AS SOURCE OF LAW .............................................................. 18
Legislations ............................................................................................................. 18
FDRE Constitution ................................................................................................ 18
COURT DECISIONS AS SOURCE OF LAW ....................................................... 19
CLASSIFICATION OF LAWS................................................................................ 19
PUBLIC AND PRIVATE LAW ............................................................................ 19
INTERNATIONAL AND NATIONAL LAW...................................................... 19
3.3) SUBSTANTIVE AND PROCEDURAL LAW ................................................. 20
HIERARCHY OF LAWS ......................................................................................... 21
THE HIERARCHY OF LAWS WITH IN THE PRESENT LEGAL
STRUCTURE OF ETHIOPIA ................................................................................. 21
5.2.1) THE SUPREMACY OF THE FDRE CONSTITUTION ............................ 21
FEDERAL LEGISLATION AND THEIR HIERARCHY................................. 22
STATE LAWS AND THEIR HIERARCHY........................................................ 24
Chapter Two................................................................................................26
Law of Persons .............................................................................................................. 26
ACQUISITION OF PHYSICAL PERSONALITY ................................................ 26
Definition: Persons .................................................................................................... 26
Commencement of physical personality .................................................................. 28
Birth ........................................................................................................................ 28
Anticipated personality: Conception and viability ................................................. 29
, LESSENED CAPACITY ........................................................................................... 32
Minority ...................................................................................................................32
Insane and infirm persons ..................................................................................... 33
Judicial interdiction ................................................................................................ 33
Legal Interdiction ...................................................................................................34
END OF PHYSICAL PERSONALITY ....................................................................34
Probable death of a person: Absence ....................................................................34
Death ........................................................................................................................ 35
Chapter Three ............................................................................................. 36
Contract Law..................................................................................................................36
FORMATION OF CONTRACTS ............................................................................36
Capacity ...................................................................................................................36
Consent (Art.1679-1710) ........................................................................................ 36
Exceptional Cases ...................................................................................................37
Acceptance...............................................................................................................39
Defect in Consent (Art 1696 – 1710) .....................................................................41
Objects of Contracts...................................................................................................43
Form of Contracts ...................................................................................................... 45
Contracts made in Written Form .............................................................................47
A/ contracts required by the law to be made in writing ......................................47
B/ contracts required to be made in writing by the parties ................................ 48
C. Preliminary contract (Art 1721) .......................................................................49
D/ Variation of contract made in writing (Art 1722) ...........................................49
Difference between void and voidable contracts (Art, 1808-1814) ........................ 51
Non-Performance of Contract & Its Remedies........................................................ 52
Cancellation .............................................................................................................53
Chapter Four............................................................................................... 56
Agency............................................................................................................................. 56
Sources of authority of the agent ..............................................................................58
Authority derived from a contract. .......................................................................58
I. Internal contract [subordinate contract] .......................................................... 59
II External contract [main contract].....................................................................59
Authorities of an Agent .......................................................................................... 62
Unauthorized Agency and Ratification ....................................................................67
I. Unauthorized Agency or Agency of Necessity...................................................67
, Contracting with Oneself ....................................................................................... 68
Duties of the Principal ............................................................................................ 69
Agency in trade (business and commerce) ...................................................................69
Commission Agent......................................................................................................69
Del Creder Commission Agent ..............................................................................70
Forwarding Agent................................................................................................... 70
Commercial Agent ..................................................................................................71
Commercial Broker (see Art. 56 of the Comm. Code).........................................71
EXTINCTION OF AGENCY RELATIONSHIP ....................................................71
Renunciation (Repudation) ....................................................................................72
Chapter Five ................................................................................................ 74
Business Organizations ..................................................................................................74
TRADERS AND BUSINESSES ....................................................................................74
Businesses ....................................................................................................................75
Goodwill and Its Protection by Unfair Competition ...........................................76
Commercial Unfair Competition ...........................................................................76
The Specific Standard ............................................................................................ 77
Effect of Unfair Competition .................................................................................77
Criminal Unfair Competition ................................................................................78
BUSINESS ORGANIZATIONS ...............................................................................79
Distinguishing Between Business Organizations and Associations ........................ 79
Cooperative Societies Distinguished .........................................................................79
Forms of Business Organizations ..........................................................................80
ORDINARY PARTNERSHIP ...............................................................................80
Management ............................................................................................................81
Types of Managers ..................................................................................................81
Liability of Partners to Outsiders .............................................................................82
Dissolution ...................................................................................................................82
Grounds of Dissolution to all forms of Business Organizations ......................... 82
Joint Venture........................................................................................................... 83
CHARACTERSTICS OF JOINT VENTURES ...................................................83
MANAGEMENT ....................................................................................................84
DISSOLUTION ......................................................................................................84
General Partnership ...................................................................................................85
Memorandum of Association and Registration....................................................85
decisions remains a major challenge.#### 4.2 **Privacy and Surveillance**Technology also brings
concerns about privacy and surveillance. With the widespread use of smartphones, social media, and the
internet, vast amounts of personal data are continuously being collected and analyzed. Ethical questions
emerge regarding the extent to which companies should be allowed to track and monitor individuals' online
behavior. Legally, various countries have implemented laws that seek to protect privacy, but as technology
continues to advance, there are increasing concerns about data misuse and the potential for surveillance by
both corporations and governments.#### 4.3 **Intellectual Property and Patents**The creation and
distribution of new technologies also raise intellectual property issues. Companies and individuals seek
legal protection for their inventions through patents, copyrights, and trademarks, but this raises ethical
questions about the extent to which certain
Business Law
A Text Book
Zelalem T. Sirna
February, 2018 Addis Ababa, Ethiopia
,Table of Contents
Chapter One ................................................................................................. 7
Introduction to Law ........................................................................................................ 7
DEFINITION OF LAW.............................................................................................. 7
BASIC FEATURES OF LAW.................................................................................... 8
1.3.1. NATURAL LAW THEORY............................................................................ 12
1.3.2. POSITIVE LAW THEORY ........................................................................... 13
1.3.4. REALIST THEORY OF LAW [Biset; 2006]................................................. 15
1.4. FUNCTIONS OF LAW [Biset; 2006] ............................................................... 15
SOURCES OF LAW..................................................................................................... 17
MATERIAL SOURCES OF LAW........................................................................... 17
2.2.1. CUSTOM AS A SOURCE OF LAW .......................................................... 17
2.2.2. RELIGION AS SOURCE OF LAW .............................................................. 18
Legislations ............................................................................................................. 18
FDRE Constitution ................................................................................................ 18
COURT DECISIONS AS SOURCE OF LAW ....................................................... 19
CLASSIFICATION OF LAWS................................................................................ 19
PUBLIC AND PRIVATE LAW ............................................................................ 19
INTERNATIONAL AND NATIONAL LAW...................................................... 19
3.3) SUBSTANTIVE AND PROCEDURAL LAW ................................................. 20
HIERARCHY OF LAWS ......................................................................................... 21
THE HIERARCHY OF LAWS WITH IN THE PRESENT LEGAL
STRUCTURE OF ETHIOPIA ................................................................................. 21
5.2.1) THE SUPREMACY OF THE FDRE CONSTITUTION ............................ 21
FEDERAL LEGISLATION AND THEIR HIERARCHY................................. 22
STATE LAWS AND THEIR HIERARCHY........................................................ 24
Chapter Two................................................................................................26
Law of Persons .............................................................................................................. 26
ACQUISITION OF PHYSICAL PERSONALITY ................................................ 26
Definition: Persons .................................................................................................... 26
Commencement of physical personality .................................................................. 28
Birth ........................................................................................................................ 28
Anticipated personality: Conception and viability ................................................. 29
, LESSENED CAPACITY ........................................................................................... 32
Minority ...................................................................................................................32
Insane and infirm persons ..................................................................................... 33
Judicial interdiction ................................................................................................ 33
Legal Interdiction ...................................................................................................34
END OF PHYSICAL PERSONALITY ....................................................................34
Probable death of a person: Absence ....................................................................34
Death ........................................................................................................................ 35
Chapter Three ............................................................................................. 36
Contract Law..................................................................................................................36
FORMATION OF CONTRACTS ............................................................................36
Capacity ...................................................................................................................36
Consent (Art.1679-1710) ........................................................................................ 36
Exceptional Cases ...................................................................................................37
Acceptance...............................................................................................................39
Defect in Consent (Art 1696 – 1710) .....................................................................41
Objects of Contracts...................................................................................................43
Form of Contracts ...................................................................................................... 45
Contracts made in Written Form .............................................................................47
A/ contracts required by the law to be made in writing ......................................47
B/ contracts required to be made in writing by the parties ................................ 48
C. Preliminary contract (Art 1721) .......................................................................49
D/ Variation of contract made in writing (Art 1722) ...........................................49
Difference between void and voidable contracts (Art, 1808-1814) ........................ 51
Non-Performance of Contract & Its Remedies........................................................ 52
Cancellation .............................................................................................................53
Chapter Four............................................................................................... 56
Agency............................................................................................................................. 56
Sources of authority of the agent ..............................................................................58
Authority derived from a contract. .......................................................................58
I. Internal contract [subordinate contract] .......................................................... 59
II External contract [main contract].....................................................................59
Authorities of an Agent .......................................................................................... 62
Unauthorized Agency and Ratification ....................................................................67
I. Unauthorized Agency or Agency of Necessity...................................................67
, Contracting with Oneself ....................................................................................... 68
Duties of the Principal ............................................................................................ 69
Agency in trade (business and commerce) ...................................................................69
Commission Agent......................................................................................................69
Del Creder Commission Agent ..............................................................................70
Forwarding Agent................................................................................................... 70
Commercial Agent ..................................................................................................71
Commercial Broker (see Art. 56 of the Comm. Code).........................................71
EXTINCTION OF AGENCY RELATIONSHIP ....................................................71
Renunciation (Repudation) ....................................................................................72
Chapter Five ................................................................................................ 74
Business Organizations ..................................................................................................74
TRADERS AND BUSINESSES ....................................................................................74
Businesses ....................................................................................................................75
Goodwill and Its Protection by Unfair Competition ...........................................76
Commercial Unfair Competition ...........................................................................76
The Specific Standard ............................................................................................ 77
Effect of Unfair Competition .................................................................................77
Criminal Unfair Competition ................................................................................78
BUSINESS ORGANIZATIONS ...............................................................................79
Distinguishing Between Business Organizations and Associations ........................ 79
Cooperative Societies Distinguished .........................................................................79
Forms of Business Organizations ..........................................................................80
ORDINARY PARTNERSHIP ...............................................................................80
Management ............................................................................................................81
Types of Managers ..................................................................................................81
Liability of Partners to Outsiders .............................................................................82
Dissolution ...................................................................................................................82
Grounds of Dissolution to all forms of Business Organizations ......................... 82
Joint Venture........................................................................................................... 83
CHARACTERSTICS OF JOINT VENTURES ...................................................83
MANAGEMENT ....................................................................................................84
DISSOLUTION ......................................................................................................84
General Partnership ...................................................................................................85
Memorandum of Association and Registration....................................................85
