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49 views14 pagesLAW
Business law
Uploaded by
Marishan RohitCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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/ 14
EF 501-Engineer in SocietyLaw
Law touches most aspects of our lives, and yet unlike science. History or literature, it is & subject about
which most people in this country receive no formal education.
Every society no matter what race, country size or beliefs must have laws, Laws ereate and order of
civilization enabling a safe and long term existence community. Without laws our society would be
described as a state of anarchy. In such situations riots, violence and murder would occur.
Law may be defined as a rule of conduet, imposed on a people or bodies in authority.
Laws are necessary to ensure order; every society needs to maintain an understood pattern of conduct
that is supported by the values morals and ethics of the society. Without laws enforced on the society,
it would not be able to have peace and order. The traditions, customs and conducts of the general
community would base the laws in our society.
Customs is the collective habits or traditions that have been developed by a society over a long period
of time, Generally customs are passed from one generation to the next through word of mouth and, as
such, do not require recording in books or such other documents to be authoritative, Laws have been
shaped by our custom, many of the laws that were and continue to be developed by the courts are
based on customary rules and practice.
Faimess equality and justice is considered when formulating the laws. A just law would have some of
the following characteristics.
Itaims to ensure the greatest possible happiness for the greatest number of people
It leaves people free
Itallows general principles to be mitigated in individual cases on the ground of mercy or sympathy
It treats all people equally ?
Equality suggests that everyone is treated no different to each other.
Law isa living thing and it changed throughout the cause of history.
Why do we learn the law
“ Tt is important that competent Engineer has at least a general understanding of legal matters, not so
complete a Knowledge as to mislead him into being his own lawyer, but rather to know how, when
and where to secure legal advice. There is a saying that “man who is his own lawyer has a foo! for a
client and also that ignorance of the law excuses no man”, (Ignorantia Juris non excusat) ye
Man is by nature a social animal desiring the companionship of his fellowmen.( man is a gregarious
animal) In primitive times he tended to.form tribes, groups or societies either for self preservation or
by reason of social instinet. This tendeney persists and we may notice how frequently people join clubs
and societies.
Ifa group of society is to continue, some form of social order is necessary. Rules and laws are
therefore drawn up to ensure that members of a society may live and work together in an orderly and
peaceable manner. The larger the community ( or group or state) the more complex and numerous will
be the rules.
‘What are the ideas that underlie the concept of law?
If rules or laws are broken, then compulsion is used to enforce obedience. Two ideas underlie the
concept of law.
(a) Order in the sense of method or system:
(b) Compulsion, ie. the enforcement of obedience to the rules or laws laid down,
Custom, Morality and Law
(a) Lawis a body of rules. Much of the law was formed out of the customs of the people itis
known as common law, Laws enacted by the legislature (Parliament) are known as statues.
(b) Law is for the guidance of human conduct
Men resort to various kinds of rules to guide their lives. Thus moral rules and ethics remind us that it
is immoral or wrong to be arrogant or to tell lies or to engage in private drunkenness. If we transgress
these morals or ethical concepts we may lose our friends or their respect. The law however is not
concerned with these matters.
The value concept of right and wrong form the basis of morality and this is also closely interwoven
with religion, One concerns moral law a relationship between people, and the religion establishes it
between mankind and some higher power. Nowadays the law regards some kind of behaviour(e.g.
parking offences) as criminal although, they may not looked upon as morally wrong.
Likewise other forms of conduct (e.g. adultery) may be morally condemned but not legally
prohibited. It has sometimes been argued that the law should proscribe all immoral acts, as failure to do
2 so would ultimately cause the disintegration of the society. The impracticality of this, however stems
from the plurality of cultures and values in our society (where there is total lack of consensus over
particular moral issues, eg. abortion)
Law is imposed
‘We some times think of laws as being laid down by some authority such as a king, dictator or group of
people in whom special power is vested. Statute law is laid down by a sovereign body, namely
parliament. The Jurist John Austin asserted that law was a command. Other writers say that men and
‘women in primitive societies formed rules themselves.
(d) Unless law is imposed it ceases to be a law and those persons subject to it will regard it as dead.
‘The chief characteristic of law is that it enforced, such enforcement being today carried out by the
State. Thus if A steals a fountain pen from B, A may be prosecuted before the court and may be
punished. The court may order the restitution of the pen to its rightful owner, B. The force used as
known as a sanction and it is this sanction which the State administers to secure obedience to its
rules.
(©) The State
‘A State is a territorial division in which a community or people lives subject to a uniform system of
, a Parliament
law administered by a sovereign authority. E.
(©) Content of law:The law is a living and it changes throughout the course of history. Changes are
brought about by various factors such as invasion, contact with other races, material property, and
education, the advent of a new machines or new ideas or new religions. Law responds to public
opinion and changes accordingly. Formerly judges themselves molded and developed the law.
‘Today an Act of Parliament may be passed affecting the whole nation.
Classification of law
Law may be classified as set of institutions. Law affects everyday life and society in a variety of
ways.
Classification of Law
1. Criminal law and Civil law
2. Public law and private law
3. Substantive law and procedural law\ 4, Public International law and Private International law
Publie law comprises (1) Constitutional law
(2) Administrative law
(3) Criminal law
The main distinction between civil law over the criminal law is, in civil law legal action is begun
by the private citizen to against another citizen or group of citizen where criminal law is enforced
‘on behalf of or in the name of the State. In the above reason civil law may be referred to as private
law.
eg. King V Punchirala 25 NLR 458
Liyanage V. Queen(1965) 68 NLR 265
Constitutional law-
laws under which a country is ruled or laws relating to government and its functions.
Administrative law
Laws which regulate government organizations aflect the lives and property of individuals. it is
mainly concerned with the control of governmental power .¢.g. Administrative law determines the
legal rights of a private citizen whose house a local authority intends to acquire compulsorily.
Criminal law is that part of law which characterizes certain kinds of wrong doings as offences
against the State, The main purpose of the criminal Law is to punish people for acts which the State
has prohibited by law.
Police are the public servants whose duty is the prevention and detection crime and prosecution of
offenders before the court of law. 3
Crime against persons: Murder, assault, abduction
Crimes against property: theft, robbery
Sexual offences: rape, bigamy
Civil law.
Civil law is primarily concemed with the rights and duties of individuals towards each other. It
includes the following.
1. Law of contract Dealing with that branch of law which determines whether a promise is legally enforceable and
what are its consequences. :
Contract law regulates everything from buying a bus ticket to trading major items in the market.
2.Law of Tort eg. Nuisance, Negligence,defamation, trespass
3. Law of property
Rights of ownership of land and other property
4, Law of succession
Devolution of property on the death of the former owner
4, Family law
Rights and duties and status of the husband and wife, Parent and Child and other members of the
house
Law of property: the part of the law which determines the nature and extent of the rights which
ights of ownership of land or rights under a
people may enjoy over land and other property. E.
lease of land.
Law of suacession is the part of the law which determines the devolution of property on the death
of the owner and in certain other events.
Family law is that branch of law which defines the rights and dutie and status of husband and wife,
parent and child and other members of a household.
Balfour_V Balfour
When Mr. Balfour leaving to Ceylon for an employment from England promised to send some
‘money to his wife. But after coming here Mr. B not materialized the promise. So Mrs.Balfour sued
Mr.Balfour for breach of contract. Court held that promising to send some money to his wife is not
contract, But it is a domestic type agreement.
Contract is an agreement between two or pore parties and is legally binding. Every contract is an
agreement but every agreement is not contract,
Example. Your gitl friend may promise to come and meet you at the botanical garden Peradeniya
at 10 A.M. But you may wait their till 3P.M, without your GF. Could you take a legal action
against your GF. The answer is no because it is merely a promise.
Donoghue V Steevenson 1943 A.C.(Appeal cases UK) ‘Two friends gone to a hotel and bought Ginger beer bottle, One drank half of the content and the
balance poured into a glass. These were remains of a snail, The Stevenson claimed damages for
‘mental injuria, Court held that a manufacturer of soft drinks in sealed bottles or cans liable to the
ultimate consumer of the product for impurities contained therein.
Criminal law offers means to punish people for acts which State has prohibited by law.
Purpose of the Law
Bradly laws ensure order, stability, peace and justice in the relationship between man and man, t
‘man and State, and between nation and nation.
Man is by nature a social animal desiring the companionship of his fellow men for self preservation
‘and for social needs. That is why people join clubs and societies.
If a group of society is to continue some form of social order is necessary. Rules and laws are
drawn up to ensure that members of the society may live and work together in order and peace.
Law isa living thing and it changes through out the course of history.
Civil law-the legal action is taken by private citizen. Hence some times referred to as private law
.eg. to obtain compensation for an injury done.
Jn.a motor car accident police will take legal action against the driver for violation of traffic rules-
Criminal law
If any harm to property or physical injury the relevant party should take legal action to get the
compensation-civil law both could run simultaneously.
Customary Laws
Due to immemorial use of custom become law.
eg. Kandyan law
Tesavalamai
‘Muslim law
Personal law
Personal is the law applies to a particular group of people irrespective of their place of settlement.
eg.Muslim law Where ever the Muslims lives Muslim law is applicable. ‘Territorial law
‘Territorial law is the law applicable to those who living in that territory.
Tesavalamai is not territorial law because it applies to only to Tamil inhabitants in Jaffna. ‘That
‘won't apply to others who lived in Jaffna,
When British acquired the Kandyan provinces in 1815, there was no extent or discoverable code or
written work setting out the principles of Kandyan law. Which we observed was the traditional
Sinhala law in this country.
The RDL law also has a presumption that if two persons have lived together for many years openly
as a husband and wife and been accepted as such by the community then they were validly married.
This is known as habit and repute.
‘We were under the foreigners from 1656 to 1948 as follows.
Portuguese from 1506-1656
Dutch 1656-1796
English 1796-1948
2
Binding precedent
When deciding a case lower court has to follow the superior court decision if the facts of the case
are similar. This known as the binding precedent.
Normally Appeal courts decision are reported, . Supreme Court and Court of appeal
Supreme Court is the highest court of Sri Lanka and its decision is final and conclusive, Before
1972 our highest court was the Privy Council.
Decided case
Eg. Donoughue V Stevenson
A person who initiates a legal action is called the plaintiff.
Say A has initiated legal action against B to recover the damages due to the action of B, A's
property has been destroyed.
AVs B
Ais the plaintiff and B is the defendant.
Koronchi hamy vy Angohamy 1897 2NLR 276 Year 1897 NLR stands for New Law Reports 2 is the Volume 276 is the folio
Koronchy Hamy is the plaintiff
Ango hamy is the defendent
In the appeal if appeal bythe plaintiff.
Defendant respondent
then
-plaintift
appellant
Laws pass by the parliament is called statute law. Laws made by the judges are called common
Jaw. When interpreting the statutes judges are making laws.
Ordinances laws made before 1948
Acts made before 1972 Republican constitution and after 1948 and after
1978
Law laws are made by the National; State assembly
Maternity Benefits Ordinance
‘Termination of employment of workmen Act -
Administration of Justice Law -1973
Labour laws
1, Employees Provident Fund Act
Employees Trust Fund Act
Payments of Gratuity Act
Workmen, Termination of Employment Act
Workmen’s Compensation ordinance
‘Trade union Ordinance
Shop and Office Employees act
Maternity Benefits Ordinance
ee NAW EYED
Factory Ordinance
10. Industrial Dispute Act
11. Wages Boards Ordinance ips! Bini
Jou can keep your head when all about you 29 80 800 88 a(S ea 6a Dee cba emia RS 69 dx00 a8
‘Are losing theirs and blaming it on you; es ta “as aaas i eee ‘ae
If you ean trust yourself when all men doubt you, op be ead aeRO cag - ganget eee sé
But make allowance for their doubting too; conse S20 BRCES eo 0d 2a GGbteand waa -enim, 2
Tf you can wait and not be tired by wating,
‘Or being lied abour, don't deal in les, codad eBeameeasa Ba BYGOn2OMERBARS —_ =)?
‘Or being hated don’t give way to hating, OC aps00 cass 95 Sa Ble 3B Ocaes eaves 2
And yet don't look too good, nor talk too wise. 019 880 boionaa co eons abasl eno 8 80 dd SS °
7 ’ GBB od o80 E028 $06 GMP sad enmad esiemd — £9
i. can dream - and not make dreams your master; eweerens meliatwan Oelor> asd
ff you can think and not make choughts your aim; 25 99 59 sss 80 "Bie oat gS00 sbeDsst aad
If yois can meet with Triumph and Disaster md a8 ea erm 20989 —-«ED'-—Detdd aD ad QO aps? and
And treat those two impostors just the same; eardqabsl oad emn8 2 3289 ead Gals ea0 engdsind 92 eas
If you can bear to hear the truth you've spoken ee. ie,
Twisted by knaves to mitke 3 tap fr fools, a oak eres 4
(Or watch the things you g>-¢ your life to, broken, “ae pean piece Se arose a i
‘And stoop and build'em up with worn-ovt tools Sebel ne em Oy Bea esaranaad a
3d SamBis eed one 05 aeh
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2d eet did od
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eqéc od cis 209 93 39
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ng encan SBE 88 o¥
evil onind atzon? &
you can make one heap of all your winnings
‘And risk It on one turn of pitch-andtoss,
‘And lose, and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they ate gone,
And so held on when there is nothing in you
jhe Will which says to them: ‘Hold on!”
Hole can talk with crowds and keep your virtue, *
with Kinge-nor lose the common touch, ‘
If neither foes nor loving friends can burt you
all men count sith you, but none too much;
If you can fill cre unforgiving minuie
With sisty secondt’ worth of distance run, 2s 849 eg OBE Be
‘Yours is the Earth and everything.*hatsin it, os do 28 286 pe esteigd ead eSs 2
‘And - which is more - you'll be a Man, my son. abo endian IR ems 9 Sasa Od eb. 89 BEN
arco ea 03 a edenidt
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BABPead esi eo 018 fie
265
CHINTA DEVI
@LACIO LIMITED
COURT OF APPEAL.
B. E, DE SILVA, J. AND DHEERARATNE. J.
S.C. (C.A) 270/78 (F) WITH 271/78 (F) - D.C. COLOMBO 79048/M.
Nealigence of manufeoturer of refrigerator - Breach of the duty to take care - Damages - Prescription - Conciliation Boards
‘et s. 18 - Deduction of fine taken by proceedings before Conciliation Board in computing prescription.
(On 13,9,1973 the plaintitt-appeliant fled this ection based on tort and altematively on contract seeking to recover from the
defendant Company @ sum of Rs. 260,000 being damages sustained by her for injuries suffered by her on 166.1971 as a \
result of the explosion of a refrigerator manufactured by it and purchased by her father In 1967 for household use, The *
plaintiff was completely deformed, disfigured and disabled by the injuries sustained In the explosion.
“The plaintf alleged that there was a failure on the part ofthe defendant to take due care in the design and manufacture of
tho said refigerator, The plaintiff pleaded negligence by the defendant-company in fiting @ bumer unsultable and unsafe
for a kerosene reingerator,
288
‘The plaintif by application to the Conciliation Board dated 66.1973 (posted on 7:6:1973) which would in the normal
course’ have been received by the Board on 8.6.1973 had sought relief from the Board but’ as no settlement was possible
the Chaitman of the Conciliation Board, issued a certificate: dated 4,0,1973 which was received by the plaintiff on
69.1973.
‘After the trial the District Judge held there was negligence on the part of the defendant but dismissed the action on the
‘ground’ that plant's’ claim based on tort’ was prescribed in two years. The action on contract was not sustainable
because the refrigerator was sold to pans fat ig and theré Was 76 Contract between plain and defendant, The
filed a cross-appeal against the finding of negligence against it.
plaintiff appealed from this, judgment and the defen
Held -
(1) The time teken by proceedings before a Conciliation Board includes the time taken by the, Board to constitute a pane!
Get the date on which the certificate is signed by the Chairman of the Conciliation Board. The, matter of plaintiffs
application. was pending before the Board from 6-6,1973 to 4.9.1973 when the Cerificate was. signed by the Chairman,
in deciding on prescription this period should be deducted in terms of section 16 of the Conciliation Boards Act and when
this is done the action is found to be fled before the expiry of two years and therefore the claim is not prescribed.
(2) There has been a breach of the duty to take care in the dasign and manufacture of the refrigerator and the finding of
the District Judge on negligence is supported by the evidence, The damages claimed are not excessive,
APPEALS from the Judgment of the District Court of Colombo. Page 1 of 7
H.W Jayewardene, Q. C. with Eric Amerasingho, P. C., with Miss P. R. Soneviratne, and Harsha Soza, for plaintt-
appeliant in appeal No. 270/78 and for the plaintif-respondent in cross-appeal No, 271/78,
HL. De Siva, F.C. with M. ives for the defendant-respondent in appeal No. 270/78 and for the defendant-appeliant in
cross-appeal No, 271/78.
CERTIFIED TRUE Copy OF’
Cur. adv. vult THEORIGINAL —{
May 3, 1986. ee
Eng.(Or) RMJB ¥:
Bath) mere ean 1
LLAUSU, Attomey
Gemimiosonar et ae
Naiba, Tuovizana bor
Potaera, Snankar B. E, DE SILVA, J. ’
The plaintitt-appeliant filed this appeal from the judgment of the leamed District Judge dismissing the plaintiff's action. The
plaintiff fled this action to recover from the defendant a sum of Rs. 260,000 being. the damages sustained by the plaintiff,
consequent upon injuries caused to the plaintiff as a result of the explosion of a refrigerator manufactured by the
defendant and purchased by the plaintiff's father
267
for household use. The plaintiff pleaded that the said explosion was due to the negligence of the defendant in fitting the
said’ refrigerator with a burner that was unsuitable and unsafe for a kerosene refrigerator. The plaintiff further pleaded that
there was a failure to take care n the “design and manufacture of the said refrigerator as set out in paragraph 7 of the
‘amended plaint which caused the explosion resulting in injuries to the plaintif. As an alternative cause of action the
plaintiff pleaded than the' said refrigerator was purchased. from the defendant through an agent and was sold by the
defendant though its agent to the plaintiff's father for the express purpose of being used by the members of the household
Including the plaintiff. The said refrigerator was not fit for the purpose for which it was manufactured, The said refrigerator
‘was of defective manufacture and dangerous for use and the plaintiff was injured and sustained damages.
‘The defendant resisted the plaintiffs claim for damages. After trial the leamed District Judge held that there was
negligence on the part of the defendant but dismissed the plaintiffs action on the gro tne iat the "said -clalm of the-
plaintiff was prescribed. The plaintiff has challenged the finding of the learned District Judge dismissing the ection and
filed this appeal. The defendant too has filed a cross appeal and challenged the finding of the leamed District Judge that
the defendant was gully of negligence and has moved that this finding be set aside and the appeal of the plaintiff be
dismissed.
tthe trial the plaintiff and her father gave evidence. The plaintiff also led the evidence of Professor Jayatillake, Professor
of Mechanica! Enginesring, Cet of Sr Lanka Peradeniya “Campus who had examined the Sarigeratr and a
mer ani ie report
inti also Ted the evidence of Dr. Joseph Femando, the Plastic Surgeon in regard
to the injuries sustained by the plaintiff.
‘The defendant on the other hand, led the evidence of Alagaratnam, a Consulting Engineer who had been a Research
Engineer looking’ after the Industrial Development in the Department of Industries and subsequently employed by Walker
Sons & Co. Lid,, as Chief Engineer and the evidence of Dr. Sunderalingam, Gnanalingam; Wijesundera, General
Manager of Glacio in support of the' defendant's case. Alagaratnam and Gnanelingam had performed certain experiments
‘and it was their, evidence that this explosion was not due to any
268
mechenical defect in design and manufacture ofthis refigerator as stated. It was the evidence of the witness that this
‘explosion could not have ocourred as set out by the plaintiff.
‘The plaintiff's evidence was that this. refrigerator was bought from the defendant in 1987 and functioned very satisfactorily
‘and was maintained by the plaintiff up to the time of her departure to India for a course of study in Home Science.
‘Subsequently she came back from India and this refrigerator functioned satisfactorily til a month before this explosion
‘occurred, It was her evidence that she filled the kerosene tank on a Sunday and it was properly functioning on the night of
15.6.71 with a blue flame. When ,she got up the following morning on the ‘6th ,there was a black smoke emitting from the
flue, She also noticed a yellow flame. She went to the refrigerator, bent down and opened the burner compartment and
suddenly there was an explosion and burning oil spurted on her body and burnt her causing disfiguration of the face and
ody, She was rushed to the General Hospital and admitted to the Intensive Care Unit in the Accident Ward. It was-only
In December, 1971 that her wounds had begun to heal, When the wounds healed she found she could not move her
ip had dropped and, could, not be brought up to the upper lip. She could not raise her upper, arm and
ull of these injuries she had to submit herseif to plastic surgery.
Dr. Fernando, Plastic Surgeon who examined her found the plaintif completely deformed, disfigured and disabled.
‘According to Dr. Femando she had to undergo. plastic surgery; about 33 times under anaesthesia. She has suffered
permanent :disfigurement of her face and her disfiguration is ireparable and the damages claimed by her are not
‘excessive. The plaintiff also led the evidence that she sought a settlement of this dispute in the Conciliation Board-but a
settlement was not possible and the Chairman of the Conciliation Board issued a certificate dated 4.9,73 which was
received on-6.9.73 enabling her to file action in respect. of her claim.
2
4 Professor Jayatillake a Professor of the University, of Sri Lanka (Peradeniya Campus in Mechanical Engineering
had been consulted by the plaintiff as to whether of not the explosion of-the refrigerator was' due to a mechanical
defect In Its manufacture, Professor Jayatiliake had visited the plaintiff's house and examined the refrigerator P
7.He had been given the tank.of the refrigerator P § and
the burner. and the burner to the tank. When the tank gets point. When the fuel reaches a temperature which is the flash
point of Kerosene, the vapour when mixed with ait forms an ignitable mixture within certain limits of flammablity, The
ignitable mixture of vapour and air whilst the refrigerator Js malfunctioning can escape only through the vent holes at the
aso of the burner. There was an ignitable mixture in the kerosene tank. This ignitable Mixture was lurking until the
morning. When smoke was noticed the plaintif had tug-opened the door of the burner which has a spring loaded catch ;
that tug caused a disturbance in the stable atmosphere.. When there was the disturbance of the air low, the flame spread
with overheating deflected. In the narrow tube there was the ignitable mixture which catches fire: and that was probably
how this explosion occurred.
In his report P3 he has stated that the kerosene tank. was- defective structurally. The tank has not been constructed 80 as
to contain any flame that may initiate inside it or be introduced to it from the bumer. The sheet metal baffles which are
fixed inside the tank to confine the flame to a portion between the edges and the sides and bottom of h tank are not