Law00150 Asmt 1

LAW00150 – Introduction to Business Law

2013 - Assignment One

Assignment One

See Unit Information Guide for rules regarding submission.

Q1 3 Marks

Explain the rule of law.

In countries where the rule of law applies, no one is above the law. Citizens living under these laws are able to know whether an action is law abiding or not (Sweeney, O’Reilly, & Coleman, 2010).

Why should people in business prefer to operate in a country where citizens live under the rule of law to a country where the rule of law does not apply?

Operating in a country where the rule of law applies provides certainty. The law provides a framework for businesses to manage the risks and uncertainties of operating a business (Sweeney et al., 2010). In a country where the rule of law does not apply, there would be no certainty. With no limit to citizens’ behaviour and no avenue for redress, businesses would fail.

Q2 2 marks

What role does the Commonwealth Constitution play in the governance of Australia? (Explain the importance of the constitution)

To enable Australia to become self-governing, the British parliament passed the Constitution Act in 1900. On 1st January 1901 the Bill was proclaimed giving six states in Australia their own state parliament and the freedom to self govern. The constitution stipulates what powers the Commonwealth and each of the state parliaments hold in relation to the implementation of binding laws (Sweeney et al., 2010).

Q3 3 marks

Explain the division of power.

There are three powers that are divided between the states and the Commonwealth.

1. Exclusive: Only the Commonwealth has this power, which controls things such as the printing of money and defence.

2. Concurrent: Both the Commonwealth and states are able to pass laws. Where there may be two conflicting laws, one from the Commonwealth and the other from the state, the Commonwealth law will prove superior.

3. Residual: Covers the areas that are not...