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RANACO EDUCATION & TRAINING

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LAW 243
COMMERCIAL LAW
COURSE OUTCOME

CO1. Students should be able to understand the principles of law


and regulations affecting business transaction ( PO 1 )
CO2. Students should be able to have the knowledge by relating to
the current cases at court ( PO 1 , PO 7 )
C03. Students should be able to understand the term used in the
legal environment of business ( PO 1 , PO 6 )
CO4. Students should be able to implement theoretical concept
into real cases ( PO 6 , PO 7 )

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CHAPTER 1
MALAYSIAN LEGAL SYSTEM
1.1 Definition of law
1.2 Classification of law
1.3 Sources of Malaysian law
1.4 Judicial system in Malaysia

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LESSON OUTCOME
By the end of this chapter, students should be able to:
1.Define the word law
2.Know the classification of law and its components in brief
3.Identify the sources of Malaysian law
4.Understand the judicial system in Malaysia

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SUBTOPIC 1:
DEFINITION OF LAW

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1.1

Activity:
Brainstorm

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Definition of law

What comes to
your mind when
you heard the
word
Law?

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CONTINUE
> Oxford Dictionary:
The system of rules which a
particular country or
community recognizes as
regulating the actions of its
members and which it may
enforce by the imposition
penalties.

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Source: Oxford dictionary

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CONTINUE
> Sir John Salmond
(1862-1924):
The body of principles
recognized and applied by
the state in the
administration of justice.

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Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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SUBTOPIC 2:
CLASSIFICATION OF LAW

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1.2

Classification of law

LAW

Public law
(individual+state)

Constitutional
law

Criminal
law

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International law
(state+state)

Public
international
law

Private
International
law

Private law
(individual+individual)

e.g. Law of
contract

e.g. Law
Of trust

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CONTINUE
Public law :
The law which governs the relationship between individuals and the
state.
Public law may be further subdivided into two categories i.e.
constitutional law and criminal law.
Constitutional law lays down the rights of individuals in the state. It
deals with questions such as supremacy of Parliament and rights of
citizens. It also covers areas dealing with state and federal powers.
Criminal law codifies the various offences committed by individuals
against the state. A crime is a wrong against the state for which
punishment is inflicted by the state.
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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CONTINUE
International law:
The law which governs the relationship between state and
state.
It may be subdivided into two categories:
1. Public international law
2. Private international law.

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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CONTINUE
Private law:
Private law concerned with matters that affect the rights and
duties of individuals amongst themselves.

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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SUBTOPIC 3:
SOURCES OF MALAYSIAN LAW

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1.3

Sources of Malaysian law

The main sources of Malaysian law are:


A.

B.

C.
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Written law (also referred to as statute law):


1.
Federal Constitution
2.
State Constitution
3.
Legislation
4.
Subsidiary legislation
Unwritten law:
1.
English law
2.
Judicial decision
3.
Customary law
Islamic law

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A.
1.

WRITTEN LAW

Federal Constitution:
- Supreme law of Malaysia
- Provides the powers of the
Federal & State Governments
- Provides fundamental
rights of individual

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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CONTINUE
2.

State Constitution:
- Regulates State Governments
- Contains provisions derived from 8th schedule of the
Federal Constitution

3.

Legislation:
- enacted by Parliament and the state assemblies
Act: laws made after 1957
Ordinances: - laws made 1946-1957
- laws in Sarawak

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Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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CONTINUE
4.

Subsidiary legislation:
- Laws made under any Acts, Enactments or
Ordinances
- Very important because specify the laws in more detail
and for everyday matters
- Example:
Parent Act (main law) : Hire-Purchase Act 1957
Subsidiary Legislation : Hire-Purchase
(Repossession) Regulation
- Subsidiary legislation made in contravention of either
parent Act or the Constitution is void.

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Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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B.
1.

UNWRITTEN LAW

English law:
- Applicable in the absence of local laws
- Suitable to local circumstances
English Commercial Law?

Section 5(2) of the Civil Law Act 1956, English commercial law
applies to Penang, Malacca, Sabah & Sarawak
If no local laws applicable
Today, many local laws dealing with commercial matters
e.g. Contracts Act 1950, Partnership Act 1961, Companies Act
1965

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Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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CONTINUE
2.

Judicial decisions:
- Judges decision
- Doctrine of binding precedent :
Not decide cases arbitrarily- must follow precedents
(previous decisions of similar situations). Each court is
bound by the decisions of courts of the same level or
higher than it in the same hierarchy of courts, whether or
not it believes a decision is correct.

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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CONTINUE
3.

Customary law:
- Customs practiced by local people
- Generally, customs relating to family law are given
legal force by courts in Malaysia-marriage, divorce,
inheritance
- Sabah and Sarawak: native customary laws apply
- Peninsular Malaysia:
Adat Perpatih - Malays in Negeri Sembilan & Naning in
Melaka
- land, lineage, election of rulers
Adat Temenggung - many states
- from Palembang, Sumatra

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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C.

ISLAMIC LAW

applicable to Muslims only, does not apply to non Muslims


family matters (marriage and divorce)
estate matters (inheritance, wasiat)

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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SUBTOPIC 4:
JUDICIAL SYSTEM IN MALAYSIA

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ASSIGNME
NT

1.4

Judicial system in Malaysia


FEDERAL COURT
COURT OF APPEAL
High Court in
Sabah & Swak

High Court in Malaya


Syariah Court

Native Court
Sessions Court

Syariah Court
Session Court

Juvenile Court
Magistrates Court

Juvenile Court
Magistrates Court

Penghulus Court

LAW 243 COMMERCIAL LAW

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.

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QUIZ
1.

The main sources of Malaysian law comprise: statute law,


unwritten law and Islamic law (True / False)

2.

The following are written law except:


a. Legislation enacted by Parliament and State Assemblies
b. Judicial decisions of the superior courts
c. Subsidiary legislation
d. State Constitutions

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CONTINUE
3.

Unwritten law also referred to as statute law (True / False)

4.

In Perak, Malacca, Sabah and Sarawak, English commercial


law at the date on which the matter has to be decided is
applicable in the absence of local legislation (True / False)

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CONTINUE
5.
6.

Judge decides cases arbitrarily without refer to


decided
cases (True / False)
The following statements are true except:
a. Federal Constitution provides fundamental rights of
individual
b. Judge must follow precedents (previous decisions
of
similar situations)
c. English law applicable in the absence of local
laws eventhough not suitable with local
circumstances
d. State Constitutions contains provisions derived
from 8th schedule of the Federal Constitution

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CONTINUE
7.

Subsidiary legislation made in contravention of either a


parent Act or the Constitution is voidable (True / False)

8.

Private law is the law which governs the relationship


between individuals and the state (True / False)

9.

Public law is the law which governs the relationship between


state and state (True / False)

10. Public law may be further subdivided into 2 categories:


constitutional law and criminal law (True / False)

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THANK YOU!

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