Introduction to Law

What is Business Law?

Business law deals with the creation of new businesses and the issues that arise as existing businesses interact with the public, other companies, and the government. Business law falls into two distinctive areas which are regulation of commercial entities by the laws of company, partnership, agency, and bankruptcy and the regulation of commercial transactions by the laws of contract and related fields. Business law is regulated by both state and federal law. The federal government primarily governs stocks and investments, workplace safety and employment laws, and environmental protections. In fact, business lawyers are often hired for the purpose of avoiding future litigation. 

Sources of Malaysia Law

The laws of Malaysia can be divided into two types of laws - written law and unwritten law. Written laws are laws which have been enacted in the constitution or in legislation. Unwritten laws are laws which are not contained in any status and can be fund in case decisions. This also knowns as common law or case law. 

Written Law

1. The Federal Constitution 

• is a supreme law of the land
• for example - fundamental rights of the citizens
• the rights written in the Constitution can only be changed by two-thirds majority of the total number of the legislature members 

2. The State Constitution 

• applies to all States in the Federation, each state also processes it own constitution regulating the government of the state which is 13 states in Malaysia 
• this includes matters concerning The Ruler, The Executive Council, The Legislature, The Legislative Assembly, Financial Provisions, State Employees, and Amendments of The Constitution

3. Legislation

• refers to law enacted by a body constituted for this purpose
• by Parliament and State Legislation Assemblies

4. Subsidiary Legislation 

• is very important as legislation is insufficient to provide the laws required to govern everyday matters
• is defied in the Interpretation Act as 'any proclamation, rule, regulation, order, notification made under any Ordinance or Enactment'
• for example - Yang di-Pertuan Agong, Ministers and Local Government Authorities

Unwritten Law

1. English Law

• Section 3 and Section 5 Civil Law Act 1956 stated the application of English Common Law and Equity in Peninsular Malaysia
• Section 3(1) (a) - West Malaysia apply common law and equity as administered in England on 7th April 1956
•  Section 3(1) (b) and (c) - apply the common law and equity together with statutes of general application as administered in England on 
• Sabah (1st December 1951)
• Sarawak (12th December 1949)
• Section 5(1), all states apply English Common Law including Statutes on 7th April 1956
• Section 5(2), Penang, Malacca, Sabah and Sarawak can use relevant and applicable English Common Law 

2. Judicial Decision 

• found in the judicial decision of the High Court, Supreme Court, and Federal Court and the advice of the Judicial Committee of the Privy Council 

3. Customs

• customs of the local inhabitants in Malaysia
• relating to family law like marriage, divorce and inheritance, are given legal force by the courts in Malaysia
• 'Adat' applies to Malays; prior to the enforcement of the Law Reform (Marriage and Divorce)
• Act 1976, Hindu and Chinese customary law applied to the Hindu and Chinese respectively.
• Sabah and Sarawak, native customary laws apply in land dealings over native customary lands and family matters 

Islamic Law

• is only applicable to Muslims only and does not apply to non-Muslims
• its administered in the Shariah Courts
• in business, particularly the areas of banking and finance, Islamic principle are increasingly relevant in leading and investment