legal environment of business in india

2. GROUP MEMBERS

4. The activity of making,
buying, or selling goods or
providing services in
exchange for money
Leads to innovation and
improvements in production
process- enriches the life

6. Relationship B/W Business And Its
Environment
• Survival and Growth of business will depend
upon its relations with all these interest
groups.
• Law and business are closely related
disciplines.

7. LEGAL ENVIRONMENT OF BUSINESS
• Law is an instrument of social justice of the state
that seeks to provide justice, stability and security
in the society.
• It assures uniform application of the laws by
regulating the behavior and interactions of
individuals against each other.
• Law is the command of the sovereign.. and it’s
body of rules recognized and enforced by courts
of law.
• Law is a rule relating to the actions of human
beings

8. Purpose of Law
Maintain status quo in society ensuring stability
and security of social order, enable individuals ,
maximum of freedom to assert themselves and
determine the sphere within which the
existence and activity of each individual will be
secure and free.

9. Advantages of law
• Principle of law provide uniformity and
certainty to the administration of justice.
• The existence of fixed principles of law avoids
the dangers of arbitrary, biased and dishonest
decisions.
• The fixed principles of law protect
administrators of justice from the errors of
individual judgment

10. THE CONSTITUTION OF INDIA
Preamble
WE, THE PEOPLE OF INDIA, having solemnly resolved to
constitute India into a SOVEREIGN SOCIALIST SECULAR
DEMOCRATIC REPUBLIC and to secure to all its citizens:
JUSTICE, social, economic and political
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and of opportunity;
and to promote among them
FRATERNITY assuring the dignity of the individual and the unity
and integrity of the Nation
IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of
November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO
OURSELVES THIS CONSTITUTION.

11. The preamble of the Indian Constitution
guarantees to its every citizen:
• Economic Justice
• Liberty of Thought, Expression, Belief, Faith
and Worship
• Equality of Status and of Opportunity

12. Fundamental Rights and Business
Th. The fundamental rights are superior to ordinary
laws. The six types of fundamental rights of the
constitution are as follows:
1. Right to Equality (Articles 14 to 18)
2. Right to Freedom (Articles 19 to 22)
3. Right against Exploitation (Articles 23 to 24)
4. Right to Freedom of Religion (Articles 25 to 28):
5. Cultural and Educational Rights (Articles 29 to
30)
6. Right to Constitutional Remedies (Article 32)

13. Constitutional Provisions Regarding Trade, Commerce
and Intercourse within the Territory of India
Articles 301 to 307 of Constitution of India deals
with the constitutional provisions regarding
Trade and Commerce. The framers of the Indian
Constitution were fully conscious of the
importance of maintaining the economic unity
of the Union of India.

14. • Article 301 encourags the free-flow of stream of trade
and commerce throughout the territory of India.
• Article 302 of Indian Constitution explains the power
of parliament to impose restrictions on trade,
commerce and intercourse.
• Article 303 deals with the restrictions on the legislative
powers of the Union and of the states with regard to
trade and commerce.
• Article 304 explains State’s power to regulate trade and
commerce
• Article 305 saves existing laws and laws providing for
state monopolies insofar as the president may by order
otherwise direct.
• Article 307 empowers parliament to appoint such
authority as it considers appropriate for carrying out
purposes of Articles 301, 302, 303 and 304.

15. THE RELATIONSHIP B/W GOVT AND
BUSINESS
• Free market : proposed that there should be little
or no formal relationship.
• Socialism : proposes action to ensure economic
equality.
• The Third Approach: proposes that the business
fully controlled by govt. would inherently lead to
inefficiency.
• The Current Relationship: today’s relationship is
neither laissez faire nor socialist
• Free market
• Socialism
• The Third Approach
• The Current Relationship

16. • Personal conduct &
lobbying.
• Forming trade union &
chamber of commerce.
• Large investment..
• Law & regulation.
• Govt agencies &
regulatory body.
• Trade policies