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School of Accountancy
ACCT 3151
Business Law
(First Term, 2016-2017)
INSTRUCTORS
Name:
Office Location:
Telephone:
Email:
Name:
Email:
Professor Martin Ko
martin.ko@graduate.hku.hk
TEACHING ASSISTANT
Name:
Office Location:
Telephone:
Email:
COURSE OBJECTIVE
This course seeks to provide an introduction to the institutions, doctrines and methodology
of the law in the business context. To this end, the course will begin with an examination
of the legal system of the Hong Kong SAR before proceeding to encompass a selection of
topics in business law such as the law relating to contract, torts, agency, employment and
the sale of goods.
Students can know the important rules of business law and the interaction between law
and business ethics at the end of the course. These rules concern how the courts deal with
business-related disputes in the real life. As many of the rules are designed to protect
consumers, students can in particular know more about consumers rights. In addition,
they can learn more analytical skills and writing skills which can help them to apply the
rules to do their assessments.
LEARNING OUTCOMES
After completing this course, students will be able to:
(1)
(2)
(3)
(4)
LEARNING ACTIVITIES
Lecture (including
in-class discussion /
presentation)
(hr)
in / out class
3
0
Lab / tutorial
(hr)
in / out class
0
Project / Case
discussion (hr)
in / out class
COURSE ASSESSMENT
Task nature
Coursework 1
Coursework 2
Examination
Weight
25%
25%
50%
COURSE SCHEDULE
Class
week
1
2-4
5
6-7
8
9
10
11
12
13
/ Date
See the dates
of
the
relevant
teaching
weeks
Topic
Requirement
ADDITIONAL INFORMATION
List of topics
Topics
Contents / fundamental concepts
The legal system of the Hong Kong The Basic Law, legislation, common law, equity
SAR
and the court system
Contract law
Employment law
Torts law
Negligence
Agency law
Topic One
A constitutional document provides for the basic political and legal systems of the
relevant country / region. The Basic Law provides for the basic political and legal
systems of Hong Kong. It tells us what laws are to apply in Hong Kong. They include,
under article 8 of the Basic Law,
a. Legislation
b. Common law, and,
c. Equity
What if a law contravenes the Basic Law?
No law can contravene the Basic Law (as the Basic Law is the constitutional
document)
The Basic Law has a human rights chapter (cap. 3). In this chapter, many rights are
provided, e.g. freedom of speech, personal liberty, freedom of association and
freedom of religion, etc.
The courts can declare a law to be invalid if it contravenes these rights as laid down
in the Basic Law. This power, called judicial review (), is based on the
common law tradition.
The local courts are given the power by the National Peoples Congress to interpret the
Basic Law: article 158(3). The Standing Committee ( ) of the National
Peoples Congress may also interpret the Basic Law or re-interpret the Basic Law after the
Court of Final Appeal have done so under article 158(1). This point has been confirmed in
Lau v Director of Immigration [1999] 4 HKC 731.
Note that the PRC legal system is not based on the common law tradition. So its judiciary
does not have the power to interpret the Chinese Constitution.
How can I find the Basic Law?
a. Enter the Hong Kong government website (http://www.gov.hk)
b. Click the Department of Justice link
c. Click the Laws of Hong Kong icon on the left side
d. Click the Basic Law icon
[C]
Legislation
A law made by the legislature (it is called the Legislative Council in Hong Kong).
The judges interpret legislations in Hong Kong. Examples of legislations that we are
going to learn in this course include: -
The literal rule (the judges interpret the legislations literally if their words are clear)
The purposive rule (the judges apply the intention and meaning behind the
legislations)
[D]
Equity rules are also court rules like the common law.
However, equity rules are fairer and more flexible than the common law rules.
For instance, as you would learn in caps 3 and 6, the remedy () under the common
law for breach of contract is an award of damages () covering the loss due to
the breach of contract (one example: if a buyer fails to pay for a flat as agreed, he has to
compensate the loss of profits to the seller). (Agreed 5M, now sell to another person for
4.8M, compensate 0.2M, costs of land agency, legal costs)
Under the law of equity, the victim of the breach of contract may also have the remedy of
rescission of contract ( ) (in the above example the seller can also end the
contract. Another example: if a seller has breached a sale of land contract, the buyer can
demand for refund) if he can satisfy some criteria based on fairness to be learnt in cap. 4.
(Water leakage in house, can return house for refund, not just take the award of damages
and forced to take the house)
How do we address the parties in court cases?
Plaintiff (), defendant (), appellant () and respondent ().
How can I find the Hong Kong court cases?
a. Enter the Hong Kong government website (http://www.gov.hk)
b. Click the Judiciary link
c. Click the Judgment icon on the top
d. Click the Search icon on the top / left
e. Enter the parties names, etc., that will lead you to the relevant court case.
Students are encouraged to check with textbooks and references to understand the
jurisdiction ( ) of each court / tribunal and whether they can hear cases on
appeal.
Civil Appeal
Superior Courts
Court of Appeal
High
Court
Court of First Instance
District Court
Inferior Courts
Magistrate Court
(criminal cases only)
Tribunals
(Factual disputes,
legal arguments in
other courts)
10