Introduction to Law – Chapter1
(Categories and Sources of Law)

This chapter provides an overview of
some of the concepts and principles
which form the background to the topics
covered in the rest of the book.
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When you have studied this chapter you
should be able to:
 Appreciate the distinguishing features of a
legal rule
 Explain the characteristics of the law
 State its purposes
 Distinguish between civil and criminal law.
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What is Law?
 Categories of Law
 Sources of Law
 Brief Comparison of England and Bosnia
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There
is
a
strong
demand
for
economists/business students, particularly
those who combine technical skills with
good communication skills and team-work
ability.
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Administrative services managers plan,
coordinate, and direct a broad range of
services that allow organizations to
operate efficiently
Financial
managers
oversee
the
preparation of financial reports, direct
investment activities, and implement cash
management strategies.
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Advertising, marketing, promotions, public
relations, and sales managers coordinate
their
companies'
market
research,
marketing strategy, sales, advertising,
promotion, pricing, product development,
and public relations activities.
Financial analysts provide guidance to
businesses
and
individuals
making
investment decisions.
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Purchasing
managers,
buyers,
and
purchasing agents buy a vast array of farm
products, durable and nondurable goods,
and
services
for
companies
and
institutions
Accountants and auditors help to ensure
that firms are run efficiently, public
records kept accurately, and taxes paid
properly and on time.
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to provide a governmental structure and
legislative procedures: constitutional law
to provide public services and to raise
taxes to pay for them: administrative and
revenue law;
to regulate and promote the economy:
administrative, civil and criminal law are all
involved
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to promote public order and preserve
national security: criminal law
to give individual members personal rights
and duties in relation to others and to
enable personal enforcement of these
rights: the civil law
to give legal validity to approved
relationships and transactions between
members of the society
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To enforce morality
Maintains social control
Protects public order
To resolve disputes
Protects certainty of systems
Brings out justice in society
To protect citizens´ from the government
(e.g. Bill of Rights)
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To protect minorities from majorities
Setting standards of conduct behavior
To structure the government
(e.g. Constitution)
To resolve disputes peacefully, civilized
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Step on a bus!!! The law is there. You have
almost certainly entered into a contract to
pay the fare to your destination.
The bus is involved in an accident. The law is
ready to determine who is responsible for the
injury you sustained.
Your job, your home, your relationships, your
very life – and your death, all – and more –
are managed, controlled, and directed by the
law.
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ACTIVITIES
Took a bath
AFFECTED
BY LAW
Yes. Health
Law
Brushed teeth Yes. Food
and Drug
Laws
HOW
REASON
FOR THE
LAW
Water must be Health
clean
Toothpaste
Health
must not be
harmful to the
health
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ACTIVITIES
AFFECTED
BY LAW
Ate breakfast Yes. Food
Laws
Caught the
Yes. Traffic
bus to school Law
HOW
REASON
FOR THE
LAW
Food need to Health
be wholesome
The bus driver Safety
must have a
license
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to make a student aware about law
law is helpful in maintaining business in legal
ways
to make us aware of the legal issues
involving businesses and how to deal with
them
to have secured business: If a business is
found not to be in compliance with a law, it
could possibly be subject to very heavy fines!
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Law may be defined as a body of rules,
created by the state, binding within its
jurisdiction and enforced with the authority of
the state through the use of sanctions
A set of rules and procedures usually
intended to regulate some aspect of society
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Law provides rules
It tells us what we can and cannot do
Therefore,
it
is
important
for
a
businessperson to know the rules which
apply to them
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Different countries have different forms of
law and social order
In this module, we shall be looking at
some of the principles of English Law
However, many of these principles can be
found in other legal systems
◦ even if the details are different
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Law is a very large field, and it is common to
divide it into categories
 common law and civil law
 private law and public law
 civil law and criminal law
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A legal system is the way the law is
structured and operated in a country
◦ England and Bosnia have different legal systems

Common Law and Civil Law are terms used
to describe legal systems
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Common Law is used to describe legal
systems based on the English legal system
These are usually countries which were
once part of the British Empire
◦ eg: America, Australia, New Zealand
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Civil Law is used to describe legal systems
which are based on old Roman Law (from the
Roman Empire in what is now Italy)
eg: France, Germany
Bosnia and Herzegovina is usually classified
as a civil law system and it is based on Roman
Law
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
Common Law
Case law and the
courts are most
important source of
law

Civil Law
Consists of a legal
code of general
principles which is
the source of law
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Private Law and Public Law are concerned
with relationships
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Private Law deals with the relationships
between ordinary people in everyday
transactions
That includes you and me, as well as
businesses and companies
Private Law includes the law of contract
and the law of tort
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Individual
Individual
Law regulates relationship
between them
Examples
Contract and tort issues, employment
and company law, land, and equity and
trusts matters.
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Public Law deals with the relationships
between government organisations and
ordinary citizens
◦ also between different government organisations
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Public Law includes constitutional law,
administrative law, and criminal law
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State
State Bodies
Individual
Law regulates relationship
between them
Examples
Human rights matters, immigration and
citizenship, criminal law, planning law,
licensing law.
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In this category, “civil law” has a different
meaning from the Common Law and Civil
Law category
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In this category, civil law deals with the
relationships between individual citizens
Its purpose is to settle arguments between
individuals
It helps people to find remedies
◦ it doesn’t really punish people
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Civil Law includes all Private Law and some
Public Law
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Criminal Law deals with rules created by
the State which forbid certain behaviour
These are “crimes”
Criminal Law punishes people
◦ it does not provide remedies
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Criminal Law is usually what people think
of when they think about “The Law”
Criminal Law is part of Public Law
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A very important difference between
criminal law and civil law relates to court
cases
In a criminal case, the prosecutors (ie the
State) must prove their case beyond
reasonable doubt
In a civil case, the parties only have to
prove their case on the balance of
probabilities
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European Union
Domestic Legislation
◦ Constitutional Law
◦ Statutory Law
◦ Case Law
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The B&H is not a member of the European
Union
The EU has the power to create rules and
regulations which apply in its member
states
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Domestic legislation is created by
Parliament
It only applies to Bosnia and Herzegovina
◦ EU laws apply to all EU members
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Domestic legislation is introduced by the
government
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We said earlier that the B&H legal system is
a civil law system, so legislation is the
main source of law in B&H
However, the courts are still important as
they help to interpret the legislation
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Each piece of legislation is an Act of
Parliament
They are recorded in statute books which
anyone can refer to and publish in Official
Gazette
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Decisions of the courts can help to develop
and explain the law
Although legislation can overrule case law,
cases law can help to show the practical
effect of legislation
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The facts and decisions in important cases
are recorded in books called law reports
Lawyers refer to these when
◦ they advise their clients
◦ they are arguing their client’s case in court
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The Bosnian legal system has similar
characteristics to a civil law system
This is partly because in Bosnian history
written laws and codes were important
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The Bosnian legal system is distinct from
other legal systems, but its structure is
similar to civil systems like France and
Germany
Bosnian legal experts view legislation as
more important than case law
In fact, case law is not considered to be a
source of law in Bosnia and Herzegovina
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Sources of law in Bosnia and Herzegovina:
 Statutes made by the The Parliamentary
Assembly of Bosnia and Herzegovina
have the highest authority
◦ constitutional laws, civil codes, and criminal
codes
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Administrative regulations by the the
Council of Ministers of Bosnia and
Herzegovina cannot be in conflict with
statutes.
Cases are not considered official sources
of law, though decisions of the Appeal
Courts are used as a guideline by lower
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England
Common Law
system
Sources of Law
◦ European Union
◦ Domestic Legislation
◦ Case Law
Case Law important
in developing and
explaining the law.
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B&H
Civil Law System
Sources of Law
◦ Domestic Legislation
Case
Law
not
important.
Only
used
by
lower
courts when the law
is unclear.
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
Law
provides
rules
which
businesspeople
a
framework
conduction their business
give
for
◦ they know what they can and cannot do

Categories of law
◦ Common Law and Civil Law
 refer to legal systems
 England has a common law system
 Bosnia and Herzegovina has a civil law system
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Categories of law (cont.)
◦ Private Law and Public Law
 private law concerns individuals
 public law concerns institutions of state
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Categories of law (cont.)
◦ Civil Law and Criminal Law
 civil law deals with relationships between
individuals
 criminal law deals with forbidden behaviour
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Sources of Bosnian Law
◦ Domestic Legislation
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Chapter 1
◦ Page 3 : paragraph entitled “Getting Started: an
introduction to studying law”
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